New: Ac­cesso / Clin­i­gen Up­dates: AB Dy­nam­ics / Aviva / Sopheon / Tharisa / Unilever

Buck the risk-off mar­kets theme with this out­stand­ing growth story

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Since pos­i­tive half year re­sults in Septem­ber Ac­cesso Tech­nol­ogy’s (ACSO: AIM)

share price has plunged more than 20%. This is po­ten­tially great for new in­vestors be­cause it means you can now buy the same busi­ness and growth op­por­tu­nity for 20%-plus cheaper than you could last month.

The ob­vi­ous ques­tion to pon­der is whether the sell-off im­plies some­thing uglier to come? Our own dig­ging sug­gests not. We at­tribute the share price per­for­mance to noth­ing more than a global mar­kets sell-off as the mar­ket mood changes. Our view is long-term and these sell­offs can be good times to pick up de­cent stocks.

Ac­cesso isn’t alone in terms of re­cent share price de­clines for pop­u­lar AIM Stocks. For ex­am­ple, Fev­ertree (FEVR: AIM), Blue

Prism (PRSM: AIM) and GB Group (GBG: AIM) have all taken a hit in re­cent weeks.

Ac­cesso is an at­trac­tions and queu­ing so­lu­tions sup­plier. Over the years it has cre­ated an in­te­grated plat­form for ev­ery­thing from buy­ing tick­ets, queue­bust­ing, mer­chan­dise pur­chas­ing and more.

Clients in­clude Al­ton Tow­ers op­er­a­tor Mer­lin (MERL) and

Six Flags and it has emerg­ing op­por­tu­ni­ties across Latin Amer­ica, the Mid­dle and Far East, in­clud­ing China.

Mul­ti­ple ver­ti­cal mar­kets are also be­ing ex­plored, such as sport­ing events, mu­sic con­certs, ski re­sorts, mu­se­ums and the­atres.

We be­lieve Ac­cesso has scope to ex­pand in many ways. There are thou­sands of theme and wa­ter parks, tourist at­trac­tions and other high foot­fall vis­i­tor sites around the world that could po­ten­tially ben­e­fit from the com­pany’s in­te­grated vis­i­tor ‘ex­pe­ri­ence’ so­lu­tions.

There is also an ex­tra growth leg emerg­ing in health via a de­vel­op­ment agree­ment with Henry Ford Health Sys­tem.

Ac­cesso is a busi­ness that has been tick­ing growth in­vestors’ boxes for years. Since 2012 it has seen rev­enue soar from $46m to $133.4m, in­clud­ing last year’s (2017) 30% jump, and has an equally im­pres­sive record on prof­its. It has been free cash flow pos­i­tive in ev­ery one of those years.

Fu­ture rev­enues will be im­pacted by new ac­count­ing rules, which change both how and when in­come is recog­nised. This does not change the un­der­ly­ing growth dy­nam­ics of the busi­ness and it will make lit­tle dif­fer­ence to profit and earn­ings go­ing for­ward, which im­plies bet­ter mar­gins.

An­a­lysts ex­pect op­er­at­ing profit of around $42m in 2020. It is fore­cast to re­port $25m or $26m this year, im­ply­ing a 2018 price to earn­ings (PE) mul­ti­ple of about 40. That’s high, yet if fore­casts are to be be­lieved, the for­ward PE could be slashed rapidly to about 22-times over the next 12 to 15 months. (SF)

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