Ahead of its Capital Markets Day next Tuesday, Eckoh (LON:ECK) the Hemel Hempstead-based provider of customer engagement security solutions, has updated its investors upon its first half sales.
To the end of September, the group enjoyed a strong upward momentum, driven mainly by renewed activity in its US markets.
Big improvement in sales
Order levels at over £17m are believed to be some 50% better than at this time last year.
The company is stating that it has made good progress in its strategy to pursue major opportunities for large blue-chip organisations, cross-sell from a broader product suite and continue the trend towards cloud adoption and more international mandates.
International appeal for its services
Eckoh is increasingly focusing on attractive sectors which are suited to its model, technology, and product suite. Its Customer Engagement Security Solutions enable enquiries and transactions to be performed on whatever device the customer chooses, allowing organisations to increase efficiency, lower operational costs and provide a true omnichannel experience.
From its offices in both the UK and the US, it is a global provider to an international client base. It has a large portfolio of clients across a broad range of vertical markets and includes government departments, telecoms providers, retailers, utility providers and financial services organisations.
Analyst Opinion – shares are a Buy
Kevin Ashton and fellow analysts at Singer Capital Markets are enthusiastically encouraging investors to attend the Eckoh Capital Markets Day on Tuesday 11th October.
They are currently rating the group’s shares as a Buy having fixed a one-year Target Price of 92p on the group’s shares.
For the current year to end March 2023 they estimate sales of £40.0m (£31.8m), adjusted pre-tax profits of 7.6m (£5.2m) generating earnings of 2.0p (1.6p) and a dividend of 0.70p (0.61p) per share.
For next year they foresee £43.2m revenues, £8.3m profits, 2.0p earnings and a dividend of 0.80p per share.
Conclusion – a break above 50p very soon
This group’s brokers are very keen upon its shares.
They were as high as 64p in December last year, since when they have drifted back to a recent low of 37p a month ago.
Now at 44p these shares do have a growing following and, hopefully, the Capital Markets Day will impart enough information and enthusiasm as its brokers portray.
A break above 50p looks very achievable in the near-term.