Full year results for the year ended 31 March 2015
Eckoh (AIM: ECK), a global provider of secure payment products and customer service solutions, is pleased to announce its final results for the year ended 31 March 2015.
The Company has also announced separately today that it is in advanced discussions regarding the possible acquisition by Eckoh of the entire ordinary share capital of Netcall plc ('Netcall'), a leading customer engagement software provider, on a recommended basis.
• Revenue up 22% to £17.2m (FY14: £14.0m) including recurring revenues of 76%
• Gross profit increased 28% to £13.1m (FY14: £10.2m)
• Adjusted* operating profit increased by 54% to £3.4m (FY14: £2.2m)
• Adjusted** EBITDA increased 40% to £4.5m (FY14: £3.2m)
• Profit before Tax increased from a loss of £1.4m to a profit of £2.1m
• Basic EPS increased to 0.96p (FY14: 0.14p)
• The Board recommends a 18% increase in full year dividend to 0.37 pence per share for the year ended 31 March 2015 (FY14: 0.3125 pence per share)
• Record number of new UK clients, 19, largely from retail, leisure and financial services, contracted during the financial year;
• US subsidiary, Eckoh Inc, secured five customers in its first financial year and the US team now enlarged to six employees
• 100% renewal of all significant customer contracts falling due within the period
• Announced advanced discussions regarding the possible recommended acquisition of Netcall
• New enhanced five-year framework agreement concluded with Capita Customer Management ('Capita'), announced separately today
• New five-year Capita contract for leading UK transportation organisation
• Largest margin client renewed for two years
• Haloh voice and web solution (originally OneProx) has now been brought to market
• Encouraging sales pipeline in both the UK and US
*Adjusted Operating Profit is Operating Profit excluding expenses relating to share option schemes, legal fees and settlement costs and expenses relating to acquisitions
**Adjusted EBITDA is the profit before tax adjusted for depreciation, amortisation, finance income, finance expense and expenses relating to share option schemes, legal fees and settlement costs and amortisation and expenses relating to acquisitions
The Company's Annual Report and Accounts for the year ended 31 March 2015 will be published today on the Company's website, www.eckoh.com, and will shortly be posted, along with a Notice of AGM, to those shareholders who have requested hard copies.
Nik Philpot, Chief Executive Officer, commented today:
'As our full year results demonstrate, Eckoh has continued to achieve excellent growth over the last 12 months, delivering a second successive year of double-digit revenue and margin growth. The record number of clients secured and our high customer retention rates are testament to the strength of our offering in secure payments and customer services, creating a robust revenue platform on which we can continue to build.
We are also excited to be announcing today the possible recommended offer for Netcall, which would further enhance our prospects. The Directors of Eckoh and Netcall believe that the acquisition would represent a highly complementary fit for both businesses, offering strategic and financial synergies, and Eckoh expects the acquisition to be earnings enhancing*.
We have also started the new financial year very positively with the new enhanced framework agreement with Capita, which will deepen our channel partner engagement, and we have a strong new business pipeline in the USA and UK. Therefore the Board remains very confident of delivering continued growth going forward.'
For further enquiries, please contact:
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
Tel: 01442 458 300