Deal hungry Access Intelligence, the software services group chaired by renowned AIM player Jeremy Hamer, moved into profit at the interim stage to May.

The provider of ‘critical’ and legislative-driven services to public and private sector organisations, reported a dramatically improved turnover of £1.76m (£391,000) driven by the acquisitions of Willow Starcom, a data storage and recovery business, and Due North, which provides compliance based business software including e-procurement, both completed in the second half of last year.

The existing businesses also turned in satisfactory performances. Losses of £53,000 were converted to pre-tax profits of £54,000 and adjusted pre-tax profits (adding back goodwill) burgeoned from £8,000 to £200,000. Chief executive Brendan Austin also flagged up balance sheet strength, with net cash coming in at £534,000.

Austin argues that Access Intelligence now has critical mass and the benefits of operational gearing are being felt more keenly, with a high proportion of incremental revenue tumbling to the bottom line. The group’s strong interim turn has carried on into the second half, with Willow Starcom bagging its biggest third party order to date, and Due North’s annualised recurring revenues on the rise with good progress being made selling its software into local, police, and fire and rescue authorities.

Furthermore, local authorities that were ordering Due North’s electronic tendering systems individually are now grouping together to form larger buying ‘portals’, increasing growth prospects. Investors can expect further acquisitions in the spheres of compliance and data backup and recovery, which are increasingly onerous areas for corporate bodies. For the current year to November, house broker Corporate Synergy forecasts adjusted pre-tax profits of £610,000 from a top line £4m, giving earnings of 0.69p and a budget forward rating of 9 times. The shares are worth a speculation.