- Revenue guidance massaged down
- Middle East projects shift to the right
- Net cash balance sheet
A warning that full year 2024 revenues will fall significantly short of forecasts sent shares in Accesso Technology (ACSO:AIM) tumbling 25% to 522p on Thursday morning.
The queuing and ticketing technology provider now expects sales of around $150 million (£117 million) to $153 million for the year to December 2024.
That represents a material downgrade from guidance for revenues of ‘not less than $160 million’ given as recently as April.
Berkshire-based Accesso pinned the blame on disappointing recent trading volumes in the early part of the summer in the northern hemisphere, notably in the peak month of July, as well as slippage in timelines for certain new projects in the Middle East.
ORDERS QUEUING UP
Investors headed for the exits as the company, which provides queuing and ticketing technology solutions to theme parks, water parks, ski resorts, cultural attractions and sporting events around the globe, cautioned recent lower volumes could persist through the remainder of the summer.
The good news is Accesso’s sales pipeline continues to show ‘positive momentum which will benefit the group in subsequent years’.
Bossed by CEO Steve Brown, Accesso, whose technology optimises revenue for the likes of Disney’s Magic Kingdom in Florida and the Pyramids in Egypt, stressed it is cutting costs to offset the impact of lower sales on its cash earnings.
As a result, it expects to deliver a robust full year 2024 cash EBITDA (earnings before interest, tax, depreciation and amortisation) margin of 13% to 14%.
CASH LEFT IN THE COFFERS
The firm also highlighted its balance sheet strength, with $23.3 million of net cash in the coffers as of 31 July 2024, albeit down from $31.5 million at the December 2023 year end, which should help it weather short-term challenges.
Accesso’s revenues advanced by 7% to a record $149.5 million in the 2023 calendar year, despite a planned shift away from lower margin business and with management grappling with the integration of three transformative acquisitions, although statutory pre-tax profit plunged 30% to $8.8 million as the company absorbed $2.1 million in finance expenses.
