REG - Eleco PLC - Trading Update

ElecoAnnouncement

27/07/2023 07:15

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RNS Number : 3155H  Eleco PLC  27 July 2023

27 July 2023

Eleco Plc

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

 

H1 Trading Update

 

The Board of Eleco plc (AIM: ELCO), the AIM-listed specialist software
provider for the built environment, is pleased to provide a trading update for
the six months ended 30 June 2023 (the 'Period'), based on unaudited
management accounts for the Period:

 

·    Annualised recurring revenues(1) (ARR) at 30 June 2023 increased 18%
to circa £19.7m (£16.7m at 30 June 2022).

·    Total recurring revenues (TRR) for the Period increased by
approximately 18% to £9.7m (H1 2022: £8.2m), representing 72% of total
revenue (H1 2022: 61% of total revenue).

·    Total revenues for the Period are expected to be circa £13.5m (H1
2022: £13.4m).  Revenues in the first half of 2023 reflect the SaaS
transition and also the impact of the end-of-life of the Group's Memmo and
Sitecon products, the end-of-life of a third-party resold product in Sweden,
and the absence of the revenue contribution from the German ARCON business
disposed of in February 2023.

·    Underlying cash generation in the business remained strong.  The
cash position at the Period end of £9.4m (at 30 June 2022: £11.3m; at 31
December 2022: £12.5m) is reflective of the recently announced acquisition of
BestOutcome Ltd.  The Period end balance is following the net cash
consideration of £3.5m and an increased final dividend and special dividend
payments totalling £0.9m in the Period (H1 2022: £0.3m).

 

(1) ARR is defined as normalised annualised recurring revenues and includes
revenues from subscription licenses, contract values of annual support and
maintenance, and SaaS contracts. This ARR figure is calculated prior to the
inclusion of the forthcoming contribution from the BestOutcome acquisition.

 

The Interim Results will be reported in full in September with a date to be
confirmed in due course.

 

Jonathan Hunter, Chief Executive Officer of Eleco plc said:

 

"We are delighted with Eleco's trading performance for the first six months of
the financial year, and we remain in line with market expectations for the
financial year.

 

"As we emerge from H1 2023, which we previously flagged would be the low point
of the temporary financial impact of the SaaS transition, we are reporting
revenues above those of H1 2022 and we look forward to an acceleration in
total revenue growth for the remainder of the year and beyond.

 

"We commence the second half of 2023 with the reintroduction of the recognised
and respected Asta product brand to reflect our suite of broader project
scheduling solutions.

 

"The recent addition of BestOutcome Ltd to the Eleco family, with its SaaS
recurring revenues, strengthens the existing Building Lifecycle portfolio and
further builds our offering to a more diverse customer base to solve the
challenges of the Built Environment.  Integration work is already well
underway.

 

"Eleco continues to deliver on its SaaS strategic journey, focussing on
increasing organic recurring revenues, supplemented by inorganic growth
opportunities, to the benefit of its customers and shareholders.  The Board
therefore remains confident in Eleco delivering market expectations for the
full year."

 

 

For further information, please contact:

 Eleco plc                                                    +44 (0)20 7422 8000
 Jonathan Hunter, Chief Executive Officer
 Neil Pritchard, Chief Financial Officer

 finnCap Limited                                              +44 (0)20 7220 0500
 Geoff Nash/ Emily Watts/ Seamus Fricker (Corporate Finance)
 Charlotte Sutcliffe / Harriet Ward (ECM)

 SEC Newgate UK                                               +44 (0)20 3757 6882
 Elisabeth Cowell/ Bob Huxford                                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 and Veeuze from centres of excellence in the UK,
Sweden, Germany, the Netherlands and the US.

 

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/) .

 

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