26th Oct 2020 13:16
(Alliance News) - Eckoh PLC on Monday said for its half-year ended September 30, it delivered comparable levels of profit to the prior year, though revenue was lower.
The secure payment technology firm said while the first quarter of financial 2021 from April to June was challenging for new business - especially for larger deals as many tender processes were put on hold - it experienced an improvement in momentum in the second quarter, particularly for US Secure Payments contracts delivered in via cloud computing.
It noted that, while new contract value for its US Secure Payment unit was USD5.9 million, down from USD7.3 million the year prior, a larger number of contracts were won during the recent six-month period.
Total revenue was only slightly lower when excluding a large one-off contract a year prior.
In 2019, Eckoh secured a three-year contract to provide Coral, a contact centre agent desktop product, to an undisclosed US Fortune 100 telecommunications company. The agent desktop is an interface through which a contact centre advisor interacts with the end customer, using a variety of engagement channels.
The contract was worth a minimum of USD3.8 million to Eckoh, it said at the time, comprising USD2.1 million in licences and USD1.7 million for maintenance and support over a three-year period.
The decline in total revenue for the recent half-year was driven mainly by the expected decline in the US Support division to USD1.1 million from USD2.8 million, Eckoh said, as well as the initial revenue reduction on the UK business from the pandemic.
Looking ahead, Eckoh said it expects to close a number of sizeable renewals of UK contracts in the second half of the year.
As at September, 30, the company had net cash of GBP12.9 million, up from GBP10.9 million the year prior.
Full half-year results will be published on November 24.
Shares in Eckoh were trading 3.5% lower at 64.65 pence each on Monday afternoon in London.
By Ife Taiwo; [email protected]
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