Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksEckoh Technologies Regulatory News (ECK)

Share Price Information for Eckoh Technologies (ECK)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 38.00
Bid: 37.00
Ask: 39.00
Change: -0.50 (-1.30%)
Spread: 2.00 (5.405%)
Open: 38.50
High: 38.50
Low: 37.50
Prev. Close: 38.50
ECK Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Trading Update

2 Sep 2016 07:00

RNS Number : 7645I
Eckoh PLC
02 September 2016
 

 

2 September 2016

 

 

 

 

 

Eckoh plc

("Eckoh" or the "Company")

 

Trading Update

 

Eckoh (AIM: ECK), the global provider of secure payment products and customer contact solutions, announces a trading update in connection with its US business and its faster than expected transition towards a pure Software-as-a-Service ("SaaS") pricing model.

To increase the Company's proportion of recurring revenues in the US and to bring it in-line with the recurring revenue model in the UK business, Eckoh is in the process of transitioning its new Secure Payments customers to a SaaS pricing model rather than the historical model of upfront pricing followed by a fixed maintenance and support charge. In the last two years, over 90 percent of contracts in the US Secure Payments market have been sold using upfront pricing, largely due to the fact that hardware-based solutions implemented on the customer's premises has formed the basis for all implementations. Recognising the benefits to the Company of improved recurring revenues and the attraction of a SaaS model to our customers, the Company has been working to transition more of its new US business into this model.

The newly introduced SaaS model offers Eckoh greater revenue visibility, longer-term client relationships (typically of three to five year fixed terms) and higher overall gross margins. Eckoh's US customers have proved extremely receptive to this approach and the transition is taking place much more quickly than expected, with over 80 percent of the Company's US sales pipeline already using this pricing structure. The speed of this transition is expected to reduce the forecast margin from US Secure Payments in the short and medium term but to increase it in the longer term.

In November 2015, Eckoh acquired the US business Product Support Solutions ("PSS"), predominantly in order to support Eckoh's continued expansion of its Secure Payments products in the US, where PSS has a significant presence. As detailed in the announcement at the time of the acquisition, PSS has a non-core US division, which carries out one-off professional service projects typically with no ongoing revenue. In the current financial year there have been cost over-runs on a large and complex fixed-price project undertaken by the division, which is expected to lead to overall losses for the division of £600,000 in the six months to 30 September 2016 and will have an expected total cost for the full year of £700,000. As a consequence, the decision has been taken to accelerate the closure of the division and focus the Company's US workforce on its continuing core operations.

As a result of the transition to SaaS pricing and the cost over-runs at PSS's professional services division outlined above, it is expected that the Company's pre-tax profits for the year to 31 March 2017 will be below market expectations and is expected to be in line with the performance last year, after absorbing the costs of the discontinued division. The medium and longer term outlook for the Company remains positive, with the transition to a recurring revenue model and decisive action at the PSS professional services division resulting in an improvement in the certainty and the quality of its earnings.

This announcement contains inside information.

 

For more information, please contact:

Eckoh plc Tel: 01442 458 300

Nik Philpot, Chief Executive Officer

Adam Moloney, Group Finance Director

www.eckoh.com 

 

Buchanan

Sophie McNulty, Stephanie Watson Tel: 020 7466 5000

www.buchanan.uk.com

 

N+1 Singer (Nomad & Joint Broker)

Shaun Dobson, Lauren Kettle Tel: 020 7496 3000

www.n1singer.com

 

Berenberg (Joint Broker)

Ben Wright, Chris Bowman, Amritha Murali Tel: 020 3207 7800

www.berenberg.de/en

 

About Eckoh plc

Eckoh is a global provider of secure payment products and customer contact solutions, supporting an international client base from its offices in the UK, US and Australia.

Our Haloh Suite of secure payments products, which can be hosted in the Cloud or deployed on the client's site, removes sensitive personal and payment data from contact centres and IT environments. The products 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, processing over $1 billion in card payments annually. 

Eckoh's customer contact solutions enable enquiries and transactions to be performed on whatever device the customer chooses, allowing organisations to increase efficiency, lower operational costs and provide a true Omni-channel experience. We also assist organisations in transforming the way that they engage with their customers by providing support and transition services as they implement our innovative customer contact solutions.

Our large portfolio of clients come from a broad range of vertical markets and includes government departments, telecoms providers, retailers, utility providers and financial services organisations.

For more information go to www.eckoh.com

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTSSWFUFFMSEFU
Date   Source Headline
19th Mar 20247:00 amRNSAchievement of Cyber Essentials Plus certification
18th Mar 20243:10 pmRNSHolding(s) in Company
12th Mar 20247:00 amRNSGlobal Partnership with RingCentral
6th Feb 20247:00 amRNSNew Business Update
26th Jan 20245:11 pmRNSHolding(s) in Company
1st Dec 20237:00 amRNSESPP Share Dealing
22nd Nov 20233:42 pmRNSEBT Share Dealing, Exercise of Options and TVR
21st Nov 20237:00 amRNSHalf-year Report
10th Nov 202310:35 amRNSHolding(s) in Company
1st Nov 20237:00 amRNSHalf Year Trading Update
17th Oct 20237:00 amRNSLaunch of updated Secure Digital Payments platform
19th Sep 20239:11 amRNSEckoh PLC - Holding(s) in Company
13th Sep 20233:41 pmRNSResult of Annual General Meeting
12th Sep 202312:32 pmRNSHolding(s) in Company
11th Sep 20237:00 amRNSNotice of Interim Results
6th Sep 20237:00 amRNSHolding(s) in Company
7th Aug 20237:00 amRNS2023 Annual Report and Notice of AGM
1st Aug 20237:00 amRNSInclusion in Crown Commercial Service framework
25th Jul 20237:30 amRNSHolding(s) in Company
22nd Jun 20237:00 amRNSGrant of Awards Under PSP
19th Jun 20237:00 amRNSEBT Share Dealings and TVR
16th Jun 202310:48 amRNSHolding(s) in Company
14th Jun 20237:00 amRNSFinal Results
1st Jun 20235:09 pmRNSHolding(s) in Company
25th Apr 20237:00 amRNSFY23 Trading Update & Notice of Results
20th Apr 20237:00 amRNSLaunch of new cloud Secure Call Recording solution
31st Mar 202312:27 pmRNSDirectors' Dealing
9th Mar 20237:00 amRNSAppointment of Joint Broker
5th Dec 20225:04 pmRNSESPP Share Dealings
23rd Nov 20222:54 pmRNSEBT Share Dealings & Total Voting Rights
23rd Nov 20227:00 amRNSHalf-year Report
1st Nov 20227:00 amRNSHalf year trading update
6th Oct 20227:00 amRNSHalf Year Order Update ahead of CMD
26th Sep 20226:20 pmRNSResult of AGM
26th Sep 20227:00 amRNSAnnual General Meeting Statement
7th Sep 20229:05 amRNSHolding(s) in Company
22nd Aug 20223:40 pmRNSHolding(s) in Company
19th Aug 20229:00 amRNSExercise of Options &Total Voting Rights
16th Aug 20227:00 amRNS2022 Annual Report and Notice of AGM
15th Aug 20227:00 amRNSSignificant Cloud Contract Win and Order Update
21st Jul 202210:00 amRNSDirector/PDMR Shareholding
12th Jul 20227:00 amRNSNotice of Capital Markets Event
16th Jun 20228:00 amRNSEBT Share Dealing & Total Voting Rights
15th Jun 20228:00 amRNSHolding(s) in Company
15th Jun 20227:00 amRNSFinal Results
17th May 20227:00 amRNSFull year trading update
20th Apr 20227:00 amRNS5-year contract renewal with Capita worth £2.1m
5th Apr 20221:07 pmRNSHolding(s) in Company
4th Apr 20227:00 amRNSTrading Update and Product Update
22nd Mar 20228:19 amRNSHolding(s) in Company

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.