Eckoh (AIM:ECK) has secured a six-year contract extension worth £4 million to provide services for London’s congestion charge to Transport for London (‘TfL’).
The provider of secure payment products and customer contact solutions said the contract extends an existing five-year agreement with business outsourcing firm Capita and Tfl.
Eckoh will now deliver an expanded remit for congestion charge service, providing customer contact centre solutions alongside the existing PCI DSS compliant Secure Payments service.
The extension will span a far greater reach, Eckoh said, covering TfL's new work expanding into the low emissions zone and ultra-low emissions zone, planned for 2021 through to 2026.
These additional zones are expected to generate incremental use of Eckoh's services, as will the recent extension of the congestion charge to further hours in the day and to weekends.
Shares in Eckoh have increased from 56p in June and were trading 5.56% this morning at 66.5p following the announcement.
Capita is expected to benefit from greater platform capacity under the new contract and will be able to provide TfL with an adaptable platform to facilitate new services for future needs.
“We are delighted to have secured such a significant, valuable and long-term contract extension for TfL through Capita, who remain a key strategic partner and whose relationship continues to play a pivotal role in the growth of our business,” said Nik Philpot, CEO of ECK.
He added, "We have been greatly encouraged by the continued demand we have seen for the Eckoh proposition from both new and existing clients in recent months, which has enabled us to be very resilient in what remain uncertain times.
Not only is this testament to the sophistication and breadth of our product offering, but also to the quality and energy of our partners such as Capita.”
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