REG - Eleco PLC - Year-end Trading Update

ElecoAnnouncement

23/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240123:nRSW5314Aa&default-theme=true

RNS Number : 5314A  Eleco PLC  23 January 2024

RNS

23 January 2024

Eleco plc

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

Year-end trading update

 

Record Recurring Revenue Growth

 

The Board of Eleco plc (AIM: ELCO), the specialist software provider for the
built environment, is pleased to provide a trading update for the year ended
31 December 2023, based on unaudited management accounts for the period.

 

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

 

·    ARR at 31 December 2023 was approximately £22.6m (at 31 December
2022: £18.2m) an increase of 24%.

·    TRR increased to c. £20.7m (2022: £16.9m) up 22%, and representing
74% of total revenue in 2023, an increase from 64% of total revenues in
2022.

·    Anticipated revenues are estimated to be £28.0m (£28.3m in constant
currency terms) and ahead in underlying and constant currency terms by 11%
when compared with prior year 2022 reported revenue of £26.6m.

·    Cash as at 31 December 2023 was £10.9m reflecting strong cash
generation outside of an acquisition payment and related costs of £3.8m and
increased Interim, Final and Special Dividends.

·    The Group remains free of debt.

 

Jonathan Hunter, Chief Executive Officer of Eleco plc said:

 

"Despite challenging macroeconomic climates and geopolitical uncertainties,
Eleco has continued to deliver a robust performance with its underlying
revenue growth, and profitability is expected to be ahead of consensus.  This
reflects our strategic switch to a SaaS business model and our focus on higher
margin core products, and the discontinuation of products that were not
contributing to the future of the Group.  Our focused approach to delivering
on our strategy was well demonstrated in 2023, through the expansion of our
Portfolio Project Management capabilities in 2023 with the acquisition of
BestOutcome and the divestment of Arcon.

 

"Eleco continues its expansion into the US markets introducing a direct sales
approach, having attracted in excess of 40 new direct customers following
focused investment on sales and marketing.  Our commitment to innovation and
excellence was once again demonstrated as Asta Powerproject was awarded
'Project Management Software of the Year' at the UK Construction Computing
Awards for the tenth consecutive year.

 

"We continue to see exciting opportunities with the long-term market growth
trends and drivers in the geographies we operate in. Given our established
positioning and cash-generative SaaS business model, we are confident of
another year of strong organic growth, supplemented by further acquisitions,
to widen our international reach and customer-focused capabilities."

 

The Group's year end results will be published in April, with a date to be
confirmed in due course.

( )

(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. Normalisation is calculated using the
recurring revenue in the final month of the year, multiplied by 12. This ARR
figure is calculated including the contribution from the BestOutcome business
to the Group going forward.

 

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)
 Tim Redfern/ 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/) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTSEAESEELSEIF