TIDMACSO

RNS Number : 5245F

Accesso Technology Group PLC

22 March 2022

22 March 2022

accesso (R) Technology Group plc

("accesso" or the "Group")

PRELIMINARY RESULTS FOR THE YEARED 31 DECEMBER 2021

Record revenue and profit as technology demand surges in our industry

accesso Technology Group plc (AIM: ACSO), the premier technology solutions provider to leisure, entertainment and cultural markets, today announces preliminary results for the year ended 31 December 2021 ('2021').

Commenting on the results, Steve Brown, Chief Executive Officer of accesso, said:

"Accesso's performance during 2021 was simply outstanding. We delivered record revenue and record profit during another challenging year in our end markets as they continued to recover at varying levels through the year.

Our confidence in our future growth trajectory has never been stronger as we recognise the significant uptick in demand for technology across all leisure sectors. Digital solutions are now an operational necessity as consumers expect a mobile-first experience in every aspect of their lives. Operators are also increasingly looking to gain efficiency, reduce labour expenses and optimise revenue via digital transformation. With our strong and well-established range of mobile-centric solutions across ticketing, virtual queueing, guest experience and personalisation, we believe we are the best platform available for any venue operator as evidenced by our remarkable success in 2021 and the shape of our new business pipeline for the year ahead.

In the near term, we'll invest squarely behind this increased level of demand to secure the long-term, repeatable revenue during the crucial adoption phase. We will also see a welcome return to more normal operations and full staffing levels which will support the growing demand for our solutions and allow for continued innovation."

2021 Financial highlights

 
                                      2021       2020   Vs 2020        2019 (4)    Vs 2019 
                                      $000       $000                      $000 
 -------------------------  --------------  ---------  --------  --------------  ---------- 
 Revenue                           124,794     56,094   122.5%          117,182     6.5% 
                            --------------  ---------  --------  --------------  ---------- 
 Cash EBITDA (1)                    28,138   (11,450)   345.7%            7,141    294.0% 
                            --------------  ---------  --------  --------------  ---------- 
 Statutory profit/(loss) 
  before tax                        12,110   (32,862)   136.9%         (57,581)    121.0% 
                            --------------  ---------  --------  --------------  ---------- 
 Net cash (2)                       64,050     29,656   116.0%              354   17,993.2% 
                            --------------  ---------  --------  --------------  ---------- 
 Adjusted basic 
  EPS (cents) (3)                    61.10    (60.64)   200.8%            30.78     98.5% 
                            --------------  ---------  --------  --------------  ---------- 
 Basic earnings 
  per share (cents)                  53.39    (84.78)   163.0%         (184.26)    129.0% 
                            --------------  ---------  --------  --------------  ---------- 
 

Footnotes:

 
 (1)   Cash EBITDA: operating profit before the deduction of amortisation, 
        depreciation, acquisition costs, deferred and contingent consideration 
        linked to continued employment, and costs related to share-based 
        payments less capitalised development costs paid in cash as 
        per the consolidated cash flow statement (see reconciliation 
        in financial review). 
 (2)   Net cash is calculated as cash and cash equivalents less borrowings 
        (see reconciliation in financial review). 
 (3)   Adjusted basic earnings per share is calculated after adjusting 
        operating profit for impairment of intangible assets, amortisation 
        on acquired intangibles, deferred and contingent consideration 
        linked to continued employment, acquisition and aborted sale 
        expenses and share-based payments, net of tax at the effective 
        rate for the period on the taxable adjusted items (see note 
        9). 
 (4)   2019 is included as a comparative period due to the exceptional 
        impact of COVID-19 on the 2020 results, representing a period 
        without disruption from COVID-19. 
 
 
 --   Revenue of $124.8m represents a Group record and was up 6.5% 
       compared to our pre-pandemic 2019 level despite COVID-19 related 
       interruption in certain markets during the year. This included 
       closures in certain geographies and parks not yet returned to 
       full capacity. Live entertainment encountered significant disruption 
       and is now demonstrating a recovery in the first few months of 
       2022. Our result was significantly ahead of our initial 2021 
       guidance. 
 --   Cash EBITDA (1) was a record $28.1m for the year, 294.0% greater 
       than the $7.1m in 2019. This was driven by 6.5% revenue growth 
       at a higher gross margin due to changes in the product mix; improved 
       productivity from the structural realignments implemented during 
       2020; and a challenging recruitment environment which impacted 
       our ability to hire at our desired pace and resulted in depressed 
       staff costs even as our revenue rapidly recovered. We are now 
       fully staffed, however new positions will be opened as we continue 
       to invest in our product and also support securing the long-term, 
       repeatable revenue opportunities given this increased demand 
       for our solutions. 
 --   Statutory profit before tax of $12.1m was enabled by the Group's 
       strong cash EBITDA performance. The measure further benefits 
       from acquisition related amortisation, development cost amortisation 
       and impairments reducing by $5.0m relative to 2020 and the reversal 
       of intangible impairments of $1.7m from 2019. Whilst not at the 
       same level, we anticipate further amortisation savings in the 
       near term in the absence of any acquisition activity. 
 --   Net Cash (2) was $64.1m at the year-end, up $34.4m on 2020, 
       reflecting a very strong year of cash generation. Cash EBITDA 
       of $28.1m was the key driver, along with our continued focus 
       on strong working capital management. We move into 2022 with 
       significant surplus cash on hand to invest in growth, no debt 
       and access to undrawn debt facilities. 
 --   Adjusted Basic EPS (3) of 61.10 cents per share represents the 
       best in the Group's history and is driven by our record profitability. 
       Our EPS measures have benefited from a credit of $12.6m of prior 
       year US tax losses and tax credits, unrecognised in 2020, being 
       recognised in 2021 due to the Group's profit in the period and 
       its ability to forecast consistent profitability. 
 2021 Operational & Strategic Highlights 
 --   Capitalising on substantial demand: We are capturing surging 
       demand in our markets. In total we signed 50 new venues and 64 
       eCommerce deals in 2021. Customers are also extending our agreements, 
       with 21 of our accesso Passport(R) customers renewing their contracts 
       in 2021. 
 --   Increased utilisation of our solutions: The Group delivered 
       record volumes during the year with accesso Passport processing 
       96.1 million tickets and reservations, a 69.4% increase in volume 
       relative to 2019. Our accesso LoQueue(R) solution delivered a 
       73.5% increase in guest conversion relative to 2019, with 5.9% 
       of park guests purchasing an accesso LoQueue product compared 
       to 3.4% in 2019, despite a 27.7% reduction in park attendances 
       levels relative to 2019 on a like-for-like basis. 
 --   Innovation driving further success: Record virtual queuing performance 
       with significant adoption at Six Flags Entertainment Corporation 
       ("Six Flags") of our Qsmart solution with a further nine deployments 
       at their venues. We won 21 combination customers with our complementary 
       solutions in 2021, well ahead of any other prior year in the 
       Group's history. The cross-sell between accesso Passport and 
       accesso Siriusware(SM) was particularly strong in 2021. New services 
       like The Experience Engine(TM) (TE2) Food & Beverage capabilities 
       are also gaining traction. Pre-sales for accesso Passport end-to-end 
       solution began in 2021. 
 --   Industry focus driving increased success: We have seen strong 
       demand in ski areas, with 78% of our accesso Passport renewals 
       in 2021 coming from our ski customers. Reduced restrictions on 
       outdoor activities saw some of our North American ski customers 
       open for the full season in 2021, boosting our results with some 
       of their best trading years. 
 --   Strategic enterprise-wide contract renewals completed in December 
       2021: Extended partnerships with Merlin Attractions Operations 
       Ltd. ("Merlin"), and Six Flags, demonstrate that accesso has 
       adapted effectively and continues to provide valuable support 
       to our client base. 
 2022 Outlook & Guidance 
 --   Strong start to 2022: Our trading volumes for January and February 
       are encouraging with accesso Passport ticket volume for North 
       American double that of 2019 as we begin to benefit from a significant 
       number of customers onboarded during the past 2 years and increasing 
       customer appetite for a leading-edge eCommerce solution. The 
       removal of COVID-19 restrictions in many parts of the world has 
       had a positive impact, particularly on our live entertainment 
       business, and we expect our product mix and gross margin to be 
       more consistent with pre-COVID levels in 2022. Whilst we remain 
       cognisant of the relatively early stage in the year, the impact 
       of tiered pricing at higher volumes and revised terms related 
       to enterprise renewals, we are cautiously optimistic about another 
       year of good progress. 
 --   Expected increases to cost base: The number of open positions 
       at the beginning of 2022 is significantly less than the same 
       period last year. As previously communicated, this, combined 
       with the overall industry pressure on wages, is expected to result 
       in an increase in our cost base as we return to normal staffing 
       levels. 
 --   Continued build of cash reserves: We expect another cash generative 
       year, building on top of a year-end cash balance in excess of 
       $60m. 
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain

***

The Company will be hosting a presentation for analysts at 1300 UK time today. Analysts and institutional investors are also able to request a copy of the presentation and audio webcast conference details by contacting accesso@fticonsulting.com. A copy of the presentation made to analysts will be available for download from the Group's website, shortly after the conclusion of the meeting.

 
accesso Technology Group plc 
 Steve Brown, Chief Executive Officer 
 Fern MacDonald, Chief Financial Officer       +44 (0)118 934 7400 
 
Numis Securities Limited (Nominated Adviser 
 and Sole Broker) 
 Simon Willis, Hugo Rubinstein                 +44 (0)20 7260 1000 
 
FTI Consulting, LLP 
 Matt Dixon, Adam Davidson                     +44 (0)20 3727 1000 
 

About accesso Technology Group

At accesso, we believe technology has the power to redefine the guest experience. Our patented and award-winning solutions drive increased revenue for attraction operators while improving the guest experience. Currently serving over 1,000 clients in 29 countries around the globe, accesso's solutions help our clients streamline operations, generate increased revenues, improve guest satisfaction and harness the power of data to facilitate business and marketing decisions.

accesso stands as the leading technology provider of choice for tomorrow's attractions, venues and institutions. We invest heavily in research and development because our industries demand it, our clients benefit from it and it makes a positive impact on the guest experience. Our innovative technology solutions allow venues to increase the volume and range of on-site spending and to drive increased transaction-based revenue through cutting edge ticketing, point-of-sale, virtual queuing, distribution and experience management software.

COVID-19 has highlighted the benefits our technology is able to bring to venues from facilitating social distancing using our robust and sophisticated virtual queuing solutions; reservation systems delivered through our agile eCommerce platform to enable capacity management, taking queues away from front gates; and attraction eateries utilising our contactless food and beverage offerings.

Many of our team members come from backgrounds working within the attractions and cultural industry. In this way, we are experienced operators who run a technology company serving attractions operators, versus a technology company that happens to serve the market. Our staff understand the day-to-day operations of managing complex venues and the challenges this creates, and together we strive to provide our clients and their guests with technology that empowers them to do more and enjoy more. From our agile development team to our dedicated client service specialists, every team member knows that their passion, integrity, commitment, teamwork and innovation are what drive our success.

accesso is a public company, listed on AIM: a market operated by the London Stock Exchange. For more information visit www.accesso.com . Follow accesso on Twitter , LinkedIn and Facebook .

***

Chief Executive's statement

I am thrilled with accesso's performance in 2021. We worked hard to stay resilient through the pandemic's most severe impacts on our industry and we have emerged stronger than ever. I continue to be inspired by the optimism, creativity and dedication of our team, which has outperformed my expectations through the year. To the entire accesso organisation, I offer my deep thanks for a job well done.

Reflecting on our performance, I am proud of the difficult decisions we made early in the pandemic to reshape and redirect our operation to prepare accesso for a more successful future. This process wasn't always easy for the team, but it was necessary, and we are now seeing the results. We made a concerted effort to refocus our business to operate with higher value output while focusing more directly on the needs of our end markets. Furthermore, with early signs of increasing demand, we allocated resources to handle the rising utilisation of our solutions by existing customers and to capture the sales pipeline demand from new ones.

We are now operating a more purpose-driven operational platform with less duplication, more accountability and with resources deployed more effectively for growth. For example, we have a unified group of engineers working solely on eCommerce across the Group, and we have operational teams dedicated to driving growth in increasingly important segments of our market like the ski industry. Overall, we are more efficient, more targeted, and more productive. The adjustments we've made are paying off, and the evidence is clear in our financial results.

In terms of pandemic recovery, the theme park, water park and ski sectors began a fairly robust rebound across the year, with attendance levels toward year end approaching 2019 levels. However, the significant Live Entertainment segment of our business remained challenged for much of the year. Activity from theatres, fairs and festivals in the US and Canada reached 2019 levels mid-year, however in our key UK market the recovery pace was slower and was significantly affected by the Omicron variant in December. Despite the mixed pace of recovery across the segments we service, we delivered revenue growth of 6.5% on our 2019 level. Propelled by significantly higher technology utilisation in the theme park sector and the benefit from a significant number of new customers as well as compelling growth within ski sectors, we exceeded pre-pandemic revenues even with significantly impacted volumes from our live entertainment focused solutions.

The significantly higher utilisation of our solutions by both venue operators and their visitors is a clear indication that the relationship with technology in our end markets has undergone a fundamental change. Bearing in mind, a significant portion of our revenue is transaction based and we are confident this new level of engagement with our technologies is here to stay. Many guests who before purchased tickets at the front entry or food at the restaurant counter are now mobile users. Guests that previously utilised our virtual queuing solution via a wearable device are now doing so via their smartphone. Operators have seen our technology transform the quality of their experience, deliver greatly enhanced revenues, and lower their operating costs. They are never going back.

With the market coming towards us and our business ready to grasp the opportunity, now is the time to push forward to maintain our leadership position in the marketplace and go for growth. We need to continue scaling accesso to capture the full opportunity we see ahead of us, and that means continuing to invest in results-focused product innovation, sales teams, our support operation and our broader team behind all of them. As we do this and lean into this newfound level of demand, we expect revenue growth to continue. We'll also remain a more profitable business than we were before the pandemic as our development efforts are closely correlated to targeted, measurable results.

My confidence in the outlook for accesso is reinforced by the start we have made to 2022. We begin the year having renewed and expanded important customer relationships with Merlin and Six Flags, and with a robust sales pipeline. Overall, we have entered the new year with our team aligned behind our plan and a high demand for our solutions across the marketplace. With a strong cash balance and zero debt, accesso has never been better positioned for the future. We're relishing the task of delivering another strong year of results in 2022.

2021 in review

Innovation driving technology adoption

Our end-markets saw a strong recovery through 2021 as most large-scale visitor attractions, including theme parks, museums, and ski resorts moved towards pre-pandemic attendance slightly earlier than we had anticipated. Many of these used accesso solutions to facilitate their re-openings by leveraging accesso's reservations functionality to manage capacities and requiring all visitors to pre-purchase tickets online; our transaction-based model benefited from this increased utilisation. Whether through virtual queueing, online ticketing, contactless payments, or other in-venue purchasing, accesso has enabled operators to digitise their interactions with guests more than ever before. Although portions of this activity are not expected to repeat as operations continue to normalise, the overall step-function increase in online buying and mobile-first approach from operators is here to stay.

During 2021 we saw our Virtual Queueing offerings gain increasing traction in the marketplace. Key operators continued to increase their queuing footprint with us, with Six Flags deploying our Qsmart mobile service to nine parks, allowing visitors to purchase and utilise the service from their own device versus obtaining a wearable band at the park. Our virtual queuing strategic priority is to migrate all customers to our Qsmart mobile capabilities and limit use of the accesso Prism wearable device to situations like waterparks where they are more necessary. Allowing the visitor to subscribe to the service via their own smartphone at any point of their visit, from anywhere in the venue is a game changer in terms of sales penetration and operational efficiency via reduced labour.

We saw six new queuing implementations in 2021, alongside 3 million rides enabled in our two 100% virtual queuing properties. Another venue, Parc Asterix in France, has taken on Qsmart as a premium service after having adopted 100% virtual queuing on a temporary basis through the pandemic. Palace Entertainment upgraded to our accesso Prism wearable solution in two waterparks. Zoombezi Bay, a large waterpark in Ohio, also upgraded to accesso Prism.

Our accesso Passport ecommerce solution saw volumes up 69.4% in the year relative to 2019, with 96.1 million tickets and reservations sold online against 35.1 million in 2020 and 56.7 million in 2019. Crucially, 66.0% of the volume was sold via mobile. With capacity restrictions still in place for many venues, reservations became an essential component of capacity management for guests with Season Passes or Memberships, resulting in 20.4 million reservations in 2021 compared to just 3.6 million in 2020. We do expect the number of reservations in our system to fall back somewhat as mandated capacity limitations recede, however the rapid growth in reservations is an important proof-point for the adaptability and flexibility of our platform when it comes to the rapid deployment of innovation to support new customer paradigms. We have also observed some customers maintaining reservation requirements well beyond the regulatory capacity limitation period to continue the improved efficiency and operational success they realised during the restrictive period.

After a difficult 2020 related to the near-total shutdown of London's West End theatre market, this year we saw a gradual recovery in volumes for Ingresso, most notably towards the end of H2. This positive trajectory was interrupted by the emergence of the Omicron variant in December which resulted in significant refund activity. In the background as we awaited the recovery period for Ingresso, efforts continued to expand distribution opportunities and prepare to capture the uptick in demand as the theatre business returns. Beyond theatre, we have worked hard to integrate Ingresso more broadly into our portfolio to diversify its inventory offering. In the year, Ingresso signed up 15 new distributors and 54 new suppliers, bringing the totals to 88 and 436 respectively. We are also realising significant adoption of our Ingresso distribution platform by accesso Passport customers, resulting in nearly 1.4 million tickets sold in 2021.

Another major part of our innovation story has been our new TE2 Food and Beverage capability, which has continued to gain traction with our customers as well as notable interest across our end markets. Shifting Food and Beverage order-taking to a self-service model has become a key priority as operators look to capture maximum in-venue spending and operate with less labour. Operators have reported double digit percentage increases in guest check size when ordering via their mobile device versus placing the order with an attendant. With the majority of major Food and Beverage systems built for operation by an attendant, mobile capabilities, and particularly those with the unique features needed by venue operators like theme parks and ski resorts, are limited. Due to accesso's long-standing expertise in high-volume online ordering and revenue optimisation, we are well-positioned in this newly emerging space.

Capitalising on substantial demand

Importantly, alongside a recovery in normal trading, we have seen higher-than-anticipated demand in our sales pipeline driven by an acceleration in the shift to mobile commerce resulting from the broader realignment of consumer behaviour through the pandemic. The action we have been taking to capture this increased demand has enabled us to secure 50 new venues and 64 eCommerce deals in 2021. But winning customers is only part of the story. We have also proven ourselves supportive, trustworthy and innovative partners to our existing base and our relentless focus on customer success has seen us renew 21 of our accesso Passport customers in 2021 including our global agreement with Merlin as well as the continuation of our agreement with Six Flags where they opted not to exercise their early termination rights.

Success with joint solution deployments

Over the past year we continued our strategy to deliver innovative solutions that encourage cross-selling across our product set. We are already seeing customer demand for this improvement coming through, with 20 of our 21 combination clients in the year adding accesso Passport to accesso Siriusware. These 21 combination wins take on real significance when set against the 39 total combination wins for the business prior to last year. This is a clear area of focus for the business and one with significant traction.

With the increasing number of customers utilising accesso Passport eCommerce alongside accesso Siriusware, we prioritised and invested in improvements in the connectivity between these two systems. With a new, more robust API Gateway, we dramatically increased data throughput between the systems which is significantly improving operational performance and reliability. We also developed a product catalogue synchronisation process allowing product/ticket setup data from accesso Siriusware to be passed to the accesso Passport without manually re-keying the information for each item.

Looking ahead, we are now in the process of integrating CyberSource into the accesso Siriusware point-of-sale system, with release scheduled for Spring 2022. This added functionality will allow combination clients to access consolidated credit card processing and management in one platform.

Industry focus driving increased success

A significant portion of the integration between our products is happening in our ski Industry customer base, where we have a substantial strategic focus. Our performance in this area was strong during 2021, benefiting from the fact that outdoor activities remained, relatively speaking, open to the public in the last year. Of the 75.7 million tickets sold through our accesso Passport eCommerce platform during 2021, 3.0 million were derived from our ski customers, up from 1.1 million in 2020.

The ski market delivered 78% of the Group's accesso Passport customer renewals during the year, and around 30% of our ski clients utilise accesso Passport and accesso Siriusware together. Many of our ski clients also upgraded to accesso Siriusware 5.0 during 2021, with a good pipeline for continued upgrades building into 2022.

Technology, operational and security infrastructure

We continue to invest in technology improvements across our product set to ensure our customers have the highest-quality offerings to meet their needs. We are evolving our accesso Passport platform, making significant progress on the 2022 project to bring updated web standards to our user interface and refresh all the platform's other user elements. We have also completed an initial version of a templating tool called Passport Configurator, a web-based tool for the rapid deployment of the accesso Passport eCommerce application and a multitude of related services. This will reduce the involvement of our engineering staff in new client provisioning and empower customers to take more ownership of their accesso Passport deployments. A new automation framework for the efficient testing and quality assurance of our applications has been implemented and we completed our annual IT security audit successfully. Finally, we fully completed the migration of accesso Passport to Amazon Web Services across all regions.

Operationally we have further consolidated internal systems used for workflow management and source code storage and now leverage the same solutions across the Group which enables greatly improved communication and efficiency, whilst reducing the number of systems to maintain and secure.

Although we do not outline the specifics of security improvements we have made across the year, we have continued to make significant investment to ensure our systems are protected and secure. Measures including multi-factor authentication and those related to remote working have been key priorities.

Our people

Through 2021 we rebuilt our workforce and re-established our growth culture. We recruited and onboarded 177 new hires (excluding seasonal staff) in the year and completed an engagement survey with 96% participation. Our overall score was a strong 4 out of 5, with our COVID pandemic response score reaching an even stronger 4.4 out of 5.

Our focus on improving employee engagement is helping us to retain talent and reduce turnover in the highly competitive market. With our engagement survey results in hand, we have addressed ideas and concerns raised by the team across a variety of areas including health benefits, compensation and working environment.

Our efforts to boost the diversity and inclusion within our accesso team also continued strongly, with unconscious bias training rolling out globally and the kick-off of a partnership with the US National Diversity Council to assist in developing our Diversity, Equity and Inclusion plan and goals for the future. We remain an organisation totally committed to helping our people flourish and look forward to building on our credentials in this area in the years to come.

As pandemic restrictions are pared back, we are eager to help our people to maintain the elements of the new ways of working that enable and motivate them. As a result, mid-year we shifted to a Global Remote Working policy allowing the option for our team to select to work fully from home or split their time between a local office and home. Whilst we continue to operate at remote status for the majority of our team, we expect to reopen offices in the first half of 2022 and welcome more staff back into our offices. We also placed significant focus on the new cultural dynamics faced as a result of remote working and initiated a range of remote based employee activities. As part of this initiative, we welcomed numerous guests across the year to virtually share their experiences and insights as part of our accesso Speaker Series including experts on creativity, diversity & inclusion and radical product thinking. At the start of 2021, we set a Group goal to realize turnover of less than 20%; we reached this goal with a turnover rate of 18% on the year.

Outlook and guidance

accesso has made a strong start to the 2022 financial year, with trading volumes in January and February providing an encouraging basis for this year's performance. In North America, our accesso Passport ticket volumes were double what we saw in the first two months 2019. This robust performance continues to be supported by the removal of COVID-19 restrictions across the world as well as the benefit from a significant number of customers onboarded during the past 2 years and increasing customer appetite for a leading-edge eCommerce solution. Markets segments which have been slower to recover, like Live Entertainment, are now ramping up, and we expect our product mix to be more consistent with pre-COVID levels in 2022. Whilst we remain cognisant of the relatively early stage in the year, the impact of tiered pricing at higher volumes and revised terms related to enterprise renewals, we are cautiously optimistic about another record revenue year.

As we work to capture high levels of demand we are scaling our workforce back to normal levels. At the outset of 2022 we have filled most of the positions we had outstanding in 2021, and as previously communicated, the overall upward industry pressure on wages is expected to result in an increase in our cost base as we return to normal staffing levels.

With continued growth in revenue, we expect to deliver another cash generative year, building on top of a year-end cash balance in excess of $60m.

Steve Brown

Chief Executive Officer

21 March 2022

Financial review

Commenting on the results, Fern MacDonald, Chief Financial Officer of accesso, said:

"We are extremely proud of our final results with 2021 representing a landmark year for accesso as we delivered record performance across all our key metrics. We move into 2022 with a strong balance sheet, a motivated team and a hugely exciting market opportunity. The technology-based solutions for ticketing, virtual queuing and food & beverage provided by accesso are now firmly the expectation of consumers across our key markets."

Financial overview

During 2021 the Group delivered a record financial performance in all key metrics as COVID-19 restrictions eased in our markets. Both revenue and cash EBITDA performance were well ahead of our initial expectations.

Our customer venues began to reopen at full scale during the early parts of 2021. As a result, we benefited from high consumer demand and a continued shift to purchasing in advance and online through our platforms. The deep customer relationships built throughout the pandemic enabled us to hit the ground running during 2021 and capture the significant uptick in demand for our products.

The cost actions and structural realignment undertaken during 2020 enabled the Group to be more operationally effective whilst driving higher levels of profitability and cash generation. During 2021 the Group had a number of open positions but made excellent progress in the year towards filling these positions in a difficult market. Headcount did not scale as quickly as our revenue activity due to a highly competitive job market and our selective approach to hiring. This benefited cash EBITDA for the year and staff costs will increase in 2022 as we see the full year impact of those hires as well as continuing the investment in our workforce to drive growth.

We have largely assessed the performance of 2021 against 2019 due to the impact of the pandemic on 2020. Whilst we provide 2020 comparators in the tables presented below, we draw more meaningful and valuable analysis against 2019.

Key performance indicators and alternative performance measures

The Board continues to utilise consistent alternative performance measures ("APMs") internally and in evaluating and presenting the results of the business. The Board views these APMs to be more representative of the Group's underlying performance.

The historic strategy of enhancing accesso's technology offerings via acquisitions, as well as an all-employee share option arrangement, necessitate adjustments to statutory metrics to remove certain items which the Board does not believe are reflective of the underlying business. These adjustments include aborted acquisition or aborted sale related expenses, amortisation related to acquired intangibles, deferred and contingent consideration linked to continued employment, share-based payments and impairments.

By consistently making these adjustments, the Group provides a better period-to-period comparison and is more readily comparable against businesses that do not have the same acquisition history and equity award policy.

APMs include cash EBITDA, adjusted basic EPS, net cash, underlying administrative expenditure and repeatable and non-repeatable revenue analysis and are defined as follows:

 
 
 --   Cash EBITDA is defined as operating profit before the deduction 
       of amortisation, impairment of intangible assets, depreciation, 
       acquisition costs, deferred and contingent consideration linked 
       to continued employment, and costs related to share-based payments 
       and paid capitalised internal development costs; 
 --   Adjusted basic earnings per share is calculated after adjusting 
       operating profit for impairment of intangible assets, amortisation 
       on acquired intangibles, deferred and contingent consideration 
       linked to continued employment, acquisition and aborted sale 
       expenses and share-based payments, net of tax at the effective 
       rate for the period on the taxable adjusted items; 
 --   Net cash is defined as available cash less borrowings; 
 --   Underlying administrative expenses which is administrative expenses 
       adjusted to add back the cost of capitalised development expenditure 
       and property lease payments and remove amortisation, impairment 
       of intangible assets, depreciation, acquisition costs, deferred 
       and contingent payments, and costs related to share-based payments. 
       This measure is to identify and trend the underlying administrative 
       cost before these items; and 
 --   Repeatable revenue consists of transactional revenue from Virtual 
       Queuing, Ticketing and eCommerce and is defined as revenue earned 
       as either a fixed amount per sale of an item, such as a ticket 
       sold by a customer or as a percentage of revenue generated by 
       a venue operator. Normally this revenue is repeatable where a 
       multi-year agreement exists and purchasing patterns by venue 
       guests do not significantly change. Other repeatable revenue 
       is defined as revenue, excluding transactional revenue, that 
       is expected to be earned through each year of a customer's agreement, 
       without the need for additional sales activity, such as maintenance 
       and support revenue. Non-repeatable revenue is revenue that occurs 
       one-time (e.g., up-front licence fees) or is not repeatable based 
       upon the current agreement (e.g., billable professional services 
       hours) and is unlikely to be repeatable without additional successful 
       sales execution by accesso. Other revenue consists of hardware 
       sales and other revenue that may or may not be repeatable with 
       limited sales activity if customer behaviour remains consistent. 
 

The Group considers cash EBITDA, which disregards any benefit to the income statement of capitalised development expenditure, as the principal operating metric.

Key Financial Metrics

Revenue

Group revenue of $124.8m (2020: $56.1m; 2019 $117.2m) represents a record for the Company and 6.5% growth on 2019 despite COVID-19 related interruption in certain markets during the year. Throughout 2021 we have seen customers increasingly engaged with utilising our technologies to address challenges such as capacity restrictions, physical queues and difficulties in securing staff. Our touchless technologies and ability to drive eCommerce ahead of visitation reduces labour-intensive point-of-sale models and delivers an enhanced guest experience. These technology-based solutions are now the expectation of consumers across our key markets. We set out details of our revenue by segment, geography and repeatable to non-repeatable analysis below.

Revenue on a segmental basis was as follows:

 
                                  2021     2020            2019   Vs 2019 
                                  $000     $000            $000         % 
 
 Ticketing                      65,877   36,603          58,237      13.1 
 Distribution                   10,053    1,363          21,097    (52.3) 
                              --------  -------  --------------  -------- 
 Ticketing and distribution     75,930   37,966          79,334     (4.3) 
                              --------  -------  --------------  -------- 
 Queuing                        32,888    8,348          25,208      30.5 
 Other guest experience         15,976    9,780          12,640      26.4 
                              --------  -------  --------------  -------- 
 Guest experience               48,864   18,128          37,848      29.1 
                              --------  -------  --------------  -------- 
 
 Total revenue                 124,794   56,094         117,182       6.5 
                              ========  =======  ==============  ======== 
 

Ticketing and Distribution revenue was 4.3% down on 2019, despite a 13.1% increase in ticketing, due to revenue reductions experienced in the lower margin distribution business. The distribution business continues to be largely dependent on the UK theatre sector and was significantly impacted by mandated restrictions and disruption throughout the first 6 months of the year and in December 2021. As a result, revenues were down 52.3% on 2019. Ticketing delivered an excellent performance due to the Group's accesso Passport eCommerce solution, a high margin transactional revenue stream which delivered 41.5% revenue growth on 2019.

During 2021 the Group went live with 64 new eCommerce ticketing clients compared to 37 during 2020. We continue to identify a shift in consumer and attraction behaviour towards pushing sales online, significantly benefiting both accesso and its customers as spend per guest increases, operational costs are reduced, and we gain additional insight into consumer behaviour through data.

Guest Experience delivered revenue growth of 29.1% on 2019. Our accesso LoQueue solution's transactional-based queuing products saw a period of significant demand despite park attendance being 27.7% down on comparable parks in 2019 due to COVID-19 related disruption to opening schedules and capacity restrictions at certain points during the year. Park guests purchasing an accesso LoQueue product at venues increased to 5.9% compared with 3.4% in 2019. Consumer appetite for virtual queuing has increased significantly and this has been further enabled by our Qsmart web-based virtual queuing app helping to drive customer penetration and basket size. During 2021 we implemented our Qsmart technology across a further 10 theme park venues with 84.2% of the parks we serve now using our web-based virtual queuing app. During 2021 we saw record transactional queuing volumes, several successful pilots for virtual queuing solutions, significant enhancement to existing customers' virtual queuing offerings and implementations at non theme park attractions. This demonstrates that both our customers and end consumers are embracing accesso technology. The Experience Engine business delivered a solid performance, with revenues up 25.6% on 2019 due to continued confidence in the bespoke professional services offerings, with large customers in the ski, theme park and cruise ship markets using our services.

Revenue on a geographic and segmental basis was as follows:

 
 
                                    2021                                 2020                                 2019 
 Primary               Ticketing                             Ticketing                            Ticketing 
 geographic                  and        Guest                      and        Guest                     and        Guest 
 markets            Distribution   Experience     Group   Distribution   Experience    Group   Distribution   Experience     Group 
                            $000         $000      $000           $000         $000     $000           $000         $000      $000 
 
 
 UK                       14,939        2,179    17,118          4,380          848    5,228         25,500        2,047    27,547 
 Other Europe              1,443        1,808     3,251          1,177          649    1,826          1,859        2,185     4,044 
 Australia/South 
  Pacific/Asia             3,219        1,318     4,537          1,663          750    2,413          2,942          768     3,710 
 USA and Canada           55,344       43,338    98,682         30,014       15,739   45,753         45,987       32,668    78,655 
 Central and 
  South America              985          221     1,206            732          142      874          3,046          180     3,226 
                   -------------  -----------  --------  -------------  -----------  -------  -------------  -----------  -------- 
                          75,930       48,864   124,794         37,966       18,128   56,094         79,334       37,848   117,182 
                   =============  ===========  ========  =============  ===========  =======  =============  ===========  ======== 
 

Our USA and Canadian based customers delivered a 25.5% increase in revenues on 2019 with excellent performance across multiple market verticals, despite attractions in the state of California being shuttered through April 2021. The exception to this strong performance was live entertainment which continues to recover toward pre pandemic revenue levels.

Selling our eCommerce accesso Passport solution into the USA and Canadian ski market continues to be one of the Group's medium-term strategic priorities. In 2021, 16 customers adopted eCommerce in this market to excellent mutual benefit, helping to drive incremental revenues to our Ticketing and Distribution segment. At 31 December 2021 approximately one third of our ski customers also use accesso Passport.

Despite a difficult start to 2021, our live entertainment customers in the USA have shown encouraging volumes from June 2021 onwards, finishing the year 24.5% behind 2019. This was largely due to disrupted trading during the first half of the year. We also went live with 28 accesso ShoWare(SM) new customers during 2021 (29: 2020).

In the UK, outdoor attractions reopened from April 2021 and demonstrated encouraging transactional volumes for the year. Live entertainment remained closed for the majority of the first half of 2021, opening with partial capacities from May 2021 and then at full capacities from July 2021, delivering encouraging volumes through November. The key month of December for UK based live entertainment was impacted by Omicron disruption with many shows being cancelled at short notice, these conditions resulted in a significant revenue reduction of $11.0m compared to 2019 in our Ingresso business. Other European countries mandated countrywide closures during April and May 2021 while Central and South America experienced a number of restrictions throughout the year that significantly hampered their ability to trade, resulting in both these regions underperforming relative to 2019.

Australia, Asia and the South Pacific was able to deliver revenues of $4.5m, up from $3.7m in 2019. The Australian region saw excellent performance from accesso LoQueue, accesso Passport and TE2, despite Australia being in a state-wide lockdown from July to October 2021. Whilst the impact was minimised due to this period coinciding with the region's off-peak season, it significantly impacted volumes during that 4-month period.

Revenue quality

 
                               2021       2020                            2019 
                               $000       $000       %                    $000        % 
 Virtual queuing             32,888      7,407   344.0                  24,687     33.2 
 Ticketing and eCommerce     58,537     23,157   152.8                  60,909    (3.9) 
 Reservation revenue          4,073        726   461.0                       -      100 
                           --------  ---------          ---------------------- 
 Transactional revenue       95,498     31,290   205.2                  85,596     11.6 
 Maintenance and support      7,281      7,711   (5.6)                   8,742   (16.7) 
 Platform fees                2,592      2,263    14.5                   1,149    125.6 
                           --------  ---------          ---------------------- 
 Total repeatable           105,371     41,264   155.4                  95,487     10.4 
                           --------  ---------          ---------------------- 
 Licence revenue              2,162      2,322   (6.9)                   3,496   (38.2) 
 Professional services       13,469      9,954    35.3                  14,787    (8.9) 
                           --------  ---------          ---------------------- 
 Non-repeatable revenue      15,631     12,276    27.3                  18,283   (14.5) 
                           --------  ---------          ---------------------- 
 Hardware                     2,704      1,493    81.1                   2,499      8.2 
 Other                        1,088      1,061     2.5                     913     19.2 
                           --------  ---------          ---------------------- 
 Other revenue                3,792      2,554    48.5                   3,412     11.1 
                           --------  ---------          ---------------------- 
 Total revenue              124,794     56,094   122.5                 117,182      6.5 
                           ========  =========          ====================== 
 Total repeatable 
  as % of total               84.4%      73.6%                           81.5% 
 

The above is an analysis of the Group's revenue by type. Transactional revenue consisting of Virtual Queuing, Ticketing and eCommerce is defined as revenue earned as either a fixed amount per sale of an item, such as a ticket sold by a customer or as a percentage of revenue generated by a venue operator. Normally this revenue is repeatable where a multi-year agreement exists and purchasing patterns by venue guests do not significantly change, as they did in 2020 as a result of the pandemic. Other repeatable revenue is defined as revenue, excluding transactional revenue, that is expected to be earned through each year of a customer's agreement, without the need for additional sales activity, such as maintenance and support revenue. Repeatable revenue has grown as a percentage of overall revenue to 84.4% (2020: 73.6%, 2019: 81.5%). Non-repeatable revenue is revenue that occurs one-time (e.g., up-front licence fees) or is not repeatable based upon the current agreement (e.g., billable professional services hours) and is unlikely to be repeatable without additional successful sales execution by accesso. Other revenue consists of hardware sales and other revenue that may or may not be repeatable with limited sales activity if customer behaviour remains consistent.

The Group's transactional revenue streams delivered an exceptional performance during 2021 to $95.5m, up 11.6% on a normal period of trading represented by 2019. This was despite some disruption across our geographies at various points of the year as well as the continued impact of the pandemic on the live entertainment industry globally.

Demand for ticketing eCommerce and virtual queuing products has been extremely high during the year despite regionalised restrictions, owing to an increased appetite for technology-based solutions. We have also benefited from latent demand and a shift in consumer behaviour to purchasing online. This has been welcomed by our attraction operators as it enables them to manage and monitor capacities, remove physical queues, reduce labour costs at payment terminals, maximise basket size and gain deeper consumer insights. During the year we have derived transactional revenue of $4.1m from online reservation fees which we do not expect to recur at the same level in future periods.

Professional services revenue performed ahead of our budget and 2020, a credit to our exceptional team which continued to deliver excellent bespoke solutions to the ski, cruise and attractions markets. Levels are 8.9% below the 2019 year which included some significant custom development projects. Our platform revenues continue to benefit from this bespoke development work whereby professional service customers have taken up repeatable platform fees for hosting food and beverage mobile apps. Platform revenues grew to $2.6m, above 2019 and 2020. We have seen increased demand for contactless technology such as our mobile food and beverage apps which both reduce physical contact points and help our attraction operators to remove labour costs.

The period also benefited from $2.7m of hardware sales following a $1.4m sale of Prism 2 wristbands which helped us deliver accesso LoQueue transactional revenue. Hardware sales also included equipment related to the addition of 24 new implementations for attractions utilising our accesso Siriusware point of sale systems.

Gross margin

Management has reviewed how costs are allocated between administrative expenses and cost of sales. In order to give a clearer and more meaningful picture of activity within the business, server costs linked to the delivery of revenue, previously shown within administrative costs have been reclassified to cost of sales in 2021.

The Group's reported gross profit margin of 77.2% is an improvement on 73.8%% and 72.1% achieved in 2020 and 2019 when adjusted for $1.6m and $1.2m of server costs to aid comparability respectively. This 5.1% gross margin increase is largely a result of the change in sales mix compared with 2019. Our lower margin distribution business represented just 2.5% of our gross profit compared to 5.1% in 2019 while higher margin streams such as virtual queuing, ticketing and eCommerce, maintenance and support and platform fees are proportionately greater. The accesso LoQueue solution generated an improved margin of 71.6%, compared to 63.6% in 2019, this was partly due to some labour shortages at points in the year but more importantly a number of our larger theme park customers adopting our virtual queuing web app, instead of our hardware wrist device, which can be delivered at improved gross margins.

Administrative expenses

Underlying administrative expenditure increased by 23.3% to $69.7m on 2020 due to a combination of factors; the most significant being the Group's headcount increasing from 458 to 513 (excluding seasonal staff). The Group recruited heavily during the year to capture the available revenue opportunities in a highly competitive job market where salaries have also increased significantly in the technology sector. During 2020, the Group implemented temporary cost reduction plans with staff working four-day weeks, following the onset of the pandemic in April 2020, with staff returning to full work schedules by the end of 2020. Furthermore, we have experienced a very gradual return in the second half of the year of typical activities such as trade shows and business travel, albeit still at very low levels across the whole year.

Reported administrative expenses increased 13.0% to $82.9m in 2021 but remained 6.1% lower than 2019, excluding the $53.6m impairment of intangibles. Share-based payment costs increased on 2020 to $2.5m, reflective of key management incentive arrangements being granted in both 2020 and 2021 and an all-other staff share-based payment award granted in July 2021.

During the year the Group also took action to rationalise its property leases and did not renew property leases when they expired in San Diego, London, Sydney, Belfast, Sao Paulo and Annapolis, resulting in a $268k reduction in property lease payments in 2021 relative to 2020. On an annual basis we expect this to save the Group $0.5m in property lease payments.

No government assistance has been received during 2021 or beyond.

 
                                                      2021       2020       2019 
                                                      $000       $000       $000 
 
 Administrative expenses as reported                82,872     73,339    141,906 
 Capitalised development expenditure 
  (1)                                                  720      2,969     21,064 
 Deferred equity-settled acquisition 
  consideration                                          -      (150)    (1,416) 
 Amortisation related to acquired intangibles      (2,371)    (2,573)   (11,286) 
 Share-based payments                              (2,490)    (1,398)    (1,845) 
 Amortisation and depreciation (2)                (12,183)   (14,664)   (16,014) 
 Property lease payments not in administrative 
  expense (1)                                        1,408      1,622      1,451 
 Reversal of impairment /(impairment 
  of) intangibles                                    1,707    (2,627)   (53,617) 
 Professional services cost (3)                          -          -    (6,723) 
                                                 ---------  ---------  --------- 
 
 Underlying administrative expenditure              69,663     56,518     73,520 
 
 
      (1)   See consolidated cash flow statement. 
      (2)   This excludes acquired intangibles but includes depreciation 
             on right of use assets. 
      (3)   The 2019 underlying administrative expense has been adjusted 
             for professional service costs incurred in the delivery 
             of professional services to be comparable with 2021 and 
             2020. 
 

Cash EBITDA

The Group delivered record cash EBITDA for the year of $28.1m, a $21.0m increase from $7.1m recorded in 2019. This increase is a result of 6.5% revenue growth at higher gross margins relative to 2019, improved productivity and efficiencies and headcount recovery lagging behind revenue recovery. The latter was made more challenging by an extremely competitive job market in our key regions. We have made excellent progress securing key positions throughout 2021 and finished the year with approximately 30 open positions.

The table below sets out a reconciliation between statutory operating profit/(loss) and cash EBITDA:

 
                                                           2021       2020        2019 
                                                           $000       $000        $000 
 Operating profit/(loss)                                 13,521   (30,354)    (56,278) 
 Add: Aborted sale/acquisition expenses                       -        461         305 
 Add: Deferred equity-settled acquisition 
  consideration                                               -        150       1,416 
 Add: Amortisation related to acquired 
  intangibles                                             2,371      2,573      11,286 
 Add: Share-based payments                                2,490      1,398       1,845 
 (Deduct)/Add: (Reversal of impairment)/impairment 
  of intangible assets                                  (1,707)      2,627      53,617 
 Add: Amortisation and depreciation (excluding 
  acquired intangibles)                                  12,183     14,664      16,014 
 Capitalised internal development costs 
  paid in cash                                            (720)    (2,969)    (21,064) 
                                                     ----------  ---------  ---------- 
 Cash EBITDA                                             28,138   (11,450)       7,141 
                                                     ==========  =========  ========== 
 

The Group recorded an operating profit of $13.5m in 2021 (2019 operating loss: $56.3m); and adjusted basic earnings per share increased to 61.10 cents (2020: Loss per share of 60.64 cents; 2019: earnings per share of 30.78 cents).

Development expenditure

 
                                    2021     2020     2019 
                                    $000     $000     $000 
 
 Total development expenditure    34,666   21,157   33,545 
 % of total revenue                27.8%    37.7%    28.6% 
                                 -------  -------  ------- 
 

Our engineering and product teams were reorganised at the end of 2020 into two teams serving all our products, spanning the operating segments of the business. This reorganisation is enabling us to cross-pollinate best practice, drive innovation, and take our product integration to the next level. Therefore, we no longer present development expenditure by segment as the information is no longer relevant. 2021 has been a tremendous period of innovation for accesso, with frontline and technical teams working at pace to deliver solutions to enable our customers to manage capacities, capture the uptick in demand for technology-based solutions to ticketing, eCommerce, distribution, queuing and mobile food and beverage purchasing. Our total development expenditure for 2021 increased to $34.7m, 39.0% higher than 2020 due to the impact of 4-day working weeks and furloughs in 2020 in response to the pandemic. The 3.3% increase relative to 2019, a more typical period, is reflective of the business driving towards full staff levels as revenues recover combined with the significant wage pressure over the past 2 years.

The Group capitalises elements of development expenditure where it is appropriate and in accordance with IAS 38 Intangible Assets. Capitalised development expenditure of $0.7m (2020: $3.0m), representing 2.1% (2020: 14.0%) of total development expenditure. This decrease in the proportion of development expenditure being capitalised is not a reflection of lesser importance of the work being undertaken, it has been critical in order to continue to meet and exceed the expectations of our existing customers' requirements and the current solutions they utilise. Development continues to expand the product set and add features that will be important for our customers' operations in the future.

Cash and net cash

Net cash at the end of the period has increased to $64.1m from 31 December 2020.

 
                                                 2021       2020 
                                                 $000       $000 
                                              -------  --------- 
 
 Borrowings (including capitalised finance 
  costs)                                            -   (26,699) 
 Less: Cash in hand & at bank                  64,050     56,355 
 
 Net cash                                      64,050     29,656 
                                              -------  --------- 
 

This strong net cash position has benefited from net cash inflow operating activities of $39.1m (2020 Net outflow of $14.5m) delivered by a period of exceptional revenue performance in our high margin accesso Passport and accesso LoQueue business and diligent working capital management.

The Group's 31 December 2020 year-end drawn borrowing facility of $26.7m was settled on 19 March 2021 following a successful refinancing of its lending facilities with Investec Bank plc at a total cost of $0.7m in fees. The Group has a 3-year, GBP18m Coronavirus Large Business Interruption Scheme Loan revolving credit facility at a 3.75% margin with a commitment fee of 1.5%, expiring in March 2024. Quarterly covenant tests are in place on minimum revenue and minimum liquidity for 2 years to December 2022. From March 2023 additional covenants are added for leverage and interest cover. No drawings have been made on this facility and all covenants have been met.

The Group's increase in trade and other payables cash flow of $16.2m is a result of the business activities resuming to more typical trading levels pre-pandemic with trade and other payables increasing to $29.2m, in line with that as at 31 December 2019, reversing the $14.4m outflow in 2020. As at 31 December 2020 many elements of our business were severely impacted by government mandated restrictions, most of which were removed by December 2021.

Dividend

The Board maintains its consistent view that the payment of a dividend is unlikely in the short to medium term with surplus cash more efficiently invested in strategic product development or, where the opportunities arise, value accretive acquisitions.

Impairment

In line with relevant accounting standards, the Group reviews the carrying value of all intangible assets on an annual basis or at the interim where indicators of impairment exist which resulted in no impairment charges being recorded.

Reversal of impairment of TE2 intangible assets

As of 31 December 2021, the recoverable value of TE2 was significantly improved following a period of strong trading, improved cost control and efficiency of the cash generating unit. A review was conducted of the $29.2m of intangible assets impaired in 2019, updated to 31 December 2021 based on their original useful economic lives (periods of 2-5 years). Each category of asset was assessed as at 31 December 2021 to determine if they remain in existence and are generating economic returns. As a result of this reassessment, $1.0m of development costs, $0.3m of acquired customer relationships and $0.5m of acquired intellectual property was reversed with a credit of $1.7m to administrative expense.

Taxation

The tax credit of $9.9m represents an effective tax rate on the $12.1m of statutory profit before tax (2020: Loss of $32.9m) of 81.8% (2019: 9.2%).

The key reconciling items to actual tax rates is $12.6m of previously unrecognised deferred tax asset on US losses and US tax credits being available for recognition in the year due to the ability to forecast profitability to utilise these losses and tax credits. This includes $2.4m of pre-acquisition losses of Blazer and Flips Flops Inc which were previously unrecognised during 2021, after concluding that these losses transfer and are available to utilise. There is a further $0.2m of other items that reconcile the tax credit back to the Group's principal US tax rate where the majority of the Group's earnings are derived. $47.0m of gross US losses and tax credits are now recognised following a year of high profitability and the demonstration that these tax savings can be utilised, $3.6m of gross US tax credits, $0.9m net, remain unrecognised as a result of uncertain tax provisions.

Going concern

The financial statements have been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts for the going concern period, which indicate that, taking account of severe but plausible downsides, the Group will have sufficient funds to meet the liabilities of the Group as they fall due for that period. The Group's severe but plausible downside scenario models revenue of $97.7m for 2022 and a marginal increase thereafter and reduces underlying administrative spend to $66.0m and a marginal increase thereafter for the same corresponding periods to reflect cost cutting measures that would be implemented. During the 2020 pandemic year the Group was able to reduce its underlying administrative expense to $56.5m (see page 21). The severe but plausible downside scenario indicates that the Group's cash balance reaches a low point of $51.4m and does not utilise any of its GBP18m loan facility.

At 31 December 2021 the Group has cash of $64.1m and an available undrawn loan facility of GBP18m. Covenants on the undrawn facility were passed during 2021 and are forecast to be passed through the going concern period.

Consequently, the Directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for the assessment period being at least 12 months from the date of signing and therefore have prepared the financial statements on a going concern basis.

On behalf of the Board:

Fern MacDonald

Chief Financial Officer

21 March 2022

Consolidated statement of comprehensive income

for the financial year ended 31 December 2021

 
                                                            2021       2020 
                                                Notes       $000       $000 
---------------------------------------------  ------  ---------  --------- 
 
 Revenue                                                 124,794     56,094 
 
 Cost of sales                                          (28,401)   (13,109) 
                                                       ---------  --------- 
 
 Gross profit                                             96,393     42,985 
 
 
   Administrative expenses                              (82,872)   (73,339) 
                                                       ---------  --------- 
 
 Operating profit/(loss) before reversal 
  of impairment of intangible assets                      11,814   (27,727) 
 Reversal of impairment of intangible assets               1,707          - 
 Impairment of intangible assets                               -    (2,627) 
---------------------------------------------  ------  ---------  --------- 
 
 Operating profit/(loss)                                  13,521   (30,354) 
                                                       ---------  --------- 
 
 Finance expense                                         (1,450)    (2,518) 
 
 Finance income                                               39         10 
                                                       ---------  --------- 
 
 Profit/(loss) before tax                                 12,110   (32,862) 
                                                       ---------  --------- 
 
 Income tax benefit                                 8      9,908      3,008 
                                                       ---------  --------- 
 
 Profit/(loss) for the period                             22,018   (29,854) 
                                                       =========  ========= 
 
 Other comprehensive (loss)/income 
 
 Items that will be reclassified to income 
  statement 
 Exchange differences on translating foreign 
  operations                                               (219)      4,910 
 Income tax credit on items recorded in 
  other comprehensive income                                 188      1,129 
                                                       ---------  --------- 
                                                            (31)      6,039 
 
 Total comprehensive income/(loss)                        21,987   (23,815) 
                                                       =========  ========= 
 
 All profit and comprehensive income is 
  attributable to the owners of the parent 
 
 Earnings/(losses) per share expressed in 
  cents per share: 
 Basic                                              9      53.39    (84.78) 
 Diluted                                            9      51.45    (84.78) 
 

All activities of the Company are classified as continuing

Consolidated statement of financial position

as at 31 December 2021

 
                                             31 December   31 December 
 Registered Number: 03959429                        2021          2020 
                                     Notes          $000          $000 
----------------------------------  ------  ------------  ------------ 
 Assets 
 Non-current assets 
 Intangible assets                      10       120,088       129,503 
 Property, plant and equipment                     2,236         2,439 
 Right of use assets                               3,053         4,166 
 Contract assets                                     375         1,109 
 Deferred tax assets                     8        16,260         7,701 
                                            ------------  ------------ 
                                                 142,012       144,918 
                                            ------------  ------------ 
 
 Current assets 
 Inventories                                         286         1,927 
 Contract assets                                   3,614         3,404 
 Trade and other receivables                      18,805        15,968 
 Income tax receivable                             1,097         1,858 
 Cash and cash equivalents                        64,050        56,355 
                                            ------------  ------------ 
                                                  87,852        79,512 
                                            ------------  ------------ 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                         29,219        17,328 
 Derivative financial liabilities                      -           758 
 Lease liabilities                                 1,003         1,163 
 Contract liabilities                              8,063         7,525 
 Income tax payable                                  503           667 
                                            ------------  ------------ 
                                                  38,788        27,441 
                                            ------------  ------------ 
 
 Net current assets                               49,064        52,071 
                                            ------------  ------------ 
 
 Non-current liabilities 
 Deferred tax liabilities                8         4,236         7,580 
 Contract liabilities                                914         1,303 
 Lease liabilities                                 2,733         3,790 
 Borrowings                                            -        26,699 
                                            ------------  ------------ 
                                                   7,883        39,372 
                                            ------------  ------------ 
 
 Total liabilities                                46,671        66,813 
                                            ------------  ------------ 
 
 Net assets                                      183,193       157,617 
                                            ============  ============ 
 
 Shareholders' equity 
 Called up share capital                11           596           595 
 Share premium                                   153,504       153,327 
 Retained earnings                                 9,753      (15,864) 
 Merger relief reserve                            19,641        19,641 
 Translation reserve                               (301)          (82) 
                                            ------------  ------------ 
 
 Total shareholders' equity                      183,193       157,617 
                                            ============  ============ 
 

Consolidated statement of cash flow

for the financial year ended 31 December 2021

 
                                                                2021       2020 
                                                    Notes       $000       $000 
 Cash flows from operations 
 Profit/(loss) for the period                                 22,018   (29,854) 
 Adjustments for: 
 Depreciation (excluding leased assets)                        1,827      1,758 
 Depreciation on leased assets                                 1,035      1,461 
 Amortisation on acquired intangibles                  10      2,373      2,573 
 Amortisation on development costs and other 
  intangibles                                          10      9,319     11,446 
 Impairment of intangibles                                         -      2,627 
 Reversal of impairment of intangible assets           10    (1,707)          - 
 Loss on disposal of property, plant and 
  equipment                                                        2         22 
 Share-based payment                                           2,490      1,398 
 Deferred consideration charge                                     -        150 
 Finance expense                                               1,450      2,518 
 Finance income                                                 (39)       (10) 
 Foreign exchange gain                                           312      1,308 
 Income tax benefit                                     8    (9,908)    (3,008) 
 RDEC tax credits                                               (81)      (384) 
                                                              29,091    (7,995) 
 
 Decrease/(increase) in inventories                              861      (923) 
 (Increase)/decrease in trade and other 
  receivables                                                (3,592)      6,658 
 (Decrease)/increase in contract assets/contract 
  liabilities                                                (3,316)      4,847 
 Increase/(decrease) in trade and other 
  payables                                                    16,241   (14,444) 
 
  Cash generated from/(used in) operations                    39,285   (11,857) 
 
  Tax paid                                                     (171)    (2,657) 
                                                           ---------  --------- 
 
  Net cash inflow/(outflow) from operating 
   activities                                                 39,114   (14,514) 
                                                           ---------  --------- 
 
 Cash flows from investing activities 
 Deferred consideration settlement                              (13)      (477) 
 Capitalised internal development costs                        (720)    (2,969) 
 Purchase of property, plant and equipment                     (960)      (437) 
 Proceeds from sale of intangible assets                          23          - 
 Interest received                                                28          6 
                                                           ---------  --------- 
 
 Net cash used in investing activities                       (1,642)    (3,877) 
                                                           ---------  --------- 
 
 Cash flows from financing activities 
 Share issue                                                     178     48,215 
 Share issue costs                                                 -    (2,123) 
 Sale of shares held in trust                                      -        198 
 Interest paid                                                 (514)      (633) 
 Payments on property lease liabilities                      (1,408)    (1,622) 
 Cash paid to refinance                                        (813)          - 
 Proceeds from borrowings                                          -     10,116 
 Repayments of borrowings                                   (27,033)          - 
 Net forward FX contract settlement used 
  to hedge share issue proceeds                                (409) 
 
 Net cash (utilised in)/generated from financing 
  activities                                                (29,999)     54,151 
                                                           ---------  --------- 
 
 Increase in cash and cash equivalents                         7,473     35,760 
 Cash and cash equivalents at beginning 
  of year                                                     56,355     16,205 
 Exchange gain on cash and cash equivalents                      222      4,390 
                                                           ---------  --------- 
 
 Cash and cash equivalents at end of year                     64,050     56,355 
                                                           =========  ========= 
 

Consolidated statement of changes in equity

for the financial year ended 31 December 2021

 
                                                                 Merger   Own shares 
                                Share      Share    Retained     relief         held   Translation 
                              capital    premium    earnings    reserve     in trust       reserve      Total 
                                 $000       $000        $000       $000         $000          $000       $000 
                            ---------  ---------  ----------  ---------  -----------  ------------  --------- 
 
   Balance at 
   1 January 2021                 595    153,327    (15,864)     19,641            -          (82)    157,617 
                            ---------  ---------  ----------  ---------  -----------  ------------  --------- 
 
 Comprehensive income for the 
  year 
 Profit for 
  period                            -          -      22,018          -            -             -     22,018 
 Other comprehensive 
  income 
  Exchange differences 
   on translating 
   foreign operations               -          -           -          -            -         (219)      (219) 
  Income tax 
   credit on items 
   recorded in 
   other comprehensive 
   income                           -          -         188          -            -             -          188 
                            ---------  ---------  ----------  ---------  -----------  ------------  ----------- 
 Total comprehensive 
  income for 
  the year                          -          -      22,206          -            -         (219)     21,987 
                            ---------  ---------  ----------  ---------  -----------  ------------  --------- 
 
 
 Issue of share 
  capital                           1        177           -          -            -             -        178 
 Share-based 
  payments                          -                  2,490          -            -             -      2,490 
 Share option 
  tax charge 
  - deferred                        -          -         921          -            -             -        921 
 Total contributions 
  by and distributions 
  by owners                         1        177       3,411          -            -             -      3,589 
 
 Balance at 
  31 December 
  2021                            596    153,504       9,753     19,641            -         (301)    183,193 
                            =========  =========  ==========  =========  ===========  ============  ========= 
 
 Balance at 
  1 January 2020                  427    107,403      11,331     19,641        (665)       (4,918)    133,219 
 
 Comprehensive income for the 
  year 
 (Loss) for 
  period                            -          -    (29,854)          -            -             -   (29,854) 
 Other comprehensive 
  income 
  Exchange differences 
   on translating 
   foreign operations               -          -           -          -            -         4,910      4,910 
  Income tax 
   credit on items 
   recorded in 
   other comprehensive 
   income                                              1,129                                            1,129 
                            ---------  ---------  ----------  ---------  -----------  ------------  --------- 
 Total comprehensive 
  income for 
  the year                          -          -    (28,725)          -            -         4,910   (23,815) 
                            ---------  ---------  ----------  ---------  -----------  ------------  --------- 
 
 Contributions by and distributions 
  to owners 
 Issue of share 
  capital                         168     48,047           -          -            -             -     48,215 
 Share issue 
  costs                             -    (2,123)           -          -            -             -    (2,123) 
 Share-based 
  payments                          -          -       1,398          -            -          (74)      1,324 
 Equity-settled 
  deferred consideration            -          -         150          -            -             -        150 
 Share option 
  tax charge 
  - deferred                        -          -          50          -            -             -         50 
 Reduction of 
  shares held 
  in trust                                              (68)                     665                      597 
 Total contributions 
  by and distributions 
  by owners                       168     45,924       1,530          -          665          (74)     48,213 
 
 Balance at 
  31 December 
  2020                            595    153,327    (15,864)     19,641            -          (82)    157,617 
                            =========  =========  ==========  =========  ===========  ============  ========= 
 

Notes to the consolidated financial statements

for the financial year ended 31 December 2021

   1.       Reporting entity 

accesso Technology Group plc is a public limited company incorporated in the United Kingdom, whose shares are publicly traded on the AIM market. The Company is domiciled in the United Kingdom and its registered address is Unit 5, The Pavilions, Ruscombe Park, Twyford, Berkshire RG10 9NN. This consolidated financial information comprise the Company and its subsidiaries (together referred to as the "Group").

The Group's principal activities are the development and application of ticketing, mobile and eCommerce technologies, licensing and operation of virtual queuing solutions and providing a personalised experience to customers within the attractions and leisure industry. The eCommerce technologies are generally licensed to operators of venues, enabling the online sale of tickets, guest management, and point-of-sale ("POS") transactions. The virtual queuing solutions and personalised experience platforms are installed by the Group at a venue, and managed and operated by the Group directly or licensed to the operator for their operation.

   2.       Basis of accounting 
 
            The preliminary results for the year ended 31 December 2021 
             and the results for the year ended 31 December 2020 are prepared 
             under International Financial Reporting Standards and applicable 
             law. The accounting policies adopted in this preliminary announcement 
             are consistent with the Annual Report for the year ended 31 
             December 2021. 
 
             The financial information set out above does not constitute 
             the Company's statutory accounts for the years ended 31 December 
             2021 or 2020 but is derived from those accounts. Statutory 
             accounts for 2020 have been delivered to the registrar of companies, 
             and those for 2021 will be delivered in due course. The auditor 
             has reported on those accounts; their reports were (i) unqualified, 
             (ii) did not include a reference to any matters to which the 
             auditor drew attention by way of emphasis without qualifying 
             their report and (iii) did not contain a statement under section 
             498 (2) or (3) of the Companies Act 2006. 
 
             While the financial information included in this announcement 
             has been prepared in accordance with the recognition and measurement 
             criteria of International Financial Reporting Standards (IFRS), 
             this announcement does not itself contain sufficient information 
             to comply with IFRS. 
 
             The Group's consolidated financial statements have been prepared 
             in accordance with IFRS. They were authorised for issue by 
             the Company's board of directors on 21 March 2022. 
             Details of the Group's accounting policies are included in 
             notes 3 and 4. 
 
   3.       Changes to significant accounting policies 

Other new standards and improvements

Other than as described below, the accounting policies, presentation and methods of calculation adopted are consistent with those of the Annual Report and Accounts for the year ended 31 December 2020, apart from standards, amendments to or interpretations of published standards adopted during the period.

The following standards, interpretations and amendments to existing standards are now effective and have been adopted by the Group. The impacts of applying these policies are not considered material:

 
 -   Amendments to References to the Conceptual Framework 
      in IFRS Standards - Amendments to IFRS 2, IFRS 3, IFRS 
      6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 
      12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32 to update 
      those pronouncements with regard to the revised the 
      Conceptual Framework. 
 -   Amendments to IFRS 3 "Business Combinations", clarifies 
      the definition of a business in acquisitions. 
 -   Amendments to IAS 1 and IAS 8: guidance on the definition 
      of material. 
 -   Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 16 and IFRS 
      4: Interest rate benchmark reforms. Phase 1 covers hedge 
      accounting impacts and discontinuance exemptions. 
 -   Annual Improvements cycle 2018-2020 includes relevant 
      amendments clarifying capitalisation of transaction 
      fees/inclusion of specific fees in modification/extinguishment 
      test within IFRS 9 Financial Instruments. 
 -   Amendments to IFRS 3 "Business combinations", IAS 16 
      "Property, plant and equipment" and IAS 37 "Provisions, 
      Contingent assets and Contingent liabilities". 
 

New standards and interpretations not yet adopted

A number of new standards, amendments to standards, and interpretations are either not effective for 2022 or not relevant to the Group, and therefore have not been applied in preparing these accounts.

   4.       Significant accounting policies 

The principal accounting policies adopted in the preparation of the financial information are set out below. The policies have been consistently applied to all the periods presented.

Basis of consolidation

The consolidated financial statements incorporate the results of accesso Technology Group plc and all of its subsidiary undertakings as at 31 December 2021 using the acquisition method. Subsidiaries are all entities over which the Group has the ability to affect the returns of the entity and has the rights to variable returns from its involvement with the entity. The results of subsidiary undertakings are included from the date of acquisition.

The acquisition of subsidiaries is accounted for using the acquisition method. The cost of the acquisition is measured at the aggregate of the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree. Any costs directly attributable to the business combination are written off to the Group income statement in the period incurred. The acquiree's identifiable assets, liabilities, and contingent liabilities that meet the conditions under IFRS 3 are recognised at their fair value at the acquisition date.

Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities, and contingent liabilities recognised.

Investments, including the shares in subsidiary companies held as fixed assets, are stated at cost less any provision for impairment in value. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by the Group.

Lo-Q (Trustees) Limited, a subsidiary company that holds an employee benefit trust on behalf of accesso Technology Group plc, is under control of the Board of directors and hence has been consolidated into the Group results.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation.

Going concern

The financial information has been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons.

The Directors have prepared cash flow forecasts for the going concern period, which indicate that, taking account of severe but plausible downsides, the Group will have sufficient funds to meet the liabilities of the Group as they fall due for that period. The Group's severe but plausible downside scenario models revenue of $97.7m for 2022 and a marginal increase thereafter and reduces underlying administrative spend to $66.0m and marginal increase thereafter for the same corresponding periods to reflect cost cutting measures that would be implemented. During the 2020 pandemic year the Group was able to reduce its underlying administrative expense to $56.5m. The severe but plausible downside scenario indicates that the Group's cash balance reaches a low point of $51.4m and does not utilise any of its GBP18m loan facility.

At 31 December 2021 the Group has cash of $64.1m and an available undrawn loan facility of GBP18m. Covenants on the undrawn facility were passed during 2021 and are forecast to be passed through the going concern period.

Consequently, the Directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for the assessment period being at least 12 months from the date of signing and therefore have prepared the financial information on a going concern basis.

Foreign currency

 
          Foreign currency transactions 
           Transactions in foreign currencies are translated into the respective 
           functional currencies of Group companies at the rates ruling when 
           the transactions occur. 
 
           Monetary assets and liabilities denominated in foreign currency 
           are translated into the functional currency at the exchange rate 
           at the reporting date. Non-monetary assets and liabilities that 
           are measured at fair value in a foreign currency are translated 
           into the functional currency at the exchange rate when the fair 
           value was determined. Non-monetary items that are measured based 
           on historical cost in a foreign currency are translated at the exchange 
           rate at the date of the transaction. 
 
           Foreign operations 
           The assets and liabilities of foreign operations, including goodwill, 
           are translated into USD at the exchange rates at the reporting date. 
           The income and expenses of foreign operations are translated into 
           USD at the rates ruling when the transactions occur, or appropriate 
           averages. 
 
           Foreign currency differences on translating the opening net assets 
           at an opening rate and the results of operations at actual rates 
           are recognised in other comprehensive income and accumulated in 
           the translation reserve. Retranslation differences recognised in 
           other comprehensive income will be reclassified to profit or loss 
           in the event of a disposal of the business, or the Group no longer 
           has control or significant influence. 
 
           Revenue from contracts with customers 
 
           IFRS 15 provides a single, principles based five step model to be 
           applied to all sales contracts as outlined below. It is based on 
           the transfer of control of goods and services to customers and replaces 
           the separate models for goods and services. 
 
           1. Identify the contract(s) with a customer 
           2. Identify the performance obligations in the contract 
           3. Determine the transaction price 
           4. Allocate the transaction price to the performance obligations 
           in the contract 
           5. Recognise revenue when or as the entity satisfies its performance 
           obligations. 
 
           Revenue is recognised to the extent that it is probable that the 
           economic benefits will flow to the Group and the revenue can be 
           measured reliably. The following table provides information about 
           the nature and timing of the satisfaction of performance obligations 
           in contracts with customers, including significant payment terms, 
           and the related revenue recognition policies. 
            Type of             Nature of the performance 
             product/service/    obligations and significant 
             Segment             payment terms                     Accounting policy 
           ------------------  ---------------------------------  --------------------------------- 
 
            a. Point-of-sale    Each contract provides             The transaction price is 
             (POS) licences      the customer with the             allocated 
             and support         right to use the POS license      using the residual approach, 
             revenue             (installed on premise)            where 
             - Ticketing         for terms between one             the support revenue is carved 
             and distribution    and three years. The customer     out of the total consideration 
                                 also receives support             using an estimate that best 
                                 for typically a period            reflects 
                                 of one year. This support         its stand-alone selling price. 
                                 is not necessary for the          Revenue from sale of POS 
                                 functionality of the licence      licenses 
                                 and is therefore a distinct       is recognised at a point in time 
                                 performance obligation            when the customer has been 
                                 from the right to use             provided 
                                 the POS licence.                  with the software. Point in time 
                                 With agreements longer            recognition is appropriate 
                                 than one year, invoices           because 
                                 are generated either quarterly    the licence provides the 
                                 or annually; usually payable      customer 
                                 within thirty days.               with the right of use of the POS 
                                 Although payments are             software as it exists and is 
                                 made over the term of             fully 
                                 the agreement, the agreement      functional from the date it is 
                                 is binding for the negotiated     provided to the customer. 
                                 term. The total transaction       Support revenue is recognised 
                                 price is payable over             on a straight-line basis over 
                                 the term of the agreement         the term of the contract, which 
                                 via the annual or quarterly       in most cases is one year and 
                                 instalments.                      is renewable at the option of 
                                                                   the customer thereafter. 
                                                                   The revenue recognition of POS 
                                                                   licenses at a point in time 
                                                                   gives 
                                                                   rise to a contract asset at 
                                                                   inception. 
                                                                   The balance reduces as the 
                                                                   consideration 
                                                                   is billed annually/ quarterly 
                                                                   in accordance with the 
                                                                   agreement. 
            b. Software         Each contract provides             The transaction price is 
             licences            the customer with the             allocated 
             and the             right to use the software         using the residual approach, 
             related             license (installed on             where 
             maintenance         premise) with annual support      the annual support and 
             and support         and maintenance. The support      maintenance 
             revenue             and maintenance is not            revenue is carved out of the 
             - Ticketing         required to operate the           total 
             and distribution    software and is considered        consideration using an estimate 
             and Guest           a distinct performance            that best reflects is 
             Experience          obligation from the right         stand-alone 
                                 to use the software license.      selling price. 
                                 The customer has an option        Annual support and maintenance 
                                 to renew the license at           revenue is recognised on a 
                                 no additional cost by             straight-line 
                                 annually renewing support         basis over the term of the 
                                 and maintenance at each           contract, 
                                 anniversary. This is considered   which in most cases is one year 
                                 a material right under            and is renewable at the option 
                                 IFRS 15 and represents            of the customer thereafter. 
                                 a separate performance            Revenue from sale of annual 
                                 obligation.                       software 
                                 Invoices are raised at            licenses is recognised at a 
                                 the beginning of each             point 
                                 contract for the software         in time when the customer has 
                                 license and annual support        been provided with the software. 
                                 and maintenance. Subsequently,    The revenue is recognised at a 
                                 invoices are raised at            point in time because the 
                                 each anniversary of the           licence 
                                 contract for annual support       provides the customer with the 
                                 and maintenance (as software      right of use of the software as 
                                 license is renewed at             it exists and is fully 
                                 no additional cost).              functional 
                                                                   from the date it is provided to 
                                                                   the customer. 
                                                                   Revenue from sale of multi-year 
                                                                   software license contracts is 
                                                                   spread as the customer has the 
                                                                   option to renew each year's 
                                                                   licence 
                                                                   at no additional cost by paying 
                                                                   the annual support and 
                                                                   maintenance 
                                                                   fee. A proportion of the license 
                                                                   payment is deferred and 
                                                                   recognised 
                                                                   at a future point in time when 
                                                                   the customer renews. The amount 
                                                                   that is deferred is dependent 
                                                                   on the term of the contract. For 
                                                                   example: on the inception of a 
                                                                   three-year contract, two thirds 
                                                                   of the licence fee consideration 
                                                                   would be deferred and released 
                                                                   equally on the first and second 
                                                                   anniversary when the customer 
                                                                   renews their maintenance and 
                                                                   support. 
                                                                   Perpetual licences are 
                                                                   recognised 
                                                                   in the same manner, with the 
                                                                   exception 
                                                                   being that the contract term is 
                                                                   estimated to be five years. 
                                                                   If the customer chooses not to 
                                                                   exercise the above option, any 
                                                                   residual deferred revenue would 
                                                                   be recognised as income in that 
                                                                   period. 
                                                                   The deferred revenue gives rise 
                                                                   to a contract liability at the 
                                                                   inception of the contract. The 
                                                                   balance reduces as revenue is 
                                                                   recognised at each contract 
                                                                   anniversary. 
 
                                Nature of the performance 
            Type of              obligations and significant 
             product/service     payment terms                     Accounting policy 
           ------------------  ---------------------------------  --------------------------------- 
 
            c. Virtual          Virtual queuing systems            IFRS 15 focuses on control of 
             queuing            are installed at a client's        the goods or services. 
             system -           location, and revenue is           Management 
             Guest Experience   recognised when a park guest       have determined that the Group 
                                uses the service. The Group's      is acting as the agent in all 
                                performance obligation is          queuing contracts as it is the 
                                either to provide a licence        attractions who bring the guest 
                                to and maintain a system           to the parks, control hours of 
                                in the park or operate the         operation and have influence 
                                system within the park and         over many aspects of the service 
                                is contracted with the             we supply. accesso therefore 
                                attraction                         only recognises its portion of 
                                owner, not end consumer.           the sale as revenue, rather than 
                                                                   the full amount of the guest 
                                                                   payment which is paid to the 
                                                                   attraction. 
            d. Ticketing        Revenue is recognised at           Ticketing and eCommerce revenue 
             and eCommerce       the time the ticket is sold       is recognised at the time the 
             revenue             or the transaction takes          ticket is sold through our 
             - Ticketing         place. Invoices are issued        platform 
             and distribution    monthly and generally payable     or the transaction takes place. 
                                 within thirty days.               accesso recognises only its fee 
                                                                   for processing the transaction 
                                                                   as the agent rather than the 
                                                                   gross ticket value. 
            e. Professional     Professional services revenue      Bespoke professional services 
             services           is typically providing             work is recognised over time 
             - Ticketing        customised                         where the Group has enforceable 
             and distribution   software development and           rights to revenue in the event 
             and Guest          in general is agreed with          of cancellation. 
             Experience         the customer and billed            The Group recognises revenue 
                                at each month end. Certain         over time using the input method 
                                contracts span longer time         (hours/total budgeted hours) 
                                periods whereby the Group          when this method best depicts 
                                carries out customisation          the Group's performance of 
                                and delivers software releases     transferring 
                                to customers at predetermined      control. 
                                milestones.                        For certain customers the output 
                                                                   method is adopted where the 
                                                                   Group's 
                                                                   right to consideration 
                                                                   corresponds 
                                                                   directly with the completed 
                                                                   monthly 
                                                                   performance obligation, revenue 
                                                                   for these customers is 
                                                                   recognised 
                                                                   in line with the amount of 
                                                                   revenue 
                                                                   the Group is entitled to 
                                                                   invoice. 
            f. Hardware         On certain contracts, customers    This revenue is recognised at 
             sales -             request that the Group procures   the point the customer obtains 
             Ticketing           hardware on their behalf          control of the hardware which 
             and distribution    which the Group has determined    is considered to be the point 
             and Guest           to be a distinct performance      of delivery when legal title 
             Experience          obligation.                       passes. accesso takes control 
                                                                   and risk of ownership on 
                                                                   hardware 
                                                                   procurement and recognises sales 
                                                                   and costs on a gross basis as 
                                                                   principal. 
            g. Platform         Cloud-based experience             Revenue is billed monthly and 
             fees               management                         recognised over time as the 
                                platform systems are used          performance 
                                by certain venues to provide       obligations of hosting and 
                                customer relationship              supporting 
                                management,                        the secure platforms are 
                                guest personalisation, payment     provided 
                                and ordering services, push        to the venues. 
                                notifications, scheduling, 
                                offers, location-based services, 
                                consumer-facing screens 
                                and many other services 
                                to end users at attractions. 
                                These secure platforms are 
                                provided to venues together 
                                with support under annual 
                                contracts. 
 

Contract assets and contract liabilities

Contract assets represent licence fees which have been recognised at a point in time but where the consideration is contractually payable over time, professional service revenue whereby control has been passed to the customer and deferred contract commissions incurred in obtaining a contract which are recognised in line with the recognition of the revenue. Contract assets for point in time licence fees and unbilled professional service revenue represent financial assets and are considered for impairment on an expected credit loss model, these assets have historically had immaterial levels of bad debt and are with credit worthy customers, and consequently the Group has not recognised any impairment provision against them.

Contract liabilities represent discounted renewal options on licence arrangements whereby a customer has the right to renew their licence at a full discount subject to the payment of annual support and or maintenance fees on each anniversary of the contract. Contract liabilities are recognised as income when a customer exercises their renewal right on each anniversary of the contract and pays their annual maintenance and support. In the situation of a customer terminating their contract all unexercised deferred renewal rights would be recognised as income, representing a lapse of the renewal right options. The licence fees related to these contract liabilities are non-refundable.

Where these assets or liabilities mature in periods beyond 12 months of the balance sheet date they are recognised within non-current assets or non-current liabilities as appropriate.

Interest expense recognition

 
 Expense is recognised as interest accrues, using the effective 
  interest method, to the net carrying amount of the financial 
  liability. 
 

Employee benefits

Share-based payment arrangements

 
          The Group issues equity-settled share-based payments to full-time 
           employees. Equity-settled share-based payments are measured at the 
           fair value at the date of grant, with the expense recognised over 
           the vesting period, with a corresponding increase in equity. The 
           amount recognised as an expense is adjusted to reflect the Group's 
           estimate of shares that will eventually vest, such that the amount 
           recognised is based on the number of awards that meet the service 
           and non-market performance conditions at the vesting date. 
 
           The fair value of our share awards with time-based and employment 
           conditions are measured by use of a Black-Scholes model, and share 
           options issued under the Long-Term Incentive Plan (LTIP) are measured 
           using the Monte Carlo method, due to the market-based conditions 
           upon which vesting is dependent. The expected life used in the model 
           has been adjusted, based on management's best estimate, for the 
           effects of non-transferability, exercise restrictions, and behavioural 
           considerations. 
 
           The LTIP awards contain market-based vesting conditions where they 
           have been set. Market vesting conditions are factored into the fair 
           value of the options granted. As long as all other vesting conditions 
           are satisfied, a charge is made irrespective of whether the market 
           vesting conditions are satisfied. The cumulative expense is not 
           adjusted for failure to achieve a market vesting condition or where 
           a non-vesting condition is not satisfied. 
 
           LTIP awards granted in 2020 included continued employment conditions 
           only due to the unprecedented market instability, before being modified 
           on 12 February 2021 by the Remuneration Committee to include a market-based 
           total shareholder return condition and cash EBITDA non-market-based 
           conditions. The fair value of these LTIP share awards were initially 
           valued by use of a Black-Scholes model due to them including only 
           continued employment conditions. On their modification they were 
           reassessed using a Monte Carlo method, due to the market-based conditions 
           upon which vesting is dependent, this resulted in a fair value below 
           that on which the awards were initially granted, as such the fair 
           value was not reduced in line with IFRS 2 Share-based payments and 
           they continue to be recognised at their original grant date fair 
           value. 
 
 

Pension costs

 
 Contributions to the Group's defined contribution pension schemes 
  are charged to the consolidated statement of comprehensive income 
  in the period in which they become due. 
 

Property, plant and equipment

 
 Items of property, plant and equipment are stated at cost of 
  acquisition or production cost less accumulated depreciation 
  and impairment losses. 
 
  Depreciation is charged to write off the cost of assets, less 
  residual value, over their estimated useful lives, using the 
  straight-line method, on the following bases: 
 
 
 Plant, machinery, and 
  office equipment         20 - 33.3% 
 Installed systems         25 - 33.3%, or life of contract 
 Furniture and fixtures    20% 
 Leasehold Improvements    Shorter of useful life of the asset or 
                            time remaining within the lease contract 
 

Inventories

 
 The Group's inventories consist of parts used in the manufacture 
  and maintenance of its virtual queuing product, along with peripheral 
  items that enable the product to function within a park. 
 
  Inventories are valued at the lower of cost and net realisable 
  value, after making due allowance for obsolete and slow-moving 
  items. Inventories are calculated on a first-in, first-out basis. 
 
  Park installations are valued on the basis of the cost of inventory 
  items and labour plus attributable overheads. Net realisable 
  value is based on estimated selling price less additional costs 
  to completion and disposal. 
 

Deferred tax

 
  Deferred tax assets and liabilities are recognised where the 
   carrying amount of an asset or liability in the Consolidated 
   and Company statements of financial position differs from its 
   tax base, except for differences arising on: 
     --   the initial recognition of goodwill; 
     --   the initial recognition of an asset or liability in a 
           transaction which is not a business combination and at 
           the time of the transaction affects neither accounting 
           or taxable profit; and 
     --   investments in subsidiaries and jointly controlled entities 
           where the Group is able to control the timing of the reversal 
           of the difference and it is probable that the difference 
           will not reverse in the foreseeable future. 
 
 
   Recognition of deferred tax assets is restricted to those instances 
   where it is probable that taxable profit will be available against 
   which the difference can be utilised. 
 
   The amount of the asset or liability is determined using tax 
   rates that have been enacted or substantively enacted by the 
   reporting date and are expected to apply when the deferred tax 
   liabilities/(assets) are settled/(recovered). 
 
   Deferred tax assets and liabilities are offset when the Group 
   has a legally enforceable right to offset current tax assets 
   and liabilities and the deferred tax assets and liabilities 
   relate to taxes levied by the same tax authority on either: 
     --   the same taxable Group company; or 
     --   different Group entities which intend either to settle 
           current tax assets and liabilities on a net basis, or 
           to realise the assets and settle the liabilities simultaneously, 
           in each future period in which significant amounts of 
           deferred tax assets or liabilities are expected to be 
           settled or recovered. 
 

Current income tax

 
 The tax expense or benefit for the period comprises current 
  and deferred tax. Tax is recognised in the income statement, 
  except to the extent that it relates to items recognised in 
  other comprehensive income or directly in equity. In this case, 
  the tax is also recognised in other comprehensive income or 
  directly in equity, respectively. 
 
  The current income tax charge is calculated on the basis of 
  the tax laws enacted or substantively enacted at the balance 
  sheet date in the countries where the Company and its subsidiaries 
  operate and generate taxable income. Management periodically 
  evaluates positions taken in tax returns with respect to situations 
  in which applicable tax regulation is subject to interpretation. 
  It establishes provisions where appropriate on the basis of 
  amounts expected to be paid to the tax authorities. See note 
  8 for further discussion on provisions related to tax positions. 
 

Goodwill and impairment of non-financial assets

Any excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised in the Consolidated Statement of Financial Position as goodwill and is not amortised.

After initial recognition, goodwill is stated at cost less any accumulated impairment losses, with the carrying value being reviewed for impairment at an operating segment level before aggregation, at least annually and whenever events or changes in circumstances indicate that the carrying value may be impaired.

Where the recoverable amount of the cash-generating unit is less than its carrying amount including goodwill, an impairment loss is recognised in the Consolidated Statement of Profit or Loss.

Any non-financial assets other than goodwill which have suffered impairment are reviewed for possible reversal of the impairment at each reporting date. Assets that are subject to amortisation and depreciation are also reviewed for any possible impairment at each reporting date.

 
 
            Externally acquired intangible assets 
 
            Intangible assets are capitalised at cost and amortised to nil by 
            equal instalments over their estimated useful economic life. 
 
            Intangible assets are recognised on business combinations if they 
            are separable from the acquired entity. The amounts ascribed to 
            such intangibles are arrived at by using appropriate valuation techniques. 
            The significant intangibles recognised by the Group and their useful 
            economic lives are as follows: 
 
             *    Trademarks over 10 years 
 
 
             *    Patents over 20 years 
 
 
             *    Customer relationships and supplier contracts over 1 
                  to 15 years 
 
 
             *    Acquired internally developed technology over 5 to 7 
                  years 
 
 
 
            Internally generated intangible assets and research and development 
 
            Expenditure on internally developed products is capitalised if it 
            can be demonstrated that it is substantially enhancing an asset 
            and: 
             *    It is technically feasible to develop the product for 
                  it to be sold; 
 
 
             *    Adequate resources are available to complete the 
                  development; 
 
 
             *    There is an intention to complete and sell the 
                  product; 
 
 
             *    The Group is able to sell the product; 
 
 
             *    Sale of the product will generate future economic 
                  benefits; and 
 
 
             *    Expenditure on the project can be measured reliably. 
 
 
 
            In accordance with IAS 38 'Intangible Assets', expenditure incurred 
            on research and development is distinguished as either related to 
            a research phase or to a development phase. Development expenditure 
            not satisfying the above criteria and expenditure on the research 
            phase of internal projects is recognised in the Consolidated income 
            statement as incurred. 
 
            Development expenditure is capitalised and amortised within administrative 
            expenses on a straight-line basis over its useful economic life 
            between 3-5 years from the date the intangible asset goes into use. 
            The amortisation expense is included within administrative expenses 
            in the Consolidated income statement. 
 
            All advanced research phase expenditure is charged to the income 
            statement. For development expenditure, this is capitalised as an 
            internally generated intangible asset, only if it meets the criteria 
            noted above. The Group has contractual commitments for development 
            costs of $nil (2020: $nil). 
 
            Acquired intellectual property rights and patents 
 
            Intellectual property rights comprise assets acquired, being external 
            costs, relating to know-how, patents, and licences. These assets 
            have been capitalised at the fair value of the assets acquired and 
            are amortised within administrative expenses on a straight-line 
            basis over their estimated useful economic life of 5 to 7 years. 
 

Fair value of contingent consideration

Contingent consideration payable in cash in connection with acquisitions is measured at its fair value as of the reporting date and classified as a financial liability with subsequent re-measurement through profit and loss.

Equity-settled contingent consideration that results in either a fixed number of equity instruments or no issue of equity where the employment condition is not met is treated as equity-settled. Equity settled contingent consideration is fair valued at the acquisition date, it is not re-measured at each reporting date and its subsequent settlement is accounted for within equity.

Where cash or equity consideration is contingent on the continued employment of the sellers the fair value of the expense is recognised as a remuneration expense in the statement of comprehensive income over the deferral period, where the employment condition does not apply and the consideration is in respect of a business combination it is included within cost of investment.

Financial assets

The Group classifies all its financial assets into one of the following categories, depending on the purpose for which the asset was acquired. The Group's accounting policy for each category is as follows:

 
 --   Trade and loan receivables: Trade receivables are initially 
       recognised by the Group and carried at original invoice amount 
       less an allowance for any uncollectible or impaired amounts. 
       An estimate for doubtful debts is made when collection of 
       the full amount is no longer probable. Debts are written 
       off when they are identified as being uncollectible. Contract 
       assets and other receivables are recognised at fair value. 
       Loan receivables are non-derivative financial assets with 
       fixed or determinable payments that are not quoted in an 
       active market. They arise principally through the provision 
       of goods and services to customers (trade receivables), but 
       also incorporate other types of contractual monetary asset. 
       Impairment of a financial asset is recognised if there is 
       objective evidence that the balance will not be recovered. 
 --   Cash and cash equivalents in the statement of financial 
       position comprise cash at bank, cash in hand and short-term 
       deposits with an original maturity of three months or less. 
       Bank overdrafts that are repayable on demand and form an 
       integral part of the Group's cash management are included 
       as a component of cash and cash equivalents for the purposes 
       of the consolidated statement of cash flow. 
 

Financial liabilities

The Group treats its financial liabilities in accordance with the following accounting policies:

 
 --   Trade payables and other short-term monetary liabilities 
       are recognised at fair value and subsequently at amortised 
       cost. 
 --   Bank borrowings and leases are initially recognised at 
       fair value net of any transaction costs directly attributable 
       to the issue of the instrument. Such interest-bearing liabilities 
       are subsequently measured at amortised cost using the effective 
       interest rate method, which ensures that any interest expense 
       over the period to repayment is at a constant rate on the 
       balance of the liability carried in the statement of financial 
       position. "Interest expense" in this context includes initial 
       transaction costs and premiums payable on redemption, as 
       well as any interest payable while the liability is outstanding. 
       For loan modifications the Group assesses if the loan can 
       be prepaid without significant penalty and if so no gain 
       or loss is recognised in the income statement at the date 
       of the modification. 
 --   Derivative financial liability - forward foreign currency 
       contracts that are out-of-money derivatives using period 
       end exchange rates, relative to the forward point exchange 
       rate entered into by the Group on inception of the agreement, 
       are held as derivative financial liabilities. These level 
       one financial instruments are carried in the statement of 
       financial position at fair value with changes in fair value 
       recognised in the consolidated statement of comprehensive 
       income in the finance expense line. Variation margin paid 
       to the counter party on these forward contracts has been 
       offset against the derivative financial liability in the 
       Statement of Financial Position. 
 

Employee benefit trust (EBT)

 
 As the Company is deemed to have control of its EBT, it is treated 
  as a subsidiary and consolidated for the purposes of the consolidated 
  financial information. Within the Company balance sheet the 
  EBT is accounted as an investment held at cost less accumulated 
  impairment. The EBT's assets (other than investments in the 
  Company's shares), liabilities, income, and expenses are included 
  on a line-by-line basis in the consolidated financial statements. 
  The EBT's investment in the Company's shares is deducted from 
  equity in the consolidated statement of financial position as 
  if they were treasury shares. 
 

Government grants

The Group received government support for payroll costs throughout the year ended 31 December 2020 including the UK Coronavirus Job Retention Scheme and equivalent schemes in Australia and Germany. Grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on a systematic basis in the periods in which the expenses are recognised, unless the conditions for receiving the grant are met after the related expenses have been recognised. In this case, the grant is recognised when it becomes receivable. No government support was received during the year ended 31 December 2021.

IFRS 16 Leases

The Group assesses whether a contract is or contains a lease. Under IFRS 16, a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration.

As a lessee

The Group leases commercial office space. The Group has elected not to recognise right of use assets and lease liabilities for some leases of low value. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

The Group recognises a right-of-use asset and lease liability at the lease commencement date.

The right of use asset and lease liability are initially measured at the present value of the lease payments that are not paid at the commencement date, discounting using the Group's incremental borrowing rate. Subsequently the right of use asset is adjusted for impairment losses and adjusted for certain remeasurements of the lease liability.

The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.

The Group has applied judgement to determine the lease term for some lease contracts that include renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right of use assets recognised.

   5.       Functional and presentation currency 

The presentation currency of the Group is US dollars (USD) in round thousands. Items included in the financial statements of each of the Group's entities are measured in the functional currency of each entity. The Group used the local currency as the functional currency, including the parent Company, where the functional currency is sterling. The Group's choice of presentation currency reflects its significant dealings in that currency.

   6.       Critical judgments and key sources of estimation uncertainty 
 
 In preparing this consolidated financial information, the Group 
  makes judgements, estimates and assumptions concerning the future 
  that impact the application of policies and reported amounts 
  of assets, liabilities, income and expenses. 
 
  The resulting accounting estimates calculated using these judgements 
  and assumptions are based on historical experience and expectations 
  of future events and may not equal the actual results. Estimates 
  and underlying assumptions are reviewed on an ongoing basis, 
  and revisions to estimates are recognised prospectively. 
 

The judgements and key sources of assumptions and estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are discussed below.

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in these consolidated financial information are below:

Capitalised development costs

 
 The Group capitalises development costs in line with IAS 38 
  Intangible Assets. Management applies judgement in determining 
  if the costs meet the criteria and are therefore eligible for 
  capitalisation at the outset of a project, $0.72m has been capitalised 
  on new projects during 2021 (2020: $2.97m). Significant judgements 
  include the determination that assets have been substantially 
  enhanced, the technical feasibility of the development, recoverability 
  of the costs incurred, and economic viability of the product 
  and potential market available considering its current and future 
  customers. See internally generated intangible assets and research 
  and development within note 4 for details on the Group's capitalisation 
  and amortisation policies, and Intangible Assets, note 10, for 
  the carrying value of capitalised development costs. 
 

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in material adjustments in the following year are:

Useful economic lives of capitalised development costs

The Group amortises its capitalised development costs over 3-5 years as this has been deemed by management to be the best reflection of the lifecycle of their technology. If this useful economic life estimate were to be 4 or 6 years the impact on the current year amortisation would be $2,298k higher and $1,534k lower respectively. Management will review this estimate each year to ensure it is reflective of the technologies being developed.

Deferred tax asset on US losses and tax credits

The Group has recognised a deferred tax asset of $11.4m (which comprises $8.4m of US losses ($1.7m of which expire in 2037) and $3.0m of US tax credits (with 20-year expiry dates ranging from 2033 and 2040). The recognition of these assets is based on the expected profitability of the US entities using the Group's 5-year Board approved forecasts and risk adjusted profitability reducing annually by 10% which indicates that the losses would be utilised over a 5-year period and the US tax credits over 10 years. The utilisation of the losses can only offset 80% of the tax liability and US tax credits cannot be used on the first $25k of tax liability up to a maximum of 25% of the remaining current tax liability. The key inputs are not sensitive to plausible changes in the assumptions, a further 10% risk adjustment was modelled across the 15-year forecast period which results in the US losses being recovered still in 5 years and the US credits in 11 years, within any loss or tax credit expiry limits. The US losses were assessed under the section 382 US tax legislation to validate they can be utilised, this assessment will need to be conducted on an annual basis to determine if any restriction is required.

   7.       Business and geographical segments 

Segmental analysis

The Group's operating segments under IFRS have been determined with reference to the financial information presented to the Board of directors. The Board of the Group is considered the Chief Operating Decision Maker ("CODM") as defined within IFRS 8, as it sets the strategic goals for the Group and monitors its operational performance against this strategy.

The Group's Ticketing and Distribution operating segment comprises the following products:

 
      o   accesso Passport ticketing suite using our hosted proprietary 
           technology offering to maximise up selling, cross selling 
           and selling greater volumes. 
      o   accesso Siriusware software solutions providing modules 
           in ticketing & admissions, memberships, reservations, 
           resource scheduling, retail, food service, gift cards, 
           kiosks and eCommerce. 
      o   The accesso ShoWare ticketing solution for box office, 
           online, kiosk, mobile, call centre and social media sales. 
      o   Ingresso operate a consolidated distribution platform 
           which connects venues and distributors, opening up a larger 
           global channel for clients to sell their event, theatre 
           and attraction tickets. 
 

The Group's virtual queuing solution (accesso LoQueue) and experience management platform (The Experience Engine 'TE2') are headed by segment managers who discuss the operating activities, financial results, forecasts and plans of their respective segments with the CODM. These two distinct operating segments share similar economic characteristics, customers and markets; the products are heavily bespoke, technology and software intensive in their delivery and are directly targeted at improving a guest's experience of an attraction or entertainment venue, whilst providing cross-selling opportunities and increased revenues to the venues. Management therefore conclude that they meet the aggregation criteria.

The Group's Guest Experience operating segment comprises the following aggregated segments:

 
      o   accesso LoQueue providing leading edge virtual queuing 
           solutions to take customers out of line, improve guest 
           experience and increase revenue for theme parks 
      o   The Experience Engine ("TE2") experience management platform 
           which delivers personalised real time immersive customer 
           experiences at the right time elevating the guest's experience 
           and loyalty to the brand 
 

The Group's assets and liabilities are reviewed on a group basis and therefore segmental information is not provided for the statements of financial position of the segments.

The CODM monitors the results of the operating segments prior to charges for interest, depreciation, tax, amortisation and non-recurring items but after the deduction of capitalised development costs. The Group has a significant amount of central unallocated costs which are not segment specific. These costs have therefore been excluded from segment profitability and presented as a separate line below segment profit.

The following is an analysis of the Group's revenue and results from the continuing operations by reportable segment which represents revenue generated from external customers.

 
                                        2021          2020 
                                        $000          $000 
                                    --------       ------- 
 
 Ticketing and Distribution           75,930        37,966 
 Guest Experience                     48,864        18,128 
 
 Total revenue                       124,794        56,094 
                                    --------       ------- 
 
 
                                                 Ticketing         Guest        Central 
                                          and Distribution    Experience    unallocated      Group 
                                                                                  costs 
 Year ended 31 December 2021                          $000          $000           $000       $000 
                                        ------------------  ------------  -------------  --------- 
 Cash EBITDA (*)                                    62,600        34,332       (68,794)     28,138 
                                        ------------------  ------------  -------------  --------- 
 
 Capitalised development spend                                                                 720 
 Depreciation and amortisation 
  (excluding acquired intangibles)                                                        (12,183) 
 Amortisation related to acquired 
  intangibles                                                                              (2,371) 
 Share-based payments                                                                      (2,490) 
 Reversal of impairment of intangible 
  assets                                                                                     1,707 
 Finance income                                                                                 39 
 Finance expense                                                                           (1,450) 
 
 Profit before tax                                                                          12,110 
                                                                                         ========= 
 
 
 
                                              Ticketing         Guest        Central 
                                       and Distribution    Experience    unallocated      Group 
                                                                               costs 
 Year ended 31 December 2020                       $000          $000           $000       $000 
                                     ------------------  ------------  -------------  --------- 
 
 Cash EBITDA (1) (2)                             33,371        10,042       (54,863)   (11,450) 
                                     ------------------  ------------  -------------  --------- 
 
 Capitalised development spend                                                            2,969 
 Depreciation and amortisation 
  (excluding acquired intangibles)                                                     (14,664) 
 Aborted sale process costs                                                               (461) 
 Deferred and contingent payments                                                         (150) 
 Amortisation related to acquired 
  intangibles                                                                           (2,573) 
 Impairment related to TE2                                                              (2,627) 
 Share-based payments                                                                   (1,398) 
 Finance income                                                                              10 
 Finance expense                                                                        (2,518) 
 
 Loss before tax                                                                       (32,862) 
                                                                                      ========= 
 

(1) Cash EBITDA is calculated as operating profit before the deduction of amortisation, impairment of intangible assets, depreciation, acquisition costs, deferred and contingent payments, and costs related to share-based payments but after capitalised development costs.

(2) During 2020 the Group structurally realigned their key functions of Operations, Engineering, Product, Human Resources, Finance, Administration, Commercial Sales and Marketing to have single teams spanning across the Group and supporting the operating segments, from 1 January 2021 the Group no longer attribute their related costs to the segments for management reporting purposes. Consequently, our 31 December 2020 segment note has been restated to reflect a consistent presentation with 31 December 2021.

The segments will be assessed as the Group develops and continues to make acquisitions.

An analysis of the Group's external revenues and non-current assets (excluding deferred tax and contract assets) by geographical location are detailed below:

 
                                      Revenue         Non-current assets 
                                 -----------------  --------------------- 
                                     2021     2020        2021       2020 
                                     $000     $000        $000       $000 
                                 --------  -------  ----------  --------- 
 
 UK                                17,118    5,228      24,826     26,866 
 Other Europe                       3,251    1,826          18         10 
 Australia/South Pacific/Asia       4,537    2,413         109        255 
 USA and Canada                    98,682   45,753     100,319    108,714 
 Central and South America          1,206      874         105        263 
                                 --------  -------  ----------  --------- 
                                  124,794   56,094     125,377    136,108 
                                 --------  -------  ----------  --------- 
 

Revenue generated in each of the geographical locations is generally in the local currency of the venue or operator based in that location.

Major customers

The Group has entered into agreements with theme parks, theme park groups, and attractions to operate its technology in single or multiple theme parks or attractions within the theme park group.

There are two park and attraction operators with which the Group has contractual relationships with combined segmental revenues in excess of 10% of the total Group revenue. The first park operator accounted for $10.1m (2020: $5.4m) of Ticketing and Distribution revenue and for $25.2m (2020: $5.4m) of Guest Experience revenue. The second park and attractions operator accounted for $11.0m (2020: $5.0m) of Ticketing and Distribution revenue and for $3.8m (2020: $0.9m) of Guest Experience revenue.

Another customer within the Guest Experience segment accounted for $9.3m of Group revenue in 2021 (2020: $7.0m).

   8.       Tax 

The table below provides an analysis of the tax charge for the periods ended 31 December 2021 and 31 December 2020:

 
                                                       2021      2020 
                                                       $000      $000 
                                                  ---------  -------- 
 UK corporation tax 
 Current tax on income for the period                   975       352 
 Adjustment in respect of prior periods                (49)   (1,031) 
                                                  ---------  -------- 
                                                        926     (679) 
 Overseas tax 
 Current tax on income for the period                   165     (531) 
 Adjustment in respect of prior periods                 (9)       415 
                                                  ---------  -------- 
                                                        156     (116) 
 
 Total current taxation                               1,082     (795) 
                                                  ---------  -------- 
 
 Deferred taxation 
 Original and reversal of temporary difference 
  - for the current period                         (10,889)   (2,218) 
 Impact on deferred tax rate changes                     84     (255) 
 Original and reversal of temporary difference 
  - for the prior period                              (185)       260 
                                                  ---------  -------- 
                                                   (10,990)   (2,213) 
                                                             -------- 
 Total taxation benefit                             (9,908)   (3,008) 
                                                  =========  ======== 
 

The differences between the actual tax charge for the period and the theoretical amount that would arise using the applicable weighted average tax rate are as follows:

 
                                                       2021       2020 
                                                       $000       $000 
                                                  ---------  --------- 
 
 Profit/(loss) on ordinary activities before 
  tax                                                12,110   (32,862) 
 
 Tax at United States tax rate of 24% (2020: 
  24%)                                                2,906    (7,887) 
 
 Effects of: 
 
     Expenses not deductible for tax purposes           142       (89) 
     Refunds received                                  (11)          - 
    Profit/(loss) subject to foreign taxes 
     at a lower marginal rate                         (179)       (68) 
    Adjustment in respect of prior period 
     - income statement                               (243)      (356) 
    US R&D credits/other US tax credits                   -    (2,584) 
    Share options                                         -        224 
    Impact of rate changes                               36      (255) 
    Deferred tax on US losses (recognised)/not 
     recognised                                    (12,619)      8,327 
    (Release)/recognition of uncertain tax 
     positions                                          363      (262) 
    Other                                             (303)       (58) 
 
 Total tax benefit                                  (9,908)    (3,008) 
                                                  =========  ========= 
 
 
 Deferred taxation                 Asset   Liability 
                                    $000        $000 
                                --------  ---------- 
 Group 
 At 31 December 2019               8,647    (10,778) 
 
 Credited to income              (1,007)       3,219 
 Credited directly to equity          50           - 
 Foreign Currency translation         11        (21) 
 
 At 31 December 2020               7,701     (7,580) 
 
 (Charged)/credited to income      7,651       3,339 
 Credited directly to equity         921           - 
 Foreign currency translation       (13)           5 
 
 At 31 December 2021              16,260     (4,236) 
                                --------  ---------- 
 
 

The following table summarises the recognised deferred tax asset and liability:

 
                                                    2021      2020 
 Group                                              $000      $000 
                                                --------  -------- 
 Recognised asset 
 Tax relief on unexercised employee share 
  options                                          2,042       539 
 Short-term timing differences                     2,767     3,584 
 Net operating losses & tax credits               11,445     1,728 
 S163(j) US interest disallowance                      6     1,850 
                                                --------  -------- 
 Deferred tax asset                               16,260     7,701 
                                                --------  -------- 
 
 Recognised liability 
 Capital allowances in excess of depreciation    (1,399)   (4,675) 
 Uncertain tax positions                               -     (509) 
 Short-term timing differences                     (935)     (456) 
 Business combinations                           (1,902)   (1,940) 
                                                --------  -------- 
 Deferred tax liability                          (4,236)   (7,580) 
                                                --------  -------- 
 
 

Group

 
 Unrecognised asset 
 Net operating losses and available tax 
  credits - US                               -   10,752 
 Unrecognised deferred tax asset             -   10,752 
                                          ----  ------- 
 

The tax rate in the US rate remained at 21%, before state taxes. Deferred tax assets and liabilities were measured at a rate 21% (2020: 21%) plus state taxes in the US.

A reduction in the UK corporation tax rate from 19% to 17% (effective 1 April 2020) was substantively enacted on 6 September 2016. The March 2020 Budget announced that a rate of 19% would continue to apply with effect from 1 April 2020, and this change was substantively enacted on 17 March 2020.

An increase in the UK corporation rate from 19% to 25% (effective 1 April 2023) was substantively enacted on 24 May 2021. This will increase the Company's future current tax charge accordingly. The deferred tax assets and liabilities at 31 December 2021 have been calculated based on these rates, reflecting the expected timing of reversal of the related temporary and timing differences (2020: 19%).

There are no material unrecognised deferred tax assets.

The critical assumptions used in the assessment for the recognition of the deferred tax asset on US losses and available tax credits are discussed in note 6.

Taxation and transfer pricing

The Group is an international technology business and, as such, transfer pricing arrangements are in place to cover funding arrangements, management costs and the exploitation of IP between Group companies. Transfer prices and the policies applied directly affect the allocation of Group-wide taxable income across a number of tax jurisdictions. While transfer pricing entries between legal entities are on an arm's length basis, there is increasing scrutiny from tax authorities on transfer pricing arrangements. This could result in the creation of uncertain tax positions.

The Group provides for anticipated risks, based on reasonable estimates, for tax risks in the respective countries in which it operates. The amount of such provisions can be based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible authority. Uncertainties exist with respect to the evolution of the Group following international acquisitions holding significant IP assets, interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income.

Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded.

Uncertainties in relation to tax liabilities are provided for within income tax payable to the extent that it is considered probable that the Group may be required to settle a tax liability in the future. Settlement of tax provisions could potentially result in future cash tax payments; however, these are not expected to result in an increased tax charge as they have been fully provided for in accordance with management's best estimates of the most likely outcomes.

Ongoing tax assessments and related tax risks

The Group has undertaken a review of potential tax risks and current tax assessments, and whilst it is not possible to predict the outcome of any current or future tax enquiries, adequate provisions are considered to have been included in the Group accounts to cover any expected estimated future settlements.

In common with many international groups operating across multiple jurisdictions, certain tax positions taken by the Group are based on industry practice and external tax advice or are based on assumptions and involve a degree of judgement. It is considered possible that tax enquiries on such tax positions could give rise to material changes in the Group's tax provisions.

The Group is consequently, from time to time, subject to tax enquiries by local tax authorities and certain tax positions related to intercompany transactions may be subject to challenge by the relevant tax authority.

The Group has recognised provisions where it is not probable that tax positions taken will be accepted, totalling $nil (2020: $0.5 million) in relation to transfer pricing risks and $0.9m (2020: $nil) in relation to availability of international R&D claims.

The US losses recognised in the year were assessed under the section 382 US tax legislation to validate they can be utilised, this assessment will need to be conducted on an annual basis to determine if any restriction is required.

   9.       Earnings per share 

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary shareholders, after adjustments for instruments that dilute basic earnings per share, by the weighted average of ordinary shares outstanding during the period (adjusted for the effects of dilutive instruments).

Earnings for adjusted earnings per share, a non-GAAP measure, are defined as profit before tax before the deduction of amortisation related to acquisitions, impairment of intangible assets, acquisition costs, deferred and contingent consideration linked to continued employment, and costs related to share-based payments, less tax at the effective rate on tax impacted items.

The table below reflects the income and share data used in the total basic, diluted, and adjusted earnings per share computations.

 
                                                       2021            2020 
                                                       $000            $000 
                                                    -------       --------- 
 Profit/(loss) attributable to ordinary 
  shareholders ($000)                                22,018        (29,854) 
 
 Basic EPS 
 Denominator 
 Weighted average number of shares used 
  in basic EPS (000s)                                41,240          35,213 
                                                    ------- 
 Basic earnings/ (loss) per share (cents)             53.39         (84.78) 
                                                    =======       ========= 
 Diluted EPS 
 Denominator 
 Weighted average number of shares used 
  in basic EPS (000s)                                41,240          35,213 
 Effect of dilutive securities 
  Options (000s)                                      1,552             983 
 
  Weighted average number of shares used 
   in diluted EPS (000s)                             42,792          36,196 
                                                                  --------- 
 Diluted earnings/ (loss) per share (cents)           51.45         (84.78) 
                                                    =======       ========= 
 
 

The Group made a loss in the year ended 31 December 2020, and therefore the options and equity settled deferred consideration are anti-dilutive. As a result, basic and diluted earnings per share are presented on the same basis for the year ended 31 December 2020.

 
                                                           2021            2020 
                                                           $000            $000 
                                                        -------       --------- 
 Adjusted EPS 
 
 Profit/(loss) attributable to ordinary 
  shareholders ($000)                                    22,018        (29,854) 
 Adjustments for the period related to: 
  Amortisation relating to acquired intangibles 
   from acquisitions                                      2,371           2,573 
  Impairment of intangible assets                             -           2,627 
  Reversal of impairment of intangible assets                (1,707)              - 
  Aborted sale process costs                                  -             462 
  Deferred and contingent consideration linked 
   to employment                                              -             150 
  Share-based compensation and social security 
   costs on unapproved options                            2,490           1,398 
                                                        -------       --------- 
                                                         25,172        (22,644) 
 Net tax related to the above adjustments 
  (2021: 0.8%, 2020: 19.7%):                                 26           1,291 
 
 Adjusted profit attributable to ordinary 
  shareholders ($000)                                    25,198        (21,353) 
 
 Adjusted basic EPS 
 Denominator 
 Weighted average number of shares used 
  in basic EPS (000s)                                         41,240         35,213 
                                                        ------------  ------------- 
 Adjusted basic earnings/(loss) per share 
  (cents)                                                      61.10        (60.64) 
                                                        ============  ============= 
 
 Adjusted diluted EPS 
 Denominator 
 Weighted average number of shares used 
  in diluted EPS (000s)                                       42,792         36,196 
                                                        ------------  ------------- 
 Adjusted diluted earnings/(loss) per share 
  (cents)                                                      58.88        (60.64) 
                                                        ============  ============= 
 
 

37,583 LTIP awards were not included in the calculation of diluted EPS because their exercise is contingent on the satisfaction of certain criteria that had not been met as at 31 December 2021 (2020: 81,718).

   10.     Intangible assets 

The cost and amortisation of the Group's intangible fixed assets are detailed in the following table:

 
                                                                Acquired 
                                    Customer                  internally 
                               relationships                   developed   Patent 
                                  & supplier                intellectual    & IPR   Development 
                   Goodwill        contracts   Trademarks       property    costs         costs     Totals 
                        $000            $000         $000           $000     $000          $000       $000 
                  ----------  --------------  -----------  -------------  -------  ------------  --------- 
 Cost 
 At 31 December 
  2019               116,790          18,314        1,841         53,021      762        77,850    268,578 
 
 Foreign 
  currency 
  translation            721               -            -             16       21           481      1,239 
 Additions                 -               -            -              -        -         2,969      2,969 
 Disposals                 -               -            -              -        -       (6,737)    (6,737) 
 
 At 31 December 
  2020               117,511          18,314        1,841         53,037      783        74,563    266,049 
 
 Foreign 
  currency 
  translation          (135)               -            -              9      (4)          (53)      (183) 
 Additions                 -               -            -              -        -           720        720 
 Disposals                 -         (4,737)      (1,372)       (28,620)        -      (17,932)   (52,661) 
 
 At 31 December 
  2021               117,376          13,577          469         24,426      779        57,298    213,925 
                  ----------  --------------  -----------  -------------  -------  ------------  --------- 
 
 Amortisation/Impairment 
 At 31 December 
  2019                17,403          13,276        1,821         49,408      632        43,582    126,122 
 
 Foreign 
  currency 
  translation              -               -            -             34       18           463        515 
 Charged                   -             882           16          1,675       21        11,425     14,019 
 Impairment                -               -            -            430        -         2,197      2,627 
 Charged                   -               -            -              -        -       (6,737)    (6,737) 
 Disposal 
                  ----------  --------------  -----------  -------------  -------  ------------  --------- 
 At 31 December 
  2020                17,403          14,158        1,837         51,547      671        50,930    136,546 
 
 Foreign 
  currency 
  translation              -               -            -              9      (4)          (41)       (36) 
 Charged                   -             882            1          1,490       28         9,291     11,692 
 Reversal 
  of impairment                        (301)            -          (484)        -         (922)    (1,707) 
 Disposal                  -         (4,737)      (1,372)       (28,620)        -      (17,929)   (52,658) 
 
 At 31 December 
  2021                17,403          10,002          466         23,942      695        41,329     93,837 
                  ----------  --------------  -----------  -------------  -------  ------------  --------- 
 
 
 Net book 
  value 
 At 31 December 
  2021              99,973       3,575   3     484    84   15,969   120,088 
                  ========      ------      ------  ----  -------  -------- 
 
 At 31 December 
  2020             100,108       4,156   4   1,490   112   23,633   129,503 
                  ========  ==========      ======  ====  =======  ======== 
 
 

Capitalised development costs are not treated as a realised loss for the purpose of determining the Company's distributable profits as the costs meet the conditions requiring them to be treated as an asset in accordance with IAS 38.

Impairment testing of goodwill

The Group is required to test, on an annual basis, whether goodwill has suffered any impairment or at where indicators of impairment exist. The recoverable amount is determined based on value-in-use calculations. The use of this method requires the estimation of future cash flows and the determination of a discount rate in order to calculate the present value of the cash flows. The goodwill balances of the Group are monitored and tested at an operating segment level, further details on their composition are set out below.

The carrying amount of goodwill is allocated as follows:

 
                                  2021      2020 
                                  $000      $000 
                               -------  -------- 
 
 Ticketing and Distribution 
  (CGU1, 2 and 3) *             71,473    71,609 
 LoQueue (CGU5) **              28,500    28,500 
                                99,973   100,109 
                               =======  ======== 
 

* Comprises accesso, LLC, Siriusware, Inc, accesso Passport trading within Accesso Australia PTY Limited being CGU1, VisionOne Worldwide Limited & its subsidiaries and accesso ShoWare trading within Accesso Australia PTY Limited being CGU2 and Ingresso Group Limited & subsidiaries as CGU 3.

** Comprises the accesso LoQueue trading within accesso Technology Group plc, Lo-Q, Inc., Lo-Q Service Canada Inc and Accesso Australia PTY Limited as CGU 5.

The below table sets out the intangible asset impairments recorded within the Guest Experience and Ticketing and Distribution segments:

 
                                   2021                2021    2021          2020                2020    2020 
                                  Guest           Ticketing   Total         Guest           Ticketing   Total 
                             Experience    and Distribution            Experience    and Distribution 
 
                                   $000                $000    $000          $000                $000    $000 
 
 Intangible assets                    -                   -       -             -               1,360   1,360 
 Impairment of specific 
  development projects*               -                   -       -           468                 799   1,267 
 
 Impairment charge 
  recorded within 
  administrative expense              -                   -       -           468               2,159   2,627 
                           ============  ==================  ======  ============  ==================  ====== 
 
                   *        A review of all project development costs capitalised was performed at year end with no impairment charges recorded. In 2020 an               impairment charge of $1.27m was recorded against projects which are no longer considered commercially and technically feasible. 

The below table sets out the intangible asset impairment reversals recorded within the Guest Experience and Ticketing and Distribution segments:

 
                                   2021                2021      2021          2020                2020    2020 
                                  Guest           Ticketing     Total         Guest           Ticketing   Total 
                             Experience    and Distribution              Experience    and Distribution 
 
                                   $000                $000      $000          $000                $000    $000 
 
 Intangible assets                (785)                   -     (785)             -                   -       - 
 Impairment of specific 
  development projects            (922)                   -     (922)             -                   -       - 
 
 Impairment (credit) 
  recorded within 
  administrative expense        (1,707)                   -   (1,707)             -                   -       - 
                           ============  ==================  ========  ============  ==================  ====== 
 

The key assumptions used in the value in use calculations are as follows, note that CGU 4's inputs have been used for the assessment of intangible assets other than goodwill:

 
                                                        2021     2020 
 Pre-tax discount rate (%) 
  accesso, LLC & Siriusware, Inc. (CGU 1)              13.3%    14.0% 
  VisionOne Worldwide Limited and its subsidiaries 
   (CGU 2)                                             13.3%    14.0% 
  Ingresso Group Limited and subsidiaries 
   (CGU 3)                                             11.6%    11.9% 
  The Experience Engine (CGU 4)                        13.3%    14.0% 
  LoQueue * (CGU 5)                                    13.3%    14.0% 
 
  Average annual EBITDA growth rate during 
   forecast period (average %)** 
  accesso, LLC & Siriusware, Inc. (CGU 1)***            0.0%   111.1% 
  VisionOne Worldwide Limited and its subsidiaries 
   (CGU 2)                                             22.9%   520.8% 
  Ingresso Group (CGU 3)                               51.6%    55.2% 
  The Experience Engine (CGU 4)                        10.2%   -44.4% 
  LoQueue * (CGU 5)                                     7.2%   232.6% 
 
  Terminal growth rate (%) 
  accesso, LLC & Siriusware, Inc. (CGU 1)               2.0%     2.0% 
  VisionOne Worldwide Limited and its subsidiaries 
   (CGU 2)                                              2.0%     2.0% 
  Ingresso Group (CGU 3)                                2.0%     2.0% 
  The Experience Engine (CGU 4)                         2.0%     2.0% 
  LoQueue * (CGU 5)                                     2.0%     2.0% 
 
 Period on which detailed forecasts based 
  (years) 
  accesso, LLC & Siriusware, Inc. (CGU 1)                  5        5 
  VisionOne Worldwide Limited and its subsidiaries 
   (CGU 2)                                                 5        5 
  Ingresso Group (CGU 3)                                   5        5 
  The Experience Engine (CGU 4)                            5        5 
  LoQueue * (CGU 5)                                        5        5 
 

* Comprises accesso LoQueue trading within accesso Technology Group plc, Lo-Q, Inc., Lo-Q Service Canada Inc and Accesso Australia PTY Limited.

**Average EBITDA growth rates for CGU 2 and CGU 3 are high due to the expected 2022 growth from a poor period of trade in 2021 following the difficult trading conditions faced by the live entertainment sector, both CGUs earn the majority of their transactional income from live entertainment which experienced significant COVID disruption during 2021, therefore both CGUs have high growth rates in 2022 as they recover towards pre-pandemic trading levels, followed by more typical growth rates from 2023 to 2026. The 2020 impairment test rates were high as a result of the recovery from 2020 COVID impacted base levels to 2019 levels in 2022/2023 and a significant business reorganisation during 2020.

***The average EBITDA growth rate for CGU 1 is 0% due to the exceptional result in 2021 and its impact on the average calculation. In 2021, transactional revenue rebounded quickly once COVID related restrictions on attractions were lifted. This sudden increase in demand arose during a period where the Group did not have a full cost base following the cost control actions taken during 2020, resulting in a larger than anticipated EBITDA result. The forecast period includes the full year impact of the Group returning to an appropriate cost base and the EBITDA for the CGU returning to a more typical level. The EBITDA growth rates across the forecast period for CGU 1 are; 2022: -40%, 2023: +11%, 2024: +28%, 2025: +1%, 2026: +1%.

Operating margins have been based on experience, where possible, and future expectations in the light of anticipated economic and market conditions. Growth rates beyond the formally budgeted period are based on economic data pertaining to the region concerned.

The discount rates applied to all CGUs was a pre -- tax measure estimated based on comparable listed company gearing and capital structures, an equity risk premium and risk-free rate applicable to the country, small stock premium relative to the market and size of business and an appropriate cost of debt relative to market conditions.

Reversal of impairment of The Experience Engine ('TE2') intangible assets - Cash Generating Unit ('CGU') 4 as at 31 December 2021

As at 31 December 2021 the recoverable value of the TE2 CGU was significantly improved following a period of strong trading, improved cost control and efficiency of the CGU. A review was conducted of the $29.2m of intangible assets impaired in 2019, updated to 31 December 2021 based on their original useful economic lives (periods of 2-5 years), to assess each category of asset to determine if they remain in existence and are generating economic returns. As a result of this reassessment of the conditions as at 31 December 2021, $0.9m of development costs, $0.3m of acquired customer relationships and $0.5m of acquired intellectual property was reversed with a credit of $1.7m to administrative expense. The recoverable value of the CGU was determined on a value in use basis using the assumptions and inputs noted above, the $1.707m reversal is not sensitive to changes in these assumptions due to a significant amount of headroom in excess of the revised book value of the TE2 CGU. The recoverable value of the CGU was determined to be $25.0m as at 31 December 2021.

Sensitivity analysis

If any of the following changes were made to the following key assumptions the carrying value and recoverable amount would be equal as at 31 December 2021. A considerable amount of judgement is applied in setting discount rates, forecasts and terminal values, all of which will be impacted by the current uncertainty in the market and the speed at which our customers and the wider macro markets recover from the impacts of COVID-19.

 
                                 Ticketing and Distribution*           accesso 
                                                                      LoQueue** 
                                            2021        2020           2021       2020 
 
 Pre-tax discount rate                  Increase    Increase       Increase   Increase 
                                         by 4.6%     by 1.1%       by 14.3%    by 7.5% 
 
 EBITDA Growth rate during             Reduce by      Reduce      Reduce by     Reduce 
  detailed forecast period                 33.5%     by 7.8%          62.2%   by 40.0% 
  (average) 
 
 Terminal growth rate                  Reduce by      Reduce      Reduce by     Reduce 
                                       7.5% to a     by 1.1%       37.0% to    by 8.6% 
                                        terminal                   terminal 
                                   rate of -5.5%               rate of -35% 
 
 
 Excess over carrying value 
  ($000)                            $42,843          $10,481        $79,147    $36,138 
 

* Comprises accesso, LLC, Siriusware, Inc., VisionOne Worldwide Limited & its subsidiaries and Ingresso Group Limited & subsidiaries and accesso Passport/accesso ShoWare trading within Accesso Australia PTY Limited (CGUs 1, 2 and 3).

** Comprises the LoQueue trading within accesso Technology Group plc, Lo-Q, Inc., Lo-Q Service Canada Inc and Accesso Australia PTY Limited (CGU 5).

We do not consider there are any plausible changes in assumptions that would give rise to an impairment in Ticketing and Distribution or accesso LoQueue over the next financial year.

Environmental risk in cash flows

It is expected that air travel will be reduced in response to both COVID-19 in the near-term and then longer term in response to climate change agendas, we have considered this risk in our cash flow forecasting for impairment testing. The majority of the venues we serve have typically localised customer bases rather than being reliant on destination travel, consequently we consider the risk as minimal on our forecasts.

Development costs not yet available for use

Development cost assets not yet available for use reside in the CGUs as follows and are considered annually for impairment in line with the goodwill attached to those CGUs. These capitalised costs relate to development projects which have not been put into use as at the year-end:

 
                                             2021   2020 
                                             $000   $000 
 
 accesso, LLC & Siriusware, Inc. (CGU 1)        -     49 
 accesso Technology Group plc (CGU 5)         386      - 
 
   11.     Called up share capital 
 
                                        2021              2020 
Ordinary shares of 1p each            Number  $000      Number  $000 
 
Opening balance                   41,215,291   595  27,642,822   427 
Issued in relation to exercised 
 share options                        52,085     1      50,187     1 
Issued in relation to deferred 
 acquisition consideration                 -     -      40,538     1 
Issued in relation to the 
 placing and open offer                    -     -  13,481,744   166 
 
Closing balance                   41,267,376   596  41,215,291   595 
 
 
On 9 June 2020 the Company's shareholders approved the placing, 
 direct subscription and open offer to issue 13,481,744 new 
 ordinary shares at GBP2.90p to raise gross proceeds of GBP39.1 
 million ($48.2 million). 
 
 During 2021, 52,085 shares (2020: 50,187 shares) , with a nominal 
 value $726 (2020: $630), were allotted following the exercise 
 of share options. 
 
 In addition, during 2020, 40,538 shares were issued in respect 
 of the deferred acquisition consideration to certain employees 
 of Blazer and Flip Flops Inc for a nominal value of $522. 
 
 The holders of ordinary shares are entitled to receive dividends 
 as declared from time to time and are entitled to one vote 
 per share at meetings of the Company. 
 
 Following the adoption of new Articles of Association on 12 
 April 2011 the Company no longer has an authorised share capital 
 limit. 
 
 All issued share capital is fully paid as at 31 December 2021. 
 
 

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