MIDAS SHARE TIPS: Digital ticketing company Accesso has a fast pass to profit as theme parks go high-tech
- Accesso offers e-tickets for visitors to major theme parks and attractions
- The company is recovering from the problems caused by the Covid lockdowns
- At £7 the shares should be favourable for investors
Who’s up for a trip to Legoland? While the prospect of visiting a theme park in the summer fills many parents with dread, millions still head to Windsor to give the kids a holiday treat.
Legoland, one of the UK’s most popular theme parks, receives around 2.5 million visitors a year. Most of these are in the summer, so queues for rides can be long, often 30 minutes or more.
Standing in line with small children is not for the faint of heart, but adults on a budget can simply pay more and spend less time in line.
Queue Breakers: Accesso’s customers range from Legoland to the pyramids, bet
Costs vary, but for up to £90 per ticket, visitors can keep the queues to a minimum. It’s not cheap, but according to a fair few beleaguered mums and dads, it’s worth it.
Accesso provides the technology for Legoland tickets, from simple online purchases to VIP experiences. The company is an expert in digital ticketing, with clients ranging from Disney World in Florida to the Pyramids in Egypt to ski resorts in North America.
Accesso shares were worth almost £30 in 2018. Today they are worth around £7. First the company went off the rails and profits fell.
Then Covid hit and entertainment venues closed for months. Just as the group was getting back on its feet, wages for tech experts skyrocketed, sending costs through the roof.
However, Accesso is now running at full speed and the shares should respond to that.
Chief executive Steve Brown is a Disney veteran who has spent his entire working life in the theme park and ticketing industry. He was at the helm of Accesso from 2012 to 2018, but briefly retired to pursue other interests, returning to the business in 2020 determined to return it to growth.
Recent performance has been encouraging and the future is expected to be even better.
Accesso offers businesses three main services: virtual queuing, online ticketing and restaurant ordering via mobile phones and automated kiosks. Each is designed to help customers generate more money, and the potential is huge.
The group already works with around 1,200 theme parks, festivals, sports stadiums, ski resorts and numerous other entertainment venues, but there is still plenty of room for growth and Brown is actively pursuing opportunities, both organically and through acquisitions.
Virtual queuing has been a cornerstone of the company since its inception, and Brown continues to add features, acquire customers and expand to other parts of the world.
Businesses are happy with the software because it increases revenue and makes it a more enjoyable day out, encouraging more visitors to come and return.
Operators are also enthusiastic about online ticket sales. Thanks to Accesso’s technology, they can entice consumers with extras, from better seats to overnight stays.
Ordering restaurant meals online is a new trend, but it is quickly gaining popularity.
Visitors to theme parks and other locations rarely want to wait long when the family is hungry. Now they can find a restaurant that appeals to them and choose their food and pick-up time.
Research shows that meal orders are at least ten percent larger when delivered automatically. The technology is designed to offer special offers and treats to entice the eater.
Automation also reduces the need for temporary staff.
Accesso is listed on Aim, but the company earns around 70 percent of its revenues from the US and Canada. Brown is keen to change that and has already started doing so, winning new contracts in the Middle East, Asia and continental Europe.
Brokers expect Accesso’s revenue to rise seven percent this year to $160 million (£125 million), while underlying profits will rise almost 15 percent to $18.8 million (£14.6 million).
Growth is expected to accelerate next year and into 2026 as Brown signs new contracts and moves to other parts of the world.
Currently no dividend is paid, but that could change as profits increase.
Midas Pronouncement: The British are famous for their ability to queue without hassle – but given the choice, most of us wouldn’t. Accesso Technology helps families and friends make the most of travel and events, while also helping its corporate clients make more money. At £7, the shares should benefit investors too.
Traded on: GOAL Ticker symbol: ACSO Contact: accesso.com or 0118 934 7400
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