ACC.L Regulatory News (ACC)

4 Dec 2007 07:01

Access Intelligence PLC04 December 2007 FOR RELEASE 7.00AM 4 December 2007 ACCESS INTELLIGENCE PLC ("Access Intelligence" or "the Group") "Access Intelligence is a software and computer services group of companies providing business critical and legislative driven services to both public and private sectors on a recurring basis" RESULTS EXPECTED TO FALL SHORT OF BROKER'S FORECASTS * Slower than expected initial take up of MS2M's recently launched on-line compliance product * Continuing progress by Due North * Better second half performance from Willow Starcom * Year end cash in excess of £800,000 * Confident of an improved year-on-year performance in 2008 Due to a slower than expected initial take up on MS2M's recently launchedon-line compliance product, Access Intelligence plc will fall short of marketexpectations for the year ended 30th November 2007. Despite that the Group hasended the year with in excess of £800,000 in the bank. Operational developments include, the launch of the new web-based complianceservice by MS2M which has very recently been endorsed by the British InsuranceBrokers' Association (BIBA). Due North, the provider of e-sourcing software as a service solutions, hascontinued to grow its public sector business adding 29 new customers (net)during the year. It has secured its first overseas contract and has successfullybroken into the private sector in the UK. In data management Willow Starcom has seen a better second half performance andits run rate at the end of the year was ahead of management expectations. A poor year at MS2M and disappointing first half storage sales at Willow Starcomhave had a major impact on the year as a whole. The board are confident thatoperational efficiencies embarked upon in the second half plus the continuinginvestment in product development and sales resource will result in an improvedyear on year performance for the group in 2008. For further information: Access Intelligence plcJeremy Hamer (Chairman) 01904 520840Brendan Austin (Chief Executive) 01904 520840Colin Davies (Finance Director) 01904 520840 Blue Oar Securities PlcShane Gallwey 020 7448 4400 Cubitt Consulting Ltd Brian Coleman-Smith / James Verstringhe / Nicola Krafft 020 7367 5100 Background note Access Intelligence is a group of Software and Computer Services companiesproviding business critical compliance and legislative driven services to bothpublic and private sectors on a recurring revenue basis. Since the flotation onAIM in November 2003, the Group has made three acquisitions. The Group today Access Intelligence is based in York with subsidiaries in York, Stockport,Greater Manchester, Chorley, Lancashire and Newcastle upon Tyne. The company has two principal divisions which are: • Compliance software and services division: This includes a range of software including The Virtual Compliance OfficerTMwhich enables companies in the retail financial services sector to support theircustomer acquisition process whilst also ensuring that they comply with everincreasing regulations from the EU and the FSA. ProContractTM our suite of sourcing and procurement software streamlines andreduces costs of tendering and contract management for both buyers and suppliersin the public and private sectors. The government has the objective that allpublic sector bodies comply with its directive to use methods such as electronictendering for goods and services in order that it can meet its plannedreductions in public spending. • Data management division: The architecture and provision of high availability systems for mission criticalapplications that enable customers' data to be available at all times in theevent of computer failure. Backup & RunningTM our online offsite data storage and retrieval via secure datacentres. Email archiving. There is an ever increasing compliance emphasis driven byinitiatives such as Sarbannes-Oxley to ensure data is held appropriately and canbe retrieved easily when required. The business model The Group's income strategy is to build repeating revenues delivered throughrecurring contracts ranging between one and five years. This model providesexcellent visibility of future revenues and, with effective customer retention,outstanding gross margins over the longer term. The strategy for growth The strategy is to acquire businesses which have good management and high growthpotential that fit the revenue model while, at the same time, adding value tothe Group's existing services. The businesses acquired will have substantial autonomy to develop within budgetsagreed with the Group Chief Executive and Finance Director, whilst benefitingfrom the experience and cross selling opportunities provided by being part of anexpanding group of companies. New companies to the group can take advantage ofback office facilities where appropriate thus enabling them to concentrate onthe core activities of customer acquisition, service delivery and productdevelopment. At this stage of the Group's development, the Central Group Executive Team,which is based in York, will be kept to a maximum of four people, includingsupport staff. The Non-Executive Directors will continue to be involved insourcing and evaluating potential acquisitions and monitoring the performance ofthe Group. This information is provided by RNS The company news service from the London Stock Exchange