Continued double digit growth and strong US payments momentum, in line with the Board’s expectations
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 2017.
• Revenue increased by 10.0% to £14.8m (H1 FY17: £13.5m)
o US operations grew by 36% to £5.4m (H1 FY: £4.0m) representing 37% of Group revenues
o Group recurring revenue strengthened to 78% (H1 FY17: 76%)
• Gross profit increased 25% to £11.0m (H1 FY17: £8.8m)
• Adjusted1 Operating Profit increased 66% to £2.0m (H1 FY17: £1.2m)
• Adjusted1 EBITDA increased 34% to £2.6m (H1 FY17: £2.0m)
• Profit before tax increased to £1.5m (H1 FY17: £0.2m loss)
• Strengthened balance sheet with net cash £1.7m (H1 FY17: net debt of (£2.1m))
• US Secure Payments business continues to build with seven contracts won in H1 with total contract value of $5.1m (H1 FY17: three contracts with $2.7m contract value)
• Order book for US payments revenue to be recognised over future periods has increased to $9.3m (FY17 $6.5m)
• New three-year UK payments contract for large high street retailer won through partner BT
• Three-year contract renewals with TenPin and PowerNI
• Post period end:
o Two new 20-year US patents to be awarded underpinning US payments revenue
Nik Philpot, Chief Executive Officer, commented today:
'The clear progress we have made in the US in a short period of time, combined with the size of the opportunity in that market, continues to support our belief that it will surpass the UK. Eckoh remains at the forefront of contact centre security and our patents, including those that are to be newly awarded, now underpin all of our US payments revenue creating a key differentiator and barrier to future competitors.
As we enter the second half, taking into account the contracts we have already won so far this year, and the strong near-term sales pipeline, we are anticipating a second half in line with current expectations.'
22nd November 2017