Secure payments specialist Eckoh PLC (LON:ECK) swung to a first-half profit as growth in its US operations boosted revenue.
The company posted profit before tax of £1.5mln for six months to September 30, compared to a loss of £0.2mln in the same period a year ago.
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Shares rose 3.92% to 53p in morning trading.
Revenue grew 10% to £14.8mln, driven by a 36% increase in its US operations to £5.4mln, which represented 27% of the total.
The US secure business won seven contracts in the first half worth a total value of US$5.1mln, compared to three contracts last year worth US$2.7mln.
The order book for US payments revenue to be recognised largely over the next three years has risen to US$9.3mln from US$6.5mln last year.
Recurring revenues for the year in the US were 58%, up slightly from 57% last year, and the company expects this to rise further as the proportion of revenue from secure payments increases.
In the UK, revenue dropped 1% to £9.4mln even as it won contract renewals with Tenpin and PowerNI through its partnership with BT Group (LON:BT.A). It also secured a contract with a large high street retailer though BT. The UK division represents 63% of group revenue.
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Recurring revenue in the UK, however, increased to 89% from 85%.
Eckoh strengthened its balance sheet to end the period with net cash of £1.7mln, compared to net debt of £2.1mln a year ago.
“As we enter the second half, taking into account the contracts we have already won so far this year, and the strong near-term sales pipeline, we are anticipating a second half in line with current expectations,” said chief executive Nik Philpot.