(Alliance News) - Eleco PLC on Tuesday said it delivered a "record" revenue surge in 2023, thanks to its progressing growth strategy.
Eleco is an AIM-listed London-based specialist provider of software and related services to the built environment through its operating brands Elecosoft and Veeuze.
Annualised recurring revenue climbed 24% to GBP22.6 million as at December 31 from GBP18.2 million a year ago.
Meanwhile, total recurring revenue jumped 22% to around GBP20.7 million from GBP16.9 million in 2022.
This represents 74% of total revenue for 2023, and an increase from 64% of total revenue in 2022, Eleco said.
The firm said it expects annual revenue of GBP28.0 million, and GBP28.3 million in constant currency, compared to revenue of GBP26.6 million reported the previous year.
Cash as at December 31 was GBP10.9 million.
Eleco Chief Executive Officer Jonathan Hunter said: "Despite challenging macroeconomic climates and geopolitical uncertainties, Eleco has continued to deliver a robust performance with its underlying revenue growth, and profitability is expected to be ahead of consensus. This reflects our strategic switch to a software as a service business model and our focus on higher margin core products, and the discontinuation of products that were not contributing to the future of the group."
Eleco shares rose 9.0% to 94.80 pence each on Tuesday morning in London.
By Sabrina Penty, Alliance News reporter
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Elecosoft (ELCO)