REG - Eleco PLC - Final Results
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RNS Number : 1070C Eleco PLC 28 April 2026
RNS
28 April 2026
Eleco Plc
("Eleco", the "Group" or the "Company")
Annual Results
Audited Results for the Year Ended 31 December 2025
Strong Growth with Revenues, Adjusted Profitability and Cash ahead of Market
Expectations
The Board of Eleco plc (AIM: ELCO), the specialist software provider for the
built environment, is pleased to announce its audited results for the year
ended 31 December 2025:
Financial highlights
Revenues
· Total Revenues: £38.8m (at constant currency £38.4m) (2024:
£32.4m), an increase of 20%
· Annualised Recurring Revenues (ARR)(1) at 31 December 2025: £34.3m
(at 31 December 2024: £26.6m), an increase of 29%
· Total Recurring Revenue (TRR)(2): £31.3m (2024: £24.9m), an
increase of 26%, representing 81% of reported revenue (2024: 77% of reported
revenue)
Profitability
· Adjusted EBITDA(4): £10.2m (2024: £7.7m), an increase of 32%
· Adjusted profit before tax(4): £7.3m (2024: £5.4m), an increase of
35%
· Adjusted profit after tax(4): £5.2m (2024: £4.2m), an increase of
24%
· Adjusted basic earnings per share(4): 6.3p (2024: 5.1p), an increase
of 24%
· EBITDA(3) before impairment(5): £9.2m (2024: £7.2m), an increase of
28%
· EBITDA(3) after impairment(5): £6.9m (2024: £7.2m), a decrease of
4%. The impairment charge relates to Veeuze, the Group's former
Visualisation business.
· Profit before taxation (PBT): £2.8m (2024: £4.3m), a decrease of
35%
· Profit after taxation (PAT): £1.3m (2024: £3.3m), a decrease of 61%
· Basic earnings per share: 1.6p (2024: 4.0p), a decrease of 60%
Cash and dividends
· Cash: Strong cash generation with cash at 31 December 2025 up 16% to
£16.3m (at 31 December 2024: £14.0m) despite acquisition payments and
related costs for the PMI Software Ltd (Pemac) acquisition of £4.6m, and
increased Interim and Final Dividends in 2025
· The Group remains free of debt
· Free cash flow(6): £8.2m (2024: £6.3m), an increase of 30%
· Final dividend: 0.85p per share (2024: 0.70p per share), an increase
of 21%
· Total proposed final and interim dividends: 1.20p per share (2024:
1.00p per share), an increase of 20%
Operational highlights
M&A Strategy
· Acquisition in January 2025 of Pemac, based in Ireland, a recognised
leader in providing SaaS Computerised Maintenance and Management Software
(CMMS), complementing the Group's existing ShireSystem CMMS software.
· Acquisition post year end of Kivue Ltd, a leading UK-based provider
of Project Portfolio Management (PPM) SaaS software and associated services,
complementing the Group's PM3 PPM software.
· Post year end, disposal of non-core Veeuze GmbH (Veeuze), a non-core,
wholly owned German-based Visualisation business to a management buy-out,
reinforcing the Group's strategic focus on its higher growth Building
Lifecycle businesses and continued emphasis on shareholder value.
Technology
· Asta Powerproject awarded 'Project Management Software of the Year'
at the UK Construction Computing Awards for the twelfth consecutive year,
together with the prestigious 'Company of the Year' award, recognising Eleco's
commitment to innovation and excellence in the construction industry.
· Release of Asta Vision Plus(TM), a new extension to the Asta
Vision(TM) platform, introducing API-led capabilities that prepare customers
for predictive, AI-driven planning. Asta Vision Plus provides customers with
structured access to project data, deep integration capability with
third-party systems, including specialist construction content platforms as
well as large language model-based AI systems.
Post year end release of Asta Estimate(TM) in the UK, a software solution for
construction and carbon estimating used for tenders, improving productivity
and to reduce project risk. Asta Estimate is the only solution in the UK
market that integrates cost, carbon, and schedule data into a single workflow
via direct links to Asta Powerproject. This unique integration enables users
to manage estimates alongside project schedules and sustainability metrics
from the outset.
· Advances in AI have enabled the Group to enhance its products,
protect its installed customer base and reinforce its position in complex,
highly regulated, human‑led industries, while also accelerating rapid
prototyping and innovation.
Growth
· Record recurring revenue growth and record year-on-year software
revenue growth.
· Onboarded high-profile retail property customers comprising one of
the top 10 UK supermarket retailers and two leading international fashion
brands, marking continued momentum in expanding the Group's global and
domestic market presence.
· Recertifications under the revised ISO 27001:2022 accreditations for
Elecosoft UK, BestOutcome, and Pemac.
· Improved operational gearing and enhanced adjusted profitability,
together with further increased interim and final dividends.
Jonathan Hunter, Chief Executive Officer of Eleco plc, said:
"Eleco delivered further improvement in revenue, recurring revenues and
adjusted profitability during 2025, despite a challenging geopolitical and
macroeconomic backdrop. Performance for the year was ahead of market
expectations across revenue, adjusted profitability, and cash generation,
reflecting the resilience of the Group's business model, the execution of our
strategy and our continued focus on customers. "
"The successful integration of Pemac has strengthened the Group's asset and
maintenance management capabilities, while post year end the acquisition of
Kivue has further enhanced our PPM software offering. The divestment of our
non-core Visualisation business through a management buy-out has simplified
the portfolio, improved the quality of earnings and protected shareholder
value, while enabling management to accelerate growth across its core
products."
"The Group has entered 2026 with a more streamlined and high-quality
portfolio. The Board remains firmly focused on strategic execution, organic
growth and selective investment to drive sustainable shareholder value, and is
confident in the outlook for 2026."
(1) 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 is calculated as normalised recurring
revenue in the final month of the year multiplied by twelve. This ARR figure
is calculated including the contribution from acquisitions to the Group going
forward.
(2) TRR is defined as the recurring revenues from subscription licences,
contract values of annual support and maintenance, and SaaS contracts.
(3) EBITDA is defined as Earnings before Interest, Tax, Depreciation, and
Amortisation.
(4) Adjusted measures are further defined in note 8 of this preliminary
results statement with audited financials.
(5) Impairment refers to the impairment of the carrying value of the assets of
the Group's former Visualisation business, Veeuze, of £2.3m in the year ended
31 December 2025 (2024: £Nil).
(6) Free cash flow is defined as adjusted operating cash flow, adjusted for
tax, interest and any disposals of property, plant and equipment. See also
note 8.
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)
SEC Newgate UK +44 (0)20 3757 6882
Bob Huxford / Harry Handyside 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, Pemac, Kivue, Eleco Technologies from centres
of excellence in the UK, Ireland, Sweden, Germany, the Netherlands, Romania,
Australia 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, Building Information Modelling
(BIM) and property management.
For further information please visit www.eleco.com
(http://www.elecosoft.com/) .
Chairman's Statement
Introduction
I am pleased to report another year of strong growth for Eleco. In 2025 we
delivered growth ahead of market expectations while achieving record levels of
recurring revenue.
The pace of change within the industries and markets we serve continues to
accelerate, with our customers embracing greater use of technology. Within
that they are adopting digital workflow solutions, while seeking meaningful
efficiencies through the harnessing and joining up of data, and effective use
of artificial intelligence. Eleco, with its proven, world-class and
comprehensive portfolio of software solutions across the product lifecycle, is
extremely well positioned to capitalise on these growth drivers. Whether it be
cost management, scheduling, project delivery or asset management and
facilities, we have a solution and the industry-trusted experience to cater
for our customers' needs.
Strategic Progress
Organically, we continue to make key senior strategic hires as Eleco scales.
Structurally, we are moving to a business model that focuses the Group on
verticals and sector knowledge. Internal resources, systems and reporting all
align to this objective.
Alongside this organic growth we remain active in the M&A space. In
January 2025, we acquired and successfully integrated the Pemac business in
Ireland. With this broader Group geographic footprint, Pemac, alongside
ShireSystem, creates a strengthened, market-leading offering to the
Computerised Maintenance Management System ('CMMS') market globally.
Post year end, in February 2026, Eleco complemented its Project Portfolio
Management ('PPM') software offering with the acquisition of Kivue Ltd, with
its focus on larger enterprise projects and a senior management and C-Suite
audience. Integration of our two PPM businesses, Kivue and BestOutcome, into
one is already underway. Following a comprehensive review, evaluation of
strategic alternatives, and performance challenges, the Board has decided to
strategically exit our Visualisation business, Veeuze, selling it to the
current management team. This decision results in an impairment to the
carrying value of this subsidiary, resulting in a non-cash charge to the
income statement.
More generally, we continue to execute on our longer term strategy and
identify and target potential M&A opportunities that meet our strategic
objectives and deliver enhanced shareholder value.
Performance
The world is presently challenged with macroeconomic uncertainties and
geopolitical headwinds. Despite this backdrop, the operational performance of
the business continues to impress. Revenues, recurring revenues and operating
profitability were all ahead of market forecasts.
Total revenue improved by 20 per cent to £38.8m (2024: £32.4m) (or 19 per
cent on a constant currency basis to £38.4m). Following on from similar
levels at the half year, yet with increased contribution from service
revenues, total recurring revenues represented 81 per cent of total revenues
(2024: 77 per cent). ARR (Annualised Recurring Revenue) was up 29 per cent to
£34.3m (2024: £26.6m). TRR (Total Recurring Revenue) increased by 26 per
cent to £31.3m (2024: £24.9m). Details on these recurring revenue
definitions are provided in note 8.
The 2025 results demonstrate improved returns to our shareholders through
improved profitability from our increasing scale. Adjusted EBITDA was higher
by 32 per cent to £10.2m (2024: £7.7m), Adjusted profit before taxation was
up 35 per cent to £7.3m (2024: £5.4m), Adjusted profit after taxation
increased by 24 per cent to £5.2m (2024: £4.2m) and Adjusted EPS rose by 24
per cent to 6.3 pence per share (2024: 5.1 pence per share). Statutory
measures are impacted by the impairment discussed earlier and in the CEO
Report.
In uncertain macroeconomic and geopolitical times, Eleco's robust balance
sheet derived from its cash and absence of gearing, provides resilience. The
Group also continues to enjoy a strong operating cash generation,
notwithstanding the net cash requirements and related costs of the Pemac
acquisition, totalling £4.6m, and an increased interim and final dividend
payment to our shareholders. At 31 December 2025, cash was £16.3m (at 31
December 2024: £14.0m). After year end, the Kivue purchase led to a
consideration outflow in cash terms of £1.8m. The Group remains free of debt.
Governance and Employees
We remain on the concerted journey of investing in people, systems and
governance for the Group. The quality of our teams and of their teamwork are
fundamental to the future success and growth of our business. On behalf of the
whole Board, I provide my sincere thanks for their continued efforts,
dedication and success.
Dividends
Eleco advocates a progressive and sustainable dividend policy. Continuing with
returns commensurate with the ongoing improvement in underlying performance of
the Group, the Board is proposing a final dividend of 0.85 pence per share
(2024: 0.70 pence per share), which, with the interim dividend of 0.35 pence
per share (2024: 0.30 pence per share), gives a combined total for the year of
1.20 pence per share, (2024: total of 1.00 pence per share), up 20 per cent.
The final dividend is payable on 3 July 2026 to shareholders on the Register
on 19 June 2026. The ex-dividend date will be 18 June 2026.
Current Trading and Outlook
In 2025 Eleco delivered growth across all metrics, exceeding consensus market
expectations for revenues, recurring revenues and operating profitability. We
continue to deliver on our strategic objectives to further scale and enhance
the Group both organically and inorganically, and look forward to that
fulfilment.
Eleco has a diversified product solution portfolio which, despite some ongoing
challenging market conditions in some verticals and sectors, remains well
positioned in its innovation, resilient high recurring revenue business model
and customer centricity and domain experience. With this foundation and
positive market drivers, the Board is confident of the financial outlook in
2026.
Mark Castle
Chairman
27 April 2026
CEO Report
I am pleased to report that annual results for the full year ended 31 December
2025 are ahead of market expectations for revenue, operating profitability and
cash generation. Recurring revenues exceeded previous record levels and now
account for 81 per cent of total revenues (2024: 77 per cent), further
strengthening the quality and resilience of the Group's earnings.
This improved performance reflects the successful execution of our strategy,
driven by our go-to-market initiatives (ARE: Attain new customers, Retain
existing customers and Expand customer relationships); continued investment in
technology and innovation, and a focused approach to M&A.
We are pleased with the acquisition and successful integration of PMI Software
Limited, Ireland (trading as "Pemac") in January 2025; a recognised leader
alongside ShireSystem, in the SaaS Computerised Maintenance and Management
Software (CMMS) market. More recently, in February 2026, we acquired Kivue
Ltd, a UK-based project portfolio management (PPM) software business. Also in
2026, we have taken the difficult but necessary strategic decision to exit and
impair our Visualisation business, allowing us to focus our capital and
management attention on our higher-growth Building Lifecycle businesses going
forward.
Trading
Group revenues increased by 20 per cent to £38.8m (2024: £32.4m), and by 19
per cent in constant currency terms to £38.4m. Organic growth was 11 per
cent, excluding the impact of acquisitions.
Total Recurring Revenue ("TRR"), representing recurring revenues recognised
across the year, increased by 26 per cent to £31.3m (2024: £24.9m),
representing 81 per cent of total Group revenues (2024: 77 per cent).
Annualised Recurring Revenue ("ARR"), calculated as normalised recurring
revenue for December 2025 multiplied by twelve, increased by 29 per cent,
reaching a new record of £34.3m (2024: £26.6m).
Within total revenues, UK customer-generated revenue increased by 16 per cent
to £18.4m (2024: £15.9m), representing 47 per cent of total Group revenues
(2024: 49 per cent). Overseas revenues grew by 24 per cent to £20.4m (2024:
£16.5m), accounting for the remaining 53 per cent of total revenues (2024: 51
per cent). Despite ongoing macroeconomic challenges in the visualisation
services sector in Germany, the overseas contribution was supported by
improved trading in Sweden and the Rest of World, together with the
contribution from the Pemac acquisition in Ireland.
Revenue growth, together with improved gross margins and control of overheads,
including the absorption of additional acquisition cost bases, resulted in
higher operating profitability. Adjusted Operating Profit (adjusted for
non-recurring M&A costs, amortisation of acquired intangibles, share-based
payments and before impairment) increased by 40 per cent to £7.3m (2024:
£5.2m).
Adjusted EBITDA increased by 32 per cent to £10.2m (2024: £7.7m). Adjusted
profit before taxation rose by 35 per cent to £7.3m (2024: £5.4m) while
Adjusted profit after taxation increased by 24 per cent to £5.2m (2024:
£4.2m). Adjusted basic earnings per share increased to 6.3 pence per share, a
24 per cent increase over the prior year (2024: 5.1 pence per share).
Definitions of Adjusted performance measures are set out in note 8.
Statutory profitability measures include the impact of one-off items, most
notably the impairment of the carrying value of assets relating to the Group's
former Visualisation business, Veeuze GmbH of £2.3m (2024: £nil). As a
result, statutory operating profit decreased by 32 per cent to £2.8m (2024:
£4.1m) and profit before taxation was 35 per cent lower at £2.8m (2024:
£4.3m). Profit after taxation decreased to £1.3m (2024: £3.3m). EBITDA,
before impairment however, increased by 28 per cent to £9.2m (2024: £7.2m).
Statutory basic earnings per share decreased to 1.6 pence per share (2024: 4.0
pence per share).
The Group remains debt free and strongly cash generative. Cash at 31 December
2025 was £16.3m (at 31 December 2024: £14.0m). The strong position was
achieved despite £4.6m of consideration and associated costs, less cash
acquired, relating to the Pemac acquisition, together with increased interim
and final dividend payments totals in year £0.9m (2024: £0.7m). Subsequent
to the year end, cash reduced by £1.8m following the settlement of the cash
consideration element of the Kivue acquisition, prior to acquisition-related
expenses.
Strategy
Eleco's long-term vision is to strengthen its digital presence, deepen
customer engagement and relationships, and expand its market reach through
strategic investments, technological advancements and clear, consistent brand
direction. Through this strategy, Eleco aims to lead in providing digitally
transformative solutions for the built environment. Central to this strategy
is our belief that technology should enhance, not replace, professional
expertise. The built environment is characterised by complexity, regulation
and human judgement, where outcomes depend on skilled decision making rather
than automation alone. Our solutions are therefore designed to keep people
firmly "in the loop", using digital tools and artificial intelligence to
remove friction, improve insight and allow customers to apply their expertise
more effectively.
The Group's established and robust Growth Platform is underpinned by three
strategic pillars:
1. Go-to-Market
2. Technology and Innovation
3. Mergers and Acquisitions (M&A)
Go-to-Market
We have continued to enhance sales and marketing techniques, improve sales
forecasting and pipeline analysis and implement customer success initiatives
such as premium support. This has once again resulted in an increase in the
average Annualised Recurring Revenue (ARR) per customer and a higher average
number of licences per customer.
In parallel, we have developed our branding strategy, strengthening the Eleco
master brand while preserving the value of our established product brands.
This initiative is intended to improve consistency across customer
touchpoints, support clear market positioning and provide a scalable visual
platform for future growth. Implementation is progressing in a measured manner
and is already supporting improved brand recognition for our newly-acquired
businesses.
Net Revenue Retention in 2025, which is defined as the percentage of recurring
revenues retained from existing customers, was at 110 per cent, an advance
over the 109 per cent in 2024. The number of net new licences, new licences
per customer, and customer numbers for the Group increased once again in 2025
over 2024.
The Building Lifecycle operations delivered strong growth of 29 per cent in
line with our aim to drive growth with existing customers and their digital
transformation plans. This was especially evident with our UK, Irish, Swedish
and Benelux operations.
Against an ongoing backdrop of the relatively stagnant German economy and
budget constraints amongst our visualisation clients, trading conditions for
Veeuze remained challenging. While there was a modest improvement in the
second half of the year, performance continued to be volatile and loss-making.
In addition, the visualisation sector is undergoing rapid technological
change, with increasing requirements for agile developments in artificial
intelligence to remain competitive. Reflecting these market conditions, an
impairment of the business's carrying value has been recognised in the Group's
2025 financial results.
Accordingly, decisive action was taken to address the underperformance of this
non-core activity, with the divestment of the Veeuze business through a
management buy-out. This transaction provides greater certainty for the
business, its employees and its customers, and we wish them well in the next
phase of their development. The transaction reinforces the Group's strategic
focus on its higher-growth core Building Lifecycle businesses, releases
valuable management capacity and supports improved organic growth,
profitability and cash generation over time.
The US market continues to represent an attractive long-term opportunity,
where we are steadily increasing brand penetration, albeit against strong
incumbent competition. As explained at the half year, two sizeable service
orders for an Asta customer and a Veeuze visualisation customer were not
repeated in 2025, resulting in total US revenue being 6 per cent below that of
2024. Nevertheless, US recurring revenues advanced by 18 per cent at $1.3m
(2024: $1.1m), with customer numbers also increasing. We are encouraged by the
uptake of Asta Vision and the expansion of Pemac in the USA.
Technology and Innovation
Technology and innovation is embedded in the Group's DNA, and is reinforced by
our deep domain expertise across our markets. The Group employs over 87
software engineers and reinvested 15 per cent of revenue in research and
development during the year (2024: 17 per cent), focused on our core product
solutions while delivering new customer-led functionality.
We continue to offer feature-rich, best-of-breed software that is highly
valued by customers. Ongoing innovation initiatives are focused on artificial
intelligence (AI), data accessibility and visibility, such as cloud
collaboration solutions, mobile applications, reporting and analytics. We are
increasingly expanding our e-commerce solution, starting with Asta, to make
our software more accessible to all.
During the year, Asta won the UK Construction Computing Project Management
Software of the Year Award for the twelfth consecutive year and Eleco was
named Company of the Year at the same awards.
2025 saw the continued strong interest and geographical uptake in our Asta
Vision Live real-time collaboration platform that enables multiple planners
and other stakeholders (including senior management) to actively monitor and
improve project delivery, thereby providing more effective resource allocation
and reducing delays, cost and wastage.
Notable product releases during the year included Asta Powerproject 2026.1,
featuring enhanced 3D and 4D capabilities, as showcased at Digital
Construction Week, and a substantially enhanced Pemac Assets 4.2 release,
incorporating customisable dashboard, improved mobile functionality and user
experience, and strengthened GxP asset compliance. Alongside delivery of its
feature roadmap, Pemac Assets was upgraded to the latest version of Python,
ensuring that it remains secure, reliable and well-positioned for the future.
BestOutcome PM3 releases included a new web-based Gantt chart with critical
path analysis, together with multi-user and accessibility enhancements.
Subsequent to the year end also saw the launch of AstaEstimate(TM) in the UK,
bringing together Bidcon and Asta Powerproject in an offering that combines
cost, carbon and scheduling into a single workflow.
In applying new technologies, particularly artificial intelligence, the Group
remains focused on supporting human decision making rather than automating it
away. In complex, safety critical and labour intensive environments such as
construction, infrastructure and asset management, effective outcomes depend
on experience, judgement and accountability. Our approach to AI is therefore
centred on augmenting professional capability, improving visibility and
reducing manual effort, while ensuring that customers retain control over
critical decisions.
The Group continues to apply artificial intelligence to enhance both product
capability and operational efficiency. AI is increasingly embedded within our
software development processes, supporting faster iteration, improved reuse of
existing code and the modernisation of legacy platforms, while maintaining
product quality and security. Within our product portfolio, AI-enabled
functionality is enhancing insight, accessibility and integration,
particularly through Asta Vision Plus(TM) and Asta GPT(TM), strengthening the
value proposition for customers. AI is also being used selectively within our
consultancy and support operations to improve onboarding efficiency and
scalability, helping to reduce manual effort and support growth without
proportionate increases in cost.
In March 2026, we released Asta Vision Plus(TM), an extension to the Asta
Vision platform that introduces API-led capabilities, providing customers with
structured access to project data enabling deeper integration with third-party
systems, including specialist construction platforms and large language
model-based AI tools.
Mergers and Acquisitions
The Group's M&A activities involve a considered evaluation of
opportunities and potential targets that enhance shareholder value through the
expansion of capabilities, profitability and geographic reach. Acquisitions
are required to complement or extend the Group's solutions, while existing
businesses are continually assessed against the same strategic growth and
return criteria.
2025 was an active year for the Group's M&A programme, and at times it was
appropriate to withdraw from marketed opportunities where assets were assessed
as less attractive than initially anticipated, reflecting our continued
commitment to disciplined capital allocation.
Equally, some businesses within the Group's portfolio may exhibit growth
profiles that diverge from our longer-term strategic direction. As a result,
and as stated earlier, following a careful review, the Board took the
difficult decision to divest, subsequent to the year end, its German-based
Visualisation business, Veeuze, through a management buy-out. The transaction
releases valuable management capacity at Group level to support the execution
of our core strategy and future acquisition activity.
The integration of the Pemac maintenance management business, acquired in
January 2025, has been successful, and has expanded the Group's geographic
footprint in Ireland and beyond. Together with our established ShireSystem and
IconSystem products, which address complementary asset-intensive market
segments, the Group has progressed towards a more unified Asset Management
focus. It has been particularly encouraging to see improved alignment of
customer verticals and propositions between Pemac and ShireSystem, alongside
Pemac's early expansion into the US market.
In February 2026, the Group acquired Kivue Limited ("Kivue"), a UK-based
provider of Project Portfolio Management ("PPM") SaaS software and associated
services, for an enterprise value basis of £2.3m (comprising approximately
£1.8m in cash and £0.5m in equity). Based in Reading, UK, Kivue with its
Perform offering, complements the Group's existing PM3 solution from
BestOutcome which is used to manage strategic programmes and multiple
portfolio management projects by Project Management Offices and Project
Managers. The addition of Kivue further extends our reach into senior manager
and C-Suite users managing complex enterprise portfolios.
People, Systems, ESG and Culture
Our people are central to Eleco's success. Since 2023, we have published an
internal Year in Review magazine to recognise and celebrate the dedication,
achievements and contributions of colleagues across the Group, while providing
a forum for sharing perspectives on topics that matter to them and to Eleco.
This initiative supports our commitment to an inclusive culture and has helped
raise awareness of the diversity of skills, experience and talent within the
Group.
Sustainable growth remains a key priority which is embedded in the Group's
environmental, social and governance (ESG) agenda. Further details are
provided in the Sustainability and ESG Committee Reports.
Alongside our investment in people, we continue to progress our system
strategy. During the year, our Nordics operations, BestOutcome in the UK and
the US business adopted the Group's common ERP system, with additional modular
enhancements deployed in Scandinavia. The Irish and Romanian operations are
scheduled to follow in 2026, further improving consistency, scalability and
control across the Group.
Our Markets
Societal, technological and macroeconomic trends including digitalisation,
population growth, urbanisation and land-use pressure, and regulation,
continue to shape the markets in which Eleco operates and provide significant
long-term growth potential. Independent research by FMI estimates market
opportunities of approximately US $1.9bn in construction project management
software, US $3.4bn in maintenance and facilities management, and around US
$6bn in BIM software solutions, all growing at high single to mid double-digit
rates. According to the United Nations, the global population is expected to
increase from 8.3bn today to 9.7bn by 2050, urban populations rising from
3.7bn to 6.5bn.
Organisations engaged in the design, construction and maintenance of
buildings, infrastructure and industrial assets face mounting challenges
including cost pressure, labour constraints, project complexity, safety and
sustainability requirements and increasingly stringent legal and regulatory
frameworks. As a result, customers are increasingly turning to proven,
trusted, best-of-breed software solutions such as those provided by Eleco to
improve efficiency, visibility and control across the full building lifecycle.
Summary and Outlook
Building further on our resilient business model with its high recurring
revenues, the Group delivered impressive growth in revenues, adjusted
operating profitability and cash in 2025. My sincere thanks to our employees
and to our loyal customer base for getting us to where we are today, and for
always challenging us to look towards tomorrow.
We continue to see a high rate of technological change in the marketplace
driven by the population, urbanisation and complexity drivers outlined above.
This digital transformation in the built environment presents a considerable
organic opportunity for Eleco to attain new customers, retain existing ones
and expand our customer relationships. Inorganically, we continue to explore
strategic value-enhancing M&A activities for the Group and its
shareholders.
The Board remains confident in Eleco's future and its ability to perform in
line with market expectations for the coming financial year.
Jonathan Hunter
Chief Executive Officer
27 April 2026
CFO Review
Introduction and Overview
I am delighted with our 2025 reported results: we have seen continued growth
in revenues, recurring revenues, adjusted profitability and cash, and all
ahead of market expectations. This performance is post our SaaS financial
transition, demonstrating the robustness of our value proposition to our
customers and the exceptional nature of our internal resources that we can
bring to bear.
This superb performance is all the more creditable in what is undoubtedly a
more uncertain and volatile world. It is testament to the reliance and
robustness of our business model and the execution of our strategy. A high
recurring revenue model provides a more sustainable, predictable and forward
visibility for the investors in Eleco.
We do not and should not, however, rest on our laurels. Everything we do
should be viewed through the lens of strategic fit and shareholder value. In
the recent past, we have made some difficult decisions such as disposing of
the non-core Arcon architectural software business and discontinued
end-of-life product lines, and in 2025 the carrying value of our non-core
Visualisation business, Veeuze GmbH, has been impaired.
Our core businesses and product solutions revolve around the whole lifecycle
surrounding the built environment. The core drivers in the market are
substantial, such as population growth and urbanisation, greater legal,
regulatory and compliance demands and requirements, and increased complexity,
time and cost pressure on projects. Eleco, with its best-of-breed innovative
software, is at the centre of industry trends, such as the digitalisation of
workflows, interoperability in technology ecosystems and harnessing of data to
meet these challenges and opportunities.
Revenue and Gross Margins
I have great pleasure in reporting a 20 per cent increase in overall revenues
to £38.8m (2024: £32.4m). This is ahead of market expectations, and a
further demonstration of our successful execution of strategy over recent
years.
The increase in constant currency terms amounted to a 19 per cent increase,
and excluding contribution from the Pemac acquisition from mid-January 2025,
organically the increase was 11 per cent. Acquisitions, such as Pemac,
nonetheless represent an ongoing part of the business going forward.
Eleco Group provides a diversified portfolio of buildtech and proptech
lifecycle technological solutions that are extremely well positioned to serve
our many thousands of existing loyal and new customers in growing markets.
Despite significant market presence, the opportunity for further upsell
headroom and cross-sell penetration remains. We have no material customer
concentration and are geographically diversified.
Analysis of revenue by geography shows that the revenue outside the UK,
defined as overseas revenue, has grown as a proportion of the whole in 2025:
to 53 per cent in 2025 (2024: 51 per cent). Within this overseas category, the
largest contributor was 'Rest of Europe' (itself bolstered by the addition of
Pemac in Ireland) at 20 per cent of Group revenues (2024: 16 per cent),
followed by Scandinavia at 18 per cent of Group revenues (2024: 18 per cent),
and Germany at 8 per cent (2024: 9 per cent). Revenue contributions in the UK
amounted to 47 per cent of the Group total (2024: 49 per cent).
Analysis of revenue by recurring and non-recurring categories as proportion of
Group revenues illustrates that Total Recurring Revenues (TRR), those revenues
that are recurring when we look across the twelve months, moved ahead at 81
per cent (2024: 77 per cent); Services, a less resilient and more
discretionary area in the face of macroeconomic pressures and uncertainties,
18 per cent (2024: 20 per cent); and, as anticipated, Perpetual licence sales
lower at 1 per cent (2024: 3 per cent). TRR increased by 26 per cent to
£31.3m (2024: £24.9m).
As we further transform as a high recurring revenue business, we increasingly
embrace and value many SaaS software related metrics internally and externally
report many of these additional performance, non-statutory measures. Central
to these are the measures of recurring revenues which indicate the more
predictable and sustainable business model we have transitioned to. In
addition to the TRR measure mentioned above, Annualised Recurring Revenues
(ARR), the normalised exit rate at the end of the year, provides a forward
looking indicator and aid to investor visibility. ARR was higher by 29 per
cent, being £34.3m (2024: £26.6m).
The building lifecycle classification of revenue at £31.1m (2024: £24.1m)
represents 80 per cent of total revenues (2024: 74 per cent); with a further
decline in revenue contribution by the CAD and Visualisation software sector
to £5.8m (2024: £6.5m) or 15 per cent (2024: 20 per cent) of Group revenues.
In 2025 we saw continuing challenging economic conditions for our German-based
Visualisation business, and their customers' budgetary constraints.
Another indicator for future revenues is the level of deferred revenues in the
balance sheet. Deferred income is from software subscription licences and from
software maintenance and support contracts and is credited to revenue in the
income statement on a straight-line basis in line with the service and
obligations over the term of the contract. I am delighted to report this
increased by 39 per cent (2024: 23 per cent) to £16.8m (2024: £12.1m);
organically, stripping out the effects of Pemac at £0.9m at acquisition, the
increase was 31 per cent.
High gross margins are an indicator of the value we provide to our customers
and add to their businesses. After taking the direct costs of servicing those
revenues in cost of sales, Group gross margins remained healthy and ahead at
89.6 per cent (2024: 89.3 per cent). This is symptomatic of a higher mix of
recurring revenues and in spite of integrating acquisitions with historically
lower gross margins and the ongoing organic cost pressures from hosting
providers to software companies such as ours.
Operating Expenses and R&D Investment
We continue to invest in Group resources in our pursuit of our strategy to
scale the Group and meet the needs of the business in the face of competitive
market pressures. Total operating expenses in 2025 increased by a headline
£4.7m, or 19 per cent, to £29.6m in 2025 (2024: £24.9m).
The largest component of total operating expenses was selling and operating
expenses which increased by £3.4m (or 16 per cent), to £24.6m (2024:
£21.2m). However, when taking into account the absorption of Pemac's overhead
base for an eleven and a half month period and also a further three and a half
months' overhead addition from Vertical Digital, the net underlying increase
was £1.5m, or 7 per cent. This net increase was driven by salary-related
costs and represents both inflationary increases and heightened levels of
Go-To-Market resourcing as we scale up the business. Operating expenses
included negative foreign exchange of £0.1m, consistent with 2024 (negative
foreign exchange of £0.1m).
Outside of these core underlying operating costs, depreciation and
amortisation of intangible assets increased by £0.8m, or 25 per cent, to
£4.0m (2024: £3.2m). Within this, amortisation from acquired intangibles, a
feature of acquisition activity, increased by £0.5m to £1.1m (2024: £0.6m).
Amortisation of other intangible assets, representing amortisation of
capitalised development innovation and other internally generated internal
system-related intangibles, rose by £0.3m to £2.2m (2024: £1.9m).
Depreciation (including of right of use assets) increased by £0.1m to £0.8m
(2024: £0.7m).
Share-based payments costs were very significantly higher at £0.7m in 2025
(2024: £0.1m). This is largely due to the 2024 charge being the net of an
IFRS2 charge offset by a credit for staff leavers forfeiture of share options
and write back of share options with stringent performance criteria. The 2025
figure is also reflective of the cumulative effect of overlapping charges for
recent multi-year share option awards.
Acquisition-related expenses and stamp duties were slightly lower by £0.1m in
2025 at £0.3m (2024: £0.4m). The 2025 figure included only £0.1m relating
to the Pemac acquisition (the majority being incurred in 2024 of £0.2m). The
remainder in both years relates to other M&A activity, both where we have
chosen to proceed to a successful outcome (such as the Kivue acquisition
announced post year end) and also where we have chosen to not further progress
some transactions.
Turning to research and development (R&D) expenditure, it is important
that the Group continues to invest in its software solutions, bringing a
superior reliability of existing solutions and also new innovation for its
existing customers and enhanced offers to potential new customers. The
benefits of a software company over some non-technology companies is the
ability to bring such offers with a regular cadence and relative ease of
deployment, thus reducing time-to-market constraints and improving both
products for customers and returns for our shareholders.
Total R&D spend, at £5.8m (2024: £5.4m), represented 15 per cent of
total revenue (2024: 17 per cent of total revenue); or 19 per cent of
recurring revenues (2024: 22 per cent of recurring revenues). Of this total
spend, approximately £3.5m was capitalised (2024: £3.0m), subject to
amortisation (as discussed above), and £2.3m was expensed (2024: £2.5m),
reflecting a shift to leading-edge innovation by our over eighty in-house
software developers.
Profitability and Impairment
Another key benefit of software businesses is, beyond a core fixed overhead,
to be able to scale up revenues without being subject to constraints in
working capital (specifically inventory build) that non-technology companies
might otherwise need to do to address market dynamics. This means
time-to-market is not further delayed.
In 2025, we witnessed strong top-line organic and inorganic revenue growth,
enhanced gross margins and gross profits, a less than proportionate increased
investment in overheads, and consequently improved levels of operating
profitability over 2024. Operating profitability before impairment improved by
£1.1m, or 27 per cent, to £5.2m (2024: £4.1m). After taking into account
the Veeuze impairment, EBITDA amounted to £6.9m (2024: £7.2m), a 4 per cent
decrease.
When we look at the portfolio of businesses that we hold, whether long-held or
recently acquired, we continually monitor and evaluate their performance in
the light of many factors and competitive market pressures, and not least
against our ongoing strategy and need to deliver superior returns for our
investors. For these reasons, after a number of years significant stagnant
macroeconomic conditions and specific challenges within the visualisation
customer sector itself, the carrying value of assets held relating to the
Veeuze Visualisation business has been impaired by £2.3m. Post year end, we
have taken action to divest this business to a management buy-out, the
remaining result of which will be reported in the 2026 financial year end.
For Eleco, this strategic decision is one-off in nature, meaning that Adjusted
levels of profitability exclude this impairment of the Visualisation
cash-generating unit, but non-Adjusted, statutory reported levels of
profitability report this necessary, one-off impact. A reconciliation between
statutory and Adjusted measures is provided in note 8.
Adjusted EBITDA was higher by 32 per cent to £10.2m (2024: £7.7m), Adjusted
profit before taxation was up 35 per cent to £7.3m (2024: £5.4m), Adjusted
profit after taxation increased by 24 per cent to £5.2m (2024: £4.2m) and
Adjusted EPS rose by 24 per cent to 6.3 pence per share (2024: 5.1 pence per
share).
On a non-Adjusted, statutory basis, EBITDA (after impairment) was £6.9m
(2024: £7.2m), a decrease of £0.3m or 4 per cent. Operating profit (after
impairment) decreased by 32 per cent to £2.8m (2024: £4.1m); profit before
taxation was lower by 35 per cent to £2.8m (2024: £4.3m); and profit after
taxation was down by 61 per cent to £1.3m (2024: £3.3m). Overall, basic
earnings per share was 1.6 pence per share, a 60 per cent decrease over 2024,
which was 4.0 pence per share.
Finance income slightly reduced by £0.1m, reflecting a lower interest rate
environment; while finance expense was similar for the IFRS16 lease notional
accounting interest charge but increased for the £0.2m addition of a notional
interest charge for the unwinding of the discount on earnout consideration for
the Pemac acquisition anticipated to be paid out in 2026 and 2027 (2024: £nil
discounting).
The Group's tax charge for 2025 was £1.5m (2024: £1.0m), which on higher
total revenues year-on-year, gives an effective tax rate of 53.8 per cent
(2024: effective rate of 22.3 per cent), and excluding the non-tax effecting
impairment, the effective tax rate was 29.5 per cent. While the current tax
rate moved in line with increased revenues, it was disproportionately higher
for the mix of UK versus overseas elements. This UK current tax element was
higher in 2025 by £0.4m with the full year effect of headline rates of 25 per
cent, a less generous RDEC tax credit government regime, and absent of any
prior year UK tax adjustment. Conversely, deferred tax credit adjustments
increased for our German businesses by £0.6m.
Operating Cash, Cash and Liquidity
In uncertain macroeconomic and geopolitical times, Eleco's resilient business
model of high gross margins, high recurring revenues as a proportion of total
revenues, high retention rates, lack of inventory build, and timely payment by
our loyal and valued customers for the software stands us in good stead, and
somewhat apart from some software businesses.
This cash generation allows us to fund investments in the business to drive
organic growth, M&A from internal resources where possible to do so, and
sustain a progressive and consistent dividend policy for our shareholders.
The Group's cash position, as at 31 December 2025, was robust at £16.3m
(2024: £14.0m). Had we not acquired Pemac in January 2025, the cash figure
would have been higher by £4.6m on that one metric alone. The Group remains
free of debt.
Cash generated from operations before working capital, reflective of
underlying cash operating profits, increased by £2.6m to £9.9m (2024:
£7.3m). Cash generated from operations after working capital movements
increased by a similar £2.3m to £13.0m (2024: £10.7m). Net tax cash paid in
2025 in Group jurisdictions, following significant prepayments made in 2024,
was significantly lower in cash terms in the year of £0.8m (2024: £1.7m).
Capital expenditure on intangible assets, comprising the capitalisation of
software product development costs and acquired and other intangibles, further
advanced by £0.9m to £4.2m (2024: £3.3m). Capital expenditure on property,
plant and equipment at £0.1m was similar to the prior year (2024: £0.1m).
I am delighted to say that free cash flow, taking cash generated from
operations after working capital less the intangibles and tangibles additions
and taxation and net finance flows, increased by £1.9m to £8.2m (2024:
£6.3m). This represents 158 per cent of operating profit before impairment
(2024: 154 per cent).
Cash flows relating to finance costs, lease liabilities, equity dividends and
any issue of shares, resulted in net outflows of £1.6m (2024: net outflows of
£1.3m). Included within this were dividends paid in 2025, relating to the
2025 interim dividend and 2024 final dividend, amounting to £0.9m (2024:
£0.7m), the increase reflective of our progressive dividend policy.
The net overall inflow of cash in the year was therefore £1.9m (2024: net
cash inflow of £3.4m), added to by net exchange gains in 2025 of £0.5m
(2024: net exchange losses of £0.3m).
Dividends
Unlike many other technology companies, the Company pays dividends in
accordance with its progressive and sustainable dividend policy. The growth in
our business and our unencumbered and cash generative status, allows us to
both invest in the Group organically and inorganically, increasing the Group
while also rewarding our loyal and supportive shareholders with such
dividends.
The Board therefore proposes a final dividend of 0.85 pence per share, a 21
per cent increase (2024: 0.70 pence per share), which, with the interim
dividend of 0.35 pence per share, gives a total for 2025 of 1.20 pence per
share (2024: 1.00 pence). The proposed final dividend shall be paid on 3 July
2026 to shareholders on the share register as at 19 June 2026 with an
associated ex-dividend date of 18 June 2026.
Summary
2025 marked a further acceleration in Eleco Group's fortunes over the previous
three years' momentum. I'm especially proud of the value we create with the
Eleco people we have: their dedication, skills and experience provide an
unparalleled customer experience. Our deep and long-held domain experience
means we solve the real-world, complex challenges our customers have and
realise their commercial opportunities. These intangibles are not always
readily identified on our balance sheet, nor is the value they add always
fully captured in our financial performance.
Our innovative software solutions, paired with our increasingly honed
go-to-market approach, embracing data, wider ecosystems and artificial
intelligence, are well placed to solve the challenges of project delivery for
the future: to time, reduced waste, lower cost and improved productivity. We
remain focused on execution of strategy at pace and delivery of enhanced
shareholder value.
Neil Pritchard
Chief Financial Officer
27 April 2026
Consolidated Income Statement
For the year ended 31 December 2025
2025 2024
Continuing operations £'000 £'000
Revenue 38,816 32,394
Cost of sales (4,034) (3,482)
Gross profit 34,782 28,912
Depreciation and amortisation of intangible assets (4,021) (3,183)
Acquisition-related expenses and stamp duties (302) (432)
Share-based payments (725) (60)
Other selling and administrative expenses (24,553) (21,181)
Selling and administrative expenses (29,601) (24,856)
Operating profit before impairment of subsidiary 5,181 4,056
Impairment of subsidiary (2,343) -
Operating profit 2,838 4,056
Finance expense (238) (72)
Finance income 248 310
Profit before taxation 2,848 4,294
Taxation (1,531) (960)
Profit after taxation for the year 1,317 3,334
Attributable to:
Equity holders of the parent 1,317 3,334
Earnings per share - (pence per share)
Basic earnings per share 1.6p 4.0p
Diluted earnings per share 1.6p 4.0p
Alternative Performance Measures (APM)(1) Note 2025
2024
£'000 £'000
EBITDA 8 6,859 7,239
Adjusted EBITDA 8 10,229 7,731
Earnings Earnings
per share per share
(pence) (pence)
Adjusted basic earnings per share 4 6.3p 5.1p
(1) The above measures are commonly adopted alternative performance measures,
not generally accepted accounting principle metrics. For definition and
reconciliation see note 8.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2025
2025 2024
£'000 £'000
Profit for the year 1,317 3,334
Other comprehensive income/(expense):
Items that will be reclassified subsequently to profit or loss: 303 (196)
Translation differences on foreign operations
Other comprehensive income/(expense) net of taxation 303 (196)
Total comprehensive income for the year 1,620 3,138
Attributable to:
Equity holders of the parent 1,620 3,138
Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
Share Share Merger Translation Share options reserve Employee share ownership trust Retained
capital premium reserve reserve earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 832 2,418 1,002 (509) 621 (358) 23,353 27,359
Dividends - - - - - - (665) (665)
Share-based payments - - - - 41 - 19 60
Deferred tax on intrinsic value of vested options - - - - 229 - - 229
Issue of share capital 1 50 - - - - - 51
Transactions with owners 1 50 - - 270 - (646) (325)
Profit for the year - - - - - - 3,334 3,334
Other comprehensive expense:
Exchange differences on translation of net investments in foreign operations - - - (196) - - - (196)
Total comprehensive income for the year - - - (196) - - 3,334 3,138
At 31 December 2024 833 2,468 1,002 (705) 891 (358) 26,041 30,172
Dividends - - - - - - (868) (868)
Share-based payments - - - - 549 - 176 725
Deferred tax on intrinsic value of vested options - - - - (198) - - (198)
Issue of share capital 4 180 - - - - - 184
Transactions with owners 4 180 - - 351 - (692) (157)
Profit for the year - - - - - - 1,317 1,317
Other comprehensive income:
Exchange differences on translation of net investments in foreign operations - - - 303 - - - 303
Total comprehensive income for the year - - - 303 -- - 1,317 1,620
At 31 December 2025 837 2,648 1,002 (402) 1,242 (358) 26,666 31,635
Consolidated Balance Sheet
At 31 December 2025
2025 2024
£'000 £'000
Non-current assets 20,262 18,852
Goodwill
Other intangible assets 14,375 10,333
Property, plant and equipment 576 629
Right-of-Use assets 1,039 1,290
Deferred tax assets 368 549
Total non-current assets 36,620 31,653
Current assets
Inventories 29 4
Trade and other receivables 6,421 5,434
Current tax assets 640 746
Cash and cash equivalents 16,285 13,975
Total current assets 23,375 20,159
Total assets 59,995 51,812
Current liabilities
Lease liabilities (510) (578)
Trade and other payables (2,459) (2,269)
Accruals and deferred income (20,246) (15,264)
Current tax liabilities (205) (65)
Total current liabilities (23,420) (18,176)
Non-current liabilities
Contingent consideration (1,141) -
Lease liabilities (686) (882)
Deferred tax liabilities (3,113) (2,556)
Provisions - (26)
Total non-current liabilities (4,940) (3,464)
Total liabilities (28,360) (21,640)
Net assets 31,635 30,172
Equity
Share capital 837 833
Share premium 2,648 2,468
Merger reserve 1,002 1,002
Translation reserve (402) (705)
Share options reserve 1,242 891
Employee share ownership trust (358) (358)
Retained earnings 26,666 26,041
Equity attributable to shareholders of the parent 31,635 30,172
Consolidated Statement of Cash Flows
For the year ended 31 December 2025
2025 2024
£'000 £'000
Cash flows from operating activities 1,317 3,334
Profit after taxation for the year
Income tax expense 1,531 960
Amortisation of intangible assets 3,221 2,492
Impairment of subsidiary 2,343 -
Depreciation charge 800 691
(Profit)/loss on sale of property, plant and equipment (17) 6
Finance expense 238 72
Finance income (248) (310)
Share-based payments expense 725 60
Cash generated from operations before working capital movements 9,910 7,305
Increase in trade and other receivables (619) (206)
(Increase)/decrease in inventories and work in progress (25) 109
Increase in trade and other payables, accruals and deferred income 3,705 3,468
Cash generated from operations 12,971 10,676
Net taxation paid (827) (1,716)
Net cash inflow from operating activities 12,144 8,960
Investing activities (3,518) (2,958)
Investment in development expenditure
Investment in other intangible assets (728) (271)
Purchase of property, plant and equipment (80) (85)
Acquisition of subsidiary undertakings net of cash acquired (4,638) (1,252)
Proceeds from sale of property, plant and equipment 33 2
Finance income 248 310
Net cash outflow from investing activities (8,683) (4,254)
Financing activities
Finance expense (238) (72)
Repayments of principal of lease liabilities (687) (650)
Equity dividends paid (868) (665)
Issue of share capital 184 50
Net cash outflow from financing activities (1,609) (1,337)
Net increase in cash and cash equivalents 1,852 3,369
Cash and cash equivalents at 1 January 13,975 10,903
Exchange gains/(losses) on cash and cash equivalents 458 (297)
Cash and cash equivalents at 31 December 16,285 13,975
1. General Information
Eleco plc ("the Company") and its subsidiaries (together "the Group") are
primarily involved in software sales and development. Eleco plc, a Public
Limited Company incorporated and domiciled in England, is the Group's ultimate
parent Company. The address of Eleco plc's registered office is Dawson House,
5 Jewry Street, London EC3N 2EX, United Kingdom and the principal place of
business is Dawson House, 5 Jewry Street, London EC3N 2EX.
Whilst the financial information included in this preliminary results
announcement has been prepared in accordance with the recognition and
measurement requirements of UK-adopted International Accounting
Standards this announcement does not itself contain sufficient information to
comply with UK-adopted International Accounting Standards and does not
constitute statutory accounts for the purposes of section 434 of the Companies
Act 2006.
The principal accounting policies used in preparing this preliminary results
announcement are those that the Group has adopted for its statutory accounts
for the year ended 31 December 2025 and are unchanged from those previously
disclosed in the Group's Annual Report and Accounts for the year ended 31
December 2024.
Statutory accounts for 2024 have been delivered to the Registrar of Companies
and those for 2025 will be delivered in due course. The Company's auditors RSM
UK LLP, have reported on the 2025 accounts; their report was unqualified, did
not draw attention to any matters by way of emphasis without qualifying their
report and did not contain statements under s498 (2) or (3) Companies Act
2006. The 2024 audit report was unqualified, did not draw attention to any
matters by way of emphasis without qualifying their report and did not contain
statements under s498 (2) or (3) Companies Act 2006.
The Annual Report and Accounts for the year ended 31 December 2025 will be
available on the Company's website https://eleco.com/results/latest-results.
The information in this results announcement was approved by the Board on 27
April 2026.
2. Segment reporting and revenue
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of
the Group that are regularly reviewed by the chief operating decision maker to allocate resources to the
segments and to assess their performance.
The chief operating decision makers have been identified as the Executive
Directors. The Group revenue is derived entirely from the sale of software
licences, software maintenance and support and related services.
During the year, the Executive Directors reviewed the three revenue streams,
having previously reviewed these as one. As the costs and profits are not
monitored or recorded in the same way, the information is presented as one
segment and as such the information is presented in line with management
information.
Revenue
All results relate to continuing operations.
Revenue disclosed in the income statement is analysed as follows:
2025 2024
£'000 £'000
Recurring revenue 31,313 24,933
Services revenue 6,958 6,448
Perpetual licence revenue 545 1,013
Total revenue 38,816 32,394
Revenue is recognised for each category as follows:
• Recurring revenue: SaaS, maintenance, support, subscriptions and
hosting - as these services are provided over the term of the contract,
revenue is recognised over the life of the contract.
• Services revenue - recognised on delivery of the service.
• Perpetual licence revenue - recognised at the point of transfer
(delivery) of the licence to a customer.
Revenue by geographical area represents continuing operations revenue from
external customers based upon the geographical location of the customer.
Revenue by geographical destination is as follows:
2025 2024
£'000 £'000
UK 18,389 15,891
Scandinavia 6,867 5,830
Germany 3,296 3,058
USA 1,480 1,642
Rest of Europe 7,650 5,217
Rest of World 1,134 756
38,816 32,394
Revenue by product group represents revenue from external customers.
Revenue by product group is as follows:
2025 2024
£'000 £'000
Software for:
Building Lifecycle 31,094 24,052
CAD and Visualisation 5,831 6,499
Other - third party software 1,891 1,843
38,816 32,394
3. Taxation
Taxation on profit on ordinary activities
The tax charge in the income statement is as follows:
2025 2024
£'000 £'000
Current tax:
UK corporation tax on profits of the year 1,389 808
Tax adjustments in respect of previous years 3 (76)
1,392 732
Foreign tax: 241 328
Tax adjustments in respect of previous years (93) (57)
Total current tax 1,540 1,003
Deferred tax:
Origination and reversal of temporary differences 28 (42)
Tax adjustments in respect of previous years (37) (1)
Total deferred tax (9) (43)
Tax charge in the consolidated income statement 1,531 960
Income tax for the UK has been calculated at the weighted average rate of UK
corporation tax of 25 per cent (2024: 25 per cent) on the estimated assessable
profit for the period. Taxation for foreign companies is calculated at the
rates prevailing in the relevant jurisdictions.
4. Basic and diluted earnings per share
2025 2024
Net profit attributable to shareholders Weighted average number of Earnings Net profit attributable to shareholders Weighted average number of Earnings
shares per share shares per share
Ordinary Shares £'000 (millions) (pence) £'000 (millions) (pence)
Basic earnings per share 1,317 82.6 1.6 3,334 82.3 4.0
Diluted earnings per share 1,317 83.5 1.6 3,334 83.2 4.0
Adjusted basic earnings per share 5,210 82.6 6.3 4,172 82.3 5.1
In determining the diluted earnings per share the dilutive impact of share
options on weighted average number of shares was included.
5. Dividends
Dividends declared and to be paid
The Directors have recommended a final dividend of 0.85 pence per ordinary
share (2024: final dividend of 0.70 pence per ordinary share). The dividend is
subject to approval by shareholders at the AGM and has not been included as a
liability in these financial statements.
Dividends paid in the year
Dividends paid in the year were 1.05 pence per ordinary share (2024: 0.85
pence per ordinary share). Cash dividends of £868,000 (2024: £700,000) were
paid during the year. Unclaimed dividends of £35,000 were returned to the
Company during 2024.
2025 2024 2025 2024
Ordinary Shares pence per share pence per share £'000 £'000
Declared and paid during the year
Interim - Full Year 2025 0.35 0.30 290 247
Final - Full Year 2024 0.70 0.55 578 453
1.05 0.85 868 700
6. Acquisition of Pemac
On 14 January 2025, the Group, through its wholly owned subsidiary Elecosoft
Limited, acquired 100 per cent of the share capital of PMI Software Limited
("Pemac") (the 'Acquisition') for an initial cash consideration of £5.3m. The
Acquisition's completion date was 14 January 2025. The Group funded the
Acquisition exclusively by utilisation of its existing internal cash resources
for this consideration. Cash and cash equivalents within the Acquisition
entity at the acquisition date totalled £0.8m and the Acquisition has no
debt. The acquisition net cash outflow is included in investing activities in
the consolidated cash flow statement.
Pemac, located in Cork and Dublin, Ireland, is a recognised leader in
providing SaaS Computerised Maintenance and Management Software ("CMMS") and
specialist services in the market, used by over 100 blue-chip international
manufacturing companies. Pemac has developed a strong reputation for its
ability to support clients in highly regulated sectors, including life
sciences and healthcare, through its robust software capabilities tailored to
meet industry-specific regulatory requirements.
The acquisition of Pemac by Eleco plc highlights Eleco's shared commitment to
delivering innovative, customer-focused solutions in manufacturing, regulated
industries. Pemac's expertise and proven capabilities complements the Group's
existing ShireSystem Computerised Maintenance Management Software ("CMMS"),
enhancing the overall offering to support customers' evolving needs. Pemac and
ShireSystem are committed to maintaining the exceptional standards of service
and support their customers rely on. Over time, it is intended that both
organisations will collaborate to deliver technological advancements, ensuring
their customers benefit from enhanced solutions.
For the above explanatory reasons, including the ability to repurpose the
acquisition towards our internal research and development roadmap, combined
with the anticipated profitability of Pemac in other Group markets, synergies
arising, plus the ability to hire the assembled workforce of Pemac (including
the founders and management team), the Group understandably paid a premium
over the acquisition net assets, giving rise, aside from the value of customer
relationships, to goodwill. All intangible assets, in accordance with IFRS3
Business Combinations, were recognised at their fair values on acquisition
date, with the residual excess over net assets being recognised as customer
relationships, brands, development expenditure and goodwill.
Intangibles arising from the acquisition consist of customer relationships,
brands, and development expenditure and have been independently valued by
professional experienced advisors.
The following table summarises the consideration and fair values of assets
acquired and liabilities assumed at the date of the Acquisition:
£'000
Intangible fixed assets:
Customer Relationships 1,807
Brands 253
Development expenditure 1,360
Property, plant and equipment 57
Trade receivables and prepayments 401
Cash and cash equivalents 840
Corporation tax 320
Trade and other payables (476)
Deferred income (901)
Deferred tax (428)
Net assets acquired 3,233
Goodwill 3,178
Acquisition cost 6,411
The acquisition cost was satisfied by:
£'000
Cash 5,478
Deferred earn-out consideration 933
Total consideration 6,411
The net cash outflow arising on acquisition was:
£'000
Cash consideration paid 5,478
Cash and cash equivalents within the Pemac business on acquisition (840)
Total net cash outflow on acquisition 4,638
An additional completion accounts adjustment of £0.2m consideration due was
paid in August 2025 and included in the figure above.
There were no non-controlling interests in relation to the Acquisition.
The transaction terms also provided for potential additional earn-out
consideration of up to €2.4m payable in two tranches in 2026 and 2027,
subject to the Pemac business attaining specific performance targets agreed
with Eleco plc during the financial years ending 31 December 2025 and 31
December 2026. These specific performance targets are linked to achievement
of revenue targets over those two financial years, subject to minimum gross
margin thresholds. The fair value of the earn-out at the date of the
acquisition was €1.1m. The fair value was determined using a discount rate
determined with a CAPM approach of 19.40 per cent, as a Key Level 3 input,
reflecting the risk profile of the acquired Pemac business.
Costs relating to the acquisition have not been included in the consideration.
Directly attributable acquisition costs include external legal and accounting
costs incurred in compiling the acquisition legal contracts and the
performance of due diligence activity and the fair value exercise, together
with stamp duty, total £0.3m. These costs have been charged in selling and
administrative expenses in the consolidated income statement in 2024 (£0.2m)
and 2025 (£0.1m).
Had the acquisition taken place from the start of the Group's financial year
(from 1 January 2025) and based on figures and accounting policies prior to
Eleco plc Group control, management estimate that Pemac would have contributed
revenue of €3.4m (£2.9m) and profit before taxation of €1.0m (£0.9m) to
the Group results in this first year. For the eleven and a half months since
the Acquisition date, Pemac contributed €3.2m (£2.7m) of revenue and net
profit before taxation of €1.0m (£0.8m).
7. Post-balance sheet events
Acquisition of Kivue Ltd
On 10 February 2026, after the 2025 year end, Eleco plc acquired 100 per cent
of the issued share capital of Kivue Limited ("Kivue"), a leading UK-based
provider of Project Portfolio Management (PPM) SaaS software and associated
services, for an enterprise value basis of £2.3m (c£1.84m cash and c£0.46m
equity) ("the Acquisition"). The Acquisition's completion date was therefore
10 February 2026. The Group funded the Acquisition exclusively by utilisation
of its existing internal cash resources and by issuance of shares under
permitted authorities. Under the terms of the Acquisition, the vendors were
issued 337,363 new ordinary shares of 1 pence each in the Company ("Ordinary
Shares").
Cash and cash equivalents within the Acquisition entity at the acquisition
date totalled £0.3m and the Acquisition has no debt. There are no
non-controlling interests in relation to the Acquisition.
Kivue, located in Reading, England, is a software company specialising in PPM
solutions, part of Eleco's Building Lifecycle portfolio of solutions. The
business's ISO-certified and Cyber Essentials accredited cloud-based platform,
Perform, provides immediate and automated, visual portfolio insights,
governance, risks and portfolio performance for project teams and
enterprise-level (senior) executives.
Kivue's market reputation is one of an intuitive, easy-to-use and highly agile
PPM solution that can quickly demonstrate value to its clients and their
senior management. Primarily focused on the private sector but with some
success with public sector clients, notable customers include London City
Airport, Aon, Bentley, Virgin Atlantic and The Government of Jersey.
Kivue has a 31 May calendar year end. In the year to 31 May 2025, before Eleco
plc Group control, Kivue delivered revenue of £1.3m, Adjusted EBITDA of
£0.1m and a profit before taxation of £0.1m based on Kivue's own accounting
policies. Had the acquisition taken place from the start of the Group's
financial year (from 1 January 2025) and based on figures and accounting
policies prior to Eleco plc Group control, management estimate the
contribution towards Group revenues would have been £1.6m, Adjusted EBITDA
would have been £0.1m and profit before taxation £0.1m.
Given the proximity of the acquisition to the annual report and accounts being
published, and its relatively immaterial size of the acquisition relative to
the Group's scale, the Group is therefore unable at this stage to reasonably
estimate and determine the fair value of net assets acquired and resulting
goodwill and other associated intangibles under IFRS 3 Business Combinations
at the date of this report. The Group will work through the fair value
exercise under IFRS 3 and provisional disclosures will be reported in the
Group's 2026 interim results.
In accordance with the provisions of IAS 10 Events After the Reporting Period,
the Directors consider that the acquisition is a non-adjusting post balance
sheet event, meaning an event after the reporting period end that is
indicative of a condition that arose after the end of the reporting period,
and therefore the full year 2025 numbers prior to this acquisition have not
been adjusted. An estimate of its financial effect is described above.
Disposal of Veeuze GmbH
On 10 April 2026, post year end, Eleco plc announced the sale of its wholly
owned subsidiary Veeuze GmbH, a German-based visualisation business, to 3A
Consult UG via a management buy-out (the "Disposal").
The Disposal reinforces the Group's strategic focus on its Building Lifecycle
businesses and primary verticals, and reflects a continued emphasis on
shareholder value.
Under the terms of the agreement, the consideration for the Disposal is an
initial nominal cash amount of €1, payable on completion and a share of the
annual profit after tax over a 5-year period to 2030, capped at €250,000
payable in cash. The separation of the business is effective on 1 January
2026.
Following a period of challenging market conditions, Veeuze became
increasingly non-core to the Group and required a level of ongoing investment
that was not aligned with Eleco's strategic priorities. During the financial
year ended 31 December 2025, the Subsidiary experienced a decline in
performance, evidenced by lower revenues, continued operating losses, and, in
the second half of 2025, the requirement for substantial cash injections to
sustain operations.
In the financial year ended 31 December 2025, the Subsidiary had revenues of
£3.7m and recorded a loss before tax of £1.3m. The Subsidiary has net
liabilities of approximately £1.1m. The Disposal will prevent ongoing losses
and cash outflows associated with Veeuze.
The Disposal has been structured to support the continuity and future
development of Veeuze under the Management ownership. In connection with the
Disposal, Eleco has agreed to provide a financing package of €1.5m (c£1.3m)
to Veeuze (the "Financing Package"). The Board has approved the commercial
terms of the Financing Package on an arm's length basis. This will be
repayable over a five‑year period to 31 December 2030, and will carry an
interest rate of European Central Bank (ECB) base rate plus 5.85% per annum
(at a minimum of 8% per annum or above).
The purchaser of the Subsidiary is a former director of Veeuze and the
controlling shareholder of 3A Consult UG. Consequently, the Disposal of
Veeuze and provision of the Financing Package are both related party
transactions but carried out on an arm's length basis.
The profit or loss on disposal will be finalised and registered in the
financial year ended 31 December 2026.
8. Additional performance measures
The Group uses adjusted figures, which are not defined by generally accepted
accounting principles (GAAP) such as UK-IAS. Adjusted figures and underlying
growth rates are presented as additional performance measures used by
management, as they provide additional relevant information in assessing the
Group's performance, position and cash flows. In addition to the standard
measures in the financial statements, the measures enable investors to track
the core operational performance of the Group, for example by separating out
items of income or expenditure relating to acquisitions, disposals and capital
items. For example, one-off acquisition expenses due to advisor fees would not
ordinarily be incurred in normal trading. Amortisation will vary considerably
where the Group has to recognise separable purchased intangibles and
amortisation on those intangibles will therefore fluctuate. Management uses
these financial measures, along with UK-IAS financial measures, in evaluating
the operating performance of the Group.
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Total reported revenue 38,816 32,394
Less: currency impact in current period (389) 419
Total revenue on a constant currency basis (to the prior year) 38,427 32,813
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Total reported revenue 38,816 32,394
Less: revenue derived from acquisitions (2,713) (816)
Underlying revenue 36,103 31,578
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Annualised recurring revenue (ARR) 34,281 26,590
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.
Year ended Year ended
31 December 31 December
2025 2024
£'000 £'000
Total recurring revenue (TRR) 31,313 24,933
TRR is defined as the recurring revenues from subscription licences, contract
values of annual support and maintenance, and SaaS contracts
Year ended 31 December Year ended 31 December
2025 2024
£'000 £'000
Operating profit 2,838 4,056
Amortisation of intangible assets 3,221 2,492
Depreciation charge 800 691
EBITDA 6,859 7,239
EBITDA 6,859 7,239
Acquisition-related expenses 302 432
Impairment charge 2,343 -
Share-based payments 725 60
Adjusted EBITDA 10,229 7,731
Operating profit 2,838 4,056
Impairment charge 2,343 -
Acquisition-related expenses 302 432
Amortisation of acquired intangible assets 1,056 626
Share-based payments 725 60
Adjusted operating profit 7,264 5,174
Profit before taxation 2,848 4,294
Impairment charge 2,343 -
Acquisition related expenses 302 432
Amortisation of acquired intangible assets 1,056 626
Share-based payments 725 60
Adjusted profit before taxation 7,274 5,412
Taxation charge (1,531) (960)
Reversal of tax losses provided for following disposal of subsidiary 574 -
Impairment charge (586) -
Acquisition-related expenses (76) (108)
Amortisation of acquired intangible assets (264) (157)
Share-based payments (181) (15)
Adjusted taxation charge (2,064) (1,240)
Profit after taxation 1,317 3,334
Reversal of tax losses provided for following disposal of subsidiary 574 -
Impairment charge 1,757 -
Acquisition-related expenses 226 324
Amortisation of acquired intangible assets 792 469
Share-based payments 544 45
Adjusted profit after taxation 5,210 4,172
Adjusted profit after taxation 5,210 4,172
Weighted average number of shares (m) 82.6 82.3
Adjusted basic earnings per share (pence) 6.3 5.1
Cash generated from operations 12,971 10,676
Purchase of intangible assets - investment in development expenditure (3,518) (2,958)
Purchase of intangible assets - other intangible assets (728) (271)
Purchase of property, plant and equipment (80) (85)
Acquisition-related expenses 302 432
Adjusted operating cash flow 8,947 7,794
Adjusted operating cash flow 8,947 7,794
Net interest received 10 238
Taxation paid (827) (1,716)
Proceeds from disposal of property, plant and equipment 33 2
Free cash flow 8,163 6,318
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