TIDMECK
RNS Number : 6801L
Eckoh PLC
17 May 2022
17 May 2022
Eckoh plc
("Eckoh", the "Group", or the "Company")
Full year trading update
- Revenue in line with market expectations, profit ahead
- Strong ARR growth in US Secure Payments; resilient performance
in the UK
- Expectation of material growth in FY23
Eckoh plc (AIM:ECK), the global provider of customer engagement
security solutions, is pleased to announce a trading update for the
year ended 31 March 2022.
The Board confirms that revenue for the year was in line with
consensus market expectations*. Operating profit grew strongly,
some 5% ahead of consensus market expectations. This is an
excellent outcome given the ongoing challenges presented by the
pandemic and the now planned completed exit from US and UK Support,
which had contributed GBP2m to the previous year's profit
figure.
Our strong performance reflects ongoing progress in our US
Secure Payments operation, which now accounts for nearly 90% of
total US revenues. There was more than 20% organic growth in US
ARR. Including Syntec, US ARR ended the period at $12.7m, nearly
60% higher than last year.
The UK business returned to growth, and transactional volumes
have largely returned to pre-pandemic levels with just a few
exceptions. Since period end our largest contract renewal scheduled
for this financial year, a contract through Capita for a large
public service organisation, was successfully renewed for GBP2.1m
over the term.
Our recently announced implementation of a new Microsoft Azure
cloud platform with a Fortune 100 US retailer is now live, making
Eckoh the only provider in our industry to offer alternative cloud
providers. This supports our stated strategy to continue investing
in broadening our cloud proposition geographically, and with
multiple suppliers and product offerings.
Syntec's contribution to revenue and profits in the final
quarter of the year was consistent with our expectations at the
time of the transaction, and the integration of the businesses is
proceeding on plan. Unification of the technology and product
offering is making excellent progress and we expect to deliver a
unified and enhanced go-to-market proposition in the second
half.
Outlook and financial position
The balance sheet remains strong with net cash of GBP2.8m (FY21:
GBP11.7m), well ahead of expectations. The change reflects the
acquisition of Syntec in December 2021, which was part funded by
cash.
The Board expects revenue and profit for FY23 to be
significantly higher than FY22. FY23 guidance for material growth
reflects the successful integration of Syntec to derive synergistic
benefits, an anticipated return to normal UK trading activity,
ongoing momentum in US Secure Payments supported by long-term
structural growth drivers, Cloud adoption, coupled with the
benefits of new products and operational gearing. These
expectations are subject to ongoing uncertainty in the
macro-economic climate.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
* Eckoh believes that consensus market expectations for the year
ending 31 March 2022 is revenue of GBP32.15 million, Adjusted
Operating profit of GBP4.90 million and Net cash of GBP1.1m.
- Ends -
For further information please contact:
Eckoh plc Tel: 01442 458 300
Nik Philpot, Chief Executive Officer
Chrissie Herbert, Chief Financial Officer
www.eckoh.com
FTI Consulting LLP Tel: 020 3727 1017
Ed Bridges / Jamie Ricketts / Tom Blundell
eckoh@fticonsulting.com
Singer Capital Markets (Nomad & Joint Tel: 020 7496 3000
Broker)
Shaun Dobson / Tom Salvesen / Alex Bond
/ Kailey Aliyar
www.singercm.com
Canaccord Genuity Limited (Joint Broker) Tel: 020 7523 8000
Simon Bridges / Andrew Potts
www.canaccordgenuity.com
About Eckoh plc
Eckoh is a global provider of customer engagement security
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 multiple channels. The
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.
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 GBP5bn in
payments annually.
Eckoh's customer engagement 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
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END
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