(Alliance News) - Eleco PLC said on Tuesday that its full year will be ahead of market expectations, following double-digit growth in sales.
The London-based construction software specialist said earnings before interest, tax, depreciation and amortisation for 2021 will be GBP7 million, 4.5% higher than market consensus of GBP6.7 million and 4.5% higher than 2020 which was also GBP6.7 million.
Revenue has grown 8% year-on-year to GBP27.3 million, being 1.5% higher than market consensus of GBP26.9 million. This was due to double-digit growth in sales from its core Building Lifecycle portfolio. Recurring revenue also increased by 9% to GBP15.4 million, after Eleco launched its software-as-a-service subscription strategy.
Cash generation was also strong for the year, increasing net cash to GBP10 million as of December 31, up 61% from December 31, 2020 at GBP6.2 million. Eleco is now free from any bank debt, and has only GBP100,000 in other debt.
The software company's share price rose by 0.5% to 95.00 pence each in London on Tuesday afternoon.
"Our debt-free status leaves Eleco well-positioned for 2022 and we believe that our strong growth in 2021 endorses our decision to focus the business on its core competencies while targeting growth in recurring revenue," said Jonathon Hunter, chief executive officer of Eleco.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Elecosoft (ELCO)