StockMarketWire.com - Eckoh saw continued double-digit organic growth in the six months to the end of September and announced the acquisition of Product Support Solutions today to support international expansion.

Revenue increased 10% to £8.6m (H1 2014/5: £7.8m) with recurring revenue now 78% of total revenue (FY15: 76%).

Gross profit increased 26% to £7.1m (H1 2014/5: £5.6m) and gross margin increased to 82% (H1 2015 72%).

Adjusted operating profit increased 44% to £1.5m (H1 2014/5: £1.0m) and adjusted EBITDA rose by 30% to £2.0m (H1 2014/5: £1.6m). Profit from operating activities of £0.1m (H1 2014/5: loss of £0.1m).

The group also announced the acquisition of PSS, a US-based company specialising in the management of contact centre and customer experience technology, for a total consideration of $7.6m (approximately £5.0m) (the "Acquisition"). After accounting for $2.0m (approximately £1.3m) of cash in PSS, the net consideration comprises $5.6m (approximately £3.7m). With PSS's business based in the US, UK, and Australia, the acquisition will support Eckoh's continued expansion in the US where PSS has a significant presence, and further scale Eckoh's business in the UK as well as other potential international marketplaces, notably Australia. It will also bring additional products and services which can be cross-sold into the enlarged customer base.

Chief executive Nik Philpot said: "These results demonstrate that Eckoh has once again made excellent progress by delivering double-digit organic revenue and margin growth, significant levels of new client wins and 100% renewals of existing clients. "We are also delighted to announce the acquisition of PSS, a company specialising in the management of contact centre and customer experience technology with activities in the US, UK and Australia. PSS will support our sales activities in these markets, and particularly in the US, where its decade of experience working with some of the largest US businesses will prove invaluable in helping us grow and support the US market more effectively. "The protection of customers' data is a sensitive and high profile issue for both companies and the general public alike, given it can have extremely serious ramifications if not managed appropriately. We believe our solutions provide a compelling proposition to help address the global challenges that payment and data security pose and in our particular market where options are limited and credible competition remains sparse, we would expect to continue to secure significant levels of new business that will help underpin our future growth."








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