In 2023, Accesso Technology Group (LON: ACSO) released its Full Year results, highlighting several key financial metrics. The company’s revenue increased by 7.0% to US$149.5 million compared to FY 2022, but net income decreased by 24% to US$7.69 million, resulting in a profit margin of just 5.1%, down from 7.2% in FY 2022. Earnings per share (EPS) also declined to US$0.19 from US$0.24 in FY 2022.
Despite the decline in net income and EPS, revenue exceeded analyst estimates by a notable margin of 1.4%, and EPS surpassed estimates by an even more impressive 78%. The Ticketing segment was the main driver of revenue, contributing US$104 million, accounting for a massive 70% of total revenue. General & Administrative costs were the largest operating expense, totaling US$94.5 million, making up an equally large percentage of total expenses at approximately 86%.
Looking ahead, accesso Technology Group is forecasted to experience an average annual revenue growth of just 7.2% over the next three years, which is significantly lower than the projected growth rate for the Software industry in the UK as a whole at a forecasted rate of 10%. However, despite these challenges, investors are optimistic about accesso’s prospects and have driven up the company’s shares by an impressive 6% from a week ago on positive news about the UK Software industry as a whole.
Of course, there are still two warning signs that investors should be aware of before investing in accesso Technology Group or any other stock: firstly, while accesso has experienced strong revenue growth over the past year and is expected to continue doing so in the near future, it may not be able to maintain this pace without significant investments or expansion efforts; and secondly
