FY23 Trading Update & Notice of Results

Eckoh PLC

25 April 2023

 

25 April 2023

Eckoh plc

("Eckoh", the "Group", or the "Company")

FY23 Trading Update & Notice of Results

- Adjusted operating profit and net cash ahead of market expectations

- Strong North America Security Solutions Annual Recurring Revenue ("ARR") growth of 34%

- New Secure Call Recording launch supports growth expectations in cross selling

Eckoh plc (AIM: ECK), the global provider of Customer Engagement Security Solutions, is pleased to announce a trading update for the year ended 31 March 2023.

The Board expects revenue and adjusted operating profit to be significantly ahead of the prior year with revenues of approximately £39m (FY22 £31.8m) and adjusted operating profit of at least £7.6m (FY22 £5.2m), which is slightly ahead of market expectations.¹ The Group also saw good cash generation with net cash of £5.7m at the end of the period (FY22 £2.8m), also ahead of market expectations.

Excellent progress was made in the key North America region with Security Solutions exit ARR² up organically 34% to $15.9m (FY22 $11.9m), driven by the Group's increasing focus on its largest growth market, which resulted in further large contract wins, increased cross-selling and strong renewals in the region. Growth in total contracted business of more than 50% during the year, together with a continued shift to cloud, underpins Eckoh's future ARR growth and demonstrates the increasing revenue visibility in the Group's business model going forward.

Eckoh continues to innovate and broaden its suite of complementary security solutions to help organisations deal with the rapid changes in the customer engagement environment and the increasing regulatory requirements around personal data and privacy. In line with this strategy, on 20 April 2023 the Group announced the launch of its ground-breaking new cloud-based Secure Call Recording solution, which transforms the traditional market offering into a dynamic AI-powered solution that delivers high value insight back to the business, secures customer data and simplifies the task of managing agent performance, especially in hybrid working environments.

Secure Call Recording is a highly complementary addition for existing CallGuard and CardEasy clients and with 24% of US contact centres looking to update their recording solution in the next 12 months³, it is expected to support the anticipated growth in cross selling revenue as well as generating new client contracts.

Eckoh expects to announce its results for the year ended 31 March 2023 on Wednesday 14 June 2023.

1.   Eckoh believes that consensus market expectations for the year ended 31 March 2023 are for revenue of £40.3 million, adjusted operating profit of £7.5 million and net cash of £5.2m.

2.   ARR is the annual recurring revenue of all contracts billing at the end of the period.

3.   Source: Contact Babel - US Contact Centers 2022-2026 the State of the Industry

- Ends-

For further information please contact:

Eckoh plc	Tel: [phone]
Nik Philpot, Chief Executive Officer
Chrissie Herbert, Chief Financial Officer
www.eckoh.com
FTI Consulting LLP	Tel: [phone]
Ed Bridges / Emma Hall / Tom Blundell
[e-mail]
Singer Capital Markets (Nomad & Joint Broker)	Tel: [phone]
Shaun Dobson / Tom Salvesen / Alex Bond
www.singercm.com
Investec Bank plc (Joint Broker)	Tel: [phone]
Patrick Robb / Nick Prowting / Shalin Bhamra
www.investec.com

About Eckoh plc

As a global provider of Customer Engagement Security Solutions, Eckoh is all about making the world more secure.  

Our vision is that everyone should be able to trust every brand and engage without risk. We're on a mission to set the standard for secure interactions between consumers and the world's leading brands, and our innovative products build trust and deliver value though exceptional experiences. 

We're trusted by many of the world's leading brands to help them manage their customer enquiries and transactions safely. Our solutions enable payment transactions to be performed securely and help protect sensitive personal data across any customer engagement channel and device the customer chooses.

Protected by multiple patents, our solutions remove sensitive personal and payment data from contact centres and IT environments, as the best way to secure data is not to collect it. This allows organisations to be not just compliant but secure, increase efficiency, lower operational costs, and provide an excellent customer experience.  This is our specialism.

Our solutions are delivered globally through multiple cloud platforms or can be deployed on the client's site. They offer merchants a simple and effective way to reduce the risk of fraud, secure sensitive data and become compliant with the Payment Card Industry Data Security Standards ("PCI DSS") and wider data security regulations.  Eckoh has been a PCI DSS Level One Accredited Service Provider since 2010, and our extensive portfolio of typically large enterprise clients spans a broad range of vertical markets including government departments, telecoms providers, retailers, utility providers and financial services organisations. 

For more information go to www.eckoh.com or email [e-mail].  

 

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