REG - Eleco PLC - Trading Update

ElecoAnnouncement

25/07/2024 07:00

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RNS Number : 7334X  Eleco PLC  25 July 2024

RNS

25 July 2024

Eleco Plc

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

 

H1 Trading update

 

The Board of Eleco plc (AIM: ELCO), the specialist software provider for the
built environment, is pleased to provide a trading update for the six months
ended 30 June 2024 (the 'Period'), based on unaudited management accounts for
the Period.

 

Trading highlights

 

Eleco delivered further record growth in both Annualised Recurring
Revenue(1) ("ARR") and Total Recurring Revenue(2)  ("TRR"), reflecting
continued progression on its growth strategy.

 

·    ARR at 30 June 2024 increased 31% to circa £25.8m (£19.7m at 30
June 2023).

·    TRR  increased by approximately 24% to £12.0m (H1 2023: £9.7m),
representing 74% of total revenue (H1 2023: 72% of total revenue), and 75% of
total revenue excluding the effects of the Vertical Digital acquisition.

·    Total revenue for the period increased by 21% to circa £16.3m and in
constant currency terms approximately £16.5m (H1 2023: £13.5m). The organic
growth rate for the period over its comparable period was 12%, excluding
acquisition effects(3).

·    Cash as at 31 June 2024 was £12.0m (at 30 June 2023: £9.4m; at 31
December 2023: £10.9m) reflecting strong cash generation notwithstanding the
Vertical Digital acquisition consideration of £1.1m and an increased final
dividend payment of £0.5m (H1 2023: final dividend payment of £0.4m).

 

(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 with the
inclusion of contributions from acquisitions as part of the Group business
going forward.

(2) TRR is defined as the recurring revenues from subscription licences,
contract values of annual support and maintenance, and SaaS contracts

(3) Revenues in  H1 of 2024 include the first half contribution of the
BestOutcome acquisition and also approximately two and a half months
contribution of the Vertical Digital 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 proud to report positive momentum in Eleco's trading performance for
the first six months of the 2024 financial year, moving significantly ahead of
the first six months of 2023.

 

"As anticipated with the launch of AstaGPT, our customers have benefited from
using Generative AI to find tailored support from the wealth of our knowledge
bank of documentation.  AstaGPT was shortlisted for the Innovation of the
Year at the Digital Construction Awards 2024.  We also recently launched Asta
Vision Live(TM), a powerful new collaboration capability which allows multiple
project planners and stakeholders to work simultaneously on a project in an
encrypted, SaaS cloud-based environment.

 

"Integration of the April-acquired Vertical Digital business is progressing
well.  This has bolstered our ability to meet our internal technical
resourcing demands, utilising its proven track record in agile and innovative
software development and consulting.

 

"Eleco is well positioned in an attractive market that is increasingly
utilising technology to meet the demands of the built environment and the
Company continues to strengthen its reputation as a trusted provider of
best-of-breed technology solutions.

 

"The Board remains confident that Eleco will perform in line with 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

 Cavendish Capital Markets Limited                            +44 (0)20 7220 0500
 Geoff Nash/ Emily Watts/ Seamus Fricker (Corporate Finance)
 Louise Talbot/ Tim Redfern/ Harriet Ward (ECM)

 

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, Verticial Digital and Veeuze from centres of
excellence in the UK, Sweden, Germany, the Netherlands, Romania 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/) .

 

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