Escher Group forecasts first-half revenues of $12.3m

Dublin-headquartered software provider Escher Group has reported strong trading for the first six months of the year, with both revenues and adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) expected to come in ahead of market expectations.

Escher, a provider of outsourced, point-of-sale software to the postal, retail and financial industries, forecast first-half revenues of $12.3 million, up 4 per cent on the $11.8 million recorded for the same period a year earlier.

In a trading update, the group, which is due to publish full first-half results in mid-September, said it expected adjusted ebtida to rise to $3.4 million, a 25 per cent increase on the $2.7 million the company reported in the preceding period.

The group said it had continued to invest in new product areas and operations during the first half. Net debt at the end of June was $2.7 million, unchanged from the end of December.

"Our recent contract win with Vietnam Post was a strong contributor to first-half ebitda and demonstrates our continuing ability to win new business in our core postal market. The closing of this contract, allied to increasing maintenance and support revenues, has resulted in a solid first half," said chief executive Liam Church.

Escher was founded in 1989 in Boston. It moved its headquarters to Ireland in 2007 following a management buyout.

In a note to investors, Davy said it expected Escher to have increased its recurring revenue, having transitioned large contracts such as Malaysia Post and USPS onto support and maintenance revenue.