TIDMACC
RNS Number : 8016W
Access Intelligence PLC
24 August 2015
FOR RELEASE
7.00AM
24 August 2015
ACCESS INTELLIGENCE PLC
("Access Intelligence" or "the Group")
UNAUDITED INTERIM RESULTS
FOR
the six months ENDED 31 may 2015
Access Intelligence Plc (AIM: ACC), a leading supplier of
Software-as-a-Service (SaaS) solutions for the full life cycle
management of a company's governance, risk and compliance,
announces its unaudited half year results for the six months ended
31 May 2015.
Unaudited
Unaudited 6 months
6 months to 31
to 31 May
May 2015 2014*
(GBP'000) (GBP'000)
Continuing operations
Revenue 3,340 3,090
Adjusted EBITDA 30 (87)
Share Based Payments (18) (18)
EBITDA 12 (105)
Loss after tax (252) (158)
Profit for the period from discontinued
operations net of tax 641 94
Total profit/ (loss) for period
after tax 389 (64)
Continuing and discontinued operations
Basic profit/(loss) per share (pence) 0.17 (0.03)
Diluted /profit/(loss) per share
(pence) 0.16 (0.03)
Continuing operations
Basic loss per share (pence) (0.11) (0.07)
Diluted loss per share (pence) (0.11) (0.07)
*Restated - prior period comparatives have been restated to
disclose Willow Starcom Limited as a discontinued activity
Highlights:
-- Revenue from continuing operations increased to GBP3.3m (H1
2014 restated: GBP3.1m); reflecting a strong performance from
Access Intelligence Media & Communications ("AIMediaComms" or
"AIMC") with revenues of GBP1.4m (H1 2014: GBP1.1m)
-- Contracted revenue not yet invoiced from continuing
operations up 12% to GBP6.4m; (H1 2014 restated: GBP5.7m)
-- The sale of Willow Starcom Limited, formerly a wholly owned
subsidiary of Access Intelligence, was completed on 21 April
2015
-- Deferred revenue (excluding Willow Starcom Limited)
consistent with prior year at GBP2.5m (H1 2014 restated: GBP2.6m);
taking total revenue yet to be recognised in the income statement
to GBP8.9m (H1 2014 restated: GBP8.3m)
-- Recurring revenue from continuing operations of GBP2.8m up
11% (H1 2014 restated: GBP2.6m), being 85% (H1 2014 restated: 83%)
of total revenue from continuing operations
-- Total technical spend 42% of revenue (H1 2014: 50%)
-- Loss before taxation from continuing operations was
GBP252,000 (H1 2014 restated: loss GBP158,000)
-- Cash balance as at 31 May 2015 GBP1.7m (H1 2014: GBP1.1m)
following the proceeds from the disposal of Willow Starcom
Limited
Michael Jackson, Non-Executive Chairman, commented:
"Access Intelligence has had a good first half, with strong
performance at AIMediaComms being driven by a number of key blue
chip wins in the private sector. The Group also completed its
exceptional phase of investment in product innovation at the end of
H1 2015. The AITrackRecord and Due North products were released to
the market with significant interest, validated by new prospect
wins and existing customer migrations. Our Centre of Excellence in
York has proven pivotal to the creation of a scalable platform to
expand our reputation and position in the GRC marketplace."
Warning to shareholders
The Group understands that several shareholders have recently
been contacted by people claiming to be "brokers" based in the
United States of America expressing an interest in purchasing
shares in the Group. These "brokers" also claim that they are
acquiring a 51% stake in the Group and are in contact with the
Group about this investment. The Board can confirm that they have
had no contact with any parties regarding the sale of any part of
the Group, nor have they passed on the contact details of any
shareholders to third parties.
The Directors therefore urge shareholders in the Company to
exercise extreme caution if they receive any unsolicited
communication regarding their investment in the Group.
For further information:
Access Intelligence plc 0843 659 2940
Michael Jackson (Non-Executive Chairman)
Joanna Arnold (CEO)
Sanlam Securities
Simon Clements 020 7628 2200
Chairman's Statement
I am pleased to announce our results for the six months ended 31
May 2015, which demonstrate our continued growth in recurring
revenues. The results reflect our efforts to win new business in
the private sector to hedge our public sector revenues which
continue to be squeezed by spending cuts. The first half of the
year also marked the launch of the first of our new products,
enabling us to deliver an innovative, unified GRC software
offering. I am also pleased to announce the appointment of
Christopher Pilling as Non-Executive Director to the Board of
Access Intelligence. Mr. Chris Pilling is the Co-founder and Chief
Executive Officer of Frontier Market Intelligence Limited. Mr.
Pilling co-founded Complinet Limited in 1997 and serves as its
Chief Executive Officer. Mr. Pilling was the Co-Founder and Chief
Executive Officer of Complinet Group Limited. He has been the
Chairman of Advisory Group at Avoco Secure, Limited. since July 20,
2015. He has a wealth of experience in the development of online
software and services and the management of fast growing technology
businesses.
Results for the half
The Company's revenue from continuing operations increased to
GBP3,340,000 (H1 2014 restated: GBP3,090,000), an increase of 8.1%.
The majority of this growth in revenue has arisen in recurring
revenue which now makes up GBP2,835,000 or 85% of total revenues
(H1 2014 restated: GBP2,561,000 or 83%).
The Company's operating loss from continuing operations was
GBP157,000 (H1 2014 restated loss GBP106,000), which includes
charges of GBP170,000 for depreciation and amortisation (H1 2014
restated: GBP158,000) and GBP18,000 for share based payments (H1
2014: GBP18,000).
Cost of sales increased in line with revenue at GBP692,000 (H1
2014 restated: GBP598,000) and gross margin was 79% (H1 2014
restated: 81%).
Operating costs increased to GBP2,787,000 (H1 2014 restated
GBP2,580,000), and is a reflection of our continued spend on
development of our existing products, in particular
AIMediaComms.
The basic loss per share from continuing operations was 0.11p
(H1 2014 restated: loss 0.07p).
The Company had cash at the end of the period of GBP1,685,000
(H1 2014: GBP1,140,000).
Strategy
Access Intelligence is bringing to an end its investment
programme to drive product synergy, innovation and longevity.
During the first half of 2015 total spend on such activities was
42% of revenue (H1 2014: 50%). Total R&D and technical spend
was GBP1,742,000 (H1 2014: GBP2,081,000) of which we capitalised
software development costs of GBP974,000 (H1 2014: GBP762,000).
This programme brings all solutions onto a standardised platform
and enables Access Intelligence to deliver an enterprise
governance, risk and compliance solution, creating a springboard
for effective cross-sell and upsell across its brands.
As this project has progressed at the Centre of Excellence
("CoE") in York we have continued to bring on new clients in both
the public and private sectors across all brands. The SaaS business
model drives value for our customers and delivers a foundation of
long term stability and growth for our shareholders. This is
evident in the 12% increase in first half revenues that are
contracted but not yet invoiced at GBP6.4m (H1 2014 restated:
GBP5.7m). These factors combined have further meant that revenues
from continuing operations have increased 8.1% to GBP3,340,000 (H1
2014 restated: 3,090,000).
Amid the backdrop of ongoing restructuring and spending cuts in
the public sector, the Company has maintained a competitive
advantage largely due to our ability to consistently deliver
solutions that mitigate risk, reduce costs and improve
productivity. These capabilities extend into our growing presence
in the private sector where we are routinely selected for the ease
in which our products support customers' regulatory workflow and
reporting requirements.
The half year in focus
GRC Software Portfolio:
AIMediaComms: The first half of 2015 has seen excellent growth
in recurring revenues across all products and sectors, with strong
new business wins underpinned by very high client retention rates.
Over a third of billings have been in the private sector, with
additional success in the utilities, and trade and housing
associations. Our political monitoring service is providing
excellent upsell and new client wins, and the Social Media Newsroom
has been adopted by several global brands. Our strategy of
incorporating several teams within the communications function,
including media relations, public affairs and stakeholder
engagement is resonating well, increasing yield per client and
delivering strong results.
Due North: Due North continued to focus its efforts within the
public sector with key new market wins in central government and
education. The launch of the new product has been widely received
by its enviable customer base who are currently in user acceptance
testing and will migrate over the course of the second half of
2015. Feedback has been particularly strong around the improved
user experience, rich functionality and reporting capabilities to
assist them increase efficiencies at every level of local
government.
(MORE TO FOLLOW) Dow Jones Newswires
August 24, 2015 02:00 ET (06:00 GMT)
AITrackRecord: AITrackRecord received positive feedback at the
launch of its new product to industry experts, clients and
prospects in March 2015. The event was aimed at providing an
insight into the innovations delivered via the new solution which
will assist financial services organisations in tackling the
forthcoming regulatory challenges posed by the FCA. One month after
launch, it secured its first FTSE 100 financial services client
following a comprehensive analysis of competitors. Whilst
increasing its momentum in its core market of financial services,
new opportunities are beginning to arise in areas such as
manufacturing, oil and gas and logistics due to the capability of
the new platform. AITrackRecord looks forward to capitalising on
the early success of the platform and growing pipeline in 2016.
AIControlPoint: AIControlPoint continued to expand the industry
'community' that the brand has built amongst North Sea operators
and service companies. Diversification of market verticals has
proven essential in 2015 given the downturn in the hydrocarbon
industry and AIControlPoint has done well to land key new business
with a major group of airports, as well as expanding its footprint
within the airline and tour ops industries. The new product is
expected to launch in the second half of 2015 and will provide a
flexible and powerful solution, which will provide the Product Team
with the agility to react quickly to what is an ever-evolving
marketplace.
York Development Centre: H1 2015 marked the critical development
milestone for the new platform, which went through extensive
quality assurance with the teams building out the new products
using the configuration toolset. The platform is also being used
successfully to rapidly deploy bespoke solutions for customers
using configuration alone, proving the future scalability of the
business model for the Group.
Another key goal of the Centre of Excellence is to provide a
highly skilled pool of resource for the Group across a range of
disciplines. This has now been realised with strong processes and
efficient working practices through the adoption of Quality
Management System. As such we have submitted for ISO9001
accreditation. The central service desk has expanded to support
over 70,000 users globally across three of the major products
achieving customer satisfaction levels of 95%.
As a Microsoft Partner the CoE is moving all of its development
practices and hosting solutions to Microsoft Azure which will allow
AI to provide customers with lower cost, highly scalable and
resilient hosting.
Disposal of Willow Starcom Limited
The sale of Willow Starcom Limited was completed on 21 April
2015. Willow Starcom delivered infrastructure support and cloud
based IT services but was considered non-core to the Group as it
looked to scale its SaaS offering globally. The net cash inflow
received for the company amounted to GBP1,141,000 and resulted in a
profit on disposal of the company of GBP525,000.
Directors
On 16 June 2015 it was announced that Kole Dhoot, the Company's
Chief Financial Officer, had resigned with immediate effect, after
an extended period of absence. The Board announces today that two
Non-Executive Directors, Henrik Bang and Jeremy Hamer, are retiring
from the Board with effect from 1 October 2015, after a period of
handover. The Company thanks them for their contribution over the
years and wish them all the very best for the future.
The Board is today pleased to announce that Chris Pilling, has
joined the Board in a Non-Executive capacity. Further information
relating to his appointment is set out in note 3 below.
Current Trading
The first half of 2015 was focused on the successful delivery of
internal product development punctuated by the sale of Willow
Starcom Limited. The Group has built upon its strong position in
the public and private sectors, with H1 2015 contracted revenue not
yet invoiced up 12% to GBP6.4m (H1 2014 restated: GBP5.7m), and
recurring revenue now representing 85% of the total (H1 2014
restated: 83%). Professional Services revenues were depressed as a
result of resources being allocated to internal and non-revenue
generating projects to migrate customers onto the new products.
Our focus on product innovation and the integration of the
brands' functionality onto a unified platform is key to our long
term strategy and early feedback on the new software from current
and prospective customers has been very encouraging. The business
pipeline continues to grow with a number of exciting opportunities
on the horizon to deliver a combined product offering using the new
platform.
The consistent, year-on-year increases in contracted revenue not
yet invoiced, our recurring revenue base and sustained investment
in innovative product development, demonstrate the Group's long
term stability and provide a solid foundation for continued
growth.
Subsequent events
As of the 24 of June 2015, Access Intelligence completed the
acquisition of certain assets of both Cision UK Limited and Vocus
UK Limited (collectively, "C&V" and "Acquisition"). C&V are
the UK divisions of the Cision group, a global software provider to
the public relations and marketing industries. C&V are leading
providers of Integrated Management Solutions ("IMS") in the UK
market and currently support in excess of 1,500 SaaS customers on
predominantly annual contracts across a wide range of industries.
The Acquisition will provide Access Intelligence with a
comprehensive database of global media contacts, including detailed
information about new influencers in emerging digital media
channels, transforming the proposition of Access Intelligence
subsidiary AIMediaComms Limited ("AIMC") and creating an unrivalled
portfolio of communications software and services for the UK IMS
market.
As announced on 16 June 2015, the Group raised, from existing
shareholders and loan note holders, in aggregate GBP3.03 million
before expenses through the issue of 40,400,001 new ordinary shares
of 0.5p per share at a subscription price of 3p per share to raise
GBP1.21 million ("Subscription Shares") and the issue of GBP1.82
nominal 2015 loan notes ("2015 Loan Notes") ("Subscription"). The
net proceeds from the Subscription amounted to approximately GBP2.9
million, after expenses, and were applied as to GBP1.34 million to
satisfy the consideration for the Acquisition with the balance
being used for working capital and post-acquisition integration
costs.
Michael Jackson
Non-executive Chairman
Access Intelligence plc
Consolidated Statement of Comprehensive Income
for the 6 months ended 31 May 2015
There were no recognised gains and losses in the period, or in
prior periods, other than the results below
Restated
Notes Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31-May-15 31-May-14 30-Nov-14
GBP'000 GBP'000 GBP'000
Revenue 3,340 3,090 8,546
Cost of sales (692) (598) (2,368)
---------- ---------- ----------
Gross profit 2,648 2,492 6,178
Administrative expenses (2,787) (2,580) (6,163)
Share based payments (18) (18) (36)
---------- ---------- ----------
Operating loss (157) (106) (21)
Impairment of intangibles - - (798)
---------- ---------- ----------
Operating loss (157) (106) (819)
Financial income 1 1 1
Financial expenses (102) (58) (115)
---------- ---------- ----------
Loss before tax (258) (163) (933)
Taxation credit/(charge) 6 5 (149)
---------- ---------- ----------
Loss for the period from
continuing operations (252) (158) (1,082)
Profit for the period
from discontinued operations 641 94 -
---------- ---------- ----------
Profit/(loss) for the
period 389 (64) (1,082)
Other comprehensive - - -
income
Total comprehensive
profit/(loss) for the
period 389 (64) (1,082)
---------- ---------- ----------
attributable to the
owners of parent company
Earnings per share
Continuing and discontinued
operations Pence Pence Pence
Basic profit/(loss)
per share 2 0.17 (0.03) (0.46)
Diluted profit/(loss)
per share 2 0.16 (0.03) (0.46)
Continuing operations
Basic loss per share 2 (0.11) (0.07) (0.46)
Diluted loss per share 2 (0.11) (0.07) (0.46)
Consolidated Statement of Financial Position
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at 31 May 2015
Unaudited Unaudited Audited
At 31 At 31 At 30
May May Nov
2015 2014 2014
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 278 622 523
Intangible assets 8,581 8,452 8,406
Deferred tax asset 82 611 419
Total non-current assets 8,941 9,685 9,348
---------- ---------- --------
Current assets
Inventories - 144 142
Trade and other receivables 2,022 2,209 2,613
Current tax receivables 237 211 237
Cash and cash equivalents 1,685 1,140 1,144
Total current assets 3,944 3,704 4,136
---------- ---------- --------
Total assets 12,885 13,389 13,484
---------- ---------- --------
Current liabilities
Trade and other payables 790 1,103 1,526
Accruals and deferred income 3,082 3,690 4,050
Total current liabilities 3,872 4,793 5,576
---------- ---------- --------
Non-current liabilities
Trade and other payables - - 60
Interest-bearing loans
and borrowings 2,263 1,281 1,301
Deferred tax liabilities 593 694 956
Total non-current liabilities 2,856 1,975 2,317
---------- ---------- --------
Total liabilities 6,728 6,768 7,893
---------- ---------- --------
Net assets 6,157 6,621 5,591
---------- ---------- --------
Equity
Share capital 1,324 1,324 1,324
Treasury Shares (148) (148) (148)
Share premium 224 224 224
Capital redemption reserve 191 191 191
Share option valuation
reserve 356 349 338
Equity reserve 285 126 126
Retained earnings 3,925 4,555 3,536
---------- ---------- --------
Total equity attributable
to equity shareholders 6,157 6,621 5,591
---------- ---------- --------
Consolidated Statement of Changes in Equity
for the 6 months ended 31 May 2015
Share
Share Treasury Share Capital option Equity Retained Total
capital Shares premium redemption valuation reserve earnings
account reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Group
At 1 December
2013 1,324 (148) 224 191 331 126 4,618 6,666
Total
comprehensive
loss for
the period - - - - - - (63) (63)
Share-based
payments - - - - 18 - - 18
At 31
May 2014 1,324 (148) 224 191 349 126 4,555 6,621
-------- --------- -------- ----------- ---------- -------- ---------- --------
At 1 June
2014 1,324 (148) 224 191 349 126 4,555 6,621
Total
comprehensive
income/(loss)for
the period - - - - 7 - (1,019) (1,019)
Share-based
payments - - - - 18 - - 18
Tax reversal
relating
to share-based
payment - - - - (29) - - (29)
At 30
November
2014 1,324 (148) 224 191 338 126 3,536 5,591
-------- --------- -------- ----------- ---------- -------- ---------- --------
At 1 December
2014 1,324 (148) 224 191 338 126 3,536 5,591
Equity
element
of convertible
loan - - - - - 159 - 159
Total
comprehensive
income
for the
period - - - - - - 389 389
Share-based
payments - - - - 18 - - 18
At 31
May 2015 1,324 (148) 224 191 356 285 3,925 6,157
-------- --------- -------- ----------- ---------- -------- ---------- --------
Consolidated Statement of Cash Flow
for the 6 months ended 31 May 2015
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended
31-May-15 31-May-14 30-Nov-14
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit/ (loss) for the
period attributable to
equity shareholders of
the parent 389 (63) (1,082)
Adjustments for:
Taxation 20 - 149
Depreciation and amortisation 222 200 409
Impairment of intangible
assets - - 798
Share option valuation
charge 18 18 36
Profit on sale of Willow (552) - -
Starcom Limited
Financial income (1) (1) (1)
Financial expense 102 58 115
Loss on disposal of property,
plant and equipment - - 2
---------- ---------- -----------
Operating cash inflow
before changes in working
capital and provisions 198 212 426
Decrease/ (increase)
in trade and other receivables 184 (186) (590)
Decrease in inventories 8 24 26
(Decrease)/ increase
in trade and other payables (945) 342 1,192
---------- ---------- -----------
Net cash (outflow)/inflow
from operations (557) 392 1,054
Tax received - 126 356
---------- ---------- -----------
Net cash (outflow)/inflow
from operating activities (557) 518 1,410
---------- ---------- -----------
Cash flows from investing
in activities
Interest received 1 1 1
Acquisition of property,
plant and equipment (140) (100) (140)
Cost of software development (974) (762) (1,573)
Disposal of subsidiary 1,487 - -
Less: cash and cash equivalents (346) - -
disposed of
Net cash inflow/(outflow)
from investing activities 28 (861) (1,712)
---------- ---------- -----------
Cash flows from financing
activities
Interest paid (50) (38) (75)
Issue of loan notes 1,120 - -
Net cash inflow/(outflow)
from financing activities 1,070 (38) (75)
---------- ---------- -----------
Net increase/(decrease)
in cash and cash equivalents 541 (381) (377)
Opening cash and cash
equivalents 1,144 1,521 1,521
---------- ---------- -----------
Closing cash and cash
equivalents 1,685 1,140 1,144
---------- ---------- -----------
Notes
1. Unaudited notes
Basis of preparation and accounting policies
The condensed interim financial statements are unaudited and
were approved by the Board of Directors on 21 August 2015.
The interim financial information for the six months ended 31
May 2015, including comparative financial information, has been
prepared on the basis of the accounting policies set out in the
last annual report and accounts, with the exception of the
amendment to IAS 1 (Presentation of Financial Statements) referred
to below, and in accordance with International Financial Reporting
Standards ("IFRS").
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