Corporate communications and reputation management software provider Access Intelligence announced its final results for the year to 30 November on Tuesday, confirming recurring revenue from continuing operations increasing by 39% and total revenue from continuing operations increasing by 43%, reflecting the full year impact of its acquisition in June 2015.
The AIM-traded firm said its gross margin reduced to 69% excluding one-time expenses, again reflecting the full year impact of the acquisition.
It said the gross margin reduction was minimised through the exit from non-profitable contracts during the second half, instead of migrating them to the Vuelio platform, with the resulting revenue impact to flow through in the 2017 financial year.
Total development and technical expense in the consolidated statement of comprehensive income relating to continuing operations increased to £1.66m in FY16 from £0.65m in the prior year, as a result of investment in the Vuelio platform.
A further £0.52m of development expenditure relating to continuing operations was capitalised in 2016 compared to £0.42m in 2015.
Monthly operational spend excluding third party content and hosting, restructuring, and migration expense reduced from £0.83m in Q4 2015 to £0.63m in Q4 2016, with further forecast savings bringing it down to £0.52m by Q4 2017.
The group had cash balances in excess of £1.1m at the year end.
"Over the last twelve months, we have continued the realignment of the Access Intelligence portfolio to position and support Vuelio as its flagship brand, one poised to take advantage of big opportunities in the communications management market," said non-executive chairman Michael Jackson.
"We have effectively built a new Vuelio business, in part through the integration of assets acquired in 2015, but also through an accelerated programme of development and product upgrades for longstanding Vuelio customers.
"Having completed the all-encompassing migration project, the first four months of 2017 trading have seen improved new business sales and renewal rates and we are confident that we have the makings of a good business."