25 May 2012

Access remains upbeat

27/07/2011 Ben Jaglom

AIM-quoted software play Access Intelligence (ACC) reported a slip in pre-tax profits for the six months to May amidst a tightened public sector market and troubles at its Cobent operation.

The company, which specialises in SaaS (Software as a service) in the area of risk and compliance for a number of public and private sector clients saw profits sink from £351,000 to £21,000, primarily due to losses at its compliance training outfit Cobent, which reported operating losses of £229,643 and a one-off 'reorganisation charge' of £201,590. Sales fell from £4.137 million to £4.03 million.

Access' other software divisions include AIMediaComms - which provides software to a number of PR and media relations companies with customer wins over the period including commodities giant Trafigura and the Student Loans Company. Access remarked that budget cuts 'have resulted in a slight retraction in user numbers.'

At Due North, its e-procurement operation whose customers include the Metropolitan Police and the Bank of England, it remarked that its efforts to build a private sector base are 'gaining momentum'. Meanwhile at M2M, its employee monitoring software that assesses factors such as the number of customer complaints dealt with Access enthused that its 'strong relationships' with RBS and Aviva have been maintained.

Speaking to Growth Company Investor chairman Michael Jackson remarked that the company is 'on our way to fixing the problems' noting that the management team of Cobent has been replaced and a new CEO has been installed. He noted that while there had been no contract losses 'in certain cases contracts have had to be cancelled as the entity no longer exists' as cuts to the public sector continue.

Looking forward he identified the key targets for the company as being to 'bring Cobent into break-even and then profitability' and to grow private sector sales in particular to Due North and AIMedia.

Analysts at Northland Capital are forecasting pre-tax profits of £510,000 (2010: £1.37 million) on sales of £7.3 million (2010: £8 million) for the year to November 2011. In 2012 its sees profits climbing to £1.2 million on revenue of £8.2 million. EPS of 0.16p and 0.3p are forecast for 2011 and 2012. A dividend per share of 0.2p and 0.1p is pencilled in for 2011 and 2012, respectively.

Last recommended by Growth Company Investor last August at 4.38p the shares have since slipped to 3.25p. The fall in profits is disappointing but at the lowly price if Access is able to generate further private sector wins and improve Cobent's prospects the shares could have further to go. We therefore rate the shares as a speculative buy.

Tags: Access Intelligence, Public sector cuts, SaaS, Software business

Sector: Software & Computer Services

Companies: Access Intelligence

Achieve impressive returns

Gain instant access to some of the best-performing and fastest growing companies in the small cap arena

Click here

Achieve impressive returns on the go

Gain instant access to some of the best-performing and fastest growing companies in the small cap arena. Sign up NOW!

Institutional Investors in AIM 2011 - New Report

This unique study analyses the shareholdings of companies listed on AIM, extracting trends including rankings of the value and number of their investments.
Please click here to order your copy of the report or call 0207 250 7056.

Coverage of AIM, techMARK and PLUS Markets

Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.

If you're interested in business tax updates visit our specialist tax guide website.

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Acquisition   Acquisitions   Aim   Aim Market   Boardroom Moves   Breaking-even   British Technology   Cash   China   Commodities   Credit Crunch   Deals & Contracts   Debt   Dividend   Emerging Markets   Full List   Fundraisings   Gold   Growth Company   Growth Stocks   Loss Making   Main Market   Mergers & Acquisitions   New Issues   Penny Shares   Placing   Plus Markets   Profit Warning   Restructuring   South Africa   Speculative Punts   Technology   Trading Update   Turnaround   Undervalued  

Latest News

Gulf starts at Sheikh Adi-2 25/05/2012

Iraq-focused oil explorer Gulf Keystone Petroleum (GKP) has begun drilling at the Sheikh Adi-2 well in the Sheikh Adi block.

Tags: Doing business in Iraq, Drilling on AIM, Oil on AIM

Sector: Oil & Gas Producers

Companies: Gulf Keystone Petroleum

Shell considers Cove 24/05/2012

Oil giant Shell is extending its offer period for Mozambique-focused Cove Energy (COV) after having its bid trumped by Thai government-owned PTT Exploration & Production.

Tags: Bid trumped, Doing business in Mozambique, Oil giants on AIM, Takeovers and bids

Sector: Oil & Gas Producers

Companies: Royal Dutch Shell 'A' , Cove Energy

Roxi reaches 1,360 metres 23/05/2012

Kazakhstan-focused Roxi Petroleum (RXP) has declared that its NK7 well in the Galaz aea has drilled to a depth of 1,360 metres.

Tags: AIM ventures, Doing business in Kazakhstan, Oil on AIM

Cluff Natural Resources joins AIM 22/05/2012

Steered by sector veteran Algy Cluff, North-Sea focused cash shell Cluff Natural Resources (CNR) has joined AIM.

Tags: Entrepreneurs on AIM, Gold mining, Oil and gas on AIM

Red Emperor exercises Shabeel 21/05/2012

Somalia-focused oil explorer Red Emperor Resources (RMP) has exercised its option to take part in the drilling of the Shabeel North well.

Tags: Business in the Puntland, Doing business in Somalia, Drilling for oil & gas, Oil on AIM

Sector: Oil & Gas Producers

Companies: Red Emperor Resources

Heritage happy in Iraq 18/05/2012

Oil concern Heritage Oil (HOIL) has reported its Miran West-3 well in Iraq could deliver 1,000 barrels per day of condensate.

Tags: Doing business in Iraq, Oil on the full list, Oil production, Target depth

Sector: Oil & Gas Producers

Companies: Heritage Oil

More News

Sectors

Aerospace & Defence   Alternative Energy   Automobiles & Parts   Banks   Beverages   Chemicals   Construction & Materials   Electricity   Electronic & Electrical Equipment   Equity Investment Instruments   Financial Services   Fixed Line Telecommunications   Food & Drug Retailers   Food Producers   Forestry & Paper   Gas, Water & Multiutilities   General Financial   General Industrials   General Retailers   Health Care Equipment & Services   Household Goods   Industrial Engineering   Industrial Metals   Industrial Transportation   Leisure Goods   Life Insurance   Media   Mining   Mobile Telecommunications   Nonequity Investment Instruments   Nonlife Insurance   Oil & Gas Producers   Oil Equipment, Services & Distribution   Personal Goods   Pharmaceuticals & Biotechnology