Posted inFinancial Results
Eckoh stands strong in growing US and UK contact center markets with double digit revenue and margin growth, for the year ended 31 March 2016.
- Revenue increased 31% to £22.5m (2014/5 £17.2m)
- Revenue from the US increased from £0.2m to £4.0m
- UK Recurring revenue now 79% of total revenue (2014/5: 76%)
- Gross profit increased 29% to £16.8m (2014/5: £13.1m)
- Adjusted* operating profit increased 22% to £4.1m (2014/5: £3.4m)
- Adjusted** EBITDA increased 20% to £5.4m (2014/5: £4.5m)
- Profit from operating activities of £2.5m (2014/5: £0.9m loss***)
- The Board is recommending a 20% increase in full year dividend to 0.45 pence per share (FY15: 0.375 pence per share)
- Completed the acquisition of Product Support Solutions, Inc ('PSS') in November 2015 to further establish presence in US and support future growth
- Nine contracts won in US Secure Payments operation (FY15: four) including the first West contract
- Thirteen new UK contracts secured including Thames Water, the Co-operative Group, Ecotricity and a global on-line retailer
- Two largest UK clients renewed for a minimum of four years and all other significant clients renewed
- Patents awarded for new tokenization payments solution in the UK and core Secure Payments solution CallGuard in the US
- US distributor agreement with West updated for three-year period
- Three-year US secure payments contract worth $2m won with global insurance company via West
- Three-year contract worth an estimated $5m won with US telecommunications provider
*excludes expenses relating to share option schemes, acquired intangible amortization and expenses relating to acquisitions
** EBITDA is the profit before tax adjusted for depreciation, amortization, finance income, finance expense, and expenses relating to share option schemes and acquisitions
*** Restated as set out in note 1
Nik Philpot, Chief Executive Officer, commented today: "For the third successive year Eckoh is delighted to report double digit revenue and margin growth, reflecting in particular a year of tremendous progress in the US market. Not only have we seen the first major contracts coming through from our partnership with West but the acquisition of PSS in November 2015 has really accelerated our growth.
The addition of PSS has meant that we now are able to offer both Secure Payments and Customer Contact solutions in the US as we do in the UK. The benefit of having an end-to-end and comprehensive solution set that allows us to both support and advise organizations as they transition and secure their contact center infrastructure has been self-evident in the progress we have made in recent months, including winning significant contracts in both product areas in each of our key markets.
The contracts secured recently, which will deliver significant benefit once live in the second half of the new financial year, give us the confidence that the strong growth we have consistently delivered in the past few years will continue. The Board remains excited by the prospects for the Company and continues to evaluate opportunities for scaling the business even further alongside our organic growth."