Eckoh announces its unaudited results for the six months to 30 September 2012.
- Strategy continues to deliver strong new business momentum during the period
- Contract win with Whitbread plc to provide payment services to Premier Inn
- Two further three year contract wins within the water utility sector
- Accelerated market traction gained though recent sales partner agreements
- Contract wins for payment services with Kiddicare and Chartered Institute of Management Accountants (CIMA)
- New partnership with Serco delivers contract with central government organisation
- Contract renewals remain strong with Power NI, IPSOS MORI & Royal Mail secured
- EckohPROTECT launched in January 2012 has already delivered four significant contracts
- Revenue up 2% to £5.1m (H1 2011/12: £5.0m); 91% (FY2011/12: 87%) of revenue is of a recurring nature from contracted clients
- Gross profit from continuing operations up 4% to £3.9m (H1 2011/12: £3.7m); gross margin increased to 77% (H1 2011/12: 75%)
- Operating profit up 6% to £0.4m (H1 2011/12: £0.4m)
- Profit before tax up 8% to £0.4m (H1 2011/12: £0.4m)
- EBITDA up 9% to £0.9m (H1 2011/12: £0.8m)
- Strong debt free financial position with a cash and short term investment balance up to £6.7m (31/3/12: £6.4m)
- Dividend of 0.2p per share of progressive dividend policy paid in September.
New three year contract with major financial services Company for both EckohPROTECT and EckohPAY
Strong pipeline of new business driven predominantly by EckohPROTECT and EckohASSIST
Five contracts won in the period will begin generating recurring revenue during the second half of the financial year
Three year renewal with Vue Entertainment, largest client to be renewed this year
Nik Philpot, Chief Executive Officer, commented today:
'The year has started positively, underpinned by excellent traction in our payments products and significant new business impact from our channel partners. Our client base is expanding at record levels with most of these new contracts generating recurring revenue in the second half of the current year.
The prominence of payment solutions in our sales pipeline is enabling us to rapidly increase the size and diversity of our client base, providing further confidence in generating greater levels of revenue and profit growth. Therefore, the outlook for the business remains buoyant with current trading in-line with market expectations.'
Please refer to PDF for complete financial and operational review.
For further enquiries, please contact:
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
Tel: 01442 458 300