Posted inFinancial Results
Eckoh plc (AIM: ECK), the global provider of secure payment products and customer contact solutions, today issues a trading update for the six months ended 30 September 2017.
The Board is pleased to announce that trading in the period was in line with expectations, again showing double-digit percentage growth in both revenue and gross profit as the Group continues to deliver on its strategy with increasing momentum.
UK trading continues to be solid with a similar revenue performance to H117 and a strong pipeline of deals in the second half.
In the US, following on from the success of securing the largest ever payment contract win in March 2017, the Company has won seven new Secure Payments contracts during the period with a total value of $5.1m. The largest of these, worth $1.6m, was won against the Group's main competitor and pleasingly, all were contracted on the preferred 'Opex' pricing model that the Company moved to in mid-2016, which will see recurring revenue levels increase over future periods. The number of payments contracts won in the US since Eckoh entered the market in 2014 is now 30. The Company has made good progress in converting its contracts pipeline, having already secured the same volume of Opex-based contracts as were won during the full 12 month period ending 31 March 2017.
US Client Wins US Contract Value Capex1 Opex2
H1 17 3 $2.7m 1 2
H1 18 7 $5.1m 0 7
The Group's balance sheet remains strong with net cash of £1.7m at H1 18 (H1 17: net debt of (£2.1m)).
The Group will report its results for the six months ended 30 September 2017 on Wednesday, 22 November 2017.
1. Capex – typically, outright purchase of hardware with 15-20% pa on-going maintenance and support charge
2. Opex – typically, small set-up fee of 10-20% of contract value and 80-90% of contract value as recurring revenues over the life of the contract.
For further information please contact:
Nik Philpot, Chief Executive Officer
Chrissie Herbert, Chief Financial Officer
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