Speech recognition and payment services provider Eckoh has improved revenues and margins in the year to March 2012.
Revenues grew 15% to £10.4m and 87% of these revenues are recurring. Gross margin improved from 74% to 76% and overheads did not grow as fast as revenues. Operating profit improved from £627,000 to £1.11m.
Net cash has increased to £6.37m at the end of March 2012 and the business should continue to be cash generative. A deferred tax asset of £1.3m has been recognised and there is a further £3.2m that can be recognised.
The dividend has been doubled to 0.2p a share.
A financial services client has renewed a contract with Eckoh. The contract has transactional commitments of a minimum of £1.1m – a 17% increase on the previous agreement. There have been a number of renewals in the past year as well as new contracts with the likes of Essex County Council and Bristol Water. National Rail Enquiries is moving to a new platform by the end of 2012.
Payment services products EckohPROTECT and EckohPAY will be increasingly important for the company. Eckoh has Level 1 PCI DSS accreditation, which gives customers assurance about security.
Indirect sales channels are being expanded. New partners include Servebase, Azzurri and CyberSource.
Eckoh can handle many languages and services from its UK base.
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