Eckoh PLC H1 2019 Trading Update (1070F)
October 25 2018 - 1:00AM
UK Regulatory
TIDMECK
RNS Number : 1070F
Eckoh PLC
25 October 2018
25 October 2018
Eckoh plc
("Eckoh" or the "Group")
H1 2019 trading update
Strong progress in both US and UK Orders
Eckoh (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 2018.
The Board is pleased to announce that trading in the period was
in line with market expectations and the Group continues to see
excellent momentum in US Secure Payments, including the Company's
largest ever secure payments contract win. As previously announced,
this two-year contract, to provide secure payment solutions to one
of the largest corporations in the United States, was worth $7.4m.
Consequently, Eckoh has already exceeded in H1 2019 the total
contract value ("TCV") of $9.3m for US Secure Payments it achieved
in FY 2018 as a whole. Predicting the precise timing of when these
large enterprise contracts will be signed remains challenging, but
the Board is pleased with the level of TCV achieved in the first
half.
Eckoh provided early visibility as to the impact IFRS 15 would
have on the business in the short term and, as expected, it is the
Group's US business that has been most affected by this change in
accounting policy. All of the US payments contracts the Group has
won in H1 2019 have been for our lead tokenisation solution. In
accordance with IFRS 15, revenue from these new contracts will be
spread evenly over future periods, underpinning the Group's quality
of earnings and increasing revenue visibility going forward.
In the UK, we have seen excellent progress in contract wins
after a period of transition in the prior year. The renewed
momentum in our restructured UK sales function and a focus on
larger strategic accounts are bearing fruit, returning us to the
expected levels of new business. Indeed, as in the US, the TCV of
new contracts won in H1 2019 has exceeded the total won in FY 2018,
clearly illustrating the positive impact the changes have
delivered. We have also, as expected, seen stronger performance
from key channel partners such as BT and Capita. The contract win
with Capita previously announced, was Eckoh's fifth significant
contract won through the channel since the partnership was created
in 2013, worth a minimum of GBP1.4m over a three-and-a-half-year
period.
The Group's financial position remains robust with net cash of
GBP3.4m at 30 September 2018 (H1 2018: net cash of GBP1.7m).
The Group will report its results for the six months ended 30
September 2018 on Tuesday, 20 November 2018.
- Ends -
For more information, please contact:
Eckoh plc
Nik Philpot, Chief Executive Officer Tel: +44 (0) 1442 458 300
Chrissie Herbert, Chief Financial
Officer
www.eckoh.com
FTI Consulting LLP
Ed Bridges / Jamie Ricketts / Darius Tel: +44 (0) 3727 1000
Alexander
eckoh@fticonsulting.com
N+1 Singer (NOMAD and Joint Broker)
Shaun Dobson, Lauren Kettle Tel: +44(0) 7496 3000
www.n1singer.com
Canaccord Genuity Limited (Joint
Broker)
Simon Bridges, Emma Gabriel Tel: +44(0) 7523 8000
www.canaccordgenuity.com
About Eckoh plc
Eckoh is a global provider of secure payment products and
customer contact solutions, supporting an international client base
from its offices in the UK and US.
Our secure payments products, which include the patented
CallGuard, can be hosted in the cloud or deployed on the client's
site and remove sensitive personal and payment data from contact
centres and IT environments. The products offer merchants a simple
and effective way to reduce the risk of fraud, secure sensitive
data and become compliant with the Payment Card Industry Data
Security Standards ("PCI DSS") and wider data security regulations.
Eckoh has been a PCI DSS Level One accredited Service Provider
since 2010, processing over GBP1.5 billion in card payments
annually.
Eckoh's customer contact solutions enable inquiries and
transactions to be performed on whatever device the customer
chooses, allowing organizations to increase efficiency, lower
operational costs and provide a true Omni-Channel experience. We
also assist organisations in transforming the way that they engage
with their customers by providing support and transition services
as they implement our innovative customer contact solutions.
Our large portfolio of clients come from a broad range of
vertical markets and includes government departments, telecoms,
retailers, utilities, travel, transport, hospitality and financial
services organisations.
More information at www.eckoh.com
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END
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