UK's Eleco H1 revenue rises 8% amid portfolio changes
UK's Eleco H1 revenue rises 8% amid portfolio changes
Overview
UK built environment software provider's H1 revenue rose 8% yr/yr
Adjusted basic EPS for H1 climbed 85% yr/yr
Company will not declare further dividends before Avocet Bidco acquisition completes
Outlook
Company says no further dividends will be paid prior to Avocet Bidco acquisition becoming effective
Eleco says it is well positioned to harness positive industry drivers and pursue organic growth
Company will continue to evaluate select acquisition opportunities to enhance market position
Result Drivers
RECURRING REVENUE - Record recurring revenue accounted for 85% of total H1 revenue, with organic growth of 20%, per CEO Jonathan Hunter
PORTFOLIO CHANGES - Divestment of Veeuze business improved earnings quality, per CEO Jonathan Hunter
TECHNOLOGY INNOVATION - New product releases and expanded use of AI supported customer retention and expansion, per CEO Jonathan Hunter
Company press release: ID:nRSO7107Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 19.86 mln |
|
H1 EBIT |
| GBP 4.003 mln |
|
H1 Gross Profit |
| GBP 17.68 mln |
|
H1 Pretax Profit |
| GBP 5.16 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Eleco PLC is GBp205.00, about 10.5% below its September 14 closing price of GBp229.00
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Sept 14 - UK's Keystone Law interim revenue rises 22.5% yr/yr
Sept 14 - UK's GlobalData half-year revenue rises on acquisitions
Sept 14 - Microsoft drafts code of conduct to keep its AI under human control
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)