Half year trading update
01/11/2022 07:00
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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 30 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 £19.6m. 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 £17.6m. This supports the expectations of future growth and underpins the
increasing levels of ARR (1) which had grown by 52% to £27.8m 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 £4.4m at half year end up from £2.8m 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 £40.25 million and adjusted operating
profit of £7.45 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 (http://www.eckoh.com)
FTI Consulting LLP Tel: 020 3727 1017
Ed Bridges / Jamie Ricketts / Tom Blundell
eckoh@fticonsulting.com
Singer Capital Markets (Nomad & Joint Broker) Tel: 020 7496 3000
Shaun Dobson / Tom Salvesen / Alex Bond / Kailey Aliyar
www.singercm.com (http://www.n1singer.com)
Canaccord Genuity Limited (Joint Broker) Tel: 020 7523 8000
Simon Bridges / Emma Gabriel
www.canaccordgenuity.com (http://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
£5 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
(mailto:MediaResponseUK@eckoh.com) .
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