Eckoh plc announces its unaudited results for the six months to 30 September 2013.
Revenue increased by 24% from £5.1m to £6.3m
Adjusted* operating profit increased by 57% from £0.5m to £0.7m
Operating loss of £0.3m (H1 FY12: £0.4m profit) after inclusion of acquisition and share option related costs
Adjusted* EBITDA increased by 29% from £0.9m to £1.2m
Cash and short term investments balance remains strong at £4.3m (30 September 2012: £6.7m) following outflow of £3.7m from acquisition of Veritape and £0.5m dividend
Cash generated from operations increased by 86% from £0.4m to £0.7m
Strong first period of trading performance from Veritape Limited ('Veritape')
Integration on track with cross selling new business initiatives already underway
Partnership agreement with Capita Customer Management delivered a five year contract to provide services to a UK distribution business
Secured £1.4m contract over 5 years with leading financial services provider
Dedicated R&D team established and already generating traction with clients
Strong contract renewal momentum during the period
Contracts renewed with a global financial services provider, Garden Centre Group, Gatwick Airports, IPSOS MORI, BAA, Barclays Bank & a Government Agency
Agreed 'landmark' 10 year contract with a minimum value of £11m to provide a suite of self service solutions to a Tier 1 telecoms operator
A pilot for Veritape's 'CallGuard' solution secured with Eckoh channel partner
First Eckoh/Veritape combined payment solution sold to South West Water
Contracts gains secured have led to an increase in market profit expectations for the next financial year
*excludes acquisition costs, amortisation of acquired intangibles and share option expenses
Nik Philpot, Chief Executive Officer, commented today:
'We are delighted to be announcing such a strong set of results which highlights the excellent progress made by the Group from both a financial and operational perspective. Our targeted sales efforts to secure larger, longer-term contracts are already delivering impressive results with an excellent sales pipeline and three contract wins with a combined value of £15m.
The integration of our newly acquired business Veritape is going extremely well and the business rationale for being part of the Eckoh group is yielding returns at every level. We expect the substantial progress and growth achieved by the Group in the first half of this year to continue throughout the remainder of the current financial year.
As a board, we continue to evaluate a variety of wider strategic options designed to accelerate the growth further and we look to the future with continuing confidence.'
For further enquiries, please contact:
Tel: 01442 458 300
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
Jeremy Garcia, Gabriella Clinkard
Tel: 020 7466 5000 www.buchanan.uk.com
Shaun Dobson, Matthew Thomas
Tel: 0207 496 3000
Notes to Editors:
Eckoh plc (AIM: ECK) is the UK's leading provider of multi-channel customer service and secure payment solutions. We are a PCI DSS Level One accredited Service Provider, currently processing over £300 million in card payments annually. Eckoh's solutions enable payments, transactions and enquiries to be processed without the caller needing to talk to a contact centre agent. This significantly reduces our clients' costs, whilst freeing up their agents to deal with more complex enquiries. Eckoh is the largest provider of such hosted services in the UK. Our secure and resilient infrastructure has the scalability to handle up to 6,000 calls simultaneously, which means that calls will always be answered no matter how unpredictable the circumstances.