Last checked at 8 Jan 2007 07:00
FOR RELEASE 7.00AM 8 January 2007
Access Intelligence plc ("Access Intelligence" or "the Group")
"Software and computer services group providing critical and legislative driven
services to both public and private sectors on a recurring revenue basis" Trading Update * On track to deliver another year of excellent growth * Confident of meeting full year forecast * Net cash balances of ‚£1.046m at 30 November 2006 * Budgeting for another year of significant growth
The Board of Access Intelligence is pleased to provide the following trading update in advance of the results for 12 months ended 30 November 2006, which are expected to be announced in early March 2007.
The business is on track to deliver a year of excellent growth and we are confident that the results for the year will be in line with market expectations.
Within our compliance software division, our procurement software business Due North has performed relatively well despite extended deadlines in the public sector implementing e-sourcing as part of the government's drive to reduce public expenditure by ‚£20bn a year by 2007/8. We have now delivered our portal to the South East Centre of Excellence (SECE) which gives us direct access to the largest group of local authorities in England and Wales. We have started the process of selling our systems into the 74 authorities who sponsored the portal. This week we have received a three year contract from West Yorkshire Police Authority for an e-sourcing software suite, replacing the incumbent supplier, which further demonstrates our leadership in this field.
Our data storage and recovery division has performed well and has a good pipeline of opportunities going into 2007. Our focus for 2007 is in growing our customer base in both compliance software and data backup and recovery.
The acquisition made in late October of Management Services 2000 will take us into new areas in 2007 notably expanding our "virtual compliance officer" product suite in the financial services sector particularly the general insurance market.
We will be making significant investments in sales and marketing resource as well as finance and admin to ensure we have the foundation on which to continue to build our recurring revenues. We continue our policy of aggressive product development to ensure we have current solutions to market needs.
We had cash balances at the 30th November of ‚£1,046,442 and we continue to search for suitable acquisitions.
Commenting on the trading update, Jeremy Hamer, Chairman, said:
"I am encouraged by the momentum created during 2006, particularly in view of the slowdown in the public sector, and look forward to another year of significant growth."
-Ends- For further information:Access Intelligence plc
Jeremy Hamer (Chairman) 01904 520840
Brendan Austin (Chief Executive) 01904 520840
Colin Davies (Finance Director) 01904 520840
Cubitt Consulting
Brian Coleman-Smith /Leanne Denman / Allison Reid 020 7367 5100
Corporate Synergy Plc
Shane Gallwey / David Seal 020 7448 4400
Background Note
Access Intelligence is based in York with subsidiaries in Stockport, Greater Manchester, Chorley, Lancashire and Newcastle upon Tyne. Since the flotation on AIM in November 2003, the Group has made three acquisitions all of which have grown strongly since being acquired.
Who are we and what do we do?
Access Intelligence is a Software and Computer Services group of companies providing critical compliance and legislative driven services to both public and private sectors on a recurring revenue basis.
The team of Directors comprises Jeremy Hamer, Brendan Austin, Colin Davies and Ian Savage and has extensive experience in making successful acquisitions while simultaneously driving organic growth: in less than two years since flotation, Access Intelligence has acquired and successfully integrated three businesses in four different market segments.
The Group Today
Today, Access Intelligence is a Software and Computer Services based business. It harnesses the power of internet-based Information and Communication Technologies (ICT) to deliver vital information and support services. Specifically these are:
* Compliance software for the retail financial services sector * Data storage back-up and retrieval from high availability systems to online and offline services * Sourcing and procurement software for both buyers and suppliers in the public and private sectors * Electronic news and current awareness digests of Government initiatives, policies and finance affecting business, the professions and the public sector * Digital marketing services
The Business Model
The majority of the Group's income is from repeating revenues delivered through recurring contracts ranging between one and five years. This model provides excellent 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 growth potential that fit the revenue model while, at the same time, adding value to the Group's existing services.
The businesses acquired will have substantial autonomy to develop within budgets agreed with the Group Chief Executive and Finance Director, whilst benefiting from the experience and cross selling opportunities provided by being part of an expanding 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, including support staff. The Non-Executive Directors will continue to be involved in sourcing and evaluating potential acquisitions and monitoring the performance of the Group.
ACCESS INTELLIGENCE PLC