ACC.L Share News (ACC)

(Sharecast News) - Software company Access Intelligence said in an update on Thursday that during the six months through May, it achieved significant progress in line with its strategic objectives.

The AIM-traded firm said it was its first six-month period of annual recurring revenue (ARR) growth in the Asia-Pacific (APAC) region since acquiring Isentia.

Additionally, the Europe, Middle East and Africa (EMEA) and North America (NA) market also experienced continued ARR growth.

The group said it expected to report a substantial increase in momentum in ARR growth, with an estimated £1.4m growth in the period.

That represented a notable improvement compared to the ARR growth of £0.5m in the first half of 2022.

Total revenue for the period was anticipated to be no less than £31.3m - slightly lower than the £32.7m reported in the first half of 2022.

However, it noted that 95% of the group's revenue was recurring, up from 93% of total revenue in the first half of the prior year.

The group said it also expected adjusted EBITDA for the period to be no less than £2m, reflecting a significant year-on-year increase of £1.7m.

Access Intelligence attributed the positive results to the strategic actions taken over the past two years to optimise the business for profitable growth and generate free cash flow.

As a result, it anticipated higher adjusted EBITDA and cash generation in the second half, aligning with full-year expectations.

"As anticipated, the first half of the year has seen Access Intelligence deliver a significant increase in ARR growth, coming from all global regions and with the first period of ARR growth in APAC since the acquisition of Isentia," said non-executive chairman Christopher Satterthwaite.

"With the group's next generation platform being released into the APAC market during the third quarter, there is a considerable opportunity for the group to accelerate growth as both existing and potential customers in the region are able to benefit from Access Intelligence's market leading technology.

"In EMEA and North America, growth has continued with a focus on signing up new customers to take a wider range of the group's product offering at higher average order values."

Satterthwaite said the board remained focussed on the delivery of improved profitability and cash generation with a number of cost optimisation initiatives delivered to date, and with further focus on this during the remainder of the financial year.

"Overall, the board remains confident in the outlook for the group in the second half of the year and beyond."

At 1006 BST, shares in Access Intelligence were flat at 71.5p.

Reporting by Josh White for Sharecast.com.