Trading update - May 2019

Eckoh, the global provider of secure payment products and customer contact solutions, today issues a trading update for the year ended 31 March 2019.

The Board of the Company confirms that trading for the year ended 31 March 2019 was in line with market expectations, with revenue growth in both the UK and US divisions. Following a very strong first half to the year for new business wins, Eckoh delivered double digit new business growth in both divisions in the second half.

In the US, the Secure Payments order book has continued its strong momentum with new contract value growing by 47% to $13.7m in the twelve-month period (FY18: $9.3m). This reflects new wins in the healthcare, insurance, telecoms and retail sectors, and includes contracts to be delivered both on-site and in the cloud. Support and Coral have as expected both returned to growth in the second half.

The UK had a strong year, with total contract value from new business and renewals more than doubling on the previous year. The largest Omnichannel agreement, since the acquisition of Klick2Contact in 2016, was won through Capita in the second half and the indirect sales channel performed well overall.

There was strong cash generation during the period and Eckoh’s balance sheet remains robust with net cash of £8.3m at the period end (2018: £3.6m).

The Group has an excellent sales pipeline and continues to see momentum with larger-scale opportunities at enterprise level in both divisions.

The Group will report its audited results for the year ended 31 March 2019 on Wednesday 12 June 2019.