Posted inFinancial Results
Eckoh is pleased to share news of a strong year in revenue growth and significant US progress drive increasing visibility, for the year ending 31 March 2017.
- Revenue increased by 30% to £29.1m (FY16: £22.5m)
- US operations grew by 145% to £9.7m (FY16: £4.0m), representing 33% of Group revenues
- Group recurring revenue1 strengthened to 76% (FY16: 70%)
- Gross profit increased 21% to £20.3m (FY16: £16.8m)
- Adjusted EBITDA2 increased to £5.8m (FY16: £5.4m)
- Adjusted operating profit3 rose to £4.3m (FY16: £4.1m) despite a £0.7m loss made by a discontinued division of acquired subsidiary, Product Support Solutions Inc. (“PSS'), and the transition to a recurring revenue model in the US
- Profit from operating activities of £1.8m (FY16: £2.5m)
- Final dividend proposed of 0.48p per share (FY16: 0.45p)
- Secured nine new US payment contracts with a combined value of $8.3m (FY16: $1.6m)
- Largest ever US support contract won with a contract value of $5.0m
- Completed the acquisition of Klick2Contact EU Limited (“K2C”) in July 2016 strengthening Eckoh’s Omni-channel service offering
- Fourth contract win with Capita to provide services to a leading UK mobile virtual network operator
- Strengthened existing UK client base from 66 to 874, and client retention remains almost 100%
- Strong start to the new financial year with monthly recurring revenue of nearly £2m
- Post period end, won new three-year contract through Teleperformance to provide both Eckoh and K2C services to Her Majesty’s Passport Office
- Five year contract win with Carters Inc for Secure Payments
Nik Philpot, Chief Executive Officer, commented today: “We are delighted to report the fourth successive year of double digit revenue and gross profit growth for Eckoh, largely driven by a breakthrough year in the US. One third of the Group’s revenue is now generated from this large and growing market.
The record levels of contract wins and pipeline growth, combined with an effective transition to recurring revenue pricing and a market-leading product portfolio, gives us a strong platform on which to further expand our presence in the US. Our UK business also continues to grow and has been enhanced by the addition of K2C. With over 75% of Group revenue already recurring, the Board believe Eckoh is well positioned for further significant growth over the coming years.”
For more information, please contact:
Chrissie Herbert, Chief Financial Officer
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