21st Jul 2020 12:53
(Alliance News) - Access Intelligence PLC on Tuesday reported a strong increase in revenue in the first half of its financial, but with the second half posing "challenges" and "uncertainty".
In the half-year ended May 31, the public relations software firm's revenue increased by 52% to GBP9.4 million from GBP6.2 million prior year. Revenue increased by 10% to GBP6.8 million when excluding Pulsar, a 2019 acquisition that provides an audience intelligence and social listening platform.
Access Intelligence said its annual contract value base rose by 12% to GBP19.1 million.
The London-based company recorded an adjusted earnings before interest, tax, depreciation and amortisation loss in the first half of GBP147,000 compared to the prior year's profit of GBP379,000. It would have been profitable at the Ebitda level, at GBP573,000, excluding the loss by Pulsar.
Non-Executive Chair Christopher Satterthwaite said: "While the acquisition has reduced the group's gross margin and adjusted Ebidta in the short-term due to planned investment in sales and marketing to scale the business and leverage its fixed data costs, this investment has enabled Pulsar to deliver 18% annualised growth during the period."
Pretax loss was GBP2.9 million during the period, widened from GBP1.4 million a year prior.
Access Intelligence's cash balance was at GBP2.7 million at the end of the period compared to GBP1.8 million a year before.
The company said GBP1.0 million of its GBP1.1 million in Covid-19 cost savings will be realised in the second half of this year.
Access Intelligence was not immune to Covid-19 with sales being approximately 19% behind the board's expectations at June 30.
"Against a backdrop of global economic disruption prompted by Covid-19, the resilience shown by the group in delivering revenue growth of 52% to GBP9.4 million with ACV increasing by 12% to GBP19.1 million has been demonstrated," Satterthwaite said.
He continued: "While the second half of the year will present challenges with continuing uncertainty on the timing of new sales, the expanded product portfolio including Pulsar provides resilience and the board remain confident in the long term growth opportunities available to the group as we continue to seek new sector and territorial opportunities."
Access Intelligence shares were untraded on Tuesday afternoon in London, last quoted at 58.00 pence each on Monday.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
ACC.L