29th Nov 2016 10:53
LONDON (Alliance News) - Payment products provider Eckoh PLC said Tuesday that it is on track to meet market expectations for the current financial year, despite swinging to a statutory loss in the first half.
Eckoh booked a pretax loss of GBP170,000 for the six months to September 30, swinging from a GBP74,000 profit in the same period in 2015. The company said its adjusted operating profit for the six months, excluding non-recurring items and acquisitions expenses, was GBP1.2 million, dropping from GBP1.5 million in the prior financial year.
The company's revenue for the period increased to GBP13.5 million from GBP8.6 million, up by over half year-on-year. Growth was particularly strong in its US operations, where revenue increased to GBP4.0 million from GBP31,000.
Eckoh noted that its profit was hit by a GBP600,000 loss booked in the "non-core Professional Services division", within Product Support Solutions Inc, the US-based company which it acquired in November 2015. Eckoh said the closure of that division is now "substantially complete" with all its projects set to conclude before the end of calendar year 2016.
The company said it is on track to meet market expectations for the financial year, with profitability weighted to the second half as contract wins feed through.
"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," said Nik Philpot, chief executive officer of Eckoh.
Shares in Eckoh were up 5.0% at 40.70 pence Tuesday morning.
By Adam Clark; [email protected]
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