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The note that stands out for me from Hardman's report is that $48.5m on R&D last year, but of this only $2.2m was capitalised - all the rest is written off against profits.
This is extraordinarily prudent and conservative relative to almost all other companies.
A predator looking at ACSO for its global/geographical reach and client base would quickly realise that once you strip out this R&D write-off ACSO is hugely cash-generative and much more profitable than even based on its post-R&D profits and EPS.
Hardman have just initiated coverage of ACSO in a 39 page report.
They don't give a target price as such, but have a 934p valuation from regression analysis given that ACSO:
"trades at a significant discount to its AIM enterprise software peers, in spite of the company’s attractive growth profile along with improving cash generation and rising operating margins":
Https://www.investegate.co.uk/announcement/eqs/accesso-technology-group--acso/initiation-of-coverage-on-accesso-technology-/8239641
"Investment summary:
accesso is a unique investment proposition in an ever-declining UK software universe, as peers have been snapped up by industry buyers and private equity. The stock rebased following the 2018 sell-off and pandemic and now trades at substantially more value-oriented levels, supported by improved cash generation. accesso sizes its total addressable market at $2.3bn, giving it a ca.5.9% market share and with plenty of scope for growth"
Noticed this rising lately, 758p ten days ago meeting resistance .
Last around this price 28/7/23.
They were 845p January 2023.
Great to see ACSO involved in enabling new audio tour apps - this is for the Powerscourt Estate and Gardens in Ireland:
Https://www.accesso.com/news/innovation-blooms-at-powerscourt-estate-new-accesso-mobile-app-enhances-visitor-exploration
Extract:
"Wicklow, Ireland, (May 29th, 2024)"
"Powerscourt Estate, Ireland’s premier Sustainable Visitor Attraction* and one of Ireland's top attractions, has teamed up with accesso's Professional Services team to introduce an innovative digital solution aimed at enhancing visitor engagement and experience at the 3rd best garden in the World**, which encompass 47 acres of landscaped gardens.
etc"
Cannacord are buying - now at 12.03% (from 11.01%) and owning 5.02m shares:
Https://uk.advfn.com/stock-market/london/accesso-technology-ACSO/share-news/Accesso-Technology-Group-PLC-Holdings-in-Company/93914562
I also note that Ticketmaster are being sued by the US Department of Justice to enable its break-up to reduce its monololy and competitive position. Which has to be excellent news for ACSO:
Https://www.theguardian.com/business/article/2024/may/23/live-nation-ticketmaster-lawsuit
I bought my first in Decembee 2019, @£5.39. Another nine purchases since then, at prices ranging from £2.10 (April 2020, covid dip) to £5.98 (last month). Nearly £20,000 invested, at an average of rather under a fiver. 50% up, nôt my best ever investment, bút a very long way from my worst.
No plans to sell, but no more top ups, I think. A divi would be nice, but quite happy to stick with capital gains - all safely tucked up in my ISA, so no income or cg tax issues.
If they do head slowly back to £30 that would be very pleasant indeed.
742p today
Alas_Smith posts made me have a look at this one we have in common.
Top ups in November last year did not look good 9th March this year at the low of 507p
Still below 780p posted here 21/12/2022 .
Above the first buy 1/11/2019 paid 600p
Looking strong.
More about Deutsche's Buy recommendation here:
Https://www.proactiveinvestors.co.uk/companies/news/1047201/demand-for-accesso-technology-group-solutions-will-remain-healthy-says-bullish-investment-bank-1047201.html
"Demand for Accesso Technology Group solutions will remain healthy, says bullish investment bank
Published: 13:46 09 May 2024 BST
Deutsche Bank has initiated coverage of Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) with a 'buy' rating and a 1,000p price target, saying that it expects demand for its products to 'remain healthy'.
Accesso is a specialist ticketing, e-commerce, point-of-sale, virtual queueing, food and retail, and experience-management technology software and solutions that are used at over 1,200 venues worldwide.
In a note, it said: "Its client list includes the largest theme park operators in the world, as well as ski resorts, museums and key attractions, among others. These systems are mission-critical and key to the digital transformation of processes. We believe demand will remain healthy."
DB is positive & am bullish LT but 700 is a nice short target over the coming week or so IMO
Much higher thereafter
From today's news wires:
"Deutsche Bank starts accesso Technology with 'buy' - price target 1,000 pence"
Good to see ACSO spreading the word:
Https://uk.advfn.com/stock-market/london/accesso-technology-ACSO/share-news/Accesso-Technology-Group-PLC-accesso-Technology-Showcase/93763656
"accesso Technology Group (LON:ACSO), the premier technology solutions provider for attractions and venues worldwide, is hosting an in-person Technology Showcase today at the Westin, London City. The event will allow institutional and private investors, as well as other industry stakeholders, to experience our technology hands on and learn more about our product and service offerings.
The event will be hosted by Steve Brown, CEO, Fern MacDonald, CFO, and Andrew Jacobs, CCO, alongside senior leaders from across the business."
Looking good.
I think I'm right in saying there's been little dilution since the 3,000p glory days? Management appear to be successfully implementing their strategy - perhaps it's not too fanciful to anticipate a return to those levels in time.
Anyway, the broker targets of just over 1,000p would be good for starters....
Peel Hunt have a 1035p price target and say Buy:
Https://www.proactiveinvestors.co.uk/companies/news/1045922/accesso-s-showare-product-adds-another-layer-to-equity-story-says-peel-hunt-1045922.html
"Accesso’s ShoWare product adds another layer to equity story, says Peel Hunt
Published: 14:03 23 Apr 2024
Analysts at broker Peel Hunt see clear benefits to accesso Technology Group plc’s equity story after bringing its ShoWare software as a service (SaaS) ticketing suite to the UK.
“This scalable solution has already proven itself, with over 600 venues around the world using the service, and allows venues to manage the end-to-end ticketing process, whether online or onsite,” noted Peel Hunt.
The broker added: “Alongside accesso's ability to build long-term relationships and its established relationships with UK venues, today's news should be viewed as a positive addition to the accesso equity story.
“Features include seamless online/mobile sales, white-label capabilities to retain a client's brand, dynamic pricing to optimise ROI, and CRM features to build customer loyalty.”
Analysts slapped a buy rating on accesso stock following this announcement, with a target share price of 1,035p."
Https://www.proactiveinvestors.co.uk/companies/news/1045809/accesso-has-50-upside-according-to-broker-1045809.html
"Accesso has '50% upside' according to broker
Published: 13:34 22 Apr 2024 BST
Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) should see positive margin impacts emerging from a focus on higher-quality revenue streams, says house broker Shore Capital.
“The market opportunity appears promising spanning across various venues and geographies, and we see ACSO as well place to capture a greater share through leveraging its now broader solutions suite”.
“We do not believe the current valuation reflects these positive trends, noting our fair value sees +50% upside on a low/mid-teens EV/cash EBITDA multiple,”
'Buy' is the broker’s recommendation for the virtual ticketing and queuing specialist."
Stuck myself down for another 450 @ £6.19. Will take my average up to £4.72 if the order goes through (it hasn't been accepted yet).
Shore Capital also say Buy:
Https://www.marketbeat.com/instant-alerts/lon-acso-reiterated-rating-2024-04-16/
Highlights from an encouraging new interview with the CEO:
- 5 new wins for the new Freedom platform since Jan 1st alone
- won 28 new venues last year organically
- added 273 new venues from acquisitions, inclusing 50 Canadian ski resorts
- "another strong year ahead"
Https://www.youtube.com/watch?v=UL4VZRTKDXU
Peel Hunt say Buy - their last target price was 1,035p, but the article doesn't say if this has been increased:
Https://www.proactiveinvestors.co.uk/companies/news/1045399/accesso-operating-in-a-structurally-growing-industry-says-broker-1045399.html
"accesso operating in a 'structurally growing industry', says broker
Published: 12:57 16 Apr 2024
Accesso, the ticketing and virtual queuing specialist, trades at a discount to both US SaaS and UK SaaS/IT services peers, says broker Peel Hunt, something that it sees as unwarranted.
Results for 2023 were ahead of indications while, since the end of the year, the company has culled its lower margin B2C distribution business.
Added to the removal of the legacy staffing issues, this will help give a step up to gross margins in the current year.
New client wins across the group have been encouraging while projects such as Saudi Entertainment Ventures (where ACSO is the key provider of ticketing and visitor management technology across 21 destinations) underpin assumptions that it is operating in a structurally growing industry supported by major investment into digitalisation and the tourism and entertainment markets.
“We believe actions made against lower-margin revenue streams help support the future profitability potential and improve the model quality.
While "We continue to see scale opportunities across multiple geographies and sectors.”
'Buy' is Peel Hunt’s investment view.
Shares rose 3% to 580p on a tough day generally in the market."
The results are indeed excellent. I worry slightly that, short term, the market will focus on the drop in statutory profits and in basic eps. But plenty of jam tomorrow, even if the price drops today.
I'm impressed with this update.
EBITDA is ahead of expectations, and 37.5c adjusted EPS and presumably an increase for this year puts ACSO on a cheap rating compared to most of its sector comparators. And even more so when you strip out the $31.5m cash pile.
Most importantly the outlook is very confident. ACSO are guiding a minimum of $160m turnover (up from $149.5m), and a minimum $27.2m cash EBITDA, a lovely 15% up from last year's $23.6m.
The acquisitions have all performed well, and ACSO are global market leaders in a number of areas, incorporating machine learning, mobile solutions etc.
Unless I'm missing something it seems that ACSO are very much back on the up:
Https://uk.advfn.com/stock-market/london/accesso-technology-ACSO/share-news/Accesso-Technology-Group-PLC-RESULTS-FOR-THE-YEAR-ENDED-31-DECEMBER-2023/93660941
Here's a transcript of a new interview with the CEO about the contract win:
Https://www.proactiveinvestors.com/companies/news/1044442/endeavor-goes-private-after-just-three-years-on-the-stock-market-1044442.html
Extracts:
"securing such a prestigious client not only establishes our presence in the region but also sets a foundation for expanding our operations across the area. This includes staffing and infrastructure development, allowing us to leverage this initial success to explore additional opportunities within the region"
"Our platform will handle all aspects of ticketing and admission, providing seamless access to the venues in various capacities. This includes general entry and individual attraction access. Beyond ticketing, accesso Horizon serves as a comprehensive visitor management and entitlement platform, covering areas like food and retail, enhancing the overall visitor experience by offering an integrated and seamless customer journey"
Shore Capital very positive about the new Saudi contract:
Https://www.proactiveinvestors.co.uk/companies/news/1044257/accesso-s-saudi-entertainment-deal-an-exciting-opportunity-analyst-1044257.html
"Accesso’s Saudi Entertainment deal an ‘exciting opportunity’ - analyst
Published: 14:18 28 Mar 2024 GMT
"accesso Technology Group PLC's (AIM:ACSO, OTC:LOQPF) landmark agreement with Saudi Entertainment Ventures (SEVEN) ticks all the right boxes for analysts at Shore Capital Markets.
The deal with SEVEN, a wholly owned subsidiary of the Saudi Arabia Public Investment Fund (PIF), is “a positive reiteration of the global brand awareness that the acquisition of VGS (accesso Horizon) has added to the group, as well as accesso’s ability to support its clients through complex and multipurpose projects”, the broker said.
Announced in November 2022, SEVEN unveiled plans to introduce 21 cutting-edge entertainment destinations across 14 cities, featuring over 150 attractions, diverse dining outlets, and local and international retail outlets.
accesso will be the key provider of ticketing and visitor management technology for all destinations and sub-venues associated with the project.
“This leaves accesso in a good position to leverage Saudi Arabia’s investment into being a leader in tourism, hospitality, and entertainment,” said Shore Cap.
Shore Cap also mentioned that accesso is making strides in the field of dynamic pricing’.
Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands, competition, and other factors.
It is “an area which accesso has previously mentioned as a potential opportunity, given its expertise in footfall management and tech-driven solutions”, said analysts.
Accesso stock is a 'buy' at 531p, reckons Shore Cap."
Yesterday's contract win probably reflects the progress made as reflected in this news from just a couple of weeks ago:
Https://www.planetattractions.com/news/%E2%80%98Innovative-solutions-for-today-and-for-the-future%E2%80%99-as-accesso-looks-forward-to-year-ahead/3181
‘Innovative solutions for today and for the future’ as accesso looks forward to year ahead
As the customer experience becomes increasingly immersive, accesso is placing its focus for 2024 on seamless experiences through use of its cutting-edge technologies
Tom Anstey | Planet Attractions | 12 Mar 2024
s one of the leading global providers of technology solutions aimed at redefining the guest experience, driving increased revenue, streamlining operations, and supporting data-driven business decisions for leisure and entertainment operators, 2024 is a big year for accesso.
This year, the company is eyeing an increase in immersive customer experience operations, with its focus on seamless experiences and cutting-edge technology.
Among its offerings, the recently launched Accesso Freedom restaurant and retail platform has been developed to “redefine the guest experience”. A cloud-native platform Freedom allows venues to seamlessly integrate restaurant and retail operations, supporting mobile food ordering, self-service kiosks, and mobile point-of-sale.
The recent acquisition of VGS adds the Accesso Horizon ticketing and visitor management system to the company’s product portfolio, providing venue operators with a comprehensive solution. Also, the latest version of the Accesso Passport ticketing suite introduces a range of enhancements, streamlining operations and options to enhance the user experience.
etc"
Looks like not long to wait for the Saudi project to start delivering - the first guests are expected early next year in Al Hamra:
Https://www.constructionweekonline.com/projects-tenders/how-saudis-seven-is-transforming-leisure-and-entertainment-in-the-kingdom
Al Hamra alone - just one of the 14 cities, 21 destinations and 150 attractions involved - "is expected to attract 6 million visitors per year":
Https://seven.sa/2022/11/30/seven-to-invest-sar-50-billion-to-develop-unique-entertainment-destinations-across-14-cities-in-saudi-arabia/