Significant Cloud Contract Win and Order Update
15/08/2022 07:00
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RNS Number : 9367V Eckoh PLC 15 August 2022
15th August 2022
Eckoh plc
("Eckoh", or the "Group")
Significant cloud contract win and order update
$1.3m cloud contract win from leading, global hotel brand
- Increasing demand for Eckoh's patented technology in the cloud
- Order levels for Q1 FY23 significantly ahead of Q1 FY22
In the Group's preliminary results for the year ended 31 March 2022, Eckoh
(AIM: ECK), the global provider of Customer Engagement Security Solutions,
indicated order levels had grown substantially in the first two months of
trading compared to the prior year and its new business pipeline had
significantly strengthened, including major opportunities for large blue-chip
organisations.
The Group is pleased to report that this trend is continuing, and order levels
have shown robust growth, with total orders for the first quarter of FY23
substantially higher than the first quarter of FY22. As a result of an
attractive pipeline of opportunities, the Group expects order levels to
continue to be strong and for H1 FY23 to be significantly higher than the
previous year, in line with the Board's expectations.
Contract Wins
As part of the Group's momentum with new business, Eckoh is pleased to
announce it has won a 2-year contract worth a minimum of $1.3m with a leading,
global hotel company following a successful competitive process. Eckoh will
provide a cloud solution to the new client, incorporating both voice payment
security, digital payments, and advanced speech recognition. When fully
deployed, it is expected to cover more than 20 territories and an equivalent
number of different languages.
This important contract win shows the merit of Eckoh's long standing strategy
to pursue larger opportunities and the success of the plan to cross-sell from
a broader product suite following the acquisition of Syntec in December
2021. The contract win also shows the continuing trend towards cloud
adoption and more international mandates. The solution is expected to go
live in the second half of this financial year and in line with other cloud
contracts will deliver higher levels of recurring revenue and margin.
The Group is also pleased to announce a contract win following a competitive
tender for voice payment security with the Irish division of one the world's
largest insurance companies. The deal is worth a minimum of £0.6m over 5
years and it is expected that this will be one of the first clients to utilise
the new enhanced cloud platform that has been developed through the
'Syntegration' project. This win reflects Eckoh's strategy to target sectors
which are well suited to our model, technology, and product suite and secure
significant, international mandates for large blue-chip organisations.
Nik Philpot, Chief Executive Officer, said:
"It is pleasing to see such a positive start to the financial year with the
renewed strength of Eckoh's order levels and our new business pipeline
delivering significant wins. These and other recent contract wins are
important for three reasons. First, they underline the momentum behind our
decision to invest in broadening our cloud proposition geographically, with
multiple suppliers and product offerings to support the growing international
mandates. Second, they show the success of our strategy to cross-sell from
our new suite of products. Third, they show progress for our strategy to
target attractive sectors which are best suited to our model, technology, and
product suite.
We expect the momentum we have seen in the first few months to help support
our expectations of significant revenue and profit growth for Eckoh this
year."
- 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 (mailto: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 / Andrew Potts
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.
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