SOFTWARE business Access Intelligence has reported a loss in its preliminary results for the year ended November 30, published today.

The business made a pre-tax loss of £1.55 million, compared to a pre-tax profit of £520,000 in 2009, despite increasing revenue from continuing operations from £5.77 million to £7.98 million.

The business based the loss on goodwill impairment, cost of acquisition, share based payments and compensation for loss of office. This includes the £5.2 million purchase of Cobent in March 2010, which contributed lower profit than expected resulting in a goodwill impairment charge for the year of £2.6 million. It is now streamlining Cobent in line with its current sales.

But the business, whose MS2M business, which provides training and competency software to comply with Food and Drugs Administration (FDA), Financial Services Authority (FSA) and Health and Safety Executive (HSE) regulated markets, is based in York, said it would continue to look for acquisitions.

Michael Jackson, executive chairman, said: “Investment in technology across the group will continue following the successes of 2010 that have led to several significant product upgrades either completed or for launch in the first half of 2011.

“The board is excited about the organic growth opportunities based upon the initial market penetration of the group's products into the private sector. Access Intelligence will continue to look for interesting acquisitions with an emphasis on developing recurring revenues and building compliance related solutions,” he said.

Access said its software-as-a-service (SaaS) business model remained attractive and gave long term visibility of revenue and cash flows, with customers signing up to three to six year contracts. The market for compliance solutions, estimated to be worth about £459 million in 2010, is expected to grow 20 per cent year-on-year over the next three years.