20th Nov 2018 13:10
LONDON (Alliance News) - Eckoh PLC on Tuesday said it swung to a loss in the first half of its current financial year, but a fast growing order book gives it confidence for future periods.
The secure payment products provider said it swung to a pretax loss of GBP200,000 in the six months to September 30 compared to the GBP800,000 profit reported for the same period a year earlier.
Revenue slipped by 2% to GBP13.1 million from GBP13.4 million year-on-year hurt by a weaker performance in the US, following the implementation of a new accounting standard governing revenue recognition of contracts.
Revenue in the US fell by 14% to USD4.9 million, after Eckoh's largest client in the Support unit ceased part of its contract, and the Coral division had no new license orders in the first half.
More positively, revenue in the UK was up 4.7% to GBP9.4 million after the company restructured its sales function and the team re-focused on larger, more complex opportunities.
Looking forward, the company said it remains confident for the reminder of the year following growth in the US Secure Payments order book to USD21.7 million from USD12.2 million a year prior.
"Whilst the IFRS 15 accounting rule changes have reduced reported revenue and profit, we have excellent revenue visibility from the increasing levels of deferred revenue and a fast growing order book, which provides a solid platform for predictable significant growth and further confidence in the outlook for future periods," said Chief Executive Nik Philpot.
Eckoh shares were trading down 0.5% on Tuesday at 37.05 pence each.
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