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
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.