Back

ACSO

0.42%
NEUTRAL

accesso Technology Group Reports Mixed 2024 Results Amid Economic Uncertainties

Why we think this is neutral

While accesso Technology Group demonstrated resilience with a 32.6% increase in profit before tax and a 1.9% revenue growth, the outlook remains cautious due to macroeconomic uncertainties. The company secured 30 new venue contracts and maintained a strong balance sheet, but faces challenges such as decreased net cash position and potential impacts from US tariff policies. The guidance for 2025, with revenue growth unlikely to exceed 5.3%, suggests a tempered expectation for future performance. Despite these headwinds, the company's diverse product portfolio and global expansion efforts provide some stability. The market valuation appears reasonable, with a PE ratio of 14.2 based on adjusted EPS, indicating potential upside if the company can navigate the uncertain economic landscape effectively.

Key Points

  • Revenue increased by 1.9% to $152.3m (5.3% adjusted growth)
  • Profit before tax up 32.6% to $11.7m
  • Adjusted basic EPS increased by 2.4% to 38.39 cents
  • Cash EBITDA margin slightly decreased to 15.0% from 15.8%
  • Net cash position of $28.7m, down from $31.5m
  • 30 new venue contracts won across various markets
  • Cautious outlook for 2025 with revenue growth unlikely to exceed 5.3%
  • Strong balance sheet and available credit facility of $40m
  • Continued global expansion efforts, particularly in the Middle East
  • New share buyback programme of up to £8.0m announced for 2025

Summary

The technology solutions provider reported mixed results for 2024, with modest revenue growth and improved profitability, but faces economic uncertainties and a cautious outlook for 2025.

accesso Technology Group plc reported its 2024 results, showing resilience in a challenging environment. Revenue increased by 1.9% to $152.3m, with an adjusted growth of 5.3% when accounting for strategic changes. Profit before tax rose significantly by 32.6% to $11.7m. The company secured 30 new venue contracts across various markets, demonstrating continued demand for its solutions. However, the outlook remains cautious due to macroeconomic uncertainties, particularly potential US tariff-related impacts. For 2025, revenue growth is unlikely to exceed 5.3%, while Cash EBITDA margin is expected to be in line with or slightly ahead of current consensus. The company maintains a strong balance sheet with a net cash position of $28.7m, although this has decreased from the previous year. Recent broker reiterations of "Buy" recommendations suggest confidence in the company's long-term prospects despite near-term challenges.

Key Dates

2025
Full year results for 2025 fiscal year
Throughout 2025
Execution of new £8.0m share buyback programme
ANNUAL RESULTS