REG - Eleco PLC - Interim Results
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RNS Number : 4208Z Eleco PLC 16 September 2025
RNS
16 September 2025
Eleco plc
("Eleco", the "Group" or the "Company")
Interim Results
Interim Results for the six months ended 30 June 2025
Continued growth, enhanced profitability and record recurring revenues
The Board of Eleco plc (AIM: ELCO), the specialist software provider for the
built environment, is pleased to announce its Interim Results for the six
months ended 30 June 2025, based on unaudited management accounts:
Financial highlights
Revenues
· Annualised Recurring Revenue (ARR)(1): £30.7m (H1 2024: £25.8m), an
increase of 19% (or 12% on an organic basis)
· Total Recurring Revenue (TRR)(2): £14.8m (H1 2024: £12.0m), an
increase of 23%, representing 81% of total revenue (H1 2024: 74%)
· Total revenue: £18.4m (H1 2024: £16.3m) an increase of 13%
Profitability
· EBITDA(3): £3.8m (H1 2024: £3.0m), an increase of 27%
· Operating profit: £1.9m (H1 2024: £1.5m), an increase of 27%
· Profit before taxation (PBT): £2.0m (H1 2024: £1.6m), an increase
of 25%
· Profit after taxation (PAT): £1.6m (H1 2024: £1.3m), an increase of
23%
· Basic earnings per share: 2.0p (H1 2024: 1.5p), an increase of 33%
· Adjusted EBITDA(4): £4.3m (H1 2024: £3.3m), an increase of 30%
· Adjusted operating profit(4): £2.7m (H1 2024: £2.2m), an increase
of 23%
· Adjusted profit before taxation(4): £2.7m (H1 2024: £2.2m), an
increase of 23%
· Adjusted profit after taxation(4): £2.2m (H1 2024: £1.7m), an
increase of 29%
· Adjusted basic earnings per share(4): 2.7p (H1 2024: 2.1p), an
increase of 29%
Cash and dividend
· Cash at 30 June 2025: post M&A activity, was £12.2m (at 30 June
2024: £12.0m, at 31 December 2024: £14.0m). The Group remains free of
debt.
· Interim dividend: 0.35p per share (H1 2024: 0.30p per share), an
increase of 17%
Operational highlights
· Acquisition in January 2025 of PMI Software Ltd (PEMAC), Ireland, a
recognised leader in providing SaaS Computerised Maintenance and Management
Software (CMMS). Integration into the Group is progressing well and has
increased Eleco's CMMS offer, alongside the Group's established ShireSystem
business
· Onboarded high-profile retail property customers comprising one of
the top 10 UK supermarket retailers and two leading international fashion
brands, marking continued momentum in expanding the Group's global and
domestic market presence
· Record recurring revenue growth and record software year-on-year
total revenue
· Recertifications under the revised ISO 27001:2022 accreditations for
Elecosoft UK Limited, BestOutcome Limited, and PEMAC
· Improved operational gearing and enhanced profitability, together
with a further increased interim dividend
Jonathan Hunter, Chief Executive Officer of Eleco plc, said:
"I am pleased to report ongoing improvement in revenue, recurring revenues and
enhanced profitability measures in the first half of 2025, which is testament
to our resilient business operating model in otherwise challenging
geopolitical and macroeconomic times."
"In addition to positive progress in introducing new customers and expansion
of existing customers, we see promising opportunities following the successful
acquisition of PEMAC in January 2025 which has broadened our customer base and
geographic reach, building further on our CMMS software offering alongside our
established ShireSystem solution."
"Leveraging our talent, technological capabilities and strong customer
relationships, along with current initiatives to address services revenues, we
remain confident in Eleco's forward trajectory and delivery of full year 2025
results in line with market expectations."
(1) ARR is defined as normalised annualised recurring revenues and includes
revenues from subscription licences, contract values of annual support and
maintenance, and SaaS contracts. Normalisation is calculated as recurring
revenue in the final month of the period multiplied by twelve. This ARR
figure is calculated including the contribution from acquisitions to the Group
going forward.
(2) TRR is defined as the recurring revenues from subscription licences,
contract values of annual support and maintenance, and SaaS contracts.
(3) EBITDA is defined as Earnings before Interest, Tax, Depreciation, and
Amortisation and Impairment of Intangible Assets.
(4) Adjusted measures are further defined in note 12.
(5) Free cash flow is defined as adjusted operating cash flow, adjusted for
tax, interest and any disposals of property, plant and equipment.
For further information, please contact:
Eleco plc +44 (0)20 7422 8000
Jonathan Hunter, Chief Executive Officer
Neil Pritchard, Chief Financial Officer
Cavendish Capital Markets Limited +44 (0)20 7220 0500
Geoff Nash / Seamus Fricker / Elysia Bough (Corporate Finance)
Louise Talbot (Sales) / Harriet Ward (ECM)
SEC Newgate UK +44 (0)20 3757 6882
Bob Huxford / Harry Handyside eleco@secnewgate.co.uk (mailto:eleco@secnewgate.co.uk)
About Eleco plc
Eleco plc is an AIM-listed (AIM: ELCO) specialist international provider of
software and related services to the built environment through its operating
brands Elecosoft, BestOutcome, PEMAC, Vertical Digital and Veeuze from centres
of excellence in the UK, Ireland, Sweden, Germany, the Netherlands, Romania,
Australia and the USA.
The Company's software solutions are trusted by international customers and
used throughout the building lifecycle from early planning and design stages
to construction, interior fit out, asset management and facilities management
to support project management, estimation, visualisation, Building Information
Modelling (BIM) and property management.
For further information please visit www.eleco.com (http://www.elecosoft.com/)
.
Chairman's Statement
Introduction
It gives me great pleasure to report another set of successful results for
Eleco for the first half of 2025.
Our customers continue to embrace new technology and wider digitalisation of
workflows, and with its geographical reach and comprehensive software
portfolio, Eleco is extremely well positioned to capitalise further on
technological solutions within the Building and Property lifecycle. Eleco has
proven, industry-trusted capabilities with lifecycle services in cost
management, scheduling, project delivery and asset management &
facilities.
Strategic Progress
Organically, the business remains focused on providing leading edge software
solutions, heightened innovation and developing senior strategic hires as we
further scale up the business.
In January 2025, we acquired the Ireland-based PEMAC business which has been
successfully integrated in the first half of 2025. PEMAC has not only added to
our widening geographic footprint, but has considerably strengthened and
expanded our facilities management CMMS offering (alongside our existing
ShireSystem solution) to become the market leader in this space.
We continue to identify and target potential M&A opportunities in our
chosen geographies in accordance with our strategic objectives and enhancing
long-term shareholder value.
Performance
It is pleasing to see Eleco deliver further enhanced performance in the first
half of 2025 despite macroeconomic and geopolitical headwinds. Revenues and
recurring revenues are ahead of prior half year performance, alongside
increased profitability.
Total Recurring Revenue represented 81 per cent of total revenues in the half
year (H1 2024: 74 per cent). ARR (Annualised Recurring Revenue) increased 19
per cent to £30.7m (H1 2024: £25.8m). Total Recurring Revenue grew by 23 per
cent to £14.8m (H1 2024: £12.0m). Total revenue was higher by 13 per cent to
£18.4m and £18.4m in constant currency terms (H1 2024: £16.3m).
As we continue to scale up, the Group displays operational gearing leading to
improved returns for its shareholders. In H1 2025, Adjusted EBITDA increased
by 30 per cent to £4.3m (H1 2024: £3.3m). Adjusted profit before taxation
rose 23 per cent to £2.7m (H1 2024: £2.2m). Adjusted EPS was also 29 per
cent higher at 2.7 pence (H1 2024: 2.1 pence).
The Group also continues to enjoy strong operating cash generation,
notwithstanding the cash requirements and related costs of the PEMAC
acquisition, totaling £5.6m, and an increased final dividend payment to our
shareholders in the half year to £0.6m (H1 2024: £0.5m). At 30 June 2025,
cash was £12.2m (at 30 June 2024: £12.0m; at 31 December 2024: £14.0m). The
Group remains free of debt.
Environmental, Social & Governance (ESG)
Our long-established ESG Implementation Team has been working closely with our
external ESG advisors to further enhance our internal monitoring and data
reporting capture. The team has also undertaken internal monitoring of ESG
initiatives throughout the Group.
Also during the period we have further enhanced our internal governance
surrounding the identification, mitigation and treatment of risks facing the
business, providing for a cadence of monitoring and reporting in all
subsidiary locations.
Finally, we are pleased to report that we have recently achieved ISO
re-certifications under the revised ISO 27001:2022 accreditations for our two
UK trading subsidiaries together with our new Irish subsidiary PEMAC.
Employees
We are in the process of further investing in people, systems and governance
as we scale up the Group and embark on the next step of our strategic journey.
The quality of our individuals and their teamwork has been key to the success,
growth and ambitious nature of our business. On behalf of the Board, I would
like to provide my sincere thanks for their hard work, dedication and
achievements.
Dividend
Eleco promotes a progressive and sustainable dividend policy and returns have
increased in line with the continued growth in profitability. The Board is
increasing the interim dividend by 17 per cent to 0.35 pence per share (H1
2024: 0.30 pence per share).
This interim dividend is payable on 13 October 2025 to shareholders on the
Register on 26 September 2025. The ex-dividend date will be 25 September 2025.
Current trading and outlook
We have delivered yet again on growth and financial performance promises in
the first half of 2025, underpinned by a clear strategy and robust business
model. We are also delighted with the successful acquisition and integration
of PEMAC.
More generally, despite challenging market conditions affecting some of our
sectors, Eleco remains well positioned, with its high recurring revenue and
customer-centric business model. We look forward to executing the next stage
of our strategic plans with further delivery on both organic and inorganic
growth.
Looking ahead, the Board remains confident in delivering results in line with
market expectations for the full year.
Mark Castle
Chairman
15 September 2025
CEO's Statement
Introduction
I am pleased to report positive performance in the first half of 2025, with a
further increase in recurring revenue, which now represents 81 per cent of
total Group revenue. This is testament to the successful execution of
Go-to-Market initiatives, ongoing technology investments and targeted
acquisitions.
We were delighted to welcome PEMAC to the Group in January 2025. Located in
Ireland, and a recognised leader in SaaS Computerised Maintenance and
Management Software (CMMS), the company has enhanced Eleco's overall offering
to support customers' evolving needs. Integration has progressed well, and
together with ShireSystem, Eleco now has a strengthened capability and
sizeable presence in the growing CMMS Asset Management and Maintenance market
sector as manufacturing businesses seek to improve work practices.
Trading
Group revenue increased by 13 per cent in H1 2025 to £18.4m (H1 2024:
£16.3m); and £18.4m at constant currency.
Total Recurring Revenue (recurring revenue across the whole six-month period)
increased by 23 per cent to £14.8m (H1 2024: £12.0m). ARR (Annualised
Recurring Revenue which is the recurring revenue in the month of June 2025
multiplied by twelve) increased by 19 per cent to a new record of £30.7m (H1
2024: £25.8m).
Revenue from UK customers rose 14 per cent to £8.7m (H1 2024: £7.6m),
representing 47 per cent of total Group revenues. Overseas revenue grew by 11
per cent to £9.7m, accounting for the remaining 53 per cent of total revenue.
With persisting macroeconomic challenges in the visualisation services sector
in Germany, the overseas contribution was supported by the recent additions to
the Group from Romania and Ireland.
Adjusted Operating Profit increased 23 per cent to £2.7m (H1 2024: £2.2m) in
the first six months of 2025. The management of overheads while absorbing
the cost bases of acquisitions has delivered profit margin growth despite
slightly lower gross margins.
Adjusted EBITDA increased by 30 per cent to £4.3m (H1 2024: £3.3m); Adjusted
Profit Before Taxation was also up 23 per cent to £2.7m (H1 2024: £2.2m) and
Adjusted Profit After Taxation improved by 29 per cent to £2.2m (H1 2024:
£1.7m). Adjusted Basic Earnings Per Share (EPS) at the period end was 2.7
pence (H1 2024: 2.1 pence), a 29 per cent rise.
In a similar vein, unadjusted measures of profitability showed commensurate
percentage improvements: EBITDA increased by 27 per cent to £3.8m (H1 2024:
£3.0m); Operating Profit further improved by 27 per cent to £1.9m (H1 2024:
£1.5m); Profit Before Taxation was significantly ahead by 25 per cent to
£2.0m (H1 2024: £1.6m); and Profit After Taxation up a pleasing 23 per cent
to £1.6m (H1 2024: £1.3m). Basic EPS therefore showed a 33 per cent increase
for our shareholders at 2.0 pence per share (H1 2024: 1.5 pence per share).
The Group remains free of debt and is operating cash generative. The cash
position at 30 June 2025 was £12.2m (at 30 June 2024: £12.0m; at 31 December
2024: £14.0m). This is all the more impressive given that £5.6m was paid in
consideration and associated costs in relation to the PEMAC acquisition as
well as an enhanced final dividend payment in the first half of £0.6m (H1
2024: final dividend payment of £0.5m).
Strategy
Eleco's long-term vision focuses on strengthening its digital presence,
improving customer engagement and expanding its market reach through strategic
investments, technological advancements and a clear brand direction.
Our established, resilient growth platform is underpinned by three strategic
pillars, namely:
· Go-to-Market
· Technology and Innovation
· Mergers and Acquisitions (M&A)
Go-to-Market
The focus on enhancing sales and marketing techniques, improving sales
forecasting and pipeline analysis along with the implementation of customer
success initiatives has once again shown an increase in the average Annualised
Recurring Revenue (ARR) per customer and in addition a higher average number
of licences per customer.
Net revenue retention in the first half stood at over 110 per cent on an
annualised basis (H1 2024: 108 per cent). Overall the number of net new
customers increased in the first half of 2025, together with the number of new
licences as well as the number of licences per customer. The UK market
continues to be a driver of revenues as industries digitalise and mature in
their approach to data management. The US market presents a great opportunity
but also a strong competitive incumbent base. In the first half of 2024, two
substantial service orders for an Asta customer and a Veeuze visualisation
customer were not repeated in 2025, which resulted in the total US revenue
being 8 per cent below in 2025. Nevertheless, the US continues to advance,
with 38 new customers in the first half and recurring revenue increasing 25
per cent compared with the same period in 2024. New opportunities continue
to be encouraging however as several customers seek to implement Asta Vision.
Although visualisation services revenue declined in Germany due to budget
constraints among interior manufacturing clients, the rest of Europe and
Scandinavia saw strong growth of 33 per cent and 15 per cent respectively,
driven in part by the PEMAC and Vertical Digital acquisitions.
Technology and Innovation
Output from our 80 talented research and development colleagues, led by
Eleco's CTO Alex Gheboianu, has been excellent. The Group invested 16 per
cent of total revenue (H1 2024: 17 per cent) in Technology and Innovation to
enhance its core product solutions and develop new improvements to ensure its
feature-rich, best-of-breed software remains highly-valued by customers.
During the first half year period of 2025, we continued to see strong interest
and uptake in our Asta Vision Live real-time collaboration platform that
enables multiple planners and other stakeholders (including senior management)
to actively monitor and improve project delivery, thereby providing more
effective resource allocation and reducing delays, cost and wastage.
Notable major product releases in the period included a new 2026.1 release of
Asta Powerproject with enhanced 3D and 4D capability, as showcased at the
industry event Digital Construction Week, and a substantially enhanced PEMAC
Assets 4.2 release, with a customisable and improved dashboard, mobile and
user experience and GxP asset compliance. Also during the period and alongside
delivering the feature roadmap, PEMAC Assets was updated to the most recent
version of Python ensuring that it is utilising the latest code base, and
remains secure and reliable for the future. BestOutcome PM3 releases included
a new web Gantt chart capability with critical path project analysis,
multi-user and other accessibility upgrades.
We continue to see the adoption of AI to improve productivity and the
automation of time-consuming tasks. Asta GPT(TM) now supports multiple
languages and is widely used by our customers. Internal AI projects spanning
tendering, data migration, code writing and testing, customer onboarding and
help functionality and dashboards have shown clear net benefits, and we plan
to expand these initiatives across the Group.
Mergers and Acquisitions (M&A)
The Group's M&A activities involve a considered and evaluated exploration
of opportunities to enhance the value of the Group whilst also expanding
discrete capabilities and geographies.
Integration of the PEMAC maintenance management business, acquired in January
2025, is progressing very well and has expanded our geographic footprint in
Ireland and beyond. Furthermore, it has doubled down on our CMMS offering to
our customers sitting alongside our already established ShireSystem business
which addresses similar but different market verticals and customer desired
offerings.
Our Markets
The built environment sector comprises companies engaged in the design,
construction, and management of building assets and infrastructure, serving a
vital function in urban development and sustainability. Historically regarded
as slow to adopt new technologies, the sector is now rapidly evolving to
address increasingly complex requirements related to design, legal and
regulatory compliance, safety, sustainability and competitive cost pressures.
Many of the companies in the built environment are turning to technology to
meet the present and future demands which are driven by macroeconomic and
societal factors such as population growth, urbanisation and digitalisation.
Eleco's solutions are iteratively developed with customers to address complex
mission critical planning, estimating, maintenance and management of projects
and operations with a focus on efficiency, productivity, compliance and
scalability. This approach reinforces our reputation as a trusted partner
and enabler for our customers.
Summary and Outlook
The Group delivered record recurring revenue and strong cash generation in the
first half of 2025. The ongoing improvement in revenue and enhanced
profitability is testament to our resilient business operating model in
otherwise challenging geopolitical and macroeconomic times.
We appreciate the ongoing support and trust of our customers and stakeholders,
as well as the exceptional effort, dedication and creativity of our
employees, whose contributions are important to Eleco's performance.
We remain focused on our strategic intent to attain new customers, retain
existing customers and expand customer relationships. In addition, we continue
to explore opportunities for value-enhancing M&A for the Group and its
shareholders.
The built environment is going through a marked digital transformation
accelerated by AI, and I believe that Eleco is well placed to seize these
further opportunities. Through leveraging our talent, technological
capabilities and strong customer relationships, along with current initiatives
to address services revenues, the Board remain confident in Eleco's forward
trajectory and delivery of full year 2025 results in line with market
expectations.
Jonathan Hunter
Chief Executive Officer
15 September 2025
Condensed Consolidated Income Statement
for the financial period ended 30 June 2025
Six months to 30 June Year ended
31 December
2024
£'000
Continuing operations Note 2025 2024
(unaudited) (unaudited)
£'000 £'000
Revenue 3, 4 18,354 16,252 32,394
Cost of sales (2,032) (1,550) (3,482)
Gross profit 16,322 14,702 28,912
Depreciation and amortisation of intangible assets (1,935) (1,449) (3,183)
Acquisition-related expenses and stamp duties (106) (225) (432)
Share-based payments (323) (103) (60)
Other selling and administrative expenses (12,044) (11,378) (21,181)
Selling and administrative expenses (14,408) (13,155) (24,856)
Operating profit 5 1,914 1,547 4,056
Finance expense 6 (35) (30) (72)
Finance income 6 108 116 310
Profit before taxation 1,987 1,633 4,294
Taxation (341) (358) (960)
Profit after taxation for the financial period 1,646 1,275 3,334
Attributable to:
Equity holders of the parent 1,646 1,275 3,334
Earnings per share (pence per share)
Basic earnings per share 7 2.0p 1.5p 4.0p
Diluted earnings per share 7 2.0p 1.5p 4.0p
Condensed Consolidated Statement of Comprehensive Income
for the financial period ended 30 June 2025
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
(unaudited) (unaudited)
£'000 £'000
Profit for the period 1,646 1,275 3,334
Other comprehensive income/(expense):
Items that will be reclassified subsequently to profit or loss:
Translation differences on foreign operations (28) (293) (196)
Other comprehensive expense net of taxation (28) (293) (196)
Total comprehensive income for the period 1,618 982 3,138
Attributable to:
Equity holders of the parent 1,618 982 3,138
Condensed Consolidated Statement of Changes in Equity
for the financial period ended 30 June 2025
Share capital Share premium Merger reserve Translation Share options reserve Employee share ownership trust Retained earnings
£'000 £'000 £'000 reserve £'000 £'000 £'000 Total
£'000 £'000
At 1 January 2025 833 2,468 1,002 (705) 891 (358) 26,041 30,172
Dividends - - - - - - (578) (578)
Share-based payments - - - - 323 - - 323
Deferred tax on share options - - - - 57 - - 57
Elimination of exercised share-based payments - - - - (34) - 34 -
Issue of share capital 2 101 - - - - - 103
Transactions with owners 2 101 - - 346 - (544) (95)
Profit for the period - - - - - - 1,646 1,646
Other comprehensive expense:
Exchange differences on translation of net investments in foreign operations - - - (28) - - - (28)
Total comprehensive(expense)/income for the period - - - (28) - - 1,646 1,618
At 30 June 2025 (unaudited) 835 2,569 1,002 (733) 1,237 (358) 27,143 31,695
Share capital Share premium Merger reserve Translation Share options reserve Employee share ownership trust Retained earnings
£'000 £'000 £'000 reserve £'000 £'000 £'000 Total
£'000 £'000
At 1 January 2024 832 2,418 1,002 (509) 621 (358) 23,353 27,359
Dividends - - - - - - (453) (453)
Share-based payments - - - - 103 - - 103
Deferred tax on share options - - - - 71 - - 71
Elimination of exercised share-based payments
- - - - (10) - 10 -
Issue of share capital 1 26 - - - - - 27
Transactions with owners 1 26 - - 164 - (443) (252)
Profit for the period - - - - - - 1,275 1,275
Other comprehensive expense:
Exchange differences on translation of net investments in foreign operations - - - (293) - - - (293)
Total comprehensive (expense)/income for the period - - - (293) - - 1,275 982
At 30 June 2024 (unaudited) 833 2,444 1,002 (802) 785 (358) 24,185 28,089
Share capital Share premium Merger reserve Translation Share options reserve Employee share ownership trust Retained earnings
£'000 £'000 £'000 reserve £'000 £'000 £'000 Total
£'000 £'000
At 1 January 2024 832 2,418 1,002 (509) 621 (358) 23,353 27,359
Dividends - - - - - - (665) (665)
Share-based payments - - - - 41 - 19 60
Deferred tax on share options - - - - 229 - - 229
Issue of share capital 1 50 - - - - - 51
Transactions with owners 1 50 - - 270 - (646) (325)
Profit for the year - - - - - - 3,334 3,334
Other comprehensive expense:
Exchange differences on translation of net investments in foreign operations - - - (196) - - - (196)
Total comprehensive (expense)/income for the year - - - (196) - - 3,334 3,138
At 31 December 2024 833 2,468 1,002 (705) 891 (358) 26,041 30,172
Condensed Consolidated Balance Sheet
at 30 June 2025
30 June
2025 2024 31 December
(unaudited) (unaudited) 2024
Note £'000 £'000 £'000
Non-current assets
Goodwill 21,272 18,987 18,852
Other intangible assets 13,658 10,024 10,333
Property, plant and equipment 618 775 629
Right-of-Use assets 1,181 1,012 1,290
Deferred tax assets 902 342 549
Total non-current assets 37,631 31,140 31,653
Current assets
Inventories 35 136 4
Trade and other receivables 6,451 4,847 5,434
Current tax assets 969 675 746
Cash and cash equivalents 12,234 12,002 13,975
Total current assets 19,689 17,660 20,159
Total assets 57,320 48,800 51,812
Current liabilities
Lease liabilities (596) (583) (578)
Trade and other payables (2,531) (2,031) (2,269)
Accruals and deferred income 10 (18,659) (14,776) (15,264)
Current tax liabilities - (33) (65)
Total current liabilities (21,786) (17,423) (18,176)
Non-current liabilities
Lease liabilities (768) (762) (882)
Deferred tax liabilities (3,045) (2,500) (2,556)
Provisions (26) (26) (26)
Total non-current liabilities (3,839) (3,288) (3,464)
Total liabilities (25,625) (20,711) (21,640)
Net assets 31,695 28,089 30,172
Equity
Share capital 835 833 833
Share premium 2,569 2,444 2,468
Merger reserve 1,002 1,002 1,002
Translation reserve (733) (802) (705)
Share options reserve 1,237 785 891
Employee share ownership trust (358) (358) (358)
Retained earnings 27,143 24,185 26,041
Equity attributable to shareholders of the parent 31,695 28,089 30,172
Condensed Consolidated Statement of Cash Flows
for the financial period ended 30 June 2025
Six months to 30 June Year ended
31 December
2024
£'000
Note 2025 2024
(unaudited) (unaudited)
£'000 £'000
Cash flows from operating activities
Profit after taxation for the financial period 1,646 1,275 3,334
Income tax expense 341 358 960
Amortisation of intangible assets 1,545 1,126 2,492
Depreciation charge 390 323 691
(Profit)/loss on sale of property, plant and equipment (24) - 6
Finance expense 35 31 72
Finance income (108) (117) (310)
Share-based payments expense 323 103 60
Cash generated from operations before working capital movements 4,148 3,099 7,305
(Increase)/decrease in trade and other receivables (608) 186 (206)
(Increase)/decrease in inventories and work in progress (31) (26) 109
Increase in trade and other payables, accruals and deferred income 2,023 2,570 3,468
Cash generated from operations 5,532 5,829 10,676
Net taxation paid (471) (1,053) (1,716)
Net cash inflow from operating activities 5,061 4,776 8,960
Investing activities
Investment in development expenditure (1,791) (1,450) (2,958)
Investment in other intangible assets (77) (111) (271)
Purchase of property, plant and equipment (34) (11) (85)
Acquisition of subsidiary undertakings net of cash acquired 14 (4,439) (1,280) (1,252)
Proceeds from sale of property, plant and equipment 32 - 2
Finance income 108 117 310
Net cash outflow from investing activities (6,201) (2,735) (4,254)
Financing activities
Finance expense (35) (31) (72)
Repayments of principal of lease liabilities (340) (309) (650)
Equity dividends paid 8 (578) (453) (665)
Issue of share capital 103 26 50
Net cash outflow from financing activities (850) (767) (1,337)
Net (decrease)/increase in cash and cash equivalents (1,990) 1,274 3,369
Cash and cash equivalents at beginning of period 13,975 10,903 10,903
Exchange gains/(losses) on cash and cash equivalents 249 (175) (297)
Cash and cash equivalents at end of period 12,234 12,002 13,975
Notes to the Condensed Consolidated Interim Financial Information
1. General information
The Company is a public limited company incorporated and domiciled in the UK.
The address of its registered office is Dawson House, 5 Jewry Street, London,
EC3N 2EX.
The Company is listed on AIM, a market operated by the London Stock Exchange
plc. The Company is limited by shares and the registered number is
00354915.
The condensed consolidated interim financial information does not constitute
statutory accounts within the meaning of section 435 of the Companies Act
2006. The Group's consolidated financial statements for the year ended 31
December 2024 have been filed at Companies House. The audit report was not
qualified and did not contain a reference to any matter to which the auditor
drew attention by way of emphasis and did not contain a statement under
section 498(2) or section 498(3) of the Companies Act 2006.
2. Basis of preparation
The condensed consolidated interim financial statements for the six months to
30 June 2025 have been prepared in accordance with the accounting policies
which will be applied in the twelve months financial statements to 31 December
2025. These accounting policies will be drawn up in accordance with applicable
law and UK-adopted International Accounting Standards (UK-IAS) that will be
effective at 31 December 2025.
The condensed consolidated interim financial statements are unaudited. They do
not include all the information and disclosures required in the annual
financial statements or for full compliance with UK-IAS, and therefore should
be read in conjunction with the Group's published financial statements for the
year ended 31 December 2024. The comparative figures for the year ended 31
December 2024 are not the Company's statutory accounts for that period but
have been extracted from these accounts.
The Directors, having considered the Group's current financial resources, have
concluded that they are adequate for the Group's present requirements.
Therefore, the condensed consolidated interim financial information has been
prepared on the going concern basis.
Estimates
Application of the Group's accounting policies in preparing condensed
consolidated interim financial statements requires management to make
judgements and estimates that affect the reported amount of assets and
liabilities, revenues and expenses. Actual results may ultimately differ from
these estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements for the year ended 31
December 2024. Significant judgements include the fair valuation of the
assets and liabilities for acquisitions which is based on judgements and
estimates provided to an external valuation specialist in the areas of, but
not limited to, forecast revenue, costs, discounted cash flows, weighted
average cost of capital, royalty rates and capital expenditure.
Risks and uncertainties
A summary of the Group's principal risks and uncertainties was set out on
pages 28 to 33 of the 2024 Annual Report and Accounts. The Board considers
these risks and uncertainties are still relevant to the current financial year
and the impact of changes is reviewed in the Chairman's and Chief Executive's
statements contained in this report, where appropriate to do so.
The Interim Report was approved by the Directors on 15 September 2025.
3. Revenue
Revenue disclosed in the income statement is analysed as follows:
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
£'000 £'000
Perpetual licence revenue 232 724 1,013
Recurring maintenance, support, SaaS and subscription revenue 14,816 11,995 24,933
Services income 3,306 3,533 6,448
18,354 16,252 32,394
Revenue is recognised for each category as follows:
· Perpetual licences - recognised at the point of transfer
(delivery) of the licence to a customer.
· Recurring revenue: other licences: SaaS, maintenance, support and
subscriptions - as these services are provided over the term of the contract,
revenue is recognised over the life of the contract.
· Services - recognised on delivery of the service.
4. Segmental information
Operating segments
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the chief
operating decision maker to allocate resources to the segments and to assess
their performance.
The chief operating decision makers have been identified as the Executive
Directors. The Group revenue is derived entirely from the sale of perpetual
software licences, subscription and SaaS software licences, software
maintenance and support and related services. Consequently, the Executive
Directors review the management information on the basis of this one unified
segment.
Geographical, product and sales channel information
Revenue by geographical segment represents revenue from external customers
based upon the geographical location of the customer.
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
£'000 £'000
UK 8,736 7,634 15,891
Scandinavia 3,316 2,893 5,830
Germany 1,598 1,874 3,058
USA 693 752 1,642
Rest of Europe 3,507 2,637 5,217
Rest of World 504 462 756
18,354 16,252 32,394
Revenue by product group
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
£'000 £'000
Revenue from software and related services:
Building Lifecycle 14,563 11,832 24,052
CAD and Visualisation 2,841 3,643 6,499
Other - third-party software 950 777 1,843
18,354 16,252 32,394
The Group utilises resellers to access certain markets. Revenue by sales
channel represents revenue from external customers.
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
£'000 £'000
Direct 17,730 15,640 31,075
Reseller 624 612 1,319
18,354 16,252 32,394
5. Operating profit
Operating profit for the period is after charging/(crediting) the following
items:
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
£'000 £'000
Software product development expense 1,049 1,038 2,467
Depreciation of property, plant and equipment 112 64 114
Depreciation of right-of-use assets 278 259 577
Amortisation of acquired intangible assets 315 277 626
Amortisation of other intangible assets 1,230 849 1,866
Share-based payments 323 103 60
(Profit)/loss on disposal of property, plant and equipment (24) - 6
Foreign exchange losses 34 7 67
Acquisition-related expenses and stamp duties 106 225 432
6. Finance income and costs
Finance income and costs disclosed in the income statement are set out below:
Six months to 30 June Year ended
31 December
2024
£'000
2025 2024
£'000 £'000
Finance income:
Bank and other interest receivable 108 117 310
Total finance income 108 117 310
Finance costs:
Bank overdraft and loan interest - - (7)
Interest expense for leasing arrangements (35) (31) (65)
Total finance costs (35) (31) (72)
Total net finance income 73 86 238
7. Basic and diluted earnings per share
The calculations of the earnings per share are based on profit after tax
attributable to the ordinary equity shareholders of the Company and the
weighted average number of shares in issue for the reporting period.
Six months to 30 June
2025 2024 Year to 31 December 2024
Profit Weighted EPS Profit Weighted EPS Profit Weighted EPS
attributable average (p) attributable average (p) attributable average (p)
to number of to number of to number of
shareholders shares shareholders shares shareholders shares
(£'000) (millions) (£'000) (millions) (£'000) (millions)
Basic earnings per share 1,646 82.5 2.0 1,275 82.4 1.5 3,334 82.3 4.0
Diluted earnings per share 1,646 83.2 2.0 1,275 83.2 1.5 3,334 83.2 4.0
Adjusted basic earnings per share 2,203 82.5 2.7 1,729 82.4 2.1 4,172 82.3 5.1
Adjusted diluted earnings per share 2,203 83.2 2.6 1,729 83.2 2.1 4,172 83.2 5.0
Shares held by the Employee Share Ownership Trust are excluded from the
weighted average number of shares in the period. Adjusted profit attributable
to shareholders is reconciled to reported profit attributable to shareholders
in note 12.
8. Dividends
Interim dividend
The Directors have recommended an interim dividend of 0.35 pence per ordinary
share (2024: interim dividend of 0.30 pence per ordinary share).
Dividends paid in the period
Dividends paid in the six months to 30 June 2025 consisted of a final dividend
of 0.70 pence per ordinary share (2024: 0.55 pence per ordinary share). Cash
dividends of £578,000 (2024: £453,000) were paid in the six months to 30
June 2025 as follows:
Six months to 30 June Year to 31 December
Ordinary Shares 2025 2025 2024 2024 2024 2024
per share £'000 per share £'000 per share £'000
Declared and paid during the period
Interim - current year - - -- - 0.30 247
Final - previous year 0.70 578 0.55 453 0.55 453
0.70 578 0.55 453 0.85 700
9. Cash and borrowings
The net cash position of the Group as at 30 June 2025 is set out below:
At 30 June At 31 December
2025 2024 2024
£'000 £'000 £'000
Cash and cash equivalents 12,234 12,002 13,975
Lease liabilities (1,364) (1,345) (578)
10,870 10,657 13,397
The UK banking facilities are with Barclays Bank plc and the Group facilities
comprise a £1.0m overdraft facility, carrying an interest rate of 1.75 per
cent over base rate (undrawn at 30 June 2025, 31 December 2024 and 30 June
2024).
10. Accruals and deferred income
At 30 June At 31 December
2024
£'000
2025 2024
£'000 £'000
Accruals 3,386 3,128 3,140
Deferred income 15,273 11,648 12,124
18,659 14,776 15,264
Deferred income represents income from the sale of software subscription
licences, SaaS licences and from software maintenance and support contracts
and is credited to revenue in the income statement on a straight-line basis in
line with the service and obligations over the term of the contract.
11. Related party disclosures
Transactions between Group undertakings, which are related parties, have been
eliminated on consolidation.
The Directors of the Company had no material transactions with the Company
during the period, other than a result of service agreements.
12. Additional performance measures
The Group uses adjusted figures, which are not defined by generally accepted
accounting principles ("GAAP") such as UK-IAS. Adjusted figures and underlying
growth rates are presented as additional performance measures used by
management, as they provide relevant information in assessing the Group's
performance, position and cash flows. We believe that these measures enable
investors to track more clearly the core operational performance of the Group,
by separating out items of income or expenditure relating to acquisitions,
disposals and capital items. Our management uses these financial measures,
along with UK-IAS financial measures, in evaluating the operating performance
of the Group.
Six months to 30 June Year ended
31 December 2024
£'000
2025 2024
£'000 £'000
Operating profit 1,914 1,547 4,056
Amortisation of intangible assets 1,545 1,126 2,492
Depreciation charge 390 323 691
EBITDA 3,849 2,996 7,239
EBITDA 3,849 2,996 7,239
Acquisition-related expenses and stamp duties 106 225 432
Share-based payments 323 103 60
Adjusted EBITDA 4,278 3,324 7,731
4,056
Operating profit 1,914 1,547
Acquisition-related expenses and stamp duties 106 225 432
Amortisation of acquired intangible assets 315 277 626
Share-based payments 323 103 60
Adjusted operating profit 2,658 2,152 5,174
4,294
Profit before taxation 1,987 1,633
Acquisition-related expenses and stamp duties 106 225 432
Amortisation of acquired intangible assets 315 277 626
Share-based payments 323 103 60
Adjusted profit before taxation 2,731 2,238 5,412
(960)
Tax charge (341) (358)
Acquisition-related expenses and stamp duties (27) (56) (108)
Amortisation of acquired intangible assets (79) (69) (157)
Share-based payments (81) (26) (15)
Adjusted taxation charge (528) (509) (1,240)
Profit after taxation 3,334
1,646 1,275
Acquisition-related expenses and stamp duties 79 169 324
Amortisation of acquired intangible assets 236 208 469
Share-based payments 242 77 45
Adjusted profit after taxation 2,203 1,729 4,172
4,172
Adjusted profit after taxation 2,203 1,729
Weighted average number of shares 82.5 82.4 82.3
Adjusted earnings per share (pence) 2.7 2.1 5.1
Cash generated from operations 10,676
5,532 5,829
Purchase of intangible assets (1,868) (1,561) (3,229)
Purchase of property, plant and equipment (34) (11) (85)
Acquisition-related expenses and stamp duties 106 225 432
Adjusted operating cash flow 3,736 4,482 7,794
7,794
Adjusted operating cash flow 3,736 4,482
Net interest received 73 86 238
Tax paid (471) (1,053) (1,716)
Proceeds from disposal of property, plant and equipment 32 - 2
Free cash flow 3,370 3,515 6,318
13. Exchange rates
The following exchange rates have been applied in preparing the condensed
consolidated financial statements:
Income statement Balance sheet Year to 31 December 2024
Six months to 30 June As at 30 June
2025 2024 2025 2024 Income Balance
Statement Sheet
Swedish Krona to Sterling 13.18 13.34 13.02 13.40 13.51 13.86
Euro to Sterling 1.19 1.17 1.17 1.18 1.18 1.21
Romanian Lei to Sterling 5.94 5.85 5.92 5.87 5.90 6.02
US Dollar to Sterling 1.30 1.27 1.37 1.26 1.28 1.25
14. Acquisition of PEMAC
On 14 January 2025, the Group, through its wholly owned subsidiary Elecosoft
Limited, acquired 100 per cent of the share capital of PMI Software Limited
("PEMAC") (the 'Acquisition') for a cash consideration of £5.5m. The
Acquisition's completion date was 14 January 2025. The Group funded the
Acquisition exclusively by utilisation of its existing internal cash resources
for this consideration. Cash and cash equivalents within the Acquisition
entity at the acquisition date totaled £0.8m and the Acquisition has no debt.
The acquisition net cash outflow is included in investing activities in the
consolidated cash flow statement.
PEMAC, located in Cork and Dublin, Ireland, is a recognised leader in
providing SaaS Computerised Maintenance and Management Software ("CMMS") and
specialist services in the market, used by over 100 blue-chip international
manufacturing companies. PEMAC has developed a strong reputation for its
ability to support clients in highly regulated sectors, including life
sciences and healthcare, through its robust software capabilities tailored to
meet industry-specific regulatory requirements.
The acquisition of PEMAC by Eleco plc highlights Eleco's shared commitment to
delivering innovative, customer-focused solutions in manufacturing, regulated
industries. PEMAC's expertise and proven capabilities will complement the
Group's existing ShireSystem Computerised Maintenance Management Software
("CMMS"), enhancing the overall offering to support customers' evolving needs.
PEMAC and ShireSystem are committed to maintaining the exceptional standards
of service and support their customers rely on. Over time, it is intended that
both organisations will collaborate to deliver technological advancements,
ensuring their customers benefit from enhanced solutions.
The transaction terms also provide for potential additional earn-out
consideration of up to €2.4m payable in two tranches in 2026 and 2027,
subject to the PEMAC business attaining specific performance targets agreed
with Eleco plc during the financial years ending 31 December 2025 and 31
December 2026. These specific performance targets are linked to achievement
of revenue targets over those two financial years, subject to minimum gross
margin thresholds. There were no non-controlling interests in relation to the
Acquisition.
For the above explanatory reasons, including the ability to repurpose the
acquisition towards our internal research and development roadmap, combined
with the anticipated profitability of PEMAC in other Group markets, synergies
arising, plus the ability to hire the assembled workforce of PEMAC (including
the founders and management team), the Group understandably paid a premium
over the acquisition net assets, giving rise, aside from the value of customer
relationships, to goodwill. All intangible assets, in accordance with IFRS3
Business Combinations, were recognised at their provisional fair values on
acquisition date, with the residual excess over net assets being recognised as
customer relationships, brands, development expenditure and goodwill.
Intangibles arising from the acquisition consist of customer relationships,
brands, and development expenditure and have been independently valued by
professional advisors.
The following table summarises the consideration and provisional fair values
of assets acquired and liabilities assumed at the date of the Acquisition
(they will be subject to possible revision in the annual report and accounts
for the year ended 31 December 2025):
£'000
Intangible fixed assets:
Customer Relationships 1,520
Brands 227
Development expenditure 1,246
Property, plant and equipment 57
Trade receivables and prepayments 401
Cash and cash equivalents 840
Corporation tax 320
Trade and other payables (476)
Deferred income (901)
Deferred tax (374)
Net assets acquired 2,860
Goodwill 2,618
Acquisition cost 5,478
There are no non-controlling interests in relation to the Acquisition.
Receivables at the acquisition date are expected to be collected in accordance
with the gross contractual amounts.
Fair values in the above table have only been determined provisionally and may
be subject to change in the light of any subsequent new information becoming
available in time. The review of the fair value of assets and liabilities
acquired will be completed within twelve months of the acquisition date.
The acquisition cost was satisfied by:
£'000
Cash 5,478
Share consideration -
Total consideration 5,478
The net cash outflow arising of acquisition was:
£'000
Cash consideration paid 5,279
Cash and cash equivalents within the PEMAC business on acquisition (840)
Total net cash outflow of acquisition 4,439
An additional completion accounts adjustment of £0.2m consideration due was
paid in August 2025.
Costs relating to the acquisition have not been included in the consideration.
Directly attributable acquisition costs include external legal and accounting
costs incurred in compiling the acquisition legal contracts and the
performance of due diligence activity and the fair value exercise, together
with stamp duty, total £0.3m. These costs have been charged in selling and
administrative expenses in the consolidated income statement in 2024 (£0.2m)
and 2025 (£0.1m).
PEMAC, in common with other Group companies, has a 31 December year end. In
the year to 31 December 2024, before Eleco plc Group control, PEMAC delivered
revenue of €2.6m (c.£2.2m) and a net profit before taxation of €0.0m
(c.£0.0m) based on unaudited figures and PEMAC's accounting policies. Had the
acquisition taken place from the start of the Group's financial year (from 1
January 2024) and based on figures and accounting policies prior to Eleco plc
Group control, management estimate the contribution towards Group revenues
would be of a similar quanta.
Had the acquisition taken place from the start of the Group's financial year
(from 1 January 2025) and based on figures and accounting policies prior to
Eleco plc Group control, management estimate that PEMAC would have contributed
revenue of €1.3m (£1.0m) and profit before taxation of €0.0m (£0.0m) to
the Group results in this first half year. For the five and a half months
since the Acquisition date, PEMAC contributed €1.3m (£1.1m) of revenue and
net profit before taxation of €0.2m (£0.2m).
The above figures are provisional and the Group will work through the fair
value exercise under IFRS 3 and provisional disclosures will be reported in
the Group's annual report and accounts for the year ended 31 December 2025.
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