Market Sentiment Around Loss-Making Access Intelligence Plc (LON:ACC)

Access Intelligence Plc's (LON:ACC): Access Intelligence Plc, together with its subsidiaries, provides corporate communications and reputation management software to blue-chip enterprises, communications agencies, public sector bodies, and not-for-profit organizations in the United Kingdom, European Union, and internationally. The UK£35m market-cap posted a loss in its most recent financial year of -UK£3.3m and a latest trailing-twelve-month loss of -UK£2.8m shrinking the gap between loss and breakeven. The most pressing concern for investors is ACC’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for ACC.

Check out our latest analysis for Access Intelligence

According to the industry analysts covering ACC, breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of UK£1.5m in 2021. So, ACC is predicted to breakeven approximately a couple of months from now! In order to meet this breakeven date, I calculated the rate at which ACC must grow year-on-year. It turns out an average annual growth rate of 76% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, I won’t go into details of ACC’s upcoming projects, however, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing I’d like to point out is that ACC has managed its capital prudently, with debt making up 24% of equity. This means that ACC has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on ACC, so if you are interested in understanding the company at a deeper level, take a look at ACC’s company page on Simply Wall St. I’ve also put together a list of key factors you should further examine:

1. Historical Track Record: What has ACC's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Access Intelligence’s board and the CEO’s back ground.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.