Information, data storage and procurement specialist Access Intelligence is scouting acquisitions after cutting its annual deficit from £381,000 to £10,000.

Jeremy Hamer, the entrepreneur who became chairman ahead of a £2.8 million emergency fundraising at 10p in December 2004, says AIM-quoted Access has already begun to make operating profits. Turnover in the year to November rose from £543,000 to £1.9 million.

Originally floated at 37p as 'hot air shell' Readymarket, the company had lost its way and the 'war chest' raised then enabled Access to make two strategic takeovers. The company paid £700,000 down plus a potential £800,000 earn-out for data storage and retrieval concern Ridgeway Technology, making £250,000 annual profits.

In addition, Access bought public sector e-procurement software provider Due North for £1.5 million, soon before Due North's first foray into private sector work and the company now consists of four divisions.

These are: e-sourcing and procurement, data storage, fast internet information provision from Government departments to lawyers, accountants and others and outsourced marketing services for 350 small and medium-sized companies. Hamer argues all have a high proportion of recurring revenues, including service contracts, with Due North achieving gross margins of 80 per cent.

Due North supplies e-procurement software to 30 police forces, 27 fire brigades and 43 local authorities and has signed up three primary health care trusts. But Hamer sees data storage and retrieval, a sector growing at 20 per cent a year, as the most promising acquisition field.

'We will target competitors in storage,' declares Hamer, citing cash of £600,000 in the bank. 'We may use our paper for a good deal,' he adds.

That could prove initially costly, with Access shares down from 2003's Readymarket float price of 37p to 7.25p today. But house broker Corporate Synergy predicts £610,000 profits this year, before tax and goodwill amortisation.

Hamer claims he and his fellow directors are well versed in the takeover game and says the company must acquire to achieve its goals. That leaves the shares a long-term recovery punt.