Accesso said it has laid the foundations for future growth as increased overheads and M&A expenditure led to a pre-tax loss.
Reporting on the six months to June 20, 2023, the technology provider posted a loss before tax of $840,000. However, that figure came during a period when it spent $2.5m related to the acquisitions of VGS, Paradocs Mountain Software and Digisoft.
Accesso said revenue growth of 3.2% to $65.8m reflected the stabilising demand experienced in H1 following a period of accelerated growth. Revenue was also impacted by lower contribution from an unnamed major US customer and an increasingly competitive UK distribution market.
This growth was delivered with a 14.3% revenue increase in Accesso LoQueue as well as 15.1% growth in its assigned seating product, Accesso ShoWare, across both North and South American markets.
During the period, Accesso signed 16 new venues across attractions, live entertainment, water parks, zoos and aquariums, and theme parks. The group also signed five ski resorts including the first accesso Paradox customer post-acquisition, along with three further wins post period end.
While total gross profit increased slightly to $48.3m, earnings for H1 were hit by a 13.9% increase in underlying administrative expenses. This was in the main related to an uptick in headcount as Accesso identified improved hiring conditions as well as expanded staffing from acquisitions during the period.
The group said it remains focused on improved operating efficiency and reaching a sustained Cash EBITDA margin of no less than 20% in the medium term.
Chief executive Steve Brown said: “I am extremely proud of our team for continuing to deliver high quality results alongside the effort to complete three acquisitions that further pave the way for our future growth. Looking ahead, we anticipate our performance for the full year 2023 to be in line with our expectations.
“As anticipated, demand has stabilised following a period of accelerated growth, and after two years of temporarily reduced overheads, improved hiring conditions mean we have been able to successfully recruit for open positions. Having navigated our business through the pandemic and capitalised on a generational shift in attitudes towards technology in our sector, we are now deepening our focus on Accesso’s long-term future.”