We make right call as phone technology tip soars by 75%

ECKOH improves the way businesses interact with customers on the phone and online. Tipped by Midas last July at 20p, the group has made significant progress in recent months. The shares have risen 75 per cent to 35p and brokers believe they have further to go.

The company works with a range of businesses, including Vue cinemas, National Rail and the NHS.

Last month, chief executive Nik Philpot said Eckoh had won two substantial new contracts, each worth more than £500,000 a year. Three of the group’s biggest contracts have also been renewed.

Eckoh helps firms to handle consumer enquiries using speech recognition so people do not have to wait interminably to speak to a call centre agent. It also provides website services and mobile phone apps for clients.

Eckoh’s technology helps firms take payments more securely, too, enabling customers to give credit and debit card details without these being stored by the businesses in question.

This is an increasingly serious issue. Just before Christmas, for example, Canadian store group Target was attacked by hackers, who stole 40 million credit and debit card details.

Eckoh’s technology prevents this kind of breach from happening. The business is relatively small but it punches above its weight, attracting interest from large firms. Further growth will come from its sales efforts and through a venture with leading outsourcer Capita.

Capita is offering Eckoh’s speech recognition and secure payment services to hundreds of businesses, so this should boost revenues considerably.

Brokers say profits should rise 25 per cent to £3.2million in the year to March, and 34 per cent to £4.3million next year. Eckoh even pays a dividend, forecast at 0.3p, rising to 0.4p next year.

Midas verdict: Eckoh is doing well and Philpot is extremely confident about growth. Existing investors should hold. New investors could also see value at current levels.