REG - Eleco PLC - Trading Update

ElecoAnnouncement

27/07/2022 07:00

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RNS Number : 8156T  Eleco PLC  27 July 2022

27 July 2022

Eleco Plc

 

("Eleco", "Group" or "the Company")

 

H1 Trading Update

 

The Board of Eleco plc (AIM: ELCO), the AIM-listed construction software
specialist, is pleased to provide a trading update for the six months ended 30
June 2022, based on unaudited management accounts for the period.

 

·   Recurring revenue for the period increased by 9% to £8.2m (2021:
£7.5m) and is approximately 61% (2021: 55%) of total revenue.

 

·   Total revenues for the period were £13.4m (2021: £13.8m) and £13.8m
at constant currency.

 

·   Profits remain in line with expectations.

 

·   Strong cash generation during the period with a net cash position of
£11.3m (£10.0m at 31 December 2021) following payment of final dividend in
June of £0.3m.

 

Jonathan Hunter, Chief Executive Officer of Eleco plc said,

 

"We are pleased with Eleco's performance in the first six months of 2022
despite the challenging economic conditions. There are increasing inflationary
pressures on salaries across the Group which have been addressed through a set
of initiatives aimed at retaining existing colleagues and attracting new
talent and I am pleased to report that in May we were certified as a Great
Place to Work®.

 

In the period, the pandemic continued to impact our ability to market at trade
fairs and we saw reduced demand for services and sales of new licences across
the portfolio in Germany.  In the UK and Swedish markets however, we
experienced growth in new and existing customer subscription revenue and our
consistently strong renewal rates on maintenance contracts ensured positive
progress towards our strategy to expand our higher value and predictable
recurring revenue.

 

The Board remains confident in delivering in line with market expectations for
the full year."

 

 

Enquiries:

 

 Eleco plc                                                        +44 (0)20 7422 8000
 Jonathan Hunter, Chief Executive Officer
 Rose Clark, Interim Chief Finance Officer

 finnCap Limited                                                  +44 (0)20 7220 0500
 Geoff Nash / Kate Bannatyne / James Balicki (Corporate Finance)
 Richard Chambers / Charlotte Sutcliffe (ECM)

 SEC Newgate UK                                                   +44 (0)20 3757 6882
 Elisabeth Cowell / Bob Huxford / Isabelle Smurfit                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 Architectural, Engineering, Construction
and Owner/Operator (AECO) industries and interior furnishing industries from
centres of excellence in the UK, Sweden, Germany and the Netherlands.

The Company's market-leading Elecosoft software solutions are developed by
teams in the United Kingdom, Sweden and Germany, and its solutions cover
project management, estimating, timber engineering, CAD and visualisation,
asset and facility management and cloud-based digital marketing solutions.

For further information please visit www.eleco.com (http://www.elecosoft.com/)
.

 

 

 

 

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