Eckoh today issues a trading update for the year ended 31 March 2017.
The Board of the Company confirms that trading for the year ended 31 March 2017 was comfortably in line with market expectations, with revenue and margin growing by over 20% for the fourth year in succession. The Company continues to make good progress in the UK, and the Group's operations in the United States have produced a record year in terms of revenues and order book; as a consequence US-derived revenues will again represent a growing proportion of total Group revenues.
The Group continues to benefit from increasing revenue and earnings visibility driven by the increasing proportion of US sales attributable to longer term, Software-as-a-Service ('SaaS') style commercial relationships with customers. As announced on the 22 March 2017, the Company has secured its largest ever payment contract worth $3.7m, and during the year US payment contracts valued at $8.3m were won (2016: $1.5m), with over 90% of this contract value derived from agreements using the preferred SaaS-style pricing model.
Eckoh's balance sheet remains robust with net cash ahead of market expectations at the period end. The Group has a strong pipeline and is responding to an increasing number of tenders.
The Group will report its results for the year ended 31 March 2017 on Monday 12 June 2017.
In line with corporate governance best practice, Eckoh also announces that Chris Batterham, who has served as non-executive chairman since July 2009, will be stepping down from his position and leaving the board at the forthcoming AGM, by which time the Group expects to have Chris's successor in place. The search for his replacement is already well advanced.
For further information please contact:
Chrissie Herbert, Chief Financial Officer
Tel: 01442 458 300