A further period of significant growth combined with successful US execution
Eckoh plc (AIM: ECK), is pleased to announce its unaudited results for the six months to 30 September 2014.
- Revenue increased 24% to £7.8m (H1 2013/4: £6.3m), recurring revenue now 81% of total revenue
- Gross margin increased 27% to £5.6m (H1 2013/4: £4.4m)
- Adjusted* operating profit increased 41% to £1.0m (H1 2013/4: £0.7m)
- Adjusted* EBITDA increased 29% to £1.6m (H1 2013/4: £1.2m)
- Debt free financial position with £4.1m cash (H1 2013/4: £4.3m)
- New US division gathering sales momentum – three new contracts secured since results in June
- Strong new business progress within core UK operations
- Eight new contracts secured in the period including Co-operative Energy, Group Central Services Limited, Lifestyle Services Group, Bromford Housing, Tenpin Limited, Brookfield Utilities and a large UK financial services company
- Long term contract renewals secured with Barclays and Royal Mail
- Dual site technical platform to support large scale CallGuard and OneProx hosted solutions in the US now completed and ready for use
- Acquired freehold for Hemel Hempstead headquarters
- UK patent awarded for CallGuard product
- Recently awarded new three year contract via a channel partner for a payment solution with a leading insurance finance company
- US sales pipeline significantly higher than initial expectations driven by indirect sales partner activity and direct Eckoh mandates
- US subsidiary trading profitably in the second half of 2014/5 to date
- OneProx product now live with first client
- Current trading remains in line with market expectations
*excludes acquisition costs, amortisation of acquired intangibles and share option expenses
Nik Philpot, Chief Executive Officer, commented today:
'Our strong first half performance has seen the Group deliver excellent growth in our core UK business, securing a significant number of new contracts in addition to making substantial progress in developing both our US business and sales pipeline.
'We have been delighted with the response to our secure payments offering in the US, where data security is now an issue under intense scrutiny from consumers, corporations and the White House itself. We will look to leverage this interest through both our channel relationship with the West Corporation and our direct sales efforts. Having started to secure contracts in the US it is very pleasing to report that our US operations are already trading profitably, earlier than anticipated and less than a year after their inception.
'In view of this strong operational progress supported by the new contracts secured in the first half, the Group remains well positioned to deliver continued growth this year and beyond.'
For further enquiries, please contact:
Eckoh plc Tel: 01442 458 300
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
Richard Oldworth, Sophie McNulty, Gabriella Clinkard Tel: 020 7466 5000
Shaun Dobson, Ben Wright Tel: 0207 496 3000