Continued double-digit organic growth and the acquisition of PSS today to support international expansion.
Eckoh plc (AIM: ECK), the global provider of secure payment products and customer contact solutions, is pleased to announce its unaudited results for the six months to 30 September 2015.
- Revenue increased 10% to £8.6m (H1 2014/5: £7.8m), recurring revenue now 78% of total revenue (FY15: 76%)
- Gross profit increased 26% to £7.1m (H1 2014/5: £5.6m)
- Gross Margin increased to 82% (H1 2015 72%)
- Adjusted* operating profit increased 44% to £1.5m (H1 2014/5: £1.0m)
- Adjusted* EBITDA increased 30% to £2.0m (H1 2014/5: £1.6m)
- Profit from operating activities of £0.1m (H1 2014/5: loss of £0.1m)
- New US division gathering sales momentum – four new contracts secured since June, taking client count for Eckoh Inc to ten
- Strong new business progress within core UK operations:
- Eight new contracts secured in the period including Co-operative Group Limited, Arvato Services, Sensée, & ComAir
- 13 contract renewals secured, representing 100% of all contracts that expired in the period, including a three-year renewal with Vue Cinemas extending the relationship to over a decade
- Completed the acquisition of Product Support Solutions, Inc ('PSS') for $7.6m (net $5.6m after taking account of $2.0m cash held in PSS) to further establish presence in US and support future growth – see separate announcement released by the Group today
- Patent for CallGuard technology and process recently granted in the US
- Three-year contract to provide Haloh secure payments solution to global multi-media retailer
*excludes expenses relating to share option schemes, non-recurring items and expenses relating to acquisitions
Nik Philpot, Chief Executive Officer, commented today:
'These results demonstrate that Eckoh has once again made excellent progress by delivering double-digit organic revenue and margin growth, significant levels of new client wins and 100% renewals of existing clients.
'We are also delighted to announce the acquisition of PSS, a company specialising in the management of contact centre and customer experience technology with activities in the US, UK and Australia. PSS will support our sales activities in these markets, and particularly in the US, where its decade of experience working with some of the largest US businesses will prove invaluable in helping us grow and support the US market more effectively.
'The protection of customers' data is a sensitive and high profile issue for both companies and the general public alike, given it can have extremely serious ramifications if not managed appropriately. We believe our solutions provide a compelling proposition to help address the global challenges that payment and data security pose and in our particular market where options are limited and credible competition remains sparse, we would expect to continue to secure significant levels of new business that will help underpin our future growth.'
For further enquiries, please contact:
Eckoh plc Tel: 01442 458 300
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director