REG - Eleco PLC - Trading Update

ElecoAnnouncement

24/07/2025 07:00

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RNS Number : 3153S  Eleco PLC  24 July 2025

RNS

24 July 2025

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 2025 (the 'Period'), based on unaudited management accounts for
the Period.

 

Trading highlights

 

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

 

·    ARR(1) at 30 June 2025 increased 19% to c.£30.7m (£25.8m at 30 June
2024), a record amount for the Group.

·    TRR(2) increased by approximately 23% to £14.8m (H1 2024: £12.0m),
representing 81% of total revenue (H1 2024: 74% of total revenue). Organic(3)
TRR increased approximately 16% to £13.9m (H1 2024: £12.0m).

·    Total revenue for the period increased by 13% to circa £18.3m and in
constant currency terms approximately £18.4m (H1 2024: £16.3m).

·    Cash at 30 June 2025 was £12.2m (at 30 June 2024: £12.0m; at 31
December 2024: £14.0m) reflecting strong cash generation notwithstanding the
PEMAC acquisition consideration and related costs of circa £5.2m and an
increased final dividend payment of £0.6m (H1 2024: final dividend payment of
£0.5m).

·    The Group remains free of debt.

 

(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) H1 of 2025 includes approximately five and a half months contribution of
the PEMAC acquisition.  The prior interim period included 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:

"The Group has delivered record recurring revenue in H1 2025, strong cash
generation and improved operational gearing, despite challenging geopolitical
and macroeconomic conditions. New customer acquisition ("new logos") and
expansion within the existing recurring revenue customer base are progressing
well and we continue to see positive opportunities following the successful
acquisition of PEMAC, which has broadened our CMMS Asset Management and
Maintenance customer base."

 

"During the period, construction markets have continued to experience deferred
pipelines which in turn have reduced growth in our one-off services and
training income.  We have implemented measures and initiatives to mitigate
and address these non-recurring effects as we expand recurring revenues, which
now account for 81% of total revenues at the half year."

 

"The Board remains confident in delivering results 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 / 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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