Eckoh Share Discussion Threads

[nickelmer] 15/1/2024 12:43

https://totaltele.com/eckoh-secures-screwfix-contact-centre-payments/

[nickelmer] 15/1/2024 12:43

That's interesting to hear, hopefully you will be proved correct. Here is a classic example of how bad their PR is, a Google search reveals they have won a contract with Screwfix, yet no announcement, eckoh need to up their game and sack their PR department, they are awful, no wonder the shares languish

[earwacks] 14/1/2024 08:49

Agreed the management score nill point in the charm department. However Harwood took a healthy interest here in the autumn at 5 per cent and Stellar Asset manager talked them up in an interview with Paul Hill last week. Frankly they were the pick of the bunch in that review of holdings along with EKF. If the stars align we should head back to a previous high when they were a far lesser company. Gl

[nickelmer] 22/12/2023 08:47

Agreed, school report shows

Profit Growth - Shows potential


PR - SERIOUS FAILURE

[rabbrooks] 21/12/2023 17:21

It would be wonderful if the company made even a small gesture to shareholders that there is some semblance of life in Eck. It maybe some competitor can pick it up ,brush it down and let us get out with a better return than what is on offer at present. Eck should realise it is not a private company. Exam results this year should show FAILED.

[rabbrooks] 23/11/2023 16:09

I contacted head office on the last trading day of this year. I was unable to obtain a reply as the telephonist said there were no staff working in the office in what i would have thought impossible on E O Y. She explained that W.F.H. was the method of operation at ECK.

[nickelmer] 21/11/2023 17:49

One final thought, £7.3M in cash, why not start some share buybacks instead of wasting money on expensive acquisitions at 54p per share!

[nickelmer] 21/11/2023 17:47

I sold a big chunk of these in the mid-sixties, they were ridiculously overvalued at that price. They are in danger of becoming undervalued if things continue as they are. The biggest issue I have with ECK is that they are quite possibly the worst plc when it comes to PR, no news on contract wins (when clearly they are getting some) only the bare minimum updates and so quite rightly shareholders sell up and move on and why not with no information coming out other than twice yearly results. They need to win, and announce some decent-sized new contracts in the 2nd half because otherwise, it will be the same slow fall in price as shareholders lose patience, worry over lack of information, so sell up and move on, take a look at their competition PCiPal despite being much smaller they make news announcements all the time, keeping shareholders engaged and encouraged, maybe they should headhunt pcipal's PR team

[boadicea] 21/11/2023 16:25

The first significant trade of the day was a 208k dump at 8:24, reported late, after which all, or at least most, trades except for line 22 (40k @ 34p) are probably buys. On this basis the mm has managed to roughly level his book. Some punters may have picked a bargain at around 35/36p and we will probably return to quiet trading around the current level (~ 37p) until something moves the general market or we get a news-break.

[boadicea] 21/11/2023 11:31

While the narrative sounds optimistic the figures look very flat. Revenue on a six-month progression has fallen by £0.4m for the last two half-years which on a straight line projection would lead to (18.8 + 18.4m) = £37.2m for the full current year. Broker expectations appear to be for ~£39m so H224 will require something of a trend reversal which the company predict should be met. Inflation may help towards the numerical target and disguise any real shortfall.
To be fair, logical explanations are given for the revenue dip but in its current mood the market may well be skeptical and the share price could suffer accordingly.
[ed: Typos in 2nd sentence corrected.]

[septimus quaid] 04/11/2023 10:05

Cash in the bank and no debt, interest rates rising, good news?

[nickelmer] 01/11/2023 09:06

So continued growth and Eckoh are now sat on over £7 million in cash, if the USA opportunity is as the directors suggest, organic growth is undoubtedly the sensible route, with no more wasted acquisitions that always depress the share price. That would seem to leave the door open to some form of raised dividend or share buybacks to improve shareholder value, IMHO

[hybrasil] 24/9/2023 11:10

This share price must be due a break out.

Its been trading in this limited range for ages.

I know the UK stock market is in the pitts but this share should be trading much higher

[wjccghcc] 05/7/2023 21:17

Most software companies have gross margins above 80%, some above 95%. It's because the cost of the product itself is minimal so you really only have the hardware costs (if on prem) or the cost of cloud rental if in the cloud. However, the cost of developing the software over several years is not in gross margin, nor are the staff costs. That's why net margin is a better measure of profitability for software companies.

[trcml] 05/7/2023 19:06

correction: 80%

[trcml] 05/7/2023 18:52

Explain something, please. Unless I've read this wrong, Eckoh has an 80$ gross profit margin. Why ywuld a potential customer, doing due diligence, wantt o buy into a system/product from a company whose profit margin is such? Wouldn't eh customer shop around for a lower cost set-up or expect a substantial reduction/discount?

[wjccghcc] 15/6/2023 10:15

Adjusted EPS might be more useful as that excludes amortisation of acquired intangibles of 2.4mm. Forecast EPS is 2.0p (PBT+8%) giving a PE of 19. Beginning to look good value IMHO now they've pivoted to the US.

[nickelmer] 15/6/2023 08:43

Solid results and good to see the dividend being increased. So this puts Eck on a PE multiple of 25 at 40p. I would be interested to know what the forecast for the next year's profits is expected to be as it would give a guide as to the likely EPS and therefore the forward-looking PE. I don't know what is considered a fair multiple in this sector, 25 does not sound cheap by any means but that could obviously fall in 12 months, which is why forward guidance on next year would be so helpful to investors.

[mallorca 9] 27/4/2023 11:16

Another attraction of this one for me is that it may well be a takeover target.
Musk made a fortune from Paypal.

[nickelmer] 25/4/2023 10:23

So, maybe it was a fake downside breakout, if these get back above 41 in short time they may be in for a further nice move upwards....

[babbler] 25/4/2023 07:50

Significantly ahead. That's all you need to know.