REG - Eckoh PLC - FY23 Trading Update & Notice of Results

EckohAnnouncement

25/04/2023 07:00

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RNS Number : 2743X  Eckoh PLC  25 April 2023

25 April 2023

Eckoh plc

("Eckoh", the "Group", or the "Company")

 

FY23 Trading Update & Notice of Results

- Adjusted operating profit and net cash ahead of market expectations

- Strong North America Security Solutions Annual Recurring Revenue ("ARR")
growth of 34%

- New Secure Call Recording launch supports growth expectations in cross
selling

 

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
2023.

 

The Board expects revenue and adjusted operating profit to be significantly
ahead of the prior year with revenues of approximately £39m (FY22 £31.8m)
and adjusted operating profit of at least £7.6m (FY22 £5.2m), which is
slightly ahead of market expectations.(1) The Group also saw good cash
generation with net cash of £5.7m at the end of the period (FY22 £2.8m),
also ahead of market expectations.

 

Excellent progress was made in the key North America region with Security
Solutions exit ARR(2) up organically 34% to $15.9m (FY22 $11.9m), driven by
the Group's increasing focus on its largest growth market, which resulted in
further large contract wins, increased cross-selling and strong renewals in
the region. Growth in total contracted business of more than 50% during the
year, together with a continued shift to cloud, underpins Eckoh's future ARR
growth and demonstrates the increasing revenue visibility in the Group's
business model going forward.

 

Eckoh continues to innovate and broaden its suite of complementary security
solutions to help organisations deal with the rapid changes in the customer
engagement environment and the increasing regulatory requirements around
personal data and privacy. In line with this strategy, on 20 April 2023 the
Group announced the launch of its ground-breaking new cloud-based Secure Call
Recording solution, which transforms the traditional market offering into a
dynamic AI-powered solution that delivers high value insight back to the
business, secures customer data and simplifies the task of managing agent
performance, especially in hybrid working environments.

 

Secure Call Recording is a highly complementary addition for existing
CallGuard and CardEasy clients and with 24% of US contact centres looking to
update their recording solution in the next 12 months(3), it is expected to
support the anticipated growth in cross selling revenue as well as generating
new client contracts.

 

Eckoh expects to announce its results for the year ended 31 March 2023 on
Wednesday 14 June 2023.

 

 

1.   Eckoh believes that consensus market expectations for the year ended 31
March 2023 are for revenue of £40.3 million, adjusted operating profit of
£7.5 million and net cash of £5.2m.

2.   ARR is the annual recurring revenue of all contracts billing at the end
of the period.

3.   Source: Contact Babel - US Contact Centers 2022-2026 the State of the
Industry

 

- 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 / Emma Hall / Tom Blundell
 eckoh@fticonsulting.com

 Singer Capital Markets (Nomad & Joint Broker)      Tel: 020 7496 3000
 Shaun Dobson / Tom Salvesen / Alex Bond
 www.singercm.com (http://www.singercm.com)

 Investec Bank plc (Joint Broker)                   Tel: 020 7597 5970
 Patrick Robb / Nick Prowting / Shalin Bhamra
 www.investec.com (http://www.investec.com)

 

 

About Eckoh plc

As a global provider of Customer Engagement Security Solutions, Eckoh is all
about making the world more secure.

 

Our vision is that everyone should be able to trust every brand and engage
without risk. We're on a mission to set the standard for secure interactions
between consumers and the world's leading brands, and our innovative products
build trust and deliver value though exceptional experiences.

 

We're trusted by many of the world's leading brands to help them manage their
customer enquiries and transactions safely. Our solutions enable payment
transactions to be performed securely and help protect sensitive personal data
across any customer engagement channel and device the customer chooses.

 

Protected by multiple patents, our solutions remove sensitive personal and
payment data from contact centres and IT environments, as the best way to
secure data is not to collect it. This allows organisations to be not just
compliant but secure, increase efficiency, lower operational costs, and
provide an excellent customer experience.  This is our specialism.

 

Our solutions are delivered globally through 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, and our extensive portfolio of typically large
enterprise clients spans a broad range of vertical markets including
government departments, telecoms providers, retailers, utility providers and
financial services organisations.

 

For more information go to www.eckoh.com (http://www.eckoh.com) or email
MediaResponseUK@eckoh.com (mailto:MediaResponseUK@eckoh.com) .

 

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