Strong interims and exciting long term prospects
Interims reveal a particularly strong trading period for the group, with underlying organic sales growth accelerating to +20% c/c (previously mid-single digit), underpinned by both strong trading in the US (+c.50% u/l) and the UK (+11%). Additionally, Eckoh benefitted from a large perpetual Coral licence deal, bringing reported sales growth to +37%. In our view, these results speak to the strong proposition, opportunity and momentum Eckoh across its markets. We leave FY u/l forecasts unchanged but acknowledge they look more than achievable. Currently trading on a 5% FCF yield, rising to 6% in FY21E, we think Eckoh offers a unique investment opportunity.
19 Nov 19
H1’20 performance very strong
Eckoh’s H1’20 trading update confirms another period of strong delivery, with the group trading in line with recently upgraded expectations. The board expects to report double digit revenue growth in both the UK and the US alongside “excellent” levels of contracted business. We are particularly encouraged by the increase in total business contracted in the US ($14.4m, +15% y-o-y) given the comparative period included the $7.4m US Secure Payments contract. With the recently launched Eckoh Experience Portal stimulating growth in the UK and a large untapped opportunity in US Secure Payments, we see no reason why the current positive momentum should not continue going forwards.
29 Oct 19
Experience Portal delivering tangible benefits
Eckoh’s Capital Markets Day yesterday highlighted the progress which has been made on the Customer Engagement side of the business. With all products now successfully integrated into the Eckoh Experience Portal, the group is uniquely placed to enable digital transformations within their customers. We were shown several live case studies where the group has been able to deliver both an improved experience for end users and significant cost savings for clients by implementing a connected cross-channel customer experience. Last month’s AGM Statement and Trading Statement confirmed strong underlying momentum in both divisions and we see plenty of scope for growth within Customer Engagement, which will augment the large untapped opportunity in US Secure Payments.
18 Oct 19
SAP founder/CEO steps down, Boeing partners with Porsche, Ford launches in-car VR
Bill McDermott stood down on Friday after a decade building up SAP as the world's leading enterprise software company, handing the task of completing its transition to cloud computing to new co-CEOs Jennifer Morgan and Christian Klein. SAP announced the management overhaul, with immediate effect, after rushing out third-quarter results that showed it gaining traction in its drive to offer a more streamlined range of services and boost profitability. The company’s stock has climbed 21% this year. It’s up 75% in the past five years, topping rival Oracle, which is up 46%, and the S&P 500′s 54% gain.
ECK EVRH TRAK CPX CALL IMMO LOOP NET SEE TCM TRCS QTX VRE
11 Oct 19
Health insurers offer Apple Watch, Samsung reports weak guidance, Oracle expands cloud business
Devoted Health, a start-up health insurer targeting seniors with its private Medicare plans, says it is the first to offer Apple Watch as a fitness benefit to its members. Apple has been talking to plans like Devoted for months, as CNBC previously reported, about subsidizing the cost of Apple Watch. For Apple, working with Medicare Advantage plans offers a big potential boost to device sales because seniors are increasingly adopting smartphone technologies and therefore might be interested in a smartwatch.
ECK CALL LOOP NET
08 Oct 19
PayPal quits Libra, Vodafone challenges network suppliers
Facebook's Libra plans continue to stumble as PayPal quits the digital currency project, with Visa and Mastercard also reconsidering their involvement. In a statement late on Friday, PayPal says it has decided to "Forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities”.
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07 Oct 19
Stripe valued at $35bn, Datadog pops 39% on debut, Rivian big Amazon order
Stripe Inc said on Thursday it is raising $250 million in its latest funding round, which values the payments start-up at $35 billion, a dramatic 56% surge from a previous valuation at the start of the year. The latest valuation puts Stripe in the same league as home rental giant Airbnb Inc, which is also planning go public in 2020. Stripe has received strong positive feedback from our private FinTech contacts. Meanwhile, the IPO pipeline for 2020 is already heating up.
ECK CALL TRAK BGO BOKU EQLS LOOP NET QTX SEE TECH TCM TRCS
20 Sep 19
Positive start to the year confirmed
Eckoh has released a short AGM statement, confirming good revenue growth in both the UK and US through the first five months of the year. The level of new business contracted so far is “encouraging” and the group is trading in line with our recently upgraded expectations. The shares trade on a FCF yield of 4.8% rising to 6.1% in FY’21 and we continue to be excited about the group’s growth prospects. With strong underlying momentum in both divisions, a large untapped opportunity in US Secure Payments, and excellent revenue visibility, we believe the shares are highly attractive.
18 Sep 19
VMware spends $5bn on cloud security, Salesforce provides strong outlook, Amazon acquires Indian supermarket chain
VMware said on Thursday it bought two providers of cloud security and cloud developer services in separate deals valued at about $5 billion, as it expands offerings for corporate clients. VMware bought Pivotal Software Inc in a $2.7 billion deal. Separately, VMware said it would buy software maker Carbon Black Inc for about $2 billion in cash.
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27 Aug 19
Significant Coral contract win
Eckoh has announced a new three-year contract to provide Coral, the contact centre agent desktop product, to a US Fortune 100 telecommunications company. The contract, worth a minimum of $3.8m over three years, is an extension to an existing client relationship and suggests that Coral is their long-term desktop of choice. While Coral contract wins are difficult to predict, this win validates our view that it is strategically important to the group as it provides a gateway to some very significant contact centres. We upgrade our forecasts this morning, resulting in a 6% increase in FY’20 adj. EBITDA. The shares trade on a FCF yield of 4.8% rising to 6.1% in FY’21. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares highly attractive.
01 Jul 19
Small Cap Feast
ReAssure Group plc - The Group is a leading closed book life insurance consolidator in the United Kingdom with 4.3m policies, £68.7 billion of assets under administration on a Post-L&G Illustrative Basis. It is considering a premium listing segment of the main market. Voyager AIR The Com pany w ill focus on the acquisition, leasing and m anagement of prim arily widebody aircraft, w ith asset management services to be provided by Amedeo Limited he IPO will comprise a Placing and Offer for Subscription of Shares to raise up to approximately US$200m· IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas w hich have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC
ECK KMK RAI GFIN GAN OKYO PRM LWRF RQIH WGB
01 Jul 19
Everything pointing in the right direction
Eckoh’s FY’19 results confirm a strong year, with high levels of new business win activity providing a strong platform for growth in FY’20 and beyond. US Secure Payments remains the star of the show (and offers the greatest long term potential), but we are encouraged to see growth return to both divisions within the group. The outlook is positive, with strong sales pipelines in both the UK and the US and over 90% visibility over FY’20 revenue. The shares trade on a FCF yield of 4.8% rising to 6.6% in FY’21. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares highly attractive.
12 Jun 19
Trading update confirms another strong year
Eckoh has released a positive trading update for the year to March’19. Trading was in line with expectations, with both the UK and US divisions delivering double digit growth in H2’19 following a strong first half for new business wins. Post the implementation of IFRS 15, we believe cash is the most important metric for the group. To that end we are highly encouraged by the strong cash generation in the period. Year end net cash of £8.3m is c.9% ahead of our £7.6m forecast, which was upgraded from £7.0m at the interim results, reflecting the contract win momentum throughout the year. With an “excellent” sales pipeline for the current year we expect continued strong performance from the group, confirming our belief that Eckoh represents one of the most exciting cybersecurity plays in the UK market.
14 May 19
Strong contract win momentum continues
Eckoh has issued a positive trading update highlighting continued positive momentum across the business. More than £10m in contract value has been secured since the half year (30th Sept), with a number of significant renewals also having taken place. We believe that cash remains the key metric to focus on whilst the effects of IFRS 15 are working through the P&L. The continued strong performance points to potential headroom for outperformance in our recently upgraded £7.6m net cash forecast. The FCF yield of 5.5% to Sept’19 screens well against peers in our wider software and services coverage (c.3%) offering significant upside potential to investors.
04 Mar 19
Small Cap Feast
PetroTal (TAL.TO) - The exploration and production company focused on oil assets in Peru is seeking a secondary AIM quoting before the end of 2018. Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due early Oct Green Man Gaming—pure play e-commerce and technology company in the digital video games industry. revenue CAGR growth of 26.7% in the last three years to £47.5m. Due Mid October 2018. EBITDA Profitable. Offer TBA Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.
ECK SAR DISH BZT BST STX CAS ABAL STAF TSI
01 Oct 18
accesso Technology (ACSO LN) Positive first half, full year expected to be in line | Cello Health (CLL LN) Health driving performance | Eckoh (ECK LN) A good start to the year | EKF Diagnostics (EKF LN) Interims slightly ahead, outlook positive | Elektron Technology (EKT LN) H1 19 in line with recently upgraded forecasts | Ergomed (ERGO LN) H1 results: in line with June trading update | Futura Medical (FUM LN) Business update highlights increased focus on MED2002 | ReNeuron Group (RENE LN) Exclusive hPRC discussions stopped: talks renewed with other parties | Yu Group (YU LN) Continuing strong, sustainable growth and cash generation
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19 Sep 18
Craneware (CRW LN) Trading update & contract win | Dechra Pharmaceuticals (DPH LN) In line FY trading update | Eckoh (ECK LN) Contract win through Capita partnership | Miton Group (MGR LN) Strong H1 net inflows, upgrading FY18e EPS by 11% | MySale Group (MYSL LN) Another record year & more potential from platform | Photo-Me International (PHTM LN) On track versus downgraded forecasts. Japan being turned around | Realm Therapeutics (RLM LN) Supportive preclinical data on PR022 vs. tofacitinib in Atopic Dermatitis
ECK CRW DPH MYSL PHTM PMI
10 Jul 18
TMT UPDATE - 18.06.18 (BOOM.L, MBT.L, ECSC.L, ECK.L)
Audioboom plc* (BOOM.L, 2p/£20.2m) Restoration of trading and partner updates | Mobile Tornado plc* (MBT.L, 4.85p/£16.8m) AGM: Capitalisation of debt and extension of redemption date | ECSC plc (ECSC.L, 122.5p/£11.1m) AGM update: Growth across Managed Services and Consulting | Eckoh plc (ECK.L, 38.7p/£97.7m) Finals: Continued US growth opportunity
ECK MBT ECSC BOOM
18 Jun 18
Business looking strong for FY’19… despite IFRS 15
Eckoh’s full year results to March’19 are in-line, as flagged at the May trading update. US Secure Payments continues to lead the way, driving 32% underlying growth in the US division. The UK is returning to form after a weak H1’18, with strong momentum going into the current year. We are making small underlying upgrades to our FY’19 forecasts, however the picture is complicated by the non-cash impact of adopting IFRS 15. Adoption of the new standards is expected to result in a delay in revenue recognition, meaning a material reduction in P&L profitability in the near term. We continue to be excited about the group’s growth prospects, which combined with the high level of recurring revenue makes the shares fundamentally attractive.
13 Jun 18
boohoo.com (BOO LN) Profit dynamics bolstered by gross margin strength | Eckoh (ECK LN) Business looking strong for FY’19… despite IFRS 15 | Futura Medical (FUM LN) AGM: MED2002/Eroxon® Phase III recruitment on track for Sept. 2018 | Microsaic Systems (MSYS LN) Distribution agreement with Omicron Research Ltd
ECK BOO FUM MSYS
13 Jun 18
Small Cap Breakfast
Strongbow Exploration (TSX:SBW) intends to dual list on AIM. Holds rights to the South Crofty underground tin mine ("South Crofty"), a former producing tin mine located in the towns of Pool and Camborne, Cornwall . The project is estimated to require the Company to raise £25 million over the next 18 months to progress to a production decision. Offer TBS. Due June. Maestrano Group, a software company with operations in Australia (main country of operation), the UK, US and the UAE, is looking to join AIM. Offer TBC, expected late May. Yew Grove REIT—newly formed Company will pursue its investment objective by investing in a diversified portfolio of Irish commercial property. Offer TBA. Due Late May Team17 Group -video games label and creative partner for independent developers. Since 2014, delivered a revenue CAGR of 69% (31 December 2015 to 31 December 2017), with revenues of £29.6m and Adjusted EBITDA of £12.9m. Offer TBA Serinus Energy -international upstream oil and gas exploration and production company. Its principal assets are located in Romania (development phase) and Tunisia (production phase). Raising c.£10m. Offer TBA. Due mid May.
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14 May 18
Dechra Pharmaceuticals (DPH LN) Interims contain no surprises, AST/Le Vet acq now complete | Dialight (DIA LN) Are we nearly there yet? | Eckoh (ECK LN) US secure payments win and new US partnership | GlobalData (DATA LN) Results driven by strong trading | Photo-Me International (PHTM LN) Appointment of CFO | Senior (SNR LN) Solid results and outlook | Sigma Capital Group (SGM LN) REIT placing complete, 140p+/share intrinsic value
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26 Feb 18
Positive UK update – contract wins
Since its interims in November, Eckoh has secured six sizeable UK contracts across the payments, insurance, healthcare and mobile telecoms sectors. This shows the group is seeing the positive impact of the restructuring it did earlier in the year to focus sales on larger strategic accounts, leveraging the entire product portfolio. We remain comfortable with our forecasts and make no changes. Eckoh offers an attractive opportunity to gain exposure to the exciting cybersecurity market with an undemanding valuation of 14.6x Mar’18 EV/EBITDA falling to 12.4x Mar’19 EV/EBITDA.
05 Feb 18
Small Cap Breakfast
Block Energy—a NEX Listed UK based oil exploration and production company whose main country of operation is the Republic of Georgia, looks to join AIM end of February 2018. Offer TBC OnTheMarket—Intention to float on AIM to raise c.£50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Offer raising £30m at 165p with mkt cap of £100m . Due 9 Feb.
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05 Feb 18
Abzena (ABZA LN) Facility upgrade supports competitive advantage | Avon Rubber (AVON LN) Good update - move to Hold after share price rise | Eckoh (ECK LN) Positive UK update – contract wins | Gresham Technologies (GHT LN) CFO Appointment | Murgitroyd Group (MUR LN) Interims in line, dividend hike a positive surprise
ECK ABZA AVON GHT MUR
05 Feb 18
N+1 Singer - Eckoh - Secure payments leads the way
Eckoh’s interim results showed strong progression year on year across all key metrics driven by continued strong momentum in its US Secure Payments business. The group won another 7 contracts in this area worth $5.1m, both metrics significantly up y-o-y. With all contracts won on the preferred opex-style pricing model, the order book and visibility is also growing. We made no changes to our forecasts and believe the opportunities remain significant given the regulatory backdrop, increasing awareness of the risk and costs associated with security breaches and the group’s strong competitive positioning. We see another year of strong progress.
22 Nov 17
N+1 Singer - Eckoh - Eckoh secures 2 new US patents for payment security
Eckoh has secured 2 new, 20-year US patents for its secure payment solution CallGuard. This IP protection is strategically important in preserving and helping grow value in the business, particularly in the US where it has won over $13m of payment contracts in the last 18 months and where opportunities remain significant. These awards confirm that the group remains at the forefront of contact centre security, an area we expect to see increased spending over the coming years. We remain bullish on Eckoh’s ability to capitalise on this opportunity and the resultant value creation.
09 Nov 17
TMT Update 23.10.17 (WAND.L, ECK.L, BOOM.L) RM
WANdisco plc (WAND.L, 862p/£325m) Capital Markets Event: Replication and restore driving demand (17.10.17) | Eckoh plc (ECK.L, 50.5p/£127.2m) Interim pre-close: Inline - US growth (18.10.17) | Audioboom plc (BOOM.L, 3.125p/£29.1m) Podcast market update: Continued market investment (20.10.17) |
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23 Oct 17
N+1 Singer - Eckoh - US secure payments continue strong momentum
Eckoh issued an in-line trading update for the six months to 30 Sept 2017, reporting double digit percentage growth in both revenue and gross profit. Of particular note is the continued strong momentum of the US secure payments business, winning 7 contracts in the period with a total contract value of $5.1m (nearly double the value won in H1’17). All 7 contracts were won on the preferred “opex” pricing model and means the group has now secured the same volume of opex-based contracts in H1’18 as were won in the whole of last year. The group’s growth prospects remain exciting given positive demand drivers, a strong product set and competitive positioning.
18 Oct 17
TMT Update 03.07.17 (BOOM.L, ECK.L, GFIN.L, SOFA.L)
Audioboom plc (BOOM.L, 2.2p/£20.5m) Podcaster subscription service | Eckoh plc (ECK.L, 47.3p/£115m) CME: US focus | Gfinity plc (GFIN.L, 19.75p/£37.3m) Further partner agreement with Microsoft | Big Sofa plc (BST.L, 25.75p/£14.6m) Prelims: Progress in 2017
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03 Jul 17
N+1 Singer - Eckoh - US Teach-in: inflexion point in opportunity
Eckoh held a teach-in on its US business yesterday, which also gave us the opportunity to meet the US management team. The event depicted a buoyant demand background in the US and it’s clear that Eckoh’s opportunities are significant. There appears to be a positive change in demand appetite and there remains little competition in the space. The group’s patents, implementation experience and presence on the ground provide areas of differentiation and barriers to entry. All of this is feeding into what looks to be a very healthy US pipeline, no doubt helped by the recent successful deployments in some very large enterprises (Fortune 50 US insurance company, Fortune 500 US financial services) which provide strong references. Outside of the secure payments space, the group also talked about some of its significant opportunities with a browser-based agent desktop tool, Coral. We are excited about the group’s growth prospects, which combined with very high levels of recurring revenues (76% of total revenues in year to Mar’17) make the shares highly attractive.
29 Jun 17
N+1 Singer - Eckoh - Strong US execution; inflexion point for demand
The group delivered FY results comfortably against expectations, with a transformational US performance. The total value of Secure Payments contracts won in the US was more than 5x the previous year, with only 21% recognised in FY’17. There are strong positive demand drivers in the US and with one of the leading propositions in the market, Eckoh will be well-placed to capitalise. The UK remains solid, with the Capita and other emerging partnerships contributing. Retention rates remain very high and with overall recurring revenues at 76% (and improving), we believe Eckoh offers exciting and visible growth opportunities.
12 Jun 17
N+1 Singer - Morning Song 25-01-2017
Applied Graphene Materials (AGM LN) Board and operational appointments | Centaur Media (CAU LN) Trading update provides reassurance | Clinigen Group (CLIN LN) In line H1 update | Eckoh (ECK LN) Significant contract win via Capita partnership | Restaurant Group (RTN LN) Mixed YE update with further downgrades | StatPro Group (SOG LN) Full year revenue and profits in line
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25 Jan 17
N+1 Singer - Eckoh - In line interims, US secure payments gathers pace
Eckoh delivered interims in-line with expectations. UK growth was 11% whilst the US, reflecting a full period for PSS now accounts for 30% of sales. US Secure Payments wins gathered pace, with much larger contracts being won on SaaS-style pricing models and the pipeline at record levels. With contracts won in the first half feeding through strongly into the second half and given the group’s high level of recurring revenues (76%), the outlook remains positive for the rest of the year and we make no changes to forecasts. Eckoh has exceptional growth opportunities, particularly in the US, and we believe it can convert this to strong shareholder value.
29 Nov 16
Abzena (ABZA LN) FY results in line, outlook strong | Eckoh (ECK LN) Breakthrough year in the US | Findel (FDL LN) In line results and positive momentum in EGL | Halma (HLMA LN) Results in line; outlook positive | Trifast (TRI LN) Strong FY16 growth, good prospects for FY17
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14 Jun 16
Breakthrough year in the US
Eckoh delivered a strong 2016 performance which showed a robust UK performance combined with a step change in the group’s performance in the US which has carried into the current fiscal year. We put through 9% revenue upgrades but keep our profit forecasts unchanged and remain bullish on its prospects. Eckoh operates in markets with strong structural drivers of growth and remains well-placed to convert opportunities. It has established a strong track record of delivering good growth in revenue, profits and cash secured by significant levels of recurring revenues. We believe it is only in the early stages of unlocking its potential, particularly in the US, and believe it will continue to deliver strong growth.
13 Jun 16
The Cybersecurity Rebellion: “No, I’m Spartacus!”
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
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07 Jun 16
2 US contract wins plus renewed agreement with West
Eckoh has announced two significant US contract wins worth an estimated $7m over three years. One of the contracts (worth a minimum of $2m) was secured through West, the group’s US reseller partner, while the other (worth up to $5m+) was secured directly via recently acquired Product Support Solutions Inc (“PSS”). The group has also announced an updated distributor agreement with West Corporation which will see West continue to focus on delivering additional enterprise deals over the next three years on a non-exclusive basis. The updated agreement will allow Eckoh to expand its US presence with other US distributor partners, with the focus likely to be on the US mid- market. Today’s announcements highlight the growing traction which Eckoh is seeing in the US, both directly and through its partner channel. We make no changes to our forecasts at this early stage of the year but see the new contracts as strong underpinning of our full year numbers and see scope for further success in the US going forwards.
02 Jun 16
Augean (AUG LN) AGM update in line; strong forecast growth and attractive valuation | Eckoh (ECK LN) 2 US contract wins plus renewed agreement with West | OMG (OMG LN) Vicon stays one step ahead | PureTech (PRTC LN) Disappointing data from Tal Medical | Vp (VP/ LN) Anticipating a positive conclusion to a busy year
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02 Jun 16
Strong trading update
Eckoh announced today that trading for the 12 months ended 31 March 2016 was in line with market expectations, with revenue and margin growing by over 20% for the third year in succession. The US continues to show strong momentum with 14 contracts for secure payments solutions secured (9 in 2016), the first deal signed under the West partnership and the PSS acquisition performing well. A recent appointment of a new Senior Exec VP to head up all US sales (Secure Payments and Customer Contact Solutions) should help drive the business further. The UK also showed another strong performance with new client wins and important renewals. The balance sheet remains robust to support the group’s ambitions (organic and acquisitions). We remain positive on the shares as it continues to execute strongly with favourable demand dynamics both in the UK and US markets.
05 May 16
Further 5-yr contract win
Eckoh has announced that its US subsidiary has secured a new five year contract to provide secure payment services to Children’s Healthcare of Atlanta, one of the largest pediatric clinical care providers in the US. Today’s announcement continues the recent strong contract win momentum and marks the fourth customer win within the last nine months for the group’s recently patented tokenisation technology. This is also the first customer to utilise the group’s enlarged US on-the-ground presence post the PSS Help acquisition in November. This contract should further underpin Eckoh’s financial performance in the current year and beyond.
31 Mar 16
New 5-yr contract with Ideal Shopping Direct
Eckoh announced it has entered into a new five-year contract with Ideal Shopping Direct Ltd, a leading multi-channel home shopping retailer in the UK and US. Ideal Shopping has been one of Eckoh's largest clients since 2005 and this significant contract represents the latest broadening of the scope of Eckoh's services. This contract should further underpin Eckoh's financial performance for the year ending 31 March 2016 and beyond.
08 Mar 16
BBA Aviation (BBA LN) Amended forecasts; important year ahead | Craneware (CRW LN) In line interims. Value cycle gaining momentum? | Dialight (DIA LN) Underlying EBIT and EPS in line but non-underlying costs continue | Eckoh (ECK LN) New 5-yr contract with Ideal Shopping Direct | Gresham Computing (GHT LN) CTC-led strategy provides LT platform for growth | John Menzies (MNZS LN) Tough year for aviation; structure being evaluated | St Ives (SIV LN) Interims – 16% organic growth from strategic marketing
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08 Mar 16
Eckoh and West collaborate on new 4-year global contract with existing customer
Eckoh announced it signed a new 4-year multi-million pound global procurement contract with an existing client, a leading global financial services company. Under the terms of the new contract, which extends the scope and duration of Eckoh’s existing relationship, Eckoh and West have been selected as the client’s global partners to deliver the customer self-service provision. Retention of this significant client, with an extended scope and duration, is clearly positive. In addition, the collaboration with West represents a further strengthening of the relationship with this important US partner.
15 Feb 16
Amino Technologies (AMO LN) FY’15 in-line; well set for FY’16 | Eckoh (ECK LN) Eckoh and West collaborate on new 4-year global contract with existing customer | Informa (INF LN) Attractive medium term quality yield play | Renold (RNO LN) FY16 guidance cut on weak & volatile demand | Safestay (SSTY LN) Successful FY15e check-in and positive momentum going into FY16e
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15 Feb 16
First West contract win
Eckoh has won its first contract via the West relationship, signing up a US media and entertainment group for its CallGuard solution. Combined with other contract wins, strength in the existing business and good progress with PSS in H2 so far, the company is on track to meet market expectations for FY16. We make no changes to our forecasts.
21 Jan 16
Strong trading update; first contract win via West
Eckoh issued a trading update confirming continued positive momentum in the UK and the US, including its first win under the West partnership. The market for secure payments is global and growing and Eckoh is well-positioned with established, patented/patent-pending solutions that can address this significant opportunity. Eckoh has been executing well, organically and acquisitions thus far, and now has a platform that can support both UK and international growth. With its international prospects only starting to convert, we believe its prospects are bright.
21 Jan 16
$2m, 5-year PSS contract win with Global Communications Company
Last week, Eckoh announced the acquisition of US-based PSS for $5.6m on an EV-basis. We view the acquisition as highly positive as it provides Eckoh the infrastructure to generate and accelerate the conversion of its US and international opportunities. Today’s announcement of a $2m, 5-year PSS contract win with a Global Communications company is highly encouraging, illustrating the significant potential for the enlarged group. We believe Eckoh has a significantly stronger platform for growth.
24 Nov 15
Strengthening the US opportunity
Eckoh’s interim results confirmed that the company is on track to meet FY16 expectations. To support its US growth ambitions and to drive cross-selling opportunities, the company has acquired PSS for a net cost of £3.7m. We have incorporated PSS into our forecasts, driving earnings upgrades for FY16e/17e. Successful integration of PSS, progress with cross-selling opportunities and contract wins via its US channel partner could drive upside to our forecasts and the share price.
20 Nov 15
In-line; Accretive deal supporting growth strategy
Eckoh has delivered a good set of interim results and announced an accretive acquisition that should accelerate its US and international growth strategy. In the US, West is making good progress with a large number of sales opportunities at the same time Eckoh continues to win new contracts via its direct sales capacity. The acquisition of PSS Help provides an infrastructure to help accelerate conversion of US and international opportunities. We have upgraded our adjusted PBT forecasts by 6- 8% (5-6% at adj. PS level) and remain excited about the group’s growth prospects.
18 Nov 15
Dotdigital Group (DOTD LN) Magento’s only global platinum marketing partner | Eckoh (ECK LN) In-line; Accretive deal supporting growth strategy | IFG Group (IFP LN) In-line, positive KPIs, Capita/Towry transactions complete | Informa (INF LN) Trading update | ScS Group (SCS LN) Risk is to upside given positive trading and operational gearing | Summit Therapeutics (SUMM LN) Extension of strategic alliance with the University of Oxford
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18 Nov 15
3-Year Haloh win with global multimedia retailer
Eckoh announced a major new contract for the group’s Haloh payment solution with one of the world’s largest multimedia retailers, broadcasting to over 200m worldwide. The solution uses tokenisation technology, converting sensitive card data into tokenised, non-sensitive data. With the high-profile breaches that seem to occur on a weekly basis, we believe more and more companies are taking action to secure their data. This creates a positive demand environment for the group’s products and we remain excited about its growth opportunities. Interims out on 18 Nov
11 Nov 15
US patent award
Eckoh announced it has been granted a US patent for the transaction security method and system that underpins its CallGuard product. Eckoh already holds an existing patent for its CallGuard On-Site solution. This protects the group’s investment in this technology and strengthens its position in the US, which we expect to be a significant growth opportunity going forward. Data security is a key priority for organisations, especially with the growing number of highprofile security breaches being reported. We believe Eckoh is well-positioned to capitalise on this global opportunity.
05 Nov 15
Small Cap Wrap - First light for Advanced Oncotherapy, Clinigen’s lateral thinking, Wolf unleashed in Devon
The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
ECK COG CLIN COS FIF IKA NWT BLTG SAR ORPH WLFE AVO
24 Sep 15
Positive AGM statement; Co-op secure payments contract win
Eckoh issued a positive AGM statement, supported by a number of contract wins in the early months of the financial year. Both wins and pipeline indicate a growing interest in its secure payments solutions in international markets even as the group continues to gain ground in the UK. Eckoh announced separately that it won a 3-year contract to provide CallGuard for the Co-operative Group following a competitive tender. This win is a good indication of how large enterprises are prioritising the protection of their customers’ credit card data, a key driver of demand for the group’s secure payment solutions and a strong endorsement of Eckoh’s capabilities in the space. We are encouraged by acceleration in sales pipeline activity since the end of the summer period in the US and confident of another year of strong growth.
23 Sep 15
What we do in life Eckoh's in eternity, Avanti reaches for the sky, Platform change for Hornby, Mariana glitters
AVN Financing, BLU Timeline and Results, ECK Contract Wins, FITB Placing, Subscription and Convertible Loan Note, HRN Admission to AIM, MARL Estimate, MMH Interim Results, MXO Mexico Update, NET Contract Win, PLI Q2 Results and Highlights, SVR Contract Win, TRCS Trading Update, UNG Launch, VENN Trading Update
ECK AVN BLU HRN MMH MXO PLI SVR TRCS UNG ORPH NET MARL BIDS
20 Aug 15
Focused on organic growth
In FY15 Eckoh achieved another year of strong growth, while continuing to invest in building out its US business. Eckoh’s partner strategy continues to deliver new customers, and in the US could yield material contracts this year. The company is keen to drive growth from its existing customer base through cross-selling and has put in place initiatives to support this. We forecast EPS growth of 15% in FY16 and 19% in FY17. While the valuation looks full, successful execution of the growth strategy could drive upside.
17 Aug 15
Contract wins and continued momentum
Eckoh announced an encouraging start to the year with a number of direct contracts for Eckoh CallGuard across international markets complementing ongoing progress in the UK. The pipeline in the core UK and US markets remain at “excellent” levels as the global demand for PCI DSS compliant payment solutions continue to grow. We continue to expect strong adjusted EBIT growth of 15%/25%/18% in FY16/17/18 and believe that its direct efforts together with key partner relationships such as that with Capita will drive another strong year for the group.
17 Aug 15
Talks to buy Netcall terminated; Organic prospects undiminished
Eckoh announced that it does not intend to proceed with the acquisition of Netcall following consultation with Netcall’s shareholders and the reluctance of a major shareholder in Netcall to support the acquisition. TheBoards of both companies are disappointed with the outcome. Whilst the combination of the two companies would have opened new avenues for the enlarged group, we remain confident of Eckoh’s organic prospects. The group’s execution continues to be strong as indicated by the recent March 2015 full year results showing strong revenue and profit growth. Management has displayed consistent solid execution which saw the group win new contracts, renew all significant deals, and extend its key partnership with Capita.
03 Jul 15
Small Cap Wrap
C21 Contract Win, ABDP Interim Results, AFHP Acquisition, AVCT Interim Results, CDOG Final Results, CRE Trading Update and Acquisition, ECK Trading Update, FDBK Trading Update, FITB* Partnership, MARL* Trading Update, MSG* Trading Update, MPAY Preliminary Results, MXO* Update, PTSG Final Results, SVR Contract Wins, THAL New Contracts
ECK C21 ABDP AFHP CRE FDBK CTEA MPAY MXO PTSG SVR THAL MARL AVCT BIDS
05 May 15