Accesso Technology Group (LON:ACSO) has released its full year 2023 financial results, showcasing key metrics that investors are closely monitoring. The company reported a revenue of US$149.5m, which represents a 7.0% increase from the previous fiscal year. However, net income decreased by 24% to US$7.69m, resulting in a lower profit margin of 5.1% compared to 7.2% in FY 2022. Earnings per share (EPS) also dropped to US$0.19 from US$0.24 in FY 2022.
In terms of revenue breakdown, the Ticketing segment was the primary driver, contributing US$104.0m or 70% of total revenue. On the expenses side, General & Administrative costs were the largest operating expense at US$94.5m, accounting for 86% of total expenses. Looking ahead, the company forecasts a 7.2% average annual revenue growth over the next three years, slightly below the 10% growth forecast for the Software industry in the United Kingdom.
Despite beating analyst expectations in terms of revenue and earnings per share, there are some risks to consider when investing in accesso Technology Group. Investors should be mindful of two warning signs that were identified in the company’s performance:
Firstly, General & Administrative costs accounted for a significant portion of total expenses at US$94.5m or 86%. This suggests that cost management may be an area for improvement for the company moving forward. Secondly, while software companies in general have experienced strong growth rates in recent years due to increased digitalization and remote work trends, accesso Technology Group’s forecasted growth rate is slightly below this trend at only 7%. Investors should monitor these factors closely as they could impact future profitability and sustainability of the business model.
It’s important to note that articles by Simply Wall St are based on historical data and analyst forecasts and should not be considered as financial advice
