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Access Innovation (ASX:AIM) reaffirms FY21 guidance, after strong Q1

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ASX:AIM      MCAP $73.08M
06 October 2020 03:00 (AEST)

Captioning and translation services business Access Innovation (AIM) remains on track to hit its FY21 guidance, after a strong start to the 2021 financial year.

In an update released to shareholders today, the company said its Q1 FY21 performance was solid with several markets performing better than expected.

These included the North American education market, with an uptick in U.S. colleges signing up for the company’s services.

Access Innovations said COVID-19 and accompanied social distancing rules were likely behind the demand, with virtual events becoming increasingly popular

“We have seen a solid start to FY21, with ongoing strong demand for captioning services across our key markets,” AIM Co-Founder and CEO Tony Abrahams said.

“Over recent weeks we have experienced significant levels of demand for our services, particularly in North America as colleges in the US returned from summer vacation and commenced the new academic year predominantly online,” he added.

As a result of the demand, AIM remains on track to achieve its forecasts — including its FY21 revenue target of $43.8 million.

While looking ahead, Tony said he expects to see continued growth, allowing the business to bring onboard more captioners.

“COVID-19 restrictions are continuing to drive an accelerated shift towards virtual events for enterprise customers and virtual education events, such as lectures and tutorials, which has led to growth in demand across these parts of our business,” he explained.

“We continue to rapidly onboard new captioners to provide greater long-term capacity inorder to service our customers’ ongoing needs.”

Shares in Access Innovation have ended the day trading for $1.15, up 14.4 per cent.

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