Eckoh reports strong revenue growth and significant US progress in the six months to the end of September.
Revenue increased by 57% to £13.5m (H1 FY16: £8.6m). US operations increased from £31,000 to £4.0m and now represent 30% of group revenues. Group recurring revenue 76% (H1 FY16: 78%) UK recurring revenue 85%, US 57%
- Gross profit increased 25% to £8.8m (H1 FY16: £7.1m)
- As expected, adjusted operating profit reduced to £1.2m (H1 FY16: £1.5m) due to a £0.6m loss made by a discontinued division of acquired subsidiary, Product Support Solutions Inc, and transition to a recurring revenue model in the US
- Adjusted EBITDA of £2.0m (H1 FY16: £2.0m)
- Loss from operating activities of £0.2m (H1 FY16: £0.1m profit)
Chief executive Nik Philpot said: "The significant revenue growth we have seen in the first half of the year, especially from the US operation, supports our belief that the US business will surpass the UK in the foreseeable future.
"In addition, the acquisitions of PSS and K2C have strengthened our market proposition considerably and are supporting further progress in both our Secure Payments and Contact Centre businesses internationally.
"Taking into account the contracts we have already won so far this year, the excellent near-term sales pipeline and the closure of the loss-making division of PSS, we are anticipating a strong second half. Looking beyond this year, with the rapid growth we are seeing in the US and the improvement we will see there in recurring revenues, the prospects for Eckoh remain as exciting as ever."
At 8:04am: (LON:ECK) Eckoh PLC share price was +0.25p at 39p