01/06/2004
Speech recognition specialist Eckoh toasted the release of strong results for the year to 31 March in style, announcing a brace of high-profile new contracts. At first glance, full year figures appeared to show exceptional progress as revenues rose £7.5m to £62.5m and losses were scythed back from £9.1m to £1.1m. In reality these results masked a series of exceptional gains and losses, relating in particular to the acquisition of rival Intelliplus and the closure of the company's loss-making mobile wholesale business. On balance, however, things now seem to be moving in the right direction for Eckoh, as its latest contract wins - courtesy of Vue (formerly Warner Village cinemas) and the London Stock Exchange - suggest. These deals will see the company provide a bespoke speech-enabled cinema information line to the former and a real-time share price information service to the latter, and come as substantial additions to the £6m of business won back in December from the RNIB and TD Waterhouse among others. Moreover, chief operating officer Nik Philpot confides that a significant deal with a travel company is one of several contracts currently under negotiation. With the orders continuing to flow, £10.2m in the bank and house broker Evolution Beeson Gregory forecasting a £1.9m profit from £81.3m of sales this year the shares are worth a punt a present levels.
| Market cap: | £29.7m |
| PE Forecast: | 15.7 |
| Share price: | 11p |
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