AGM Trading and Business Upda

RNS Number : 0793T

Eckoh PLC

22 September 2010

 



22 September 2010

Eckoh plc

("Eckoh" or the "Company")

AGM Trading and Business Update

Chris Batterham, the Chairman of Eckoh plc, will provide the following trading statement at the Company's AGM later today: "I am pleased to report to you today that the strong rate of growth experienced by the continuing operations of Eckoh in recent years has continued into the early months of the 2010/11 financial year.

"Since the end of the previous financial year, Eckoh has seen the continuance of growth of the Speech Solutions business and is expected to report in its interim results statement, in December 2010, a double digit margin growth for the first half of this financial year compared to the equivalent period last year. This is due to the ramp up of contracts won in the second half of last year as well as initial contributions from the Company's contract wins in the first half of 2010/11, including the Utilita Group, an Executive Government Agency and Enterprise Rent-A-Car, as well as a renewal with one of our largest clients, Ideal Shopping Direct. The contracts signed this year are expected to ramp up towards the backend of the year and, together with the contracts signed previously, will mean a stronger second half of 2010/11. 

"Additionally, the Company has completed restructuring and streamlining the business with the disposal of the Client IVR division and the closure of the French development office. In May 2010, the Client IVR division was merged with Telecom Express Ltd with Eckoh retaining a 27.5% interest in the new combined entity. The French development office was closed in June 2010 and a substantial number of its activities were relocated to Eckoh's headquarters in Hemel Hempstead.

"Also, as we reported recently, a settlement was reached with Redstone plc regarding the previously outstanding loan balance, which has seen a £1.5m cash inflow into the Company.

"As a result, with a strong cash position, a healthy balance sheet and stabilising market conditions, the Company is well positioned to deliver shareholder value."  

Enquiries:

Eckoh plc
Nik Philpot, Chief Executive Officer
Adam Moloney, Group Finance Director
www.eckoh.com	Tel: [phone]
Corfin Public Relations
Harry Chathli, Claire Norbury	Tel: [phone]
Seymour Pierce
Jonathan Wright, Jeremy Porter (Nominated Adviser)	Tel: [phone]
Jacqui Briscoe (Corporate Broking)

 

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