Eckoh continues to cash in on the payments boom
- Eckoh says current trading in line with expectations
- Eckoh highlight strong performance in US secure payments business, soaring 57% higher to £12.8m
Quick facts: Eckoh PLC
Price: 56.5 GBX
Market Cap: £143.71 m
About the company
Eckoh is a global provider of Secure Payment products and Customer Contact solutions, supporting an international client base from its offices in the UK and US. The company's 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.
How it is doing
In a brief trading statement released ahead of the company’s AGM on Wednesday, the AIM-listed provider of secure payment products and customer contact solutions said its financial position remains strong.
In its full-year results statement released in June, Eckoh predicted that lasting changes to the working environment, such as the increase in working-from-home patterns, would drive opportunities and demand for its secure payments and customer contact products.
Eckoh PLC (LON:ECK) believes lasting changes to the working environment, particularly an increase in working-from-home patterns, will drive opportunities and demand for its secure payments and customer contact products, the company said alongside its financial results.
"In a challenging year, we are pleased that our highly relevant products and resilient business model have enabled us to deliver results in-line with expectations and profits comparable to the previous year,” said chief executive Nik Philpot.
Eckoh PLC (LON:ECK) has confirmed that trading for its latest financial year has been in line with market expectations with “robust” operating profits despite the challenges of the Coronavirus (COVID-19) pandemic.
In a trading update for the year ended March 31, the payment products and customer contact solutions provider reported that operating profit in the period had “slightly exceeded” last year’s figure of £4.7mln, which it said reflected particularly strong growth in its US secure payments business, as well as a “resilient” performance in the UK despite trading conditions being impacted by lockdown measures.
What management says
The snapshot for the 12 months which ended March 31, confirmed a performance in line with expectations with pre-tax profit was up 6% to £3.5mln, while net profit was marked at £2.79mln, down from £3.13mln in the prior year.
But revenues in the US secure payments business soared 57% higher to £12.8mln, meanwhile, overall revenue in the UK was down 12% as multiple COVID-19 lockdowns impacted some repeatable transactions, resulting in recurring revenue slipping to 71%, from 75%.
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