End of Formal Sale Process and Trading Update
The information communicated in this announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation 596/2014.
23 January 2020
accesso® Technology Group plc
("accesso", the "Company" or the "Group")
End of Formal Sale Process and Trading Update
accesso Technology Group plc (AIM: ASCO), the premier technology solutions provider to leisure, entertainment, hospitality, attractions and cultural markets, confirms that the Company's Formal Sale Process has ended. The Formal Sale Process was initiated under the City Code on Takeovers and Mergers (the "Code") on 24 July 2019. The Company also provides an update on trading for the financial year ended 31 December 2019.
Formal Sale Process:
The Formal Sale Process commenced in July 2019, following the receipt of approaches from a number of interested parties. The board of accesso (the "Board") determined that this was the most appropriate mechanism for a UK listed company, subject to the Code, to establish whether this high level of inbound interest would translate into an offer or offers on terms which the Board would be prepared to recommend to accesso shareholders.
During the Formal Sale Process, the Company's management team held a number of meetings with interested parties. However, the Board has now concluded that the Formal Sale Process is unlikely to result in an offer for the Company at a value the Board considers attractive to shareholders. Therefore, the Board has decided to terminate the Formal Sale Process and the Company is now no longer in an offer period as defined under the Code.
Trading update:
Full year 2019 reported revenues are expected to be at, or marginally below, the lower end of the previous guidance, at between $117 million to $118 million. Adjusted reported EBITDA, excluding costs associated with the Formal Sale Process, is expected to be not less than $27 million, cash EBITDA of not less than $6 million and total development expenditure and capitalized development is expected to be in line with previous guidance at c.$33 million and c.64% respectively. Net cash at the period end is expected to be c.$0.2 million.
The Group enters 2020 with established customer relationships and strong positions in its chosen markets. Customers continue to respond well to the Group's product offering, recognising the potential to drive revenue while enhancing guest experience by digitising the touchpoints on the guest journey. The Group will give a further update on its progress on its markets, customers and product solutions at the time of its full year results announcement which is expected to be 24 March 2020.
As part of its year end process, the Company is undertaking a detailed review of the carrying values of goodwill and acquired intangibles attributable to historic acquisitions, based upon future discounted cash flows that can be directly attributed to the intangible assets linked to each acquisition. This review will be undertaken in consideration of the Company's stated strategy to move to an integrated product platform. Any alterations to carrying values would be non-cash in nature and the Board expects to provide an update on this review and the Group's outlook for 2020 as part of the Company's full year results announcement.
The Board believes the Group continues to be well placed to capitalise on the large addressable market opportunity, which reflects the increasing demand for more effective use of technology to drive increases in yield per guest whilst enhancing the guest experience.
For further information please contact:
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accesso Technology Group plc Bill Russell, Non-Executive Chairman John Alder, Chief Financial Officer Simon Chisholm, Investor Relations
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+44 (0)118 934 7400
+44 (0)1825 723 440 |
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Canaccord Genuity Limited (Nominated Adviser and Joint Broker) Simon Bridges, Richard Andrews |
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+44 (0)20 7523 8000
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Numis Securities Limited (Joint Broker) Simon Willis, Mark Lander |
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+44 (0)20 7260 1000 |
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FTI Consulting, LLP Matt Dixon, Adam Davidson, Chris Birt |
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+44 (0)20 3727 1000 |
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