12th Jun 2019 11:33
(Alliance News) - Secure payment technology firm Eckoh PLC on Wednesday reported a "record" level of new business in its recently ended financial year.
For the year to March 31, Eckoh secured GBP22.6 million of new business, 47% higher than the year before, with total business contracted up 62% to GBP32.7 million. This came after "strong" momentum in both the US and the UK.
US new business rose 33% year-on-year to USD16.3 million, while UK new business surged 68% to GBP10.1 million, a five-year high.
Revenue increased 5% to GBP28.7 million, Eckoh reported, with recurring revenue now making up 83% of revenue, up from 82% a year prior.
This helped the company post pretax profit of GBP1.2 million for the year, 7% higher year-on-year.
Eckoh is paying a dividend of 0.61 pence per share for the year, 11% higher than the year before's 0.55p.
"Eckoh performed extremely well in the 2019 financial year, and in line with market expectations. We grew both the UK and US divisions, achieved record levels of new business sales that will convert into future revenue growth, and had another strong cash performance," said Chief Executive Nik Philpot.
Looking forward, Eckoh has started its new financial year in line with expectations, and there is a "strong" sales pipelines in both the US and the UK.
"The exact timing of client deployments, which triggers revenue recognition, can sometimes be hard to predict particularly for the large enterprise contracts on which we are focused," said Eckoh.
"However, our high levels of recurring revenue combined with the record levels of new business contracted in financial 2019, provides excellent revenue visibility for the year and beyond and reinforces the board's confidence the long-term prospects for Eckoh remain extremely positive."
Shares were 1.5% higher on Wednesday at a price of 44.65p each.
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