Portfolio Updates

Eckoh stands to benefit in US markets

Eckoh (technology Software for the secure payment and contact centre markets) today released in-line results demonstrating 16% revenue growth from the US and UK markets, with 75% recurring revenues (and growing). Eckoh has traded resiliently despite CV19 and comes into FY21 with a strong order book and pipeline.

Kestrel Insight
Eckoh holds an enviable position as an established provider of secure payment software solutions to the US market. Of particular interest to us is the potential for a break-out performance in the US market when market pressures and regulation bites hard on those processing Card Not Present (CNP) transactions. We note: · Pending changes in PCI certification (the card industry security requirements) that will finally remove the weak ‘compensating control’ argument for CNP processors who will have to adopt processes and technology to prevent weaknesses · Legislation in California that is beginning to force businesses to properly control their CNP risks · General data security risks and issues that continue to cause serious reputation damage to those not protecting payment data adequately The US market has been slow to adopt market leading technology solutions such as Eckoh’s but we believe the time will come and Eckoh will benefit significantly.


Kestrel’s Portfolio Updates should neither be construed as investment research, nor the provision of investment advice, nor a recommendation. This article should be viewed as short term commentary only based on the latest economic statistics, company results or information on upcoming releases or events. It is only a brief unsubstantiated summary of Kestrel’s opinion on such information as at the date of publication and no reliance may be placed upon any contents of this article by the recipient.

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