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Access Intelligence losses widen despite expanding contract values
Software and computer services firm Access Intelligence saw a strong performance in new business and increased upsell into its existing client base throughout the twelve months leading to 30 November, growing its annual contract value by more than £600,000 in just the second half of the year.
Annual contract value moved ahead at an annualised growth rate of nearly 15%, the benefit of which would flow into revenues for the 2018 financial year, and total future contracted revenue grew 35% to £7.1m, providing Access Intelligence with "good visibility of long-term, recurring revenue growth."
However, despite the firm's confidence, revenues dropped 11% to £8m as AI's sales team was incentivised to focus on high contribution SaaS products, which it said was reflecting management's decision to "exit non-profitable contracts".
AI returned an LBITDA for the year of £1.36m, widening from the £358,000 loss posted twelve months prior.
Cash balances fell from £1.16m to £673,000 and net debt expanded to £2.7m from £2.11m in the previous year.
Michael Jackson, the group's chairman, said, "Simply put, the business is now stable and growing. From October 2017 onwards, having dramatically reduced our operational costs over the previous nine months we have started to generate cash."
"Through renegotiating supplier contracts, consolidating office space and reducing headcount by almost 50 per cent, we have achieved annualised savings of £1.2 million over the past 12 months - all while maintaining high levels of customer support reflected in our improved renewal rates," he added.
AI posted a basic loss per share of 0.84p, slightly up from the 0.62p recorded in 2016.
As of 1000 GMT, shares had dialled back 1.20% to 4.10p.