Escher in line with market expectations

Escher Group Holdings expects adjusted EBITDA for the year to the end of December to be in line with market forecasts.

The group says strong cash generation throughout 2016 resulted in it achieving a small net positive cash position at year end (net debt at 31 December 2015: $2.7m).

It said progress continued in developing subscription and maintenance revenues.

Recurring revenue streams represented approximately 50% of turnover in 2016. It says licensing revenues will continue to be uneven and difficult to forecast, as most postal customers require one-off licensing agreements.

Chief executive Liam Church said: "Major customer deployments in 2014 and 2015 created recurring, cash-generating, revenue streams which underpin the results in 2016 and going forward. We also arrived at a net cash-positive position. "Looking forward, the tendency of major customers to look to us as a trusted adviser to accompany them in the evolution of their businesses, should allow us to continue to build further our recurring revenues."

At 9:04am: (LON:ESCH) Escher Group share price was +10p at 150p