Eckoh PLC on Wednesday reported a drop in profit due to costs relating to an acquisition at the end of 2021, but reported a rise in revenue on the back of success at its US business.

In the year ended March 31, pretax profit dropped 33% to £2.4 million from £3.6 million the previous year.

Eckoh explained that this figure included £1.0 million in transaction costs in connection with the acquisition of Syntec in December, as well as a £900,000 one-off restructuring costs.

Revenue, however, rose 4.2% to £31.8 million from £30.5 million. The company reported strong annual recurring revenue growth in particular, especially in the US market as a result of its clients’ need to comply with increasing regulation.

In the UK, Eckoh said client activity had recovered, with strong second half revenue growth.

The company declared a final dividend of 0.67 pence per share, up from 0.61p the previous year. Eckoh said its increased payout demonstrated its ‘increasing confidence’ in its ongoing growth.

Chief Executive Nik Philpot said: ‘Eckoh has made significant progress in the last 12 months. We have shown the resilience of our business model, with growth in revenue and operating profit and improved quality of earnings with the completed exit from our Support activity. Our momentum is underpinned by fast-growing recurring revenues, with an excellent performance in our US business and a return to growth in the UK.’

Shares in the Hertfordshire, England-based secure payment provider were up 6.2% at 41.40p on Wednesday morning in London.

Copyright 2022 Alliance News Limited. All Rights Reserved.