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The first set of results post the private equity-backed (Lyceum Capital) management buyout earlier this year (see Lyceum gets access to Access) show positive momentum for UK-based mid market business applications supplier Access UK. Revenue is up 15% to £28.4m and meeting expectations, and EDITDA (after management buyout cost adjustments) is up 10% to £5.5m. The 15% revenue growth rate compares well with rival Advanced Computer Software whose first half revenues of “no less than £50m” implied top line growth of c6% - but ACS is heavily involved in the tight healthcare market.
It is what Access will do next that sparks interest, specifically its plans for acquisitions, which will be a key driver for ongoing growth. The 2010 pre-MBO acquisition of HR vendor Select Software has increased the number of large, multi-product wins and cross-sells. Given its interest in developing its mobile capabilities and ‘next generation solutions’ (cloud and front office developments I would guess) suppliers in these areas are likely candidates.
However, with the arrival of mid market private equity backed consolidator m-hance on the scene (see Mid market debutante: m-hance), who is keen to continue snapping up mid market suppliers with revenues in the c£2m pound range, Access will face tougher competition when it goes shopping as these may be the same size vendors it would consider going after.
