FY23 Trading Update & Notice of Results
News & Insights
25 Apr 2023
News & Insights
25 Apr 2023
Eckoh is pleased to announce a trading update for the year ended 31 March 2023
("Eckoh", the "Group", or the "Company")
- Adjusted operating profit and net cash ahead of market expectations
- Strong North America Security Solutions Annual Recurring Revenue (“ARR”) growth of 34%
- New Secure Call Recording launch supports growth expectations in cross selling
Eckoh plc (AIM: ECK), the global provider of Customer Engagement Security Solutions, is pleased to announce a trading update for the year ended 31 March 2023.
The Board expects revenue and adjusted operating profit to be significantly ahead of the prior year with revenues of approximately £39m (FY22 £31.8m) and adjusted operating profit of at least £7.6m (FY22 £5.2m), which is slightly ahead of market expectations.1 The Group also saw good cash generation with net cash of £5.7m at the end of the period (FY22 £2.8m), also ahead of market expectations.
Excellent progress was made in the key North America region with Security Solutions exit ARR2 up organically 34% to $15.9m (FY22 $11.9m), driven by the Group’s increasing focus on its largest growth market, which resulted in further large contract wins, increased cross-selling and strong renewals in the region. Growth in total contracted business of more than 50% during the year, together with a continued shift to cloud, underpins Eckoh’s future ARR growth and demonstrates the increasing revenue visibility in the Group’s business model going forward.
Eckoh continues to innovate and broaden its suite of complementary security solutions to help organizations deal with the rapid changes in the customer engagement environment and the increasing regulatory requirements around personal data and privacy. In line with this strategy, on 20 April 2023 the Group announced the launch of its ground-breaking new cloud-based Secure Call Recording solution, which transforms the traditional market offering into a dynamic AI-powered solution that delivers high value insight back to the business, secures customer data and simplifies the task of managing agent performance, especially in hybrid working environments.
Secure Call Recording is a highly complementary addition for existing CallGuard and CardEasy clients and with 24% of US contact centers looking to update their recording solution in the next 12 months3, it is expected to support the anticipated growth in cross selling revenue as well as generating new client contracts.
Eckoh expects to announce its results for the year ended 31 March 2023 on Wednesday 14 June 2023.
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