The financial year just ended was a breakthrough one in the US for Eckoh PLC (LON:ECK), the secure payment and customer contact technology company.
Reporting its results for the year to the end of March, the company flagged up nine US payment contracts won during the year that had a combined value of US$8.3mln; the previous year new US contracts had chipped in with US$1.3mln.
The US wins contributed to the fourth year in a row of double-digit percentage revenue growth for Eckoh.
Revenue rose 30% to £29.08mln from £22.45mln the year before, with turnover from the US in sterling terms more than doubling to £9.71mln from £3.96mln.
WATCH: Eckoh's Nik Philpot on a 'transformational' year for them in the US
Eckoh had previously flagged significant cost overruns in the Professional Services division of the newly acquired PSS business, so the market was braced for a dip in pre-tax profits.
The Professional Services division of PSS lost £0.7mln, which was largely responsible for the group’s profit before tax sliding to £1.62mln from £2.41mln the year before.
Adjusted underlying earnings (EBITDA) rose 8% to £5.8mln from £5.4mlm.
The company proposed an increase in the final dividend to 4.8p, up from 4.5p for the previous year.
In late afternoon trading, Eckoh's shares were 1%, or 0.5p higher at 48.0p.
Current financial year has started strongly
The current financial year has started strongly, with monthly recurring revenue clocking in at almost £2mln.
"We are delighted to report the fourth successive year of double digit revenue and gross profit growth for Eckoh, largely driven by a breakthrough year in the US. One third of the group's revenue is now generated from this large and growing market,” noted Nik Philpot, chief executive officer of Eckoh.
“The record levels of contract wins and pipeline growth, combined with an effective transition to recurring revenue pricing and a market-leading product portfolio, gives us a strong platform on which to further expand our presence in the US,” Philpot added.
“Our UK business also continues to grow and has been enhanced by the addition of K2C. With over 75% of group revenue already recurring, the board believe Eckoh is well positioned for further significant growth over the coming years," he concluded.
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