Accesso Technology Group PLC – PRELIMINARY RESULTS

accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider to leisure, entertainment hospitality, attractions and cultural markets, announces audited preliminary results for the year ended 31 December 2018.  

Highlights

• Continued growth with revenue of $118.7m representing an increase of 15.5% on 2017 revenue (proforma for IFRS 15) of $102.8m.
• Gross profit has increased 20.2% to $88.2m from $73.4m in 2017.
• Adjusted Operating Profit up 25.5% to $25.1m and adjusted EBITDA up 36.5%, against proforma comparatives, to $34.8m.
• Organic revenue growth, which excludes the impact of the 2017 acquisitions, of 7.8% reflects continued strong Ticketing and Distribution performance, which was up 18.3%, offset by an 11% decline in Guest Experience revenue due to weather and changing park visitation patterns.
• Transactional and Repeatable revenues grew 15.1% to $88.4m or 74.4% of total revenues.
• Major client activity continued with significant contract win with Marriott Hotels, renewal of our agreement with Cedar Fair and a strategic partnership with Village Roadshow Theme Parks.
• Current addressable market opportunity for the Group identified estimated to be as being in the region of $3.4bn.
• Decision taken to accelerate the investment required to evolve and broaden our range of solutions, unlocking additional cross-sell and up-sell potential within our installed base and allowing for more efficient development, support and service delivery.
• For 2019 we expect further strong growth in our transactional and repeatable revenues, partly offset by headwinds from non-recurring revenues, resulting in high single digit overall organic revenue growth, similar to 2018.

See footnotes below for definitions of non-statutory alternative reporting measures.
¹Unaudited information that adjusts the audited 2017 results to be comparable with 2018 as a result of the adoption of IFRS 15. Reconciliation included within the Financial Review
 ²Operating profit measures are based on reported profit numbers excluding acquisition expenses, amortisation of acquired intangibles, charges relating to any contingent element of acquisition consideration, and share based payments.
 ³Adjusted operating profit before depreciation and amortisation
⁴Adjusted cash generated from operations (cash from operations, adjusted for non-underlying items) as a percentage of Adjusted EBITDA
⁵Cash less Borrowings
⁶Adjusted for acquisition expenses, amortisation of acquired intangibles, charges relating to any contingent element of acquisition consideration, share based payments, net of tax effect, and the revaluation of US deferred tax assets and liabilities
⁷Audited number; all other numbers are unaudited

Commenting on the results, Paul Noland, Chief Executive Officer of accesso, said:

“2018 has been another year of global expansion at Accesso. Our progress continues to be driven by the variety of solutions we have to offer and our relentless focus on delivering excellent service and support.

We continue to integrate the 2017 acquisitions of TE2 and Ingresso, along with identifying and executing opportunities for integration across the Group’s entire portfolio of solutions.  As hoped, we saw increased demand for multiple applications at individual sites and have made positive strides in that direction.

Our customers are asking us to bring even more flexibility, integration and scalability to the products and services we offer. As such, and in order to accelerate future growth, we will invest where necessary to maintain our market leadership and to ensure we capitalise on customer demand for our products, as either an integrated or as an individual solution.”