Eckoh Share Discussion Threads

[luckymouse] 22/8/2014 12:17

Just run this through my spread sheet - hard to know for sure with so little broker data - but fwiw my spread sheet says this is going to double!

[septimus quaid] 20/8/2014 07:27

The divi, although welcome, is quite modest. Can't see going ex divi is going to trash the share price.

[nickelmer] 20/8/2014 06:56

In theory Eck's price should reduce by the amount of dividend it pays out.

Also yes with more shares in circulation the price should theoretically be reduced to reflect the same ultimate market cap as the day before.

I think people are missing the more positive side to the statement, the company has (intentionally or not I do not know) signalled sales targets for the US that it clearly believes are achievable as it will want to give the original veritape owners an achievable incentive, so take a look at those sales targets and I would suggest you have a very good guide as to very realistic US sales over the next couple of years.

Most of which will drop through to the bottom line !

[mazarin] 19/8/2014 17:18

Whilst the general theme of yesterday's announcement is certainly 'positive', however in the short term, it may not prove to be so. My interpretation of the possible implications of the Veritape's Limited Deferred Consideration is that it could temporarily reduce the s.p, based on the following logic.

Today ECK is reported to have 208.99m shares in issue, with Mkt Cap value of GBP 88.82m, however, as a result of tomorrow's additional shares' admission, ECK's same Mkt cap valuation remains unchanged, but will be divided by 222,528,281 ordinary shares in issue thus effectively reducing proportionately today's closing price of 42.5p. I could well be wrong.

We also go Ex-Div tomorrow and that is usually reflected in the opening price, we'll see how it pans out.

[reallyrich] 19/8/2014 15:45

Very good rns.

[nickelmer] 13/8/2014 07:47

Without wishing to get too excited at ECK's prospects, I found this part of the statement significant

"with a sales pipeline that exceeds the current existing pipeline in the UK"

Obviously the US market is so much larger, and if Eck could ultimately deliver just the same amount of revenues and profits from the US as the UK, then with operational gearing, profits could easily double and more over the coming years.

Very good prospects for significant growth it would appear. lets hope they deliver, good luck all.

[mylands] 13/8/2014 07:39

Good trading update this morning. Further proof to me that my decision to invest in Eckoh at 8p was a very good decision. This has a long way to go - upwards!

RNS Number : 9620O

Eckoh PLC

13 August 2014


For Immediate release 13 August 2014

Eckoh plc

("Eckoh" or "the Company")

AGM Trading and Business Update

Chris Batterham, Chairman of Eckoh, will provide the following trading statement at the Company's AGM later today:

"Once again, I am pleased to report that the Company has seen a significant increase in revenue and margins during the first quarter of the new financial year and that current trading remains in line with market expectations.

Since announcing our year-end results in June, we continue to see positive new contract momentum being generated both organically and through our channel partners. This includes the recently announced three year contract win with Tenpin Limited to provide a broad range of Eckoh services for their bowling and family entertainment centres. We also today announce that we have won two three year contracts to provide payment services to a large financial institution and also a specialist provider of packaged account products and services in mobile handset protection. Coupled with the five multi-year contracts won in the second half of the prior financial year, revenue growth in the first quarter was extremely strong.

In June 2014 we announced that we had secured an exclusive agreement in the US with a leading US based provider of business process outsourcing and communication services. The early weeks of this arrangement have seen a significant amount of interest with a sales pipeline that exceeds the current existing pipeline in the UK. This has been supplemented by our direct sales activity in the US that has also seen some modest sized opportunities being won in recent weeks. We remain encouraged that the investment being undertaken in the US will result in significant profits for the Group in future periods."

[mazarin] 11/8/2014 15:35

Another step in the right direction. Today's Contract follows ECK's continuing trend to retain clients and leading them to extend services provided. This has to be good news for the Company and us alike. Well done ECK, although I'm still anticipating more contract announcements soon.

[septimus quaid] 01/8/2014 18:56

SP seems very volatile at the mo (on modest volume).

[mazarin] 01/8/2014 16:04

I decided to add some more this afternoon. I have been thinking doing it all this week, only to see it rise each day, so finally decided its probably now about the right time to take advantage of the 'apparent' temporary lul today. ECK often has the habit of rising just before the markets close. As ever, time will tell.....!

[mazarin] 01/8/2014 07:09

I expected to see some announcement this morning, but all guiet so far. However, the US markets closed well down yesterday, so may have a negative impact over here.

[greg the grinch] 31/7/2014 13:50

Fat US contract and up up up!

[mylands] 31/7/2014 12:19

On the move again!

Could we be about to hear that they have won more contracts? It's some time since the last contract RNS.

[mazarin] 30/7/2014 14:13

Aye up, what we got 'er then...? May be there's an announcement in the 'offing'?

[bamboo2] 28/7/2014 12:02

Could be a textbook recovery on the chart underway. H&S completed and now trading above lovely lower trendline again.

[mazarin] 28/7/2014 11:12

Nice little uplift this morning following Friday's move North, 'apparently' due to ECK securing ownership of HQ premises, but I think there's possibly more to it...?

Its been a few months since we last heard of further Contract news, so am surmising perhaps there may be something else 'buzzing' around to stimulate this current round of positive movement and wouldn't be surprised to hear of new contracts soon.

[nickelmer] 25/7/2014 13:50

Septimus, no I just divided £200K by £2.9m. Actually you have made me think of a positive point, if they had been forced to rent more space their annual rent would be higher than £200K so the effective saving is actually greater.

[spookies] 25/7/2014 12:55

Thanks for the explaination bamboo2

[septimus quaid] 25/7/2014 12:48

Nick, did you factor in the additional floorspace in your 6.8% calc?

[bamboo2] 25/7/2014 12:25

Could be cash flow benefits to funding the purchase? Interest payments offset against tax perhaps?

[nickelmer] 25/7/2014 12:12

IMHO a good move, if they use their cash reserves the saving equates to 6.8% on the money, much better than cash in the bank. Not sure why they are considering funding options, I cant see that they will need to raise funds for this deal. They also get more office space at no extra cost to help with their expansion, nice one guys

[bamboo2] 25/7/2014 09:46

Is it this?

25 Jul 2014
Purchase of Head Office Freehold
Eckoh plc (AIM: ECK), a global provider of secure payment products and customer service solutions, is pleased to announce that it has successfully reached agreement to acquire the freehold of its existing Hemel Hempstead head office for a consideration of £2.9m.

The purchase of the freehold will result in an annual rent saving of £0.2m. The new arrangement will also allow Eckoh to take ownership of an additional 4,050 square feet of office space in addition to the current 11,670 square feet currently rented, which will support ongoing growth and the Company's increasing head count. At the end of the current lease in March 2015, the freehold to the premises will be acquired for £2.9m. A deposit of £0.4m is payable immediately and will be funded from existing cash reserves with the remaining £2.5m to be paid upon completion in March 2015. Options for funding the remaining consideration are currently being explored.

Chief Executive Officer, Nik Philpot commented: "The acquisition of the freehold is a very positive step for Eckoh, not only does it secure our office requirements for the immediate future at a lower overall cost, it also avoids what would have been an expensive and disruptive move to alternative premises. The additional space will allow us to comfortably accommodate our medium term planned increases in headcount and provide a better overall working environment for our staff."

[snape] 25/7/2014 09:39

i assume its the rns about the purchase of a freehold as showing on investigate

[spookies] 25/7/2014 09:36

Anyone have any idea what the flash news rns is?