Accesso profits decline on switch to IFRS 15
Technology solutions provider Accesso turned in a sharp drop in profits on Tuesday despite a rise in revenues due to a change in accounting practices and higher non-cash charges.
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Accesso's pre-tax profits slumped 28% to $5.2m despite top-line growth of 15.5% to $118.7m.
The AIM-listed outfit attributed the decrease in profits to higher non-cash charges related to acquisitions made in previous years being absorbed in 2018. Amortisation costs meanwhile rocketed 36% to $11.7m.
During the period, Accesso also adopted a new accounting method, IFRS 15, which adjusted its 2017 results and led to a 16% jump in revenues.
Chief executive Paul Noland said: "2018 has been another year of global expansion at Accesso. Our progress continues to be driven by the variety of solutions we have to offer and our relentless focus on delivering excellent service and support."
Accesso, which did not pay a dividend in 2018, told investors it believed the company's cash would be "more efficiently" invested in product development and acquisitions.
Looking forward, Accesso said 2019 had started off with trading in line with management expectations but noted that it still views a dividend payment ion the short-to-medium term as "unlikely".
As of 1040 GMT, Accesso shares had tumbled 13.21% to 737.75p.