StockMarketWire.com - Eckoh, a global provider of secure payment products and customer service solutions, swung to a pre-tax profits in the year to the end of March following a second successive year of double-digit growth. The company has also announced separately today that it is in advanced discussions regarding the possible acquisition by Eckoh of the entire ordinary share capital of Netcall, a leading customer engagement software provider, on a recommended basis.

Financial highlights:

· Revenue up 22% to £17.2m (FY14: £14.0m) including recurring revenues of 76%

· Gross profit increased 28% to £13.1m (FY14: £10.2m)

· Adjusted operating profit increased by 54% to £3.4m (FY14: £2.2m)

· Adjusted EBITDA increased 40% to £4.5m (FY14: £3.2m)

· Profit before tax increased of £2.1m against a loss of £1.4m last time

· The board recommends a 18% increase in full year dividend to 0.37 pence per share for the year ended 31 March (FY14: 0.3125 pence per share) Operational highlights:

· Record number of new UK clients, 19, largely from retail, leisure and financial services, contracted during the financial year;

· US subsidiary, Eckoh Inc, secured five customers in its first financial year and the US team now enlarged to six employees

· 100% renewal of all significant customer contracts falling due within the period

Chief executive Nik Philpot said: "As our full year results demonstrate, Eckoh has continued to achieve excellent growth over the last 12 months, delivering a second successive year of double-digit revenue and margin growth. The record number of clients secured and our high customer retention rates are testament to the strength of our offering in secure payments and customer services, creating a robust revenue platform on which we can continue to build.

"We are also excited to be announcing today the possible recommended offer for Netcall, which would further enhance our prospects. The Directors of Eckoh and Netcall believe that the acquisition would represent a highly complementary fit for both businesses, offering strategic and financial synergies, and Eckoh expects the acquisition to be earnings enhancing*.

"We have also started the new financial year very positively with the new enhanced framework agreement with Capita, which will deepen our channel partner engagement, and we have a strong new business pipeline in the USA and UK. Therefore the Board remains very confident of delivering continued growth going forward."

Eckoh also announced that it has entered into a new five-year framework agreement with Capita Customer Management and secured through the agreement a significant five-year contract to provide telephony services to a leading UK transport organisation.

The partnership between Capita and Eckoh was first announced on 8 April 2013 when the original three-year framework agreement was put in place.

The new five-year agreement comes as a result of a successful period of collaboration in which a number of large contracts have been secured.




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