Posted inFinancial Results
Eckoh has released its results for the six months ending 30 September 2016. It shows a period of significant revenue growth.
- Revenue increased by 57% to £13.5m (H1 FY16: £8.6m)
- US operations increased from £31,000 to £4.0m and now represent 30% of Group revenues
- Group recurring revenue 76% (H1 FY16: 78%) UK recurring revenue 85%, US 57%
- Gross profit increased 25% to £8.8m (H1 FY16: £7.1m)
- As expected, adjusted* operating profit reduced to £1.2m (H1 FY16: £1.5m) due to a £0.6m loss made by a discontinued division of acquired subsidiary, Product Support Solutions Inc. ("PSS"), and transition to a recurring revenue model in the US
- Adjusted* EBITDA of £2.0m (H1 FY16: £2.0m)
- Loss from operating activities of £0.2m (H1 FY16: £0.1m profit)
- Completed the acquisition of Klick2Contact EU Limited ("K2C") in July 2016 to strengthen Eckoh's Omni-channel service offering
- Three-year US contact centre support services contract worth $5m signed in June
- UK business continues to build:
- UK client base increased to 74 clients (FY16: 66)
- UK contract wins include deals in France, Holland and Spain
- All significant UK clients renewed
Significant US progress:
- Secure Payments total contract value of $3.6m won to date this year ($1.5m in FY16) with an average contract value of $0.6m
- Five of six US secure payments contracts won this year to date use new recurring revenue model
- Whitbread PLC contract for Premier Inn, the largest to be renewed this financial year, extended for three years
- Eckoh and Worldpay partnered to deliver the world's first Apple Pay payment via a telephone voice call
- On track to deliver FY17 expectations, with contracts won in the first half feeding through strongly into second half of financial year
*excludes expenses relating to share option schemes, non-recurring items and expenses relating to acquisitions
Nik Philpot, Chief Executive Officer, commented today: "The significant revenue growth we have seen in the first half of the year, especially from the US operation, supports our belief that the US business will surpass the UK in the foreseeable future. In addition, the acquisitions of PSS and K2C have strengthened our market proposition considerably and are supporting further progress in both our Secure Payments and Contact Centre businesses internationally.
"Taking into account the contracts we have already won so far this year, the excellent near-term sales pipeline and the closure of the loss-making division of PSS, we are anticipating a strong second half. Looking beyond this year, with the rapid growth we are seeing in the US and the improvement we will see there in recurring revenues, the prospects for Eckoh remain as exciting as ever."
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