Eckoh PLC (AIM:ECK, OTC:EKTPF), the customer engagement and security systems specialist, has said it is on track to deliver the material growth expected by the market as it unveiled a 52% increase in operating profit at the halfway stage of its financial year.
The company also noted that this was achieved without benefiting ‘markedly’ from the introduction of new products.
In the interim results statement, investors were told the integration of Syntec, a £31mln deal completed just under a year ago, was ‘progressing well’. It said there had been ‘encouraging’ levels of cross-selling from the transaction.
The financials revealed that turnover grew by a third to £19.6mln in the six months ending September 30, giving adjusted EBITDA of £5mln (up 44%) and an operating profit of £4.2mln.
Crucially, recurring revenue, which is highly prized by the market, increased by 43% to £15.5mln. It is now 79% of the group total.
"These are a great set of results, showing the anticipated strong progress in key areas. I am particularly pleased with the increasing organic and overall levels of ARR [annual recurring revenue] and contracted orders,” said Eckoh chief executive Nik Philpot in a statement.
“They reflect our organic growth, the successful integration of Syntec, strong growth in the key North American market, and the ongoing momentum from cloud deployments," he added.