(Alliance News) - Eleco PLC on Tuesday said it expects its strong financial performance to continue throughout the current year.
The London-based software provider, to the construction and built environment sectors, said pretax profit increased by 17% in 2023 to GBP3.4 million from GBP2.9 million the year prior.
Over the same period revenue grew 5.3% to GBP28.0 million from GBP26.6 million.
Meanwhile, recurring revenue growth saw an increase of 22% to GBP20.7 million from GBP16.9 million, and now accounts for 74% of all reported revenue.
Subsequently, Eleco has opted to increase its final dividend by 10% to 0.55 pence per share from 0.50p. This results in a total dividend for year of 0.80p, up from 0.70p last year.
Chief Executive Officer Jonathan Hunter said: "The company performed extremely well in 2023 and delivered record levels of recurring revenue growth, while securing future revenues through the increased levels of subscription licences. Our commitment to growth, both organically and through acquisitions, remains firm."
Eleco's stated acquisition strategy aims to deliver synergetic benefits, expand capabilities and improve profitability.
Last year Eleco acquired the portfolio management software company Best Outcome Ltd.
And this approach has continued into the current year following its most recent acquisition of custom software development firm Vertical Digital Ltd in April.
Looking ahead, the company expects revenue to keep growing throughout 2024 and said it will continue to look for new way to deliver on its expansion plans.
Eleco shares were up 1.0% to 97.00 pence each in London on Tuesday afternoon.
By Elijah Dale, Alliance News reporter
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Elecosoft (ELCO)