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Full year results for the year ended 31 March 2019
Wednesday, 12 June 2019

Posted in

2019

Results in line with expectations, with strong new business growth in UK and US

Eckoh plc (AIM: ECK), the global provider of secure payment products and customer contact solutions, is pleased to announce its final results for the year ended 31 March 2019. 

£m unless otherwise stated

FY19       

FY18

Restated1

Change

New business contracted5

22.6

15.3

47%

Total business contracted7

32.7

20.2

62%

Revenue

28.7

27.2

+5%

Recurring Revenue %2

83%

82%

+100 bps

Gross profit

24.1

23.5

+3%

Adjusted EBITDA3

4.3

5.1

(16%)

Profit before taxation

1.2

1.1

+7%

Diluted Earnings per share

0.36

0.52

(31%)

Proposed Full Year Dividend per share

0.61

0.55

+11%

Net Cash

8.3

3.6

+4.7

 Strategic highlights:

  • Strong UK and US momentum – Record levels of new and total business contracted, up 47% and 62%
  • US Secure Payments new business up 48% to $13.7m and order book grew 63% to $22.7m (FY181: $13.9m)
  • UK grew strongly – more than £10m in new business driven by improved sales channel
  • Investment in innovation – five new patents granted during the year

 Financial Highlights:

  • Results in line with market expectations
  • Revenues up 5%, or 5% at constant currency4, with growth in the UK and US
  • Recurring revenue up to 83% (FY181: 82%)
  • Deferred revenue6 up 44% to £14.6m (FY181: £10.1m), reflecting business wins and impact of IFRS 15
  • Adjusted EBITDA of £4.3m reduced by 16% (FY181: £5.1m) demonstrating a planned increase in headcount, and investment in Sales, Marketing and IT ahead of the recognition of deferred revenue6 under IFRS 15
  • Strong cash performance – net cash of £8.3m (FY18: £3.6m)
  • Proposed final dividend increased by 11% to 0.61p per share (FY18: 0.55p)

Current Trading:

  • Significant new contracts won since period end
    • Three-year UK contract for Contact Centre digital transformation project
    • Five-year Secure Payments Cloud contract covering the US, UK and Europe
  • Largest UK contract renewal for FY20 signed with Premier Inn
  • Strong sales pipeline in both the UK and US Secure Payments
  • Record visibility for current year

Nik Philpot, Chief Executive Officer, said:

 Eckoh performed extremely well in the 2019 financial year, and in line with market expectations.  We grew both the UK and US divisions, achieved record levels of new business sales that will convert into future revenue growth, and had another strong cash performance.

 Looking ahead, our fast-growing order book is supporting greater revenue visibility.  This, combined with our investment in our business and people, and our patented IP, provides an excellent platform for future growth and reinforces our confidence in the positive outlook for the Group.”

 Notes

  1. Restatement as a result of adoption of IFRS15 – Revenue from Contracts and Customers
  2. Recurring revenue is defined as on-going revenue on a transactional basis, rather than revenue derived from the set-up and delivery of a new service or hardware.
  3. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) is the profit before tax adjusted for depreciation, amortisation, finance income, finance expense, legal fees and settlement costs and expenses relating to share option schemes.
  4. Constant currency (using last year exchange rates)
  5. New business contracted excluding renewals with existing customers.
  6. Deferred revenue is defined in IFRS 15: Revenue from Contracts with Customers as contract liabilities
  7. Total business contracted includes new business from new clients, new business from existing clients as well as renewals with existing clients
 

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For more information, please contact:

Eckoh PLC
Nik Philpot, Chief Executive Officer
Chrissie Herbert, Chief Financial Officer
Tel: +44 (0) 1442 458 300
www.eckoh.com

FTI Consulting LLP
Ed Bridges / Jamie Ricketts / Darius Alexander
Tel: +44 (0) 203 727 1000
This email address is being protected from spambots. You need JavaScript enabled to view it.

N+1 Singer (Nomad & Joint Broker)
Shaun Dobson, Justin McKeegan
Tel: +44 (0) 20 7496 3000
www.n1singer.com

Canaccord Genuity Limited (Joint Broker)
Simon Bridges, Andrew Potts
Tel: +44(0) 20 7523 8000
www.canaccordgenuity.com