Eckoh (ECK) swung to a £2.6m statutory pre-tax profit in the first half of the 2020 financial year, recording double-digit revenue growth across its operating regions. The secure payments specialist saw total business contracted rise by 15 per cent to a record £19.4m.
US revenue almost doubled to $9.4m (£7.5m), with secure payments benefiting from a focus on large enterprise customers and increasing regulation governing payments and data security. Sales of desktop interface Coral increased from $0.6m to $3m, reflecting $2.1m of licence revenue from the three-year deal secured with an unnamed Fortune 100 telecoms company. Although this lower-margin contract squeezed the group’s gross profit margin, which fell by 6 percentage points to 79 per cent. This is expected to fall to 75 per cent over the next two years.
