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.
“Whilst new business was impacted across the group, especially in the first half, new strategic opportunities have been created as many organisations seek a more permanent shift to remote working, which plays to Eckoh's strengths.”
In the company’s financial results statement, for the 12 months ended March 31, Eckoh confirmed a performance in line with expectations and detailed a timeline that sees the group generating material revenue and profit growth in the year to March 2023.
The results showed that the Coronavirus pandemic put an 8% dent in revenues. Adjusted operating profit was meanwhile in-line with the prior year, at £4.7mln. 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.
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%.
Philpot added: “The momentum in the US Secure Payments business returned strongly in the second half, buoyed by the switch to the Cloud, a trend that has been accelerated by current market conditions, and we look forward to overall growth returning as the pandemic restrictions are lifted.
“Our Secure Payments business continues to benefit from ever increasing regulation and the need to mitigate the financial risk of data breaches and fraud, as organisations look for ways to secure themselves more comprehensively, beyond just the needs of compliance.”
The company has maintained its final dividend at 0.61p per share.
It highlighted a strong cash position and balance sheet, ending the period with £11.7mln in the bank.