Access Intelligence - Trading Update
17/01/2022 07:00
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RNS Number : 5562Y Access Intelligence PLC 17 January 2022
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.
Access Intelligence plc
("Access Intelligence" or the "Company")
Trading Update
Access Intelligence (AIM: ACC), the technology innovator delivering
Software-as-a-Service (SaaS) solutions for the global marketing and
communications industries, announces an update on trading for the year ended
30 November 2021.
Year to 30 November 2021: a transformative year
Access Intelligence has seen growth in its core business accelerate, with
Annual Contract Value ('ACV') increasing by 23% compared to the prior year.
Furthermore, the transformative acquisition of Isentia in September 2021 has
provided both scale in the APAC market as well as broadening Access
Intelligence's platform for growth.
The Board expects total revenue for the financial year to be
approximately £33.1m (2020: £19.1m, 73% growth, 21% organic growth). It
is expected that Adjusted EBITDA loss will be approximately £0.5m, in line
with management's expectations. Net cash at 30 November 2021 was
approximately £13.0 million, significantly ahead of management's
expectations.
The Company's existing business excluding Isentia has delivered year on year
growth. Increased new business and higher renewal rates have underpinned an
increase in organic Annual Contract Value ('ACV') growth from £3.9m in 2020
to £5.0m for 2021. Total ACV at 30 November 2021 was approximately £26.9m,
compared to £21.9m at 30 November 2020.
New client wins in the second half include BASF, Byte, GivingTuesday, Jockey,
Mary Kay Inc, Metro Bank, Pfizer, Savills, Scope, Shelter, Siemens, Sony
Music, Starling Bank, TalkTalk and Twitch.
The integration of Isentia is progressing well, with a combined management and
financial structure across the Group and functional alignment initiatives that
are standardising how we operate as a single business. Progress has been made
in integrating product offerings, including collaboration between the
traditional media and social insight functions to enable us to bring new
products to market. The release of Pulsar into the ANZ market during Q1 2022
brings significant opportunity to enhance the value that Access Intelligence
provides to clients in the region.
Including Isentia's ACV of approximately £32.0m, total ACV for the Group at
30 November 2021 was £58.9m (30 November 2020: £21.9m, 169% year on year
growth, 23% organic year on year growth).
Outlook
Access Intelligence continues to have a strong core business in EMEA and North
America and expects growth in these regions to accelerate as they benefit from
the investments made in sales and marketing during 2021.
Prior to its acquisition, Isentia had seen ACV losses in Australia and New
Zealand as competitors entered the market. Commercial performance has now been
stabilised with no overall reduction in ACV in this region post-acquisition.
In the South East Asia markets, the impact of COVID-19 has been more severe
and longer lasting than anticipated, particularly in Isentia's key markets of
Singapore, Malaysia and Indonesia. This has been exacerbated by Omicron which
has seen countries in the region bring in further restrictive measures. Both
corporate customers and government departments have seen further pressure to
reduce spend which has resulted in an increase in cancelled or consolidated
contracts in the region.
As a result of the ongoing socio-economic climate in South East Asia and its
near term implications of higher than anticipated churn and delayed
opportunity to deliver new contract growth, the Board has revised its
expectations of revenue. In addition, the strengthening of Sterling against
currencies in the APAC region has resulted in a translational impact on
projected revenue.
The Directors anticipate that growth in the region will return once the
challenges of COVID-19 diminish and intends to continue to invest in
infrastructure in the region to ensure the Group is well placed to take
advantage.
Overall, the Board expects that the Group will continue to grow and will
deliver Adjusted EBITDA profitability as it strengthens its position in EMEA,
North America and ANZ. The current challenges in South East Asia will affect
the pace of overall growth and result in EBITDA being impacted in 2022 and
2023, but the Group has a robust ACV base of £58.9m, is seeing strong growth
in its core markets and has the infrastructure in place to take advantage of
any improvement in conditions in the South East Asia market.
Christopher Satterthwaite, Non-Executive Chairman of the Company, said:
"During 2021 Access Intelligence delivered strong growth in its core business
and has completed a transformative acquisition in Isentia to take its market
leading products to the international marketplace. The integration of Isentia
is progressing well with new product offerings already being made available to
customers in all markets.
The global market opportunity continues to grow as marketing and communication
budgets depend on the intelligence that the Group's products provide. Market
consolidation gives evidence of the essential requirement of real time data to
inform investment decisions in marketing and communication budgets.
In the near term, the South East Asia region continues to confront the
economic and social challenges brought about by the pandemic but Access
Intelligence has an enviable market position and the Board believes that the
region will prove to be a growth opportunity when it starts to recover from
its current challenges.
With an expanded footprint and an excellent suite of products, Access
Intelligence is well placed to take advantage of the global opportunity by
leveraging the model established in its core business and the market leading
innovation its products provide to global clients."
For further information:
Access Intelligence
plc 020
3426 4024
Joanna Arnold (CEO) / Mark Fautley (CFO)
finnCap Limited (Nominated Adviser and Broker)
020 7220 0500
Corporate Finance:
Marc Milmo / Kate Bannatyne / Fergus
Sullivan
Corporate Broking:
Alice Lane / Sunila de Silva
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