16th Jun 2020 12:29
(Alliance News) - Eckoh PLC on Tuesday reported a significant improvement in annual results, as it expressed confidence in its business model amid the Covid-19 pandemic.
Shares in the secure payment technology firm were trading 4.3% higher at 61.00 pence each at Tuesday midday in London.
For the 12 months to the end of March, Eckoh posted pretax profit of GBP3.3 million, more than doubled from GBP1.2 million reported the year prior. Revenue was GBP33.2 million, up 16% from GBP28.7 million from financial 2019.
US operations accounted for 28% of revenue, growing by 32% to USD16.1 million. Secure payments revenue grew by 63% to USD8.1 million, browser-based agent desktop Coral contributed USD3.5 million. However, support revenue fell 20% year-on-year to USD4.4 million. In the UK, revenue was GBP20.5 million, up 6%.
No dividend was proposed due to Covid-19-related uncertainty. For financial 2019, a dividend of 0.61 pence per share was paid.
Turning to current trading, the Hemel Hempstead-based company said that profit and revenue in the first two months of financial 2021 are comparable year-on-year, adding that trading during the period is "encouraging".
Looking ahead, it said: "Although the outlook still remains uncertain, with a highly relevant product portfolio, resilient business model and strong balance sheet, Eckoh is well prepared to successfully manage the current challenges and assist our clients to do the same."
As at the end of March, Eckoh had net cash of GBP11.6 million.
By Ife Taiwo; [email protected].
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