Shift to remote working boosts Eckoh
Strong revenue and order momentum in the US allied to a resilient performance in the UK saw Herts-based payment solutions company Eckoh plc hold revenue steady and improve profitability during a tough, Covid-affected year to March 31.
And CEO Nik Philpot says all the ducks are in a row to produce a surge in new contract wins in the year ahead.
Revenue was £30.5 million – down eight per cent because of the pandemic – but good management helped the business boost profit before tax six per cent to £3.5m.
US secure payments surged 57 per cent and now represents 79 per cent of total US revenues and a record number of contracts were won in the year since Eckoh entered the American market. The company has also nudged up net cash to £11.7m.
Philpot said the shift to remote working was driving opportunities and demand for Eckoh’s products and model and playing to the company’s strengths.
The board expects revenue and profit for FY22 to be comparable to FY21, and material year-on-year revenue and profit growth in FY23. These expectations are subject to no further lockdowns in the UK or US and ongoing uncertainty in the macro-economic climate because of the COVID-19 pandemic.
Philpot said: “In a challenging year, we are pleased that our highly relevant products and resilient business model have enabled us to deliver results in-line with expectations and profits comparable to the previous year.
“Whilst new business was impacted across the group, especially in the first half, new strategic opportunities have been created as many organisations seek a more permanent shift to remote working, which plays to Eckoh’s strengths.
“The momentum in the US Secure Payments business returned strongly in the second half, buoyed by the switch to the Cloud – a trend that has been accelerated by current market conditions – and we look forward to overall growth returning as the pandemic restrictions are lifted.
“Our Secure Payments business continues to benefit from ever increasing regulation and the need to mitigate the financial risk of data breaches and fraud, as organisations look for ways to secure themselves more comprehensively, beyond just the needs of compliance.”