TIDMECK
RNS Number : 8060E
Eckoh PLC
01 November 2022
1 November 2022
Eckoh plc
("Eckoh", the "Group", or the "Company")
Half year trading update
- Trading in line with market expectations
- Strong double-digit revenue, profit, and order growth
- New security solutions proposition will broaden target market
and increase client value
Eckoh plc (AIM:ECK), the global provider of Customer Engagement
Security Solutions , announces a trading update for the six months
ended 3 0 September 2022. All commentary relates to this period,
unless otherwise stated.
Trading update
The Group performed strongly in the first half of the year, in
line with the Board's expectations. A highlight was the growth in
revenue, which improved by 33% to GBP19.6m. The progress in revenue
growth was also reflected in significantly higher levels of
operating profit, which grew by more than 50%, including some
benefit from positive currency movement.
Following the acquisition of Syntec and the expected increase in
activity coming from a global market, we will now be reporting on
UK, US and Rest of World revenues. All these markets grew, but
particularly good progress was made in the US market, which
increased from $7.9m to $10.6m, up 34%, and accounted for a 44%
share of total revenue, up from 39%.
As reported in the order update on 6 October, following a
challenging period last year, total order levels recovered
strongly, increasing by more than 50% to GBP17.6m. This supports
the expectations of future growth and underpins the increasing
levels of ARR (1) which had grown by 52% to GBP27.8m at the end of
the period.
Overall, the first half performance reflects the continued
progress of Eckoh's strategy to pursue major opportunities for
large blue-chip organisations, cross-sell from a broader product
suite and continue the trend towards cloud adoption and more
international mandates. Eckoh is increasingly focusing on
attractive sectors which are suited to its model, technology, and
product suite.
Product and market update
As showcased at last month's Capital Markets Day, Eckoh is
developing a suite of new security solutions that will help
organisations deal with the challenges that are arising from a
rapidly changing customer engagement environment. Research shows
that the industry shift to remote working over the pandemic is
becoming a permanent feature, with 77% of US contact centres still
having more than half their agents working remotely (2) . This
creates a security challenge for organisations that Eckoh can help
solve, and alongside the core voice security products CallGuard and
CardEasy, the new product offering already includes Secure Chat and
Digital Payments.
With further complementary products set to launch in the coming
months the ability for Eckoh to attract new clients, grow client
value and aid retention will be further enhanced, and there have
been early successes in cross selling multiple products into target
accounts.
Outlook and financial position
There was strong cash generation during the period and Eckoh's
balance sheet remains robust with net cash of GBP4.4m at half year
end up from GBP2.8m at year end.
Despite the ongoing macro-economic uncertainty, the Board expect
revenue and profit for FY23 to be significantly higher than FY22.
The Group is trading in line with consensus market expectations (3)
, supported by long-term structural growth drivers, increasing
Cloud adoption and Eckoh's strengthening product offering.
Notice of interim results date
The Group will report its results for the six months ended 30
September 2022 on 23 November 2022.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
1. ARR is the annual recurring revenue of all contracts billing
at the end of the period. Included within Group ARR is all revenue
that is contractually committed and an element of UK revenue that
has proven to be repeatable, but not contractually committed.
2. Contact Babel: US Contact Centers 2022-2026 - The State of
the Industry & Technology. Published February 2022.
3. Eckoh believes that consensus market expectations for the
year ending 31 March 2023 is revenue of GBP40.25 million and
adjusted operating profit of GBP7.45 million.
- 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 / Emma Gabriel
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 Customer Engagement Security 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 help our clients to take payments and transact securely with
their customers through all customer engagement channels. The
solutions, which are protected by multiple patents, remove
sensitive personal and payment data from contact centres and IT
environments and are delivered globally through our multiple cloud
platforms or can be deployed on the client's site. 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 GBP5 billion in payments
annually.
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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