RNS Number:0616J
Access Intelligence PLC
04 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 launched
on-line compliance product, Access Intelligence plc will fall short of market
expectations for the year ended 30th November 2007. Despite that the Group has
ended the year with in excess of #800,000 in the bank.
Operational developments include, the launch of the new web-based compliance
service by MS2M which has very recently been endorsed by the British Insurance
Brokers' Association (BIBA).
Due North, the provider of e-sourcing software as a service solutions, has
continued to grow its public sector business adding 29 new customers (net)
during the year. It has secured its first overseas contract and has successfully
broken into the private sector in the UK.
In data management Willow Starcom has seen a better second half performance and
its 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 Starcom
have had a major impact on the year as a whole. The board are confident that
operational efficiencies embarked upon in the second half plus the continuing
investment in product development and sales resource will result in an improved
year on year performance for the group in 2008.
For further information:
Access Intelligence plc
Jeremy Hamer (Chairman) 01904 520840
Brendan Austin (Chief Executive) 01904 520840
Colin Davies (Finance Director) 01904 520840
Blue Oar Securities Plc
Shane 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 companies
providing business critical compliance and legislative driven services to both
public and private sectors on a recurring revenue basis. Since the flotation on
AIM 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 OfficerTM
which enables companies in the retail financial services sector to support their
customer acquisition process whilst also ensuring that they comply with ever
increasing regulations from the EU and the FSA.
ProContractTM our suite of sourcing and procurement software streamlines and
reduces costs of tendering and contract management for both buyers and suppliers
in the public and private sectors. The government has the objective that all
public sector bodies comply with its directive to use methods such as electronic
tendering for goods and services in order that it can meet its planned
reductions in public spending.
* Data management division:
The architecture and provision of high availability systems for mission critical
applications that enable customers' data to be available at all times in the
event of computer failure.
Backup & RunningTM our online offsite data storage and retrieval via secure data
centres.
Email archiving. There is an ever increasing compliance emphasis driven by
initiatives such as Sarbannes-Oxley to ensure data is held appropriately and can
be retrieved easily when required.
The business model
The Group's income strategy is to build 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. New companies to the group can take advantage of
back office facilities where appropriate thus enabling them to concentrate on
the core activities of customer acquisition, service delivery and product
development.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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