Eckoh Share Discussion Threads

[livewireplus] 25/10/2016 23:12

Well it was almost a year ago then Daily Mail had an article on four firms due to benefit from countering cyber attacks:

hxxp://www.thisismoney.co.uk/money/investing/article-3317807/INVESTMENT-EXTRA-new-stars-cyber-frontline-masters-dark-arts-following-Talk-Talk-hack.html

Three of the four seem to be at a lower price than a year ago. The only one at a higher price had a restructuring and name change. Let us see if ECK share price can progress further given the recent updates and end up higher than it was at the time of the Daily Mail article.

[poacher45] 24/10/2016 15:27

This looks very very exciting:-
hxxp://www.4-traders.com/ECKOH-PLC-4004190/news/Eckoh-World-rsquo-s-first-Apple-Pay-payment-performed-via-telephone-23239153/

[broadwood] 24/10/2016 12:22

old - right.

Not much longer under the radar.

In June, secure payments and customer contact group Eckoh PLC (LON:ECK) revealed it was increasingly confident about its chances in the US this financial year - something which appears to have rung true.

Certainly, there have been glitches and growing pains associated with the expansion along the way, but the general mood from the company on US activity is positive, as underscored by news today.

Three news US deals
The company, which boasts a secure payments business and contact centre software, told investors it had secured three contracts worth over US$2.5mln in the USA over the next three years.
Two of them are based on the software as a service (SaaS) pricing model and are expected to go live by spring next year, generating recurring revenue in the new financial year, which starts in April.

The first is a two-year deal for the group's secure payments solution  with one of the largest manufacturers and suppliers of nutritional supplements in the US, while the second is a three-year deal with a Fortune 500 corporation in financial services.
The third is a three-year agreement with one of the largest US telecoms groups, where Eckoh will provides its browser-based agent desktop 'Coral' to more than 3,000 contact centre agents in a new facility opening at the end of 2016.

Momentum building
Nik Philpot, Eckoh's chief executive, said momentum in the US market was building.
"...the move to a SaaS style price model will over time build a base of recurring revenue in the US comparable to the UK operation and we would expect this to underpin the growing value of the company in future years," he said.
"Our trading performance at the end of the first half of the year has been strong and we remain confident that the revised market expectations for this financial year will be achieved."

Notably, the Fortune 500 group is a long-standing customer of Product Support Solutions (PSS), a contact centre services provider, which Eckoh acquired for U$7.6mln in November last year, and which has a number of blue chip clients on the books.
This is the first success in cross-selling Eckoh's secure payments solutions into the extensive PSS customer base, Eckoh revealed.

It comes after last month the firm issued a trading update, in which it warned profits for the year to end March would be flat and miss market expectations because of issues in the US.
To increase  recurring revenues in the US and to bring it in-line with the recurring revenue model in the group's UK business, Eckoh is moving its secure payments customers to a software as a service (SaaS) pricing model and away from upfront client payments.
This transition will require some upfront investment, which in turn will hit profit margins this year.
At the same time, a division of PSS acquired last year has incurred cost overruns of £600,000 for a complex fixed-price project that it is carrying out. That figure is set to rise to £700,000, Eckoh said. It is now accelerating closing this division.
But the group added: "The medium and longer term outlook for the company remains positive, with the transition to a recurring revenue model and decisive actionat the PSS professional services division resulting in an improvement in the certainty and the quality of its earnings."

Revenue and margin growth last financial year
US revenues in the year to March 30, 2016  shot up to £4mln from £0.2mln the year before, contributing to a 31% increase in total group revenues to £22.5mln from £17.5mln the year before.
House broker N+1 Singer had forecast revenues of £21.7mln.

Meanwhile, in the home market, 79% of revenues are of the recurring variety, up from 76% the previous year.
Adjusted underlying earnings (EBITDA) surged 20% to £5.4mln from £4.5mln the previous year.
Profit before tax was £2.47mln, compared to a loss the previous year of £872,000, when transactions relating to acquisitions put a £1.47mln dent in profits.
The year saw nine contracts won in US Secure Payments operation, and 13 new UK contracts secured including Thames Water, the Co-operative Group, Ecotricity and a global on-line retailer.
Eckoh shares nudged 0.69% higher to stand at 36.25p.

[oldvic] 24/10/2016 09:38

shouldnt that document that says

This announcement contains inside information.
say
this announcement contains information inside !

[broadwood] 24/10/2016 07:56

Contract size building.

[septimus quaid] 24/10/2016 07:20

US contract wins:

[nickelmer] 21/10/2016 08:59

Looking back I see that the PSS purchase was funded by the issue of ECK shares at 43p, feel sure they will want to get them back to that price in the next 12 months

[reallyrich] 21/10/2016 08:17

surprising given that money earned in the states will improve our bottom line given the weak pound and also that results are normally announced next month.

[spaceparallax] 20/10/2016 15:46

Why's the share price slumping again?

[septimus quaid] 20/10/2016 05:07

Has anyone got a handle on what % of ECK's earning are now in dollars?

[martinthebrave] 13/10/2016 15:44

In fact I have just bought a few more.....

[martinthebrave] 13/10/2016 15:38

I guess the options announced in today's RNS have nudged the share price down. However, the fact that Dan Arnst has been promoted signals that things are progressing rather nicely in the USA IMO.

"Since joining Eckoh, Dan Arntz has helped Eckoh's US sales pipeline grow to record levels, including securing two multi-million dollar deals in June 2016. He is also leading the transition of the majority of the US sales pipeline to the Software-as-a-Service ("SaaS") pricing model in line with the UK business. The SaaS model will bring a number of benefits to the business, increasing the Company's proportion of recurring revenues in the US, offering longer-term client relationships and generating higher overall gross margins".

[poacher45] 11/10/2016 15:22

Smithie6 These shares were subject to an award in 2012 that when the shares hit a certain price the shares were free to the directors.

[smithie6] 11/10/2016 13:12

Did dirs. pay anything to exercise their share opions or did they give themselves 1M and 1/2M shares for free ??

[martinthebrave] 04/10/2016 20:19

Looking like that way SQ. I did pick up a few more at 33p on the way down but with hindsight not nearly enough. I do see these as one of my long term holds.

[septimus quaid] 04/10/2016 19:40

So, rather than jumping off a cliff time, the 6th Sept presented a massive buying opportunity?

[septimus quaid] 03/10/2016 15:44

Re today, you called that one right Martin

[broadwood] 01/10/2016 11:17

Harris said: “Eckoh is the UK’s market leader in secure payment and customer contact solutions. It is also growing strongly in the US. The key driver of demand is the increasing risk of fraud at contact centres where customer credit card information is seen and therefore vulnerable. 
“In this area, Eckoh has a market-leading solution in ‘Haloh’ which ‘tokenisesR17; data, preventing call centre operators from seeing it and thus improving security.
“The company has an unbroken growth record from 2009. Over the past three years it has posted over 20pc growth, and this is forecast to continue for at least another three years.
“Our view is there is still much further to go in the UK, but we see the US as the real opportunity, standing at eight times the UK’s market size.  This is a poorly followed company – we believe an ‘incubation217; investment could have great potential

[nickelmer] 09/9/2016 17:07

Kestrel added 2 million and increased their stake to over 13%, looks like the larger shareholders see real long term value at these lower levels. I suspect you need to take a 3 year view on these, in which case they could be well north of the 30's again

[septimus quaid] 09/9/2016 16:21

How much "free stock" is in circulation?

[nickelmer] 09/9/2016 10:03

Another block of 1 million shares go through, do we suspect someone is stake building at these lower levels?

[nickelmer] 09/9/2016 10:03

Another block of 1 million shares go through, do we suspect someone is stake building at these lower levels?

[boadicea] 07/9/2016 17:08

Busy today and now kicking myself for not following ECK this morning. As a result, missed a possible feast at 31p - although would probably have taken 32p before it hit bottom. Now it's bounced back to 36p.

Will it dip again? - Who knows, but a double bottom is certainly possible. A patient wait and hope on a limit order looks to be the answer.

[spaceparallax] 07/9/2016 16:50

That should send a reasonable signal to mkt, although it is after all only £65K between them.