Slimmed Eckoh loses interim £0.2m
Article Date: Dec 17 2007Automated voice call provider Eckoh lost a first-half £219,000, against a £7.7 million profit last time amid drastic restructuring.
In the six months to September, the AIM-quoted company made a series of disposals to focus its business on supplying 'specialised speech solutions', though revenue growth in that division was clipped by the loss of its largest client, UGC Cinemas, when that company was acquired by Cineworld. As a result, interim turnover from continuing operations fell from £44 million to £18 million and the previous £107,000 pre-tax profits from the same operations were turned into a loss of £771,000. Pre-tax profits on discontinued operations dropped from £7.5 million to £567,000.
However, the disposals helped swell Hertfordshire-based Eckoh's net cash to £5.75 million. The company now boasts receivables boosted by £4.7 million from Symphony Telecom and £2.75 million from its latest sale of its chat division to Antiphony and the disposal of its TV channel.
Chief executive officer Nik Philpot cites a five-year contract extension to provide services to UK utilities, a two-year contract 'on new terms' with Trinity Mirror and an award-winning 'traintracker speech service' provided to National Rail Enquiries. Conceding that media sector conditions have been 'challenging' and that Eckoh is likely to be a 'smaller business going forward', he nonetheless argues the company can 'maintain a strong and profitable position in the market'.
The shares, which hit 13.5p last year, now stand at 6.88p, down 0.25p this morning, valuing the company at £13.7 million. The appeal is speculative.
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