Eckoh PLC (LON:ECK), the global provider of secure payment products and customer contact solutions, traded in line in the first half of its financial year.
In a trading update covering the six months to the end of September, the board highlighted that the group again achieved double-digit percentage year-on-year growth in both revenue and gross profit.
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UK trading continues to be solid with a similar revenue performance to the first half of last year and a strong pipeline of deals in the second half.
On the other side of the pond, the company’s US push is going well, with seven contract wins worth US$5.1mln secured during the half year, up from three wins worth US$2.7mln the year before.
The number of payments contracts won in the US since Eckoh entered the market in 2014 is now 30. The company has made good progress in converting its contracts pipeline, having already secured the same volume of operating expense (Opex)-based contracts as were won during the full 12-month period ending 31 March 2017.
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Opex-based contracts are preferred by the company to capital expenditure (capex)-based contracts, as these see recurring revenue levels increase as the years roll by. Capex contracts typically involve the outright purchase of hardware by the customer, with 15-20% a year ongoing maintenance and support charge, while opex contracts usually entail a small set-up fee of 10-20% of the contract value, with the remainder of the contract value rolling in on a regular basis.
At the end of the period, the group had net cash of £1.7mln, compared to net debt of £2.1mln a year earlier.