17th Jan 2022 10:36
(Alliance News) - Shares dropped in Access Intelligence PLC on Monday after warning that troubles and challenges in South East Asia will affect its profit and overall growth for the 2022 and 2023 financial years.
Shares in the London-based software-as-a-service products provider were 24% lower at 115.60 pence on Monday.
For the year ended November 30, the company reported a 23% rise in core annual contract value to GBP26.9 million due to new client wins in the second half, including BASF SE, Metro Bank PLC and Sony Music.
Including the Isentia acquisition, Access Intelligence's total annual contract value stands at GBP58.9 million.
For the period, revenue is expected to increase 73% year-on-year to GBP33.1 million from GBP19.1 million, with an adjusted loss before interest, tax, deprecation and amortisation of GBP500,000, swinging from a profit of GBP686,000.
Looking ahead, Access Intelligence said its business remains strong in North America and the Europe, Middle East & Africa region, with growth set to accelerate.
However, South East Asia markets have struggled to deal with the effect of Covid-19, made even worse by the Omicron variant. These issues have been affected Isentia's key markets of Singapore, Malaysia and Indonesia.
As a result, Ebitda and overall growth will be affected in 2022 and 2023.
"During 2021 Access Intelligence delivered strong growth in its core business and has completed a transformative acquisition in Isentia to take its market leading products to the international marketplace. The integration of Isentia is progressing well with new product offerings already being made available to customers in all markets," said Non-Executive Chair Christopher Satterthwaite.
"In the near term, the South East Asia region continues to confront the economic and social challenges brought about by the pandemic but Access Intelligence has an enviable market position and the board believes that the region will prove to be a growth opportunity when it starts to recover from its current challenges," Satterthwaite added.
By Dayo Laniyan; [email protected]
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