Eleco plc (LON:ELCO), the AIM-listed construction software specialist, has provided a trading update for the six months ended 30 June 2022, based on unaudited management accounts for the period.
· Recurring revenue for the period increased by 9% to £8.2m (2021: £7.5m) and is approximately 61% (2021: 55%) of total revenue.
· Total revenues for the period were £13.4m (2021: £13.8m) and £13.8m at constant currency.
· Profits remain in line with expectations.
· Strong cash generation during the period with a net cash position of £11.3m (£10.0m at 31 December 2021) following payment of final dividend in June of £0.3m.
Jonathan Hunter, Chief Executive Officer of Eleco plc said,
“We are pleased with Eleco’s performance in the first six months of 2022 despite the challenging economic conditions. There are increasing inflationary pressures on salaries across the Group which have been addressed through a set of initiatives aimed at retaining existing colleagues and attracting new talent and I am pleased to report that in May we were certified as a Great Place to Work®.
In the period, the pandemic continued to impact our ability to market at trade fairs and we saw reduced demand for services and sales of new licences across the portfolio in Germany. In the UK and Swedish markets however, we experienced growth in new and existing customer subscription revenue and our consistently strong renewal rates on maintenance contracts ensured positive progress towards our strategy to expand our higher value and predictable recurring revenue.
The Board remains confident in delivering in line with market expectations for the full year.”
Eleco plc is an AIM-listed (LON: ELCO) specialist international provider of software and related services to the Architectural, Engineering, Construction and Owner/Operator (AECO) industries and interior furnishing industries from centres of excellence in the UK, Sweden, Germany and the Netherlands.
The Company’s market-leading Elecosoft software solutions are developed by teams in the United Kingdom, Sweden and Germany, and its solutions cover project management, estimating, timber engineering, CAD and visualisation, asset and facility management and cloud-based digital marketing solutions.
