Eckoh Technologies PLC
21 September 2005
For immediate release 21 September 2005
Eckoh Technologies PLC
AGM Statement
Peter Reynolds, the Chairman of Eckoh Technologies PLC ("Eckoh"), commented at
the AGM today:
"I am pleased to report a year of good progress in all areas of the Group's
operations. Turnover increased by 28% to £79.7m for the year, generating pre-tax
profits of £0.9m before goodwill charges. In particular, our Speech Solutions
business performed well, with turnover increasing by 56% to £5.0m as we added a
number of new clients and services.
Since year end we have renewed our exclusive partnership with BT to December
2010. We believe this is an excellent endorsement of both the success of the
relationship over the past 3 years, and our mutual confidence in the potential
of self service call centre solutions using advanced speech recognition
technologies.
The Board continues to believe that Eckoh's current share price does not fully
reflect the value of the Group's constituent businesses, and we are therefore
committed to pursuing our existing strategy of unlocking value for Eckoh
shareholders moving forward.
As part of this strategy, on 29 July 2005 we concluded the sale of our Internet
Services business, Freecom.net Limited, to eDirectory.co.uk plc for
consideration of up to £3.2m. Subsequently, on 31 August 2005 we announced our
intention to seek a separate AIM listing for our telecommunication services
division, Symphony Telecom Holdings plc, and to raise £4.51m from the placing of
11.0m new shares. Following Symphony's successful Admission to AIM on 15
September 2005, Eckoh retains 64.64% shareholding in the company.
Eckoh is currently trading broadly in line with management's expectations,
although Speech Solution's revenues in the first half of the current financial
year are likely to be adversely impacted by lower call volumes to its cinema
ticketing services. Notwithstanding this trend, based on current trading, the
financial performance of the Eckoh Group for the year ended 31 March 2005,
recent commercial contract successes, including the renewal of the BT contract,
the disposal of Freecom and ongoing discussions with a number of potential new
clients, the Directors are confident of the Company's future prospects.
Moving forward we intend to focus our capital, cash resources and management on
the development of our remaining businesses, and in particular our growing
Speech Solutions operation. The Board is continuing to evaluate a number of
strategic options as part of our plan to further simplify and streamline Eckoh's
activities around Speech Solutions, and we will be making further announcements
in due course.
On 1 August 2005, we were pleased to announce the appointment of Adam Moloney to
the Board as Group Finance Director. Adam had previously filled the role of
Acting Group Finance Director since 28 July 2004.
Finally, I would like to thank our staff for their continuing loyalty,
dedication and hard work over the past twelve months, as we all look forward to
another interesting year ahead."
For further enquiries, please contact:
Eckoh Technologies plc Tel: 08701 100 700
Martin Turner, Chief Executive Officer
Nik Philpot, Chief Operating Officer
Adam Moloney, Group Finance Director
Buchanan Communications Tel: 020 7466 5000
Mark Edwards/Jeremy Garcia
Evolution Securities Tel: 020 7488 4040
Mike Brennan/Bobbie Hilliam
This information is provided by RNS
The company news service from the London Stock Exchange
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