Eckoh Share Discussion Threads

[spookies] 27/11/2020 09:17

Nice to see the directors have confidence in the company, buying stock recently.

[nhb001] 25/11/2020 13:31

"...that one might have assumed this sort of business would benefit from the remote working, lockdown environment."

I am not sure that's true as their secure payment offering was/is targeted at call centres. Luckily they have the work at home version as well which they say is selling well.

They need to keep innovating and come up with new products.

[energeticbacker] 25/11/2020 10:51

In line results: Investor's Champion comments that one might have assumed this sort of business would benefit from the remote working, lockdown environment.

However, revenue for the 6 months fell 13% to £15.7m, or 4% adjusting for the one-off Coral contract secured in the prior year, which makes comparison more challenging. US Secure Payments revenue increased significantly by 80% to $6.5m offset by planned decline in Support (61%) and expected decline in Coral (85%).

[septimus quaid] 26/10/2020 13:17

yes, I noticed that, like a trade-bot humming away

..a bit more cash in the bank can't do any harm

[boadicea] 26/10/2020 12:23

I would class the update as fairly neutral - i.e. in line and relatively good considering the poor circumstances. Surprisingly (imho) the share price remains quite stable when some similar shares recently showing stronger trends have sold off following updates.
This probably has something to do with market psychology rather than fundamentals, e.g. not many known short term trading positions for the mm's to anticipate and clobber.
However, there has been a minor rash of sellers this morning and I am intrigued by the stability with so many sells at exactly 64.51p when typically one would expect to see a gradual slide. It is therefore tempting to consider whether there may be a ready acquirer in the background as I doubt that an mm would want to have many sitting on his book without a known home for them.

[nickelmer] 26/10/2020 10:14

N+1 Singer Report out

An H1 update to September reveals a robust performance notwithstanding a challenging macro backdrop - sales (ex. Coral) are just “slightly lower” y/y, indeed if also excluding an intentional move away from hardware-based Support, we estimate core revenue grew c.+7%. This was underpinned by continued strong growth in US SecPay: +80% y/y, now ~32%/group sales, while in the UK, we estimate sales fell by c.-11%. Here, Covid impacted transactional sales (rather than any permanent loss of business) such that a future recovery is likely in our view. Despite the lower sales and GP, it‘s impressive to note profitability is expected to be in line with 1H20 (AOP: £3.4m) following tight cost management. Looking ahead, there’s reason to be optimistic, as in US SecPay, large enterprise tenders that were paused in H1, may resume in H2. Meanwhile in the UK – and despite the headline sales figure – business activity is already reassuringly strong: total new business won grew 8% y/y in H1, this includes the major £4m/6yr contract with Capita and TfL announced in August. In addition, closing net cash of £12.9m (£2m FCF) continues to offer strategic options. We reiterate that this a high quality company, with a robust and cash generative UK business, while leadership position in a nascent and fast growing US market.

[nickelmer] 26/10/2020 10:14

N+1 Singer Report out

An H1 update to September reveals a robust performance notwithstanding a challenging macro backdrop - sales (ex. Coral) are just “slightly lower” y/y, indeed if also excluding an intentional move away from hardware-based Support, we estimate core revenue grew c.+7%. This was underpinned by continued strong growth in US SecPay: +80% y/y, now ~32%/group sales, while in the UK, we estimate sales fell by c.-11%. Here, Covid impacted transactional sales (rather than any permanent loss of business) such that a future recovery is likely in our view. Despite the lower sales and GP, it‘s impressive to note profitability is expected to be in line with 1H20 (AOP: £3.4m) following tight cost management. Looking ahead, there’s reason to be optimistic, as in US SecPay, large enterprise tenders that were paused in H1, may resume in H2. Meanwhile in the UK – and despite the headline sales figure – business activity is already reassuringly strong: total new business won grew 8% y/y in H1, this includes the major £4m/6yr contract with Capita and TfL announced in August. In addition, closing net cash of £12.9m (£2m FCF) continues to offer strategic options. We reiterate that this a high quality company, with a robust and cash generative UK business, while leadership position in a nascent and fast growing US market.

[petewy] 26/10/2020 09:19

Not an inspiring update. I'm out

[septimus quaid] 26/10/2020 07:22

H1 trading update released this morning (interims to be reported 24/11/20):

[nhb001] 07/10/2020 13:39

It's frustrating. I am fairly sure there is a willing seller in the background. If the MMs are ever short of stock someone is stepping in. 100,000 bought at 68p today but no rise. On other days small sales moves the price down. More patience required I am afraid.

[septimus quaid] 05/10/2020 16:54

15 trades today amounting to £46k.

No debt, tech savvy, cash in the bank, foothold in the US market, Covid immune, how this is being overlooked by a bigger player/private equity outfit is beyond me.

[septimus quaid] 29/9/2020 09:57

ECK seem to be firming up on the 70p barrier (even ex div)

[nhb001] 16/9/2020 08:08

Well, it seems the recent drop was a gift from the market. Nice RNS today distributing a special dividend.

[petewy] 15/9/2020 10:57

no reason for the drop to 59p or the climb to 67p.
IS steady at 67% and no big sells this morning

[nhb001] 15/9/2020 09:15

Very odd share price movements. Today I am not complaining though!

[nickelmer] 09/9/2020 06:11

The company needs much beter PR, it hardly ever communicates with shareholders, just the very occasional contract win announcement. When investors have no clue as to prospects they will ultimately decde to sell and move on.

[septimus quaid] 08/9/2020 21:10

There does seem to be some persistent (and chunky) sales going through for the last few trading days.

ECK have got their AGM a week tomorrow (16th), hopefully that might shine some light on better prospects.

Also might get some clarity on whether they're going to pay a (granted smallish) dividend.

[nhb001] 08/9/2020 14:28

Disappointing share price action since the TFL contract announced. I wonder if this is people taking profits or bad news leaking. Any long term holders have any views?

[septimus quaid] 17/8/2020 07:38

Just noticed, came out very late on Friday:

[petewy] 14/8/2020 14:08

Good news this week but good enough to merit a jump from 61 to 68p????

[boadicea] 13/8/2020 07:50

New £4M TfL/Capita contract extension -


ECK continues to justify its high rating.

[nickelmer] 06/7/2020 14:38

A very positive article here, highlighting the strength of Eckoh's business and the huge potential still contained
within the USA business.

Broker's Cannacord very positive and raise their target price to 80p

www.proactiveinvestors.co.uk/companies/news/217778/eckoh-is-well-placed-to-manage-the-coronavirus-crisis-217778.html

[septimus quaid] 22/6/2020 10:53

A snippet in Proactive, nothing new for those who have been following events but a bullish article nonetheless.

www.proactiveinvestors.co.uk/companies/news/922425/richard-jeans--week-in-technology-is-the-recovery-set-to-continue-922425.html

[nickelmer] 18/6/2020 05:57

Yes the recording is available on the site, a very good report and well worth listening to.

[isaisa1] 17/6/2020 19:40

A really good presentation. Well worthy use of my time. I think there is a recording on the investormeetco site although I can't see the q and responses yet