ACC.L Regulatory News (ACC)

2 Dec 2005 07:00

Access Intelligence PLC02 December 2005 FOR RELEASE 7.00AM 2 DECEMBER 2005 Access Intelligence plc ("Access Intelligence" or "the Group") "An acquisition led support services Group which is starting to deliver strong organic growth" Pre-Close Trading Update * On track to deliver a year of excellent growth* Confident of meeting full year forecast* Net cash balances in excess of £600.000* Pipeline of potential acquisitions buoyant* Budgeting for another year of significant growth The Board of Access Intelligence is pleased to provide the following tradingupdate in advance of the results for 12 months ended 30 November 2005, which areexpected to be announced in February 2006. The Group continues to make good progress. The business is on track to deliver ayear of excellent growth and we are confident that the results for the year willbe inline with market expectations. The two acquisitions made in July of WillowStarcom and Due North are fully integrated into the group and performing toexpectation. We have integrated our on and off-line storage divisions into asingle unit within Willow Starcom which itself is creating additionalopportunities. Our procurement software business Due North has just made itsfirst sale into the private sector alongside its strengthening public sectorclient base. We still have net cash in excess of £600,000. and the pipeline of potentialacquisitions remains buoyant. We continue to target businesses offering supportservices to the business community in both the public and private sectors, withan emphasis on recurring revenues. Commenting on the trading update, Jeremy Hamer, Chairman, said: "I am delighted with the momentum created by the two recent acquisitions whichhas resulted in a strong finish to the year. With cash in the bank, and positiveoperational cash flows going forward, the future of the Group looks veryencouraging and I remain confident that we can look forward to another year ofsignificant growth." -Ends-For further information: Access Intelligence plcJeremy Hamer (Chairman) 01904 520840Brendan Austin (Chief Executive) 01904 520840Colin Davies (Finance Director) 01904 520840Beattie FinancialBrian Coleman-Smith / Nia Thomas 020 7053 6400 Background Note Who are we and what do we do? Access Intelligence is a group of companies delivering a range of businesscritical support services to private and public sector organisations.The team of Directors, Jeremy Hamer, Brendan Austin, Colin Davies, Ian Savageand Alwin Thompson, has extensive experience in making successful acquisitionswhile simultaneously driving organic growth: in less than two years sinceflotation, Access Intelligence has acquired and successfully integrated fivebusinesses in four different market segments. The Group Today Today, Access Intelligence is a technology-based Support Services Business. Itharnesses the power of internet-based Information and Communication Technologies(ICT) to deliver vital information and support services. Specifically these are: * Digital marketing services and business development support.* Online and offline data storage back-up and retrieval* Sourcing and procurement software for both buyers and suppliers in industry and local government* Electronic news and current awareness digests of Government initiatives, policies and finance affecting business, the professions and the public sector The Business Model The majority of the Group's income is from 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. 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