Eckoh trades in line in first half

Payments and customer contact technology company Eckoh said in a trading update on Tuesday that it performed in line with its own expectations in the first half, driven by continued progress in its US secure payments business, recovering activity in the UK division and “resilience” in its business model.

The AIM-traded firm said that supported confidence in a positive outcome for the full year, in line with market expectations.

On an underlying basis at constant currency, and excluding discontinued third-party support activity, Eckoh said revenue for the six months ended 30 September was “slightly higher”, with recurring revenues increasing by 7% and representing 73% of total revenues, and operating profit growing by 18%.

Total revenue was slightly lower at constant currency, which the board put down to the planned exit from US and UK third-party support that was now “almost complete”, declining to £0.3m from £1.8m in the prior year.

It said its resources were, as a result, being re-focussed on the “significant opportunity” in secure payments.

“This also reflects the ongoing revenue impact of the pandemic on the UK business, although we are now seeing improved trends to a more normalised level of activity,” the board said in its statement.

Looking ahead, Eckoh said its growing base of recurring revenues was improving its earnings visibility, which, combined with a “robust” order book for enterprise clients, increased transactional activity and prudent cost control, supported its confidence that full-year performance would be in line with current market expectations.

“Business performance and prudent balance sheet management has ensured Eckoh remains in a strong financial position, with net cash of £12.7m at 30 September.”

Eckoh said it would report its results for the six months ended 30 September in the week of 29 November.

At 1456 GMT, shares in Eckoh were down 2.91% at 50p.