Eckoh PLC Half Year Trading Update (3794R)
October 29 2019 - 2:00AM
UK Regulatory
TIDMECK
RNS Number : 3794R
Eckoh PLC
29 October 2019
29 October 2019
Eckoh plc
("Eckoh", the "Group" or the "Company")
Half Year Trading Update
Eckoh, the global provider of secure payment products and
customer contact solutions, announces a trading update for the six
months ended 30 September 2019. Figures relate to this period,
unless otherwise stated.
The Board is pleased to announce that trading for the six-month
period was in line with expectations. It has been a very strong
first half to the year with excellent levels of contracted business
and double-digit revenue growth in both the UK and US.
The US business continues to perform strongly, and total
business contracted was $14.4m (H1 2019: $12.5m), an increase of
15% year on year, which was an impressive result given that the
prior half year comparator included our largest ever contract
valued at $7.4m.
We continue to have excellent momentum in our US Secure Payments
business, with ongoing success in the retail and healthcare sectors
and we have recently won our first client in the gaming sector. The
pipeline for the second half of the year is encouraging, reflecting
the long-term structural drivers for our Secure Payments products:
tightening regulation, and the growing risk of data breaches and
fraud within challenging parts of our clients' businesses.
In the UK, total business contracted was GBP7.9m, an increase of
8% year on year. In the period we had strong renewals in the UK
with our existing clients and we continue to maximise client value
through cross-selling. Our new UK business is increasingly coming
from sales delivered through our recently launched Eckoh Experience
Portal ("EXP") which enables organisations to purchase our Customer
Engagement and Secure Payment solutions in a modular fashion.
As announced on 1 July 2019, we secured a contract extension
with a Fortune 100 telecommunications company for our agent desktop
tool Coral. The contract is worth a minimum of $3.8m, and of this,
$2.1m will be recognised in this six-month period. Consequently,
while the Company expects revenue growth to continue in the second
half, the first half is expected to have a greater weighting this
financial year.
The Group's financial position remains robust with net cash of
GBP10.9m at 30 September 2019 (30 September 2018: net cash of
GBP3.4m), and management remain confident of further progress in
the second half of the year.
The Group will report its results for the six months ended 30
September 2019 on Tuesday, 19 November 2019.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
For further information please contact:
Eckoh plc
Nik Philpot, Chief Executive Officer Tel: 01442 458
300
Chrissie Herbert, Chief Financial Officer
www.eckoh.com
FTI Consulting LLP Tel: 020 3727 1000
Ed Bridges / Jamie Ricketts / Jan Meinicke
/ Darius Alexander
eckoh@fticonsulting.com
N+1 Singer (Nomad & Joint Broker)
Shaun Dobson / Justin McKeegan Tel: 020 7496 3000
www.n1singer.com
Canaccord Genuity Limited (Joint Broker)
Simon Bridges / Andrew Potts Tel: 020 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 help our clients take payments
securely from their customers through all engagement channels. The
products, which include the patented CallGuard and ChatGuard, 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. They 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, securing
over GBP2bn in payments annually.
Eckoh's Customer Contact solutions enable enquiries and
transactions to be performed on whatever device the customer
chooses, allowing organisations to increase efficiency, lower
operational costs and provide a true Omnichannel 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
providers, retailers, utility providers and financial services
organisations.
For more information go to www.eckoh.com or email
MediaResponseUK@eckoh.com
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END
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