Eckoh describes 'strong' first-half performance

1st Nov 2022 16:33

(Sharecast News) - Customer engagement security company Eckoh said in an update on Tuesday that it performed "strongly" in its first half, in line with expectations.

The AIM-traded firm said revenue for the six months ended 30 September improved 33% to £19.6m, with that progress also reflected in "significantly higher" levels of operating profit, which rose more than 50%, including some benefit from positive currency movement.

Following the acquisition of Syntec and the expected increase in activity coming from a global market, Eckoh said it would now report on UK, US and rest-of-world revenues.

It said all markets grew, but "particularly good" progress was made in the United States, which increased 34% to $10.6m, and accounted for a 44% share of total revenue, up from 39%.

As it reported in the order update on 6 October, following a "challenging period" last year, total order levels recovered "strongly", increasing more than 50% to £17.6m.

Eckoh said that supported expectations of future growth, and underpinned the increasing levels of annual recurring revenue, which had grown 52% to £27.8m by the end of the period.

"Overall, the first half performance reflects the continued progress of Eckoh's strategy to pursue major opportunities for large blue-chip organisations, cross-sell from a broader product suite and continue the trend towards cloud adoption and more international mandates," the board said in its statement.

"Eckoh is increasingly focusing on attractive sectors which are suited to its model, technology, and product suite."

The board said there was "strong" cash generation during the period, with its balance sheet "robust" as it carried net cash of £4.4m at the end of the first half, up from £2.8m six months earlier.

"Despite the ongoing macroeconomic uncertainty, the board expects revenue and profit for the 2023 financial year to be significantly higher than 2022.

"The group is trading in line with consensus market expectations, supported by long-term structural growth drivers, increasing cloud adoption and Eckoh's strengthening product offering."

Eckoh said it would report its results for the six months ended 30 September on 23 November.

At 1541 GMT, shares in Eckoh were up 0.13% at 42.06p.

Reporting by Josh White for Sharecast.com.