accesso Technology Group PLC received glowing reports from analysts after posting its interim results on Tuesday.
Broker Peel Hunt said the half-year numbers showed how the company has “proven itself mission critical to its clients over such a turbulent time”, with revenue more than double this time last year back in line with 2019 and ending June debt free and with US$33m cash in the bank, “providing us confidence in its firepower”.
Analyst James Lockyer said he expects to upgrade accesso’s cash EBITDA estimate for the full year by around 183% to circa US$18m and intend to review the share target price too.
Looking forward, house broker Shore Capital said would expect gross profit margins to normalise during next year as other revenue verticals return, while profit margins are likely to be negatively impacted from an increased focus on recruitment coupled with higher staffing cost.
Taking all this into consideration, ShoreCap predicts 2022 financial year revenue and cash EBITDA to be above previous forecasts of US$117.1mln and US$11.5mln, respectively, above 2019 levels, though cash EBITDA is estimated to be behind 2021 levels.
“Since we still consider a level of caution given the continued disruption within international travel and potential further disruption from COVID-19, we still see scope for further upgrades for the group.
“We believe that accesso appears well-positioned to capture a greater market share in an industry that could be larger post the pandemic given the increase in uptake of digital solutions throughout leisure, entertainment, and cultural markets.
“The group has stated experiencing record demand, and we see commentary from leading theme park operators, such as Six Flags and Walt Disney, as further positive indications of a strong rebound in consumer spending.”
Based on the latest revenue forecast, ShoreCap noted that the shares currently trade for four times sales and “we remain optimistic about accesso’s outlook and therefore retain our Buy recommendation”.
