PTSB deal set to drive Escher revenues forward

Escher Group — the Irish-American software solutions provider — has said that its revenues for the first half of 2015 should come in at around $11.85 million (€10.9m), representing a year-on-year increase of 7%.

In a pre-close trading update, covering the six months to the end of June, Escher – whose main offices are in Dublin and Boston – said that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) should show a strong annualised increase of around 66%, to nearly $2.7m.

Net debt, as of the end of last month, stood at $2.7m; down from $5.3m at the close of last year.

“The group has continued to invest significantly in new products and operations,” management said in the trading statement, adding that the business is currently trading in line with board expectations for the current financial year.

Escher’s traditional business surrounds the provision of point-of-sale e-commerce software solutions to leading international postal agents – including An Post – and other businesses.

Revenue suffered last year due to the timing of US deal closures, but the first half of this year has seen Escher strike significant deals with Permanent TSB and a new client in Malaysia (Malaysia Post).

The Permanent TSB deal – a $1m deal to supply the bank with an updated payment services system across its entire retail branch network – only closed at the end of May, but has been noted by Escher’s management as being a highlight of the year to date.

The group said it demonstates its ability to enter related market areas.

“This steady increase in recurring revenue gives us confidence about medium-term growth,” Escher’s CEO, Liam Church said.