Accesso swings to statutory loss despite improved revenue

Leisure and entertainment sector technology provider Accesso reported a 3.2% revenue increase in its interim results on Tuesday to $65.78m.

The AIM-traded firm said there was a decrease in ticketing and distribution revenue of 1.2% to $43.76m, while guest experience revenue jumped 13.2% to $22.02m.

When adjusted for constant currency, group revenue stood at $66.6m, making for growth of 4.5%.

The company posted a gross profit of $48.33m, up 2.8%, and a gross margin of 73.5%, down 30 basis points year-on-year.

Despite those positive indicators, Accesso reported a statutory loss of $0.84m, swinging from a profit of $2.92m in the first six months of 2022.

In the first half, Accesso said there was a 14.3% increase in revenue for Accesso LoQueue and 15.1% growth for the seating product Accesso ShoWare in both the North and South American markets.

It acquired three firms - VGS, Paradocs Mountain Software, and Digisoft - which had expanded its global presence, deepened its hold on the ski market, and brought a crucial part of mobile solutions development in-house.

Accesso added 16 venues in the first half, covering attractions, live entertainment, water parks, zoos, aquariums, and theme parks, while it also signed contracts with five ski resorts.

The initiation of the Accesso Freedom platform's pre-launch sales was also highlighted, targeting the restaurant and retail sectors.

There was also an ongoing significant update to the Accesso Passport suite.

Looking ahead, Accesso said demand in its markets had stabilised after a post-pandemic surge.

The company noted that despite challenges, including unusual weather conditions affecting some key venues earlier in the first half, visitor numbers were expected to increase in the second.

Underlying administrative expenses had increased due to expanded staffing from acquisitions and improved hiring conditions, but the group said it remained committed to achieving operational efficiency.

Accesso said it expected the full financial year to be profitable and in line with current expectations, attributing its steady performance to the diversity of its business solutions and global reach.

“Today, we are reporting a solid set of first-half results that keep us on track for our full-year expectations,” said chief executive officer Steve Brown.

“As anticipated, demand has stabilised following a period of accelerated growth, and after two years of temporarily reduced overheads, improved hiring conditions mean we have been able to successfully recruit for open positions.

“Having navigated our business through the pandemic and capitalised on a generational shift in attitudes towards technology in our sector, we are now deepening our focus on Accesso's long-term future.”

Brown said the firm had started the process with three outstanding acquisitions.

“In VGS, rebranded as Accesso Horizon, we have significantly expanded our global ticketing footprint with arguably the most powerful ticketing platform in the leisure sector.

“With Paradocs' MtnOS, now Accesso Paradox, we have further strengthened our position in the important ski market.

“With the addition of our long-term staff augmentation partner, Digisoft, we have expanded our mobile app development and delivery capabilities.”

Steve Brown explained that the company also made high-value improvements to its existing product set to extend its leadership and expand its opportunities.

“We have started pre-sales of Accesso Freedom, our new restaurant and retail proposition, and we are in the final stages of a major refresh across all modules of Accesso Passport.

“These initiatives further demonstrate our commitment to continuous improvement for our customers and our focus on enabling future step-function growth.

“I am extremely proud of our team for continuing to deliver high-quality results alongside the effort to complete three acquisitions that further pave the way for our future growth.”

At 1354 BST, shares in Accesso Technology Group were down 9.72% at 669p.

Reporting by Josh White for Sharecast.com.