(Alliance News) - Accesso Technology Group PLC on Wednesday said it swung to a loss in the first half of the year, pulled down by administrative expenses and a drop in revenue thanks to "slower than expected scaling".
Shares in Accesso were down 12% at 801.25 pence in London in afternoon trading.
The technology company, which focuses on the leisure, entertainment and cultural markets, reported a USD5.0 million pretax loss for the six months ended June 30, swinging from a USD1.4 million profit the year before.
Revenue fell 6.8% to USD50.7 million in the period, having been USD54.4 million the year before. This was below management expectations and followed "slower than expected scaling within distribution despite progress signing agreements" with clients.
Coupled with a 13% rise in administrative expenses to USD42.4 million from GBP37.6 million, this pushed the company into a loss.
For 2019 as a whole, Accesso is predicting revenue of between USD118 million and USD121 million, in line with the USD119.7 million revenue figure recorded for 2018. Between 2020 and 2021, the firm expects "overall low to mid-single digit revenue growth" and from 2022 double-digit organic revenue growth is forecast. Repeatable revenue is expected to be around 80% in 2019, rising to approximately 90% by 2022.
Chief Executive Paul Noland said: "Going into H2 the board is clear that we have the right strategy in place to deliver sustainable attractive organic growth in the medium term, while focusing on the reorganisation of our technology development teams, operating efficiency opportunities and redefining our go-to-market strategy."
Accesso Technology Group (ACSO)