Full year results for the year ended 31 March 2014
Eckoh plc (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 2014.
· Revenue up 28% to £14.0m (FY13: £11.0m)
· Gross profit up 23% to £10.2m (FY13: £8.3m)
· Adjusted* Operating profit increased by 48% to £2.2m (FY13: £1.5m)
· EBITDA** increased by 32% to £3.2m (FY13: £2.4m)
· Cash generated from operating activities increased by 91% to £4.8m (FY13: £2.5m)
· Cash and short term investment balance remains strong at £7.3m (FY13: £8.5m) following £3.6m cash outflow from acquisition of Veritape Limited ('Veritape') in June 2013
· The Board recommends a 25% increase in full year dividend to 0.3125 pence per share for the year ended 31 March 2014 (FY13: 0.25 pence per share)
· Strong trading performance from both core Eckoh business and Veritape
o Combined hosted and on-site payments proposition driving significant sales opportunities in the UK and internationally
· Capita partnership gaining market traction
o New client mandates include Yodel and Telefonica UK (O2)
· New payment contracts secured in the period include 5 multi-year contracts with large blue-chip companies, combined new contracts worth a minimum of £17m in value.
· 100% renewal of 12 clients with contracts expiring in the period, including Affinity Water, Barclays, Utilita, BAA and two government agencies
· U.S opportunity to provide secure payment solutions continues to gather significant momentum
o Subsidiary trading entity Eckoh Inc. is now in operation and US website now live - http://www.eckoh.us/
· 5-year Exclusive Distributor Agreement with large US partner
· Patent awarded for Eckoh CallGuard product
*Adjusted Operating Profit is Operating Profit excluding expenses relating to share option schemes and acquisitions
**EBITDA is the profit before tax adjusted for depreciation, amortisation, finance income, finance expense and expenses relating to share option schemes and acquisitions
Nik Philpot, Chief Executive Officer, commented today:
'We are delighted to be announcing another strong set of full year results. Our business pipeline continues to expand and the opportunities that now exist from our established channel partner network are significant.
'The launch of our US subsidiary is another important milestone for the Group as we look to capitalise on our strong presence in the secure payment market in the UK. The opportunities that exist in North America for our services are vast and through our new partnership we would hope to rapidly gain market traction given the lack of credible alternatives to our existing product portfolio.
We have started the new financial year well and expect to replicate the strong performance from previous years. Our ongoing investment in both people and products will enable the Group to continue to capitalise on a number of significant market opportunities.'
For further enquiries, please contact:
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
Tel: 01442 458 300