REG - Eleco PLC - Year-end Trading Update

ElecoAnnouncement

28/01/2025 07:00

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RNS Number : 8635U  Eleco PLC  28 January 2025

RNS

28 January 2025

Eleco plc

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

Year-end trading update

 

Strong 2024 and ahead of Market Forecasts

 

The Board of Eleco plc (AIM: ELCO), the specialist software provider for the
built environment, provides a trading update for the year ended 31 December
2024, based on unaudited management accounts for the period.

 

Despite global macroeconomic and geopolitical headwinds, Eleco continued to
progress on its growth strategy:

 

·    Total Revenue is estimated to be ahead of prior year by 16% at
£32.4m (2023: £28.0m). and by 17% to £32.8m in constant currency terms.
Estimated organic growth was 9%, excluding acquisition effects(1).

·   Annualised Recurring Revenue(2) ("ARR") at 31 December 2024 increased
18% to c.£26.6m (£22.6m at 31 December 2023).

·    Total Recurring Revenue(3) ("TRR") increased 20% to c.£24.9m (2023:
£20.7m), representing 77% of total revenue, and 79% excluding the Vertical
Digital Acquisition (2023: 74% of total revenue).

·   Cash at 31 December 2024 was £14.0m(4) (at 31 December 2023:
£10.9m), reflecting strong cash generation, outside of an acquisition payment
and related costs for Vertical Digital of £1.3m, and increased Interim and
Final Dividends.

·    The Group remains free of debt.

 

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

 

Jonathan Hunter, Chief Executive Officer of Eleco plc said:

 

"We are delighted to report continued success and improvements in Eleco's
trading performance for the full 2024 financial year, which was ahead of
market consensus, while reaching several strategic milestones for the Group.
We demonstrated solid growth in total and recurring revenues and delivered
strong cash generation despite acquisition payments and dividend increases."

 

"Strategically, we enhanced our technical capabilities, talent and scalability
through the acquisition of Vertical Digital and more recently strengthened our
Asset Management operations with the acquisition of PEMAC."

 

"Eleco is recognised as a Great Place to Work® and we are very proud that
anyone joining the Company becomes part of our talented and diverse team of
over 300 colleagues.  We believe that we are not simply a technology business
but a trusted partner to our customers, supporting their success through our
solutions."

 

"As Eleco continues to strengthen its reputation, we remain excited about
opportunities open to us."

 

(1) Revenues in 2024 include the full year contribution of the BestOutcome
acquisition and approximately eight and a half months' contribution of the
Vertical Digital acquisition.  There is no contribution from the PEMAC
acquisition announced post 2024 year end.  (3  2) ARR is defined as
normalised annualised recurring revenues and includes revenues from
subscription licences, 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.
 

 

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

 

(4) Post year end, the cash in the Group reduced following the payment of the
initial consideration for PEMAC of €6.0m (c£5.1m).

 

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)

 

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
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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