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 is 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.
The Ticketing segment was the primary contributor to revenue, accounting for US$104m or 70% of total revenue, while General & Administrative costs were the largest operating expense at US$94.5m or 86% of total expenses. Looking ahead, Accesso Technology Group forecasts an average annual revenue growth rate of 7.2% over the next three years, slightly below the projected growth rate for the Software industry in the UK.
Although Accesso Technology Group exceeded analyst expectations on revenue and earnings per share, there are some risks associated with investing in this company that investors should be aware of. Here are two warning signs that were identified based on the company’s performance:
Firstly, despite reporting positive financial results for revenue and earnings per share, Accesso Technology Group’s net income decreased by a significant margin compared to the previous fiscal year, leading to a lower profit margin overall. This could be due to increased operating expenses or other factors that impacted profitability negatively. Investors should carefully consider these factors when making investment decisions related to this company.
Secondly, although Accesso Technology Group is projecting an average annual revenue growth rate over the next three years that is slightly below industry projections for software companies in the UK, it is important to note that these projections are based on historical data and analyst forecasts only and do not take into account any recent price-sensitive events or qualitative factors that may impact future performance.
In conclusion, while Accesso Technology Group has released strong financial results for FY 2023 and exceeded analyst expectations on revenue and earnings per share, investors should remain cautious about potential risks associated with investing in this company and carefully consider both quantitative and qualitative factors before making any investment decisions.
