Accesso Technology describes year of solid growth

Accesso Technology Group said in a trading update on Monday that, despite making significant investments in next-generation products, it anticipated achieving cash EBITDA in line with expectations for the full-year, with a margin of no less than 15%.

The AIM-traded firm forecast $148.5m in revenue, reflecting 6% year-on-year growth, which it attributed to organic initiatives and contributions from the acquisitions of VGS, Paradocs, and Digisoft.

It said its strategic focus on expanding higher-margin revenue streams while moving away from lower-margin components of its revenue base was exemplified by its complete transition out of lower-margin operational staffing and associated revenue from Accesso LoQueue operations during the second half.

The company reported positive early results from its recent acquisitions.

Accesso Horizon, formerly VGS, secured a multi-year project to install and support an entertainment destination in Saudi Arabia, marking the company's entry into a new region with significant growth potential.

Accesso Paradox - formerly Paradocs - also gained momentum, signing seven new ski venues since its acquisition.

Additionally, the recent launch of Accesso Freedom, the company's new restaurant and retail platform, had received favourable responses, securing three new customers and building a growing pipeline of interest.

Looking ahead, Accesso said it expected 9% revenue growth for 2024, driven by global expansion efforts, leveraging recent acquisitions, and onboarding customers for the new Accesso Freedom offering.

The company also anticipated an improvement in cash EBITDA margins to no less than 17%.

Accesso said it remained committed to its medium-term cash EBITDA margin target of at least 20%.

At 1231 GMT, shares in Accesso Technology Group were up 9.73% at 575p.

Reporting by Josh White for Sharecast.com.