Interim Results

RNS Number : 7602J

Accesso Technology Group PLC

14 September 2016

 

14 September 2016

accesso® Technology Group plc

("accesso" or the "Group")

INTERIM RESULTS

for the six-month period ended 30 June 2016

accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider to leisure, entertainment and cultural markets, today announces interim results for the six months ended 30 June 2016.  The first half numbers show strong year-on-year growth and are consistent with the Group achieving its aims for the year as a whole, notwithstanding the fact that full year performance will this year, as in prior years, remain significantly second half weighted. 

Financial Highlights

		Six months ended 30 June 2016		Six months ended 30 June 2015		% change		Year ended 31 December 2015
		$m		$m				$m
Revenue		39.7		32.1		23.7%		93.2
EBITDA		6.1		2.7		125.9%		14.6
Adjusted operating profit*		5.0		1.6		212.5%		12.6
Profit before tax		2.3		(1.1)				7.2
Cash generated from operations		2.2		(1.0)				14.7
Net debt**		12.5		18.8				9.4
Adjusted earnings per share - basic (cents)		15.74		4.37		260.2%		40.96
Earnings per share - basic (cents)		7.36		(3.46)				24.47

* Operating profit before the deduction of amortisation related to acquisitions, and share based payments (note 4)

** Cash and cash equivalents less borrowings

Operational Highlights

Starting as we mean to go on

o  Accelerating growth in key financial metrics driven by continued market traction, and supported by good weather 

o  1H revenue growth of 23.7%, adjusted operating profit up 212.5% and adjusted EPS up 260.2%.

o  57 new business wins and 72 new sites going live in the period across the business, with solution interoperability driving increased cross-selling

o  Merlin rollout continuing as planned, with major sites expected to have the accesso Passport® solution installed by the end of 2017

o  Extension of accesso Passport and accesso LoQueue^sm partnerships with Six Flags Entertainment Corporation through 2025

accesso LoQueue  - new year, new wins, new ideas

o  Two new queueing parks won in the first half - Denmark's LEGOLAND® Billund and Schlitterbahn Waterpark and Resort in Texas

o  Expanded opportunity reflected in total guest revenue up 31%, with revenue per guest up 3.3% indicating improving share of guest wallet

o  Queueless park trials continue to bring accesso's concept more clearly into view

o  Product investment and renewal remains a priority

accesso Passport - anchoring our growth in ticketing success

o  Total volumes up 31% with shift in mix towards mobile continuing, now at 37% compared with 22% in 1H 2015

o  Notable cross-selling wins with existing accesso Siriusware^SM clients at The Henry Ford Museum in Dearborn, Michigan and The Pacific Science Center in Seattle now live

o  A number of other accesso Siriusware attraction and ski resort customers are also in the process of converting to accesso Passport for eCommerce

o  Merlin roll-out driving geographic diversification reflected by European volumes now at 9% of total (1H 2015: 5%)

accesso Siriusware - maximising the cross-sell opportunity

o  accesso Siriusware now live at Blackpool Pleasure Beach - the first installation at a European client

o  11 new clients signed in the period, across ski, cultural and attraction operators and 9 sites going live

o  Interest for the accesso Siriusware product in the UK and Latin America has increased significantly with multiple, high-profile leads currently being pursued

o  Continued product development as new system administration module is completed

accesso ShoWare^SM - fully part of the accesso family

o  Rebrand completed in May 2016 finalising ShoWare's integration into accesso

o  41 new customers secured throughout the US, Mexico, Argentina, Canada and Brazil in the period and 39 sites going live for the first time

o  Longwood Gardens in Philadelphia became the first accesso Siriusware client to also select accesso ShoWare

o  Expansion into sizable sports market continues with our first major Mexican Football Club signed

Commenting on the results Tom Burnet, Executive Chairman of accesso, said:

"The first half of 2016 has seen Accesso win new business, extend market leadership and chart a course towards a successful full year.

We are now a long-term and trusted partner to many of the world's leading attractions operators. This places us in a very exciting position, with operators not simply using our technology but increasingly informing its evolution and even, in some cases, influencing the planning of new attractions.

The Group's strong performance in the first half reflects the work done last year to prepare Accesso for a period of accelerating growth. Although the first half of the year traditionally accounts for less than 40% of full year revenues and July and August have presented challenges with unhelpful weather conditions in some key markets, the early momentum gives the Board confidence that the Group is on track to meet its expectations for 2016."

Steve Brown, Chief Executive Officer, added:

"We have made significant strides forward over the past six months: with our products, with our technology and in our ever strengthening market position.  These developments do not happen in isolation.  They happen because of the efforts of our team and I would like to thank every Accesso team member for their energy and contribution.  As we move in to the second half, I know that this energy will continue to show through, as we push ahead with embedding the new business we have won and delivering the real, meaningful results our clients have come to expect."

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation

For further information, please contact:

accesso Technology Group plc	[phone]
Tom Burnet, Executive Chairman Steve Brown, Chief Executive Officer
John Alder, Chief Financial Officer
FTI Consulting, LLP	[phone]
Matt Dixon, Adam Davidson
Canaccord Genuity Limited	[phone]
Simon Bridges, Cameron Duncan
Numis Securities Limited	[phone]
Simon Willis, Mark Lander

About accesso^® Technology Group

accesso (AIM: ACSO) is the premier technology solutions provider to leisure, entertainment and cultural markets. Our patented and award-winning technology solutions drive increased revenue for attraction operators while improving the guest experience.

Our solutions add value to operators at every point of the guest experience with our technology facilitating the key points of contact with their many millions of guests.

We drive attendance

The accesso Passport^® and accesso ShoWare^SM ticketing suites are comprehensive, easy-to-use cloud solutions that process tens of millions of tickets every year for assigned seat and general admission venues, enabling operators to maximize up-sell and cross-sell with ease to drive greater revenue.

We handle payments

Our payment gateway carries level 1 PCI security certification and 24/7 support.  It provides the tools, security and support operators need to drive sales and has so far processed more than $5 billion in transactions.

We take guests out of line

Since 2001 more than 11 million guests have used a patented accesso LoQueue^SM solution to queue less, ride more, enjoy a better experience and increase in-attraction spend.

We simplify point-of-sale

Our accesso Siriusware^SM point-of-sale solution offers software modules that combine ticketing, membership, retail, food/beverage transactions, rentals, credit card processing and many other functions into a single system eliminating the need for separate systems and databases.

More than 1000 attractions and venues worldwide currently employ accesso technology - from theme parks, water parks, cultural attractions, live performance venues and sporting events to ski and snow parks.  We are proud that our solutions are trusted by the majority of the leading names in the leisure industry including Six Flags Entertainment, Cedar Fair Entertainment, Merlin Entertainments, International Speedway Corporation, Palace Entertainment, Compagnie des Alpes and Herschend Family Entertainment.

accesso is a public company, listed on AIM: a market operated by the London Stock Exchange. For more information visit: www.accesso.com.

Financial Review

accesso's financial performance during the first half of 2016 has been strong. With four fully integrated business lines under the accesso banner we are now able to address customer needs in a highly responsive way, tailoring solutions to individual requirements and meeting a range of challenges with a broad and complementary product suite. This breadth and flexibility is combined with a business model designed to generate high quality and repeatable revenue streams, derived principally through transaction-based agreements which help develop relationships that endure and expand over time.

The participative nature of such agreements ensures that each and every day is as important to accesso as the first, entrenching our commitment to continuous product development that allows our customers to maximise the opportunity before them. Helping our customers drive improved revenues in turn allows us to benefit from the higher value transactions we facilitate, reinforcing the sense of partnership we enjoy with our customers.  These partnerships are the foundation of a number of highly important and highly valuable long-term agreements that we have been able to sign in recent years. The success of this approach owes much to the excellent people we have working right across accesso, and I thank them for all of their efforts.

Key financial metrics

This is the first year since 2012 where there has been no benefit from acquisitions within the current period numbers. In line with previous years, however, the majority of accesso's revenue and the significant majority of our profit will be generated in the second half of the year. Therefore, while pleasing, the first half's performance should be viewed in the context of its lesser overall contribution to accesso's full year ambitions. 

The first half has seen accesso benefit from a combination of strong trading conditions owing to good weather and high attendances, a geographically diversified business and a high-quality suite of products. Group revenue in the first half was $39.7m, an increase of 23.7% year on year from $32.1m in 1H 2015. This included the benefit of two additional trading days in 1H 2016, increased implementation revenues, the continued drive by operators to upsell guests to season passes and the more favourable weather. The impact of foreign exchange movements on revenue was immaterial. The gross profit margin was 56.1% in 1H 2016, compared to 52.7% in 1H 2015, despite a slightly higher proportion of queueing revenue in 2016, as we benefited from improved margins on our non-queueing business.

Operating costs across the group increased 13% in the period (approximately 16% in constant currency) reflecting the investments in 2H 2015, the continued scale-up of the organisation generally, and particularly in Asia and Australia, where a new office has been opened in Sydney to serve a growing stable of around 20 customers, including attractions operated by Merlin Entertainments in that region.

Adjusted operating profit, which the Board considers a key underlying metric, increased by 212.5% to $5.0m (1H 2015: $1.6m), while profit before tax increased to $2.3m (1H 2015: Loss of $1.1m). Approximately $0.4m of this increase related to currency movements. It is not expected that currency will be a significant factor on a full year basis.

Adjusted earnings per share in the first half of 2016 increased 260.2% to 15.74 cents (1H 2015: 4.37 cents).

Capitalised development expenditure in the period was at $6.2m (1H 2015: $2.8m) owing to a significant accelerated programme of both hardware and software product development from which accesso will start to benefit later in 2017. The majority of the increase of this expenditure from 1H 2015 will be non-recurring.

Due to the seasonality of the business, the 1H period has traditionally been one which is not cash generative. Cash generated from operations was $2.2m (1H 2015: outflow $1.0m) and despite the significant increase in development expenditure, net debt increased for the six-month period by $3.1m to $12.5m from $9.4m at 31 December 2015, compared with an increase of $4.5m for the same period in 2015. Net debt did also benefit from a $2.1m inflow relating to share option exercises and a reduction in shares held in trust. 

As noted at the time of the 2015 preliminary results, to prepare the Group for the next stage in its development we renewed and extended our banking facility with Lloyds Bank on 14 March 2016. The extended facility provides the Group with a fixed drawdown facility of $25m, plus an additional $10m for potential M&A investments, all at an improved rate of 1.35% above LIBOR and an improved commitment rate. The facility terminates on 14 March 2019, with the possibility for this to extend for a further 12 months.

Tax

The Board expects the 2016 tax rate for the full year to be approximately 28% which is the rate that has been used within 1H 2016 (1H 2015: 28%). The Group continues to review and implement opportunities for maintaining or lowering its effective rate, while mindful of the fact that the majority of taxable income will continue to be generated in markets with significantly higher headline tax rates than the UK. 

Dividend

The Board maintains its view that the payment of a dividend is unlikely in the short to medium term with cash better invested in growth focused investment opportunities.

Operational Progress

Following a series of landmark agreements and a period of significant investment, the first half of 2016 has seen the first signs of an increase in accesso's operational capability flowing through to a step-change in the performance of the business.

We are particularly pleased to have extended our accesso Passport and accesso LoQueue relationships with Six Flags through the end of 2025. Our relationship with Six Flags, the world's largest Regional Theme Park Operator, has been built over many years and we are extremely proud and grateful that they should have chosen to extend our relationship further. Beyond that, a key area of focus has been to try to maximise the opportunity around cross and up-selling additional services to existing customers, thereby embedding accesso at the heart of operators' systems and future plans. While we continue to win new business with our market-leading solutions on a stand-alone basis, the work done to centralise our sales functions and harmonise our offering across the Group has allowed us to leverage the strength and versatility of our product suite, growing the number of same-site integrations and increasing awareness that operators and guests alike can benefit from using more than one accesso product or service at the same venue.

Our market-leading position has also started to see accesso act as a hub for the best and most innovative ideas in our industry. Our product development work continues to be driven by our customers' unique and varied functionality requirements, leading us to invest in developing solutions that are then incorporated into our systems on a non-exclusive basis to be shared by all accesso users. This approach ensures that our products continually incorporate the latest problem-solving ideas, increasing the differentiation of our product set and creating a cycle of positive change that enhances our market-leadership still further.

The impact of these important dynamics can be seen across our business portfolio, as laid out below:

accesso LoQueue

accesso's queuing business performed well in the first half, with two new parks added in the period. These were Denmark's LEGOLAND® Billund and the Texas-based Schlitterbahn Waterpark and Resort.  Across our entire enlarged estate we saw 1H queueing revenues increase by 31%, while revenue per guest, a metric important for describing accesso's ability to improve vendors' revenue generation, was up 3.3% on the first half of 2015.

Within accesso LoQueue we continue to pursue our ambition of helping operators create entirely queueless theme parks. accesso has long been focused on efforts to take guests out of line, improving the experience of a day at a leisure attraction for guests and offering operators the opportunity to increase their in-park spend per guest.  The concept of an entirely queueless park is the logical progression of this strategy, and each successful trial refines our thinking, demonstrates the capability of our solutions and brings us closer to achieving our ambition.

This drive towards queueless parks is also informing our approach to R&D within the queueing business. We remain committed to upgrading our product suite on a continuous basis, ensuring our queueing products have the most advanced functionality available. These efforts will enable accesso to accompany guests throughout an entire visit to any kind of venue; for example, by enabling new interaction and payments capabilities to supplement our traditional queueing technology. By overlaying these additional services on top of the core product we hope to increase the number of accesso touch-points with the customer and further embed our business at the heart of venues' operations.

accesso Passport

accesso's accelerating growth continues to be anchored in the success of accesso Passport, the comprehensive suite of solutions at the centre of our ticketing business. In the first half, revenue generation benefitted from ticket volumes up 31% reflecting strong organic growth in addition to the benefits of new business coming in to the Group, which includes the ongoing roll-out of our agreement to provide ticketing across the entire Merlin Entertainments portfolio. Venues now live include those in Japan, North America, Australia and parts of the UK (including London). Pleasingly, accesso Passport is also driving the geographical diversification of our business, with European volumes now at 9% of our total (1H 2015: 5%).

The strong growth in the proportion of our accesso Passport revenues derived from mobile transactions continues, now comprising 37% of the total (1H 2015: 22%). We continue to respond to signals from guests who prefer to shop in comfort, in their own time or while traveling to an attraction, and with any device they choose, by tailoring our eCommerce solutions accordingly. Our fully responsive Shopland 5.0 platform, launched in 2015, has not only allowed accesso to benefit from this trend but has helped us to actively shape how eCommerce is evolving in our industry.

Notable wins in the period also reflect our increasing ability to cross-sell our products and increase accesso's presence within single venues. The Henry Ford Museum in Dearborn, Michigan and The Pacific Science Center in Seattle both now utilise accesso Passport alongside the accesso Siriusware suite of point of sale and guest management solutions. Our first accesso Passport / accesso Siriusware integration is also now live in accesso Siriusware's core ski industry. We believe strongly in the logic and benefits of integrating accesso systems and will continue to focus our sales efforts on deepening and broadening existing relationships in this way.

Overall, accesso Passport continues to help drive the Group along its anticipated growth-path, providing new and high-quality revenue streams and delivering international and vertical expansion that is the engine of the latest stage of accesso's development.                 

accesso Siriusware

accesso Siriusware has also had a successful start to 2016 with 11 new customers signed in the period. Our point-of-sale and guest-management solution continued its Group-wide cross-selling success with the go-live of a large same-site integration with accesso LoQueue at Blackpool Pleasure Beach.  Blackpool deployed over 160 salespoints and uses accesso Siriusware in ticketing, membership, retail, food and beverage and reservations.  Initially signed in 2015, the Blackpool Pleasure Beach go-live marks an important extension of an existing long-term relationship with an iconic UK venue, and demonstrates the value accesso Siriusware can add at a variety of venues.

Pleasingly, interest for the accesso Siriusware product in the UK has increased in 2016 with multiple, high-profile leads currently being pursued and we are hopeful of adding a number of clients in the next 12 months.  Similarly, accesso Siriusware is also making gains in Latin America with interest from significant attractions in that region as well.

Product development remains a key priority and a new version of the accesso Siriusware database management tool, Siriusware Control, has been completed in the period.  The new version is now in testing and will be rolled out to clients in the fourth quarter of 2016.

accesso ShoWare 

On 5 May 2016, ShoWare was rebranded as accesso ShoWare to reflect its full integration into the wider accesso family. The accesso ShoWare SaaS platform allows operators to manage all aspects of their advanced ticket sales, with options for call centre ticket sales, mobile ticketing, online ticketing and social ticket sales through Facebook pages.

Specifically focussing on assigned-seat venues, accesso ShoWare has continued its rapid expansion in the first half, securing 41 new contracts with attractions and promoters throughout the US, Mexico, Argentina, Canada and Brazil. In addition, accesso ShoWare is also now live at Longwood Gardens in Philadelphia, making that venue the first accesso Siriusware client to also select accesso ShoWare.  

It has been our privilege to sell tickets for a number of major artists during the period, including Selena Gomez, Andrea Bocelli & Ricky Martin. We are also delighted to have secured our first major league Mexican soccer team as a client and see large opportunities to expand our business in this space.

Board Changes

In May 2016 we announced that certain changes would be made to the structure and composition of accesso's Board. With Tom Burnet moving from CEO to Executive Chairman and Steve Brown assuming the role of CEO, accesso has succeeded in ensuring its Board better reflects the way in which the Group is already run, enabling the Group to continue to pursue effectively the growth opportunities open to it and ensuring that the location of key leadership roles reflects the geographic spread of the Group's workforce and operations.

John Weston stepped down from his role as Non-Executive Chairman of the Group, but will continue to remain involved in the Group as the Senior Independent Director. The Board would like once again to thank John for his contribution to accesso since 2011. Other Board changes include the appointment of Karen Slatford as Non-Executive Director, replacing Matt Cooper, and as noted at the time of the 2015 preliminary results, Leonard Sim also stepped down in the period and has now retired from the business.

Current Trading & Outlook

The Group's strong performance in the first half reflects the work done last year to prepare accesso for a period of accelerating growth. Although the first half accounts for a lesser proportion of full year revenues and profits than the second, and July and August have presented challenges on account of unhelpful weather conditions in some key markets, the early momentum gives the Board confidence that the Group is on track to meet its expectations for 2016.

This trading position, the highly repeatable revenue model that we have implemented, and the trust we have developed with leading global operators to give them the confidence to enter into long term commitments, offers enviable revenue visibility that gives the Board comfort that the Group has the opportunity to deliver sustainable growth in future periods.

We also continue to evaluate opportunities for further M&A activity.  Having made 3 acquisitions between 2012 and 2015, we have spent 18 months or so carefully integrating the businesses into the organisation we have today.  Looking ahead, we see further opportunity to deliver our strategic ambitions through well executed M&A activity.

It has become commonplace in recent months for companies to comment on how the decision by Britain to leave the European Union may affect their businesses. For accesso, with over 90% of revenue generated outside of the UK and a relatively balanced exposure to sterling generally, we believe any impact will be minimal, but we nevertheless continue to monitor developments closely.

 

Consolidated statement of comprehensive income

for the six month period ended 30 June 2016

				Six months		Six months
				ended		ended
				30 June 2016		30 June 2015
				$000		$000
Revenue				39,680		32,098
Cost of sales				(17,425)		(15,168)
Gross profit				22,255		16,930
Administrative expenses				(19,802)		(17,753)
Operating profit / (loss)				2,453		(823)
Finance expense				(201)		(236)
Finance income				2		5
Profit / (loss) before tax				2,254		(1,054)
Income tax (charge)/credit				(631)		295
Profit / (loss) for the period				1,623		(759)
Other comprehensive income
Items that will be reclassified to the income statement
Exchanges differences on translating foreign operations (2015 restated - note 1)				(705)		500
Other comprehensive (loss) / income for the period, net of tax				(705)		500
Total comprehensive income / (loss) for the period				918		(259)
Profit / (loss) attributable to:
Owners of the parent				1,633		(784)
Non-controlling interest				(10)		25
				1,623		(759)
Total comprehensive income / (loss) attributable to:
Owners of the parent				928		(284)
Non-controlling interest				(10)		25
				918		(259)
Earnings per share expressed in cents per share:
Basic				7.36		(3.46)
Diluted				7.05		(3.46)

All activities of the company are classified as continuing

Consolidated statement of financial position

as at 30 June 2016

	30 June 2016		31 December 2015
	$000		$000
Assets
Non-current assets
Intangible assets	74,930		71,924
Property, plant and equipment	3,051		3,077
Deferred tax	5,665		5,666
	83,646		80,667
Current assets
Inventories	670		561
Trade and other receivables	11,927		9,080
Tax receivable	952		878
Cash and cash equivalents	6,570		5,307
	20,119		15,826
Liabilities
Current liabilities
Trade and other payables	8,780		9,181
Finance lease liabilities	52		51
Corporation tax payable	549		84
	9,381		9,316
Net current assets	10,738		6,510
Non-current liabilities
Deferred tax	8,289		8,850
Finance lease liabilities	37		63
Borrowings	19,036		14,700
	27,362		23,613
Total liabilities	36,743		32,929
Net assets	67,022		63,564
Shareholders' equity
Called up share capital	299		326
Share premium	22,959		24,313
Own shares held in trust	(892)		(1,971)
Other reserves	3,639		3,427
Retained earnings	21,593		21,033
Merger reserve	12,499		13,810
Translation reserve	6,933		2,624
Total attributable to equity holders	67,030		63,562
Non-controlling interest	(8)		2
Total shareholders' equity	67,022		63,564

 

Consolidated statement of cash flows

for the six month period ended 30 June 2016

	Six months		Six months
	ended		ended
	30 June 2016		30 June 2015
	$000		$000
Cash flows from operations
Profit / (loss) for the period	1,623		(759)
Adjustments for:
Amortisation on acquired intangibles	2,117		2,117
Amortisation on development costs	850		843
Depreciation and amortization on other fixed assets	662		518
Share based payment	448		270
Finance expense	201		236
Finance income	(2)		(5)
Income tax expense / (credit)	631		(295)
	6,530		2,925
Increase in inventories	(109)		(389)
Increase in trade and other receivables	(2,968)		(3,164)
Decrease in trade and other payables	(1,010)		(650)
	2,443		(1,278)
Cash generated from operations
Tax (paid) / received	(275)		315
Net cash inflow / (outflow) from operating activities	2,168		(963)
Cash flows from investing activities
Purchase of intangible fixed assets	(6,198)		(2,798)
Purchase of property, plant and equipment	(746)		(449)
Interest received	2		5
Net cash used in investing activities	(6,942)		(3,242)
Cash flows from financing activities
Share Issue and sale of shares held in trust	2,092		25
Interest paid	(182)		(236)
Payments to finance lease creditors	(22)		(23)
Proceeds from borrowings	5,316		2,075
Repayment of borrowings	(1,000)		-
Net cash generated from financing activities	6,204		1,841
Increase / (decrease) in cash and cash equivalents in the period	1,430		(2,364)
Cash and cash equivalents at beginning of year	5,307		5,693
Exchange loss on cash and cash equivalents	(167)		(63)
Cash and cash equivalents at end of period	6,570		3,266

Consolidated statement of changes in equity

for the six month period ended 30 June 2016

		Share capital	Share premium	Retained earnings	Merger reserve	Other Reserves	Own shares held in trust	Translation reserve		Total attributable to equity holders		Non-controlling interest		Total
		$000	$000	$000	$000	$000	$000	$000		$000		$000		$000
Balance at 31 December 2015		326	24,313	21,033	13,810	3,427	(1,971)	2,624		63,562		2		63,564
Comprehensive Income for the year
Profit for period		-	-	1,633	-	-	-	-		1,633		(10)		1,623
Exchange differences on translating foreign operations		-	-	-	-	-	-	(705)		(705)		-		(705)
Total comprehensive income for the year		-	-	1,633	-	-	-	(705)		928		(10)		918
Contributions by and distributions by owners
Issue of share capital		3	953	-	-	-	-	-		956		-		956
Reduction  of shares held in trust		-	-	244	-	-	892	-		1,136		-		1,136
Share based payments		-	-	-	-	448	-	-		448		-		448
Exchange differences on opening balances		(30)	(2,307)	(1,317)	(1,311)	(236)	187	5,014		-		-		-
Total contributions by and distributions by owners		(27)	(1,354)	(1,073)	(1,311)	212	1,079	5,014		2,540		-		2,540
Balance at 30 June 2016		299	22,959	21,593	12,499	3,639	(892)	6,933		67,030		(8)		67,022
Balance at 31 December 2014		342	25,229	16,236	14,540	2,593	(2,076)	22		56,886		-		56,886
Comprehensive Income for the year
Profit for period		-	-	(784)	-	-	-	-		(784)		25		(759)
Exchange differences on translating foreign operations - restated		-	-	-	-	-	-	500		500		-		500
Total comprehensive income for the year		-	-	(784)	-	-	-	500		(284)		25		(259)
Contributions by and distributions by owners
Issue of share capital		-	25	-	-	-	-	-		25		-		25
Share based payments		-	-	-	-	270	-	-		270		-		270
Items that will be reclassified to income statement										-				-
Exchange differences on opening balances - restated		3	225	71	130	18	(19)	(428)		-		-		-
Total contributions by and distributions by owners		3	250	71	130	288	(19)	(428)		295		-		589
Balance at 30 June 2015		345	25,479	15,523	14,670	2,881	(2,095)	94		56,897		25		56,922

Notes to the Interim Statements

1.   Basis of preparation

accesso Technology Group plc (the "Group") is a company domiciled in England.  The basis of preparation of this financial information is consistent with the basis that will be adopted for the full year accounts which will be prepared in accordance with IFRS as adopted by the European Union.

While the financial figures included in this half-yearly report have been computed in accordance with IFRS applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.

This interim financial information has neither been audited nor reviewed pursuant to guidance issued by the FRC and the financial information contained in this report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The period to 31 December 2015 has been extracted from the audited financial statements for that period.

Having considered the principal risks and uncertainties as presented in the 31 December 2015 audited financial statements, and those additional risks and uncertainties disclosed below, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis in preparing the half-yearly financial information.

Restatement of other comprehensive income

The 30 June 2015 consolidated statement of comprehensive income and statement of changes in Group equity have been restated to remove from other comprehensive income exchange gains predominantly arising on the retranslation of the parent company's equity from sterling (its functional currency) into US Dollars (the Group's presentational currency). This retranslation difference has instead been recognised directly in equity. The exchange gain recognised in the consolidated statement of comprehensive income now includes only the net exchange differences arising on the retranslation of the recognised assets, liabilities and profit of the Group's non-US Dollar functional currency operations. The restatement has had no effect on the consolidated statement of financial position.

2.   Accounting policies

The condensed consolidated interim financial information has been prepared using accounting policies consistent with those set out on pages 30 to 36 in the audited financial statements for the period ended 31 December 2015.  These accounting policies have been applied consistently to all periods presented in this financial information. 

3.   Taxation

The tax expense for each period has been calculated on the expected annual effective rate. The adjusted earnings per share (note 5) for the six months ended 30 June 2016 has been presented using an estimated effective rate for the period.

4. Reconciliation of profit / (loss) before tax to adjusted operating profit

		Six months		Six months		Year
		ended		ended		ended
		30 June 2016		30 June 2015		31 December 2015
		$000		$000		$000
Profit / (loss) before tax		2,254		(1,054)		7,220
Finance income, net		199		231		488
Amortisation relating to acquisitions		2,117		2,117		4,235
Share based compensation		448		270		629
Adjusted operating profit		5,018		1,564		12,572

5.   Earnings per share ("EPS")

The calculation of the basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. 

Diluted earnings per share is calculated by dividing the profit / (loss) attributable to ordinary shareholders by the weighted average of ordinary shares outstanding during the period adjusted for the effects of dilutive instruments. As the Group made a loss for the period to 30 June 2015, the diluted earnings per share for that period are equal to the basic earnings per share.

Adjusted earnings per share is calculated by dividing the profit / (loss) attributable to ordinary shareholders adjusted for costs related to the amortisation on acquired intangibles, and share based compensation, net of tax effects, by the weighted average number of shares used in basic EPS.

	Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
	$000		$000		$000
Profit / (loss) attributable to ordinary shareholders	1,623		(759)		5,369
Basic EPS
Denominator
Weighted average number of shares used in basic EPS	22,040		21,928		21,942
Basic earnings per share - cents	7.36		(3.46)		24.47
Diluted EPS
Denominator
Weighted average number of shares used in basic EPS	22,040		21,928		21,942
Effect of dilutive securities	967		N/a		910
Weighted average number of shares used in diluted EPS	23,007		21,928		22,852
Diluted earnings per share - cents	7.05		(3.46)		23.50
Adjusted EPS
Profit / (loss) attributable to ordinary shareholders	1,623		(759)		5,369
Adjustments to profit / (loss) for the period:
Amortisation relating to acquired intangibles from acquisitions	2,117		2,117		4,235
Shared based compensation	448		270		629
	4,188		1,628		10,233
Tax relating to above adjustments: (2016: 28%; 1H 2015: 28%; FY 2015: 25.6%)
Amortisation relating to acquired intangibles from acquisitions	(593)		(593)		(1,084)
Shared based compensation	(125)		(76)		(161)
Adjusted profit attributable to ordinary shareholders	3,470		959		8,988
Denominator
Weighted average number of shares used in basic EPS	22,040		21,928		21,942
Adjusted earnings per share - cents	15.74		4.37		40.96

6.   Dividend

No dividend has been proposed or recommended during the period. The Board maintains the view that the payment of a dividend is unlikely in the short to medium term with cash better invested on growth-focused investment opportunities.

 

END

 

 

IR SFIEEDFMSEDU