(Alliance News) - Elecosoft PLC on Monday reported a double-digit rise in both profit and revenue during a "year of growth" for construction software developer.
Revenue in 2019 was 14% higher at GBP25.4 million from GBP22.2 million. Pretax profit climbed 45% to GBP3.5 million from GBP2.4 million.
"Elecosoft delivered a year of growth, cash generation and product innovation in 2019, despite the uncertain trading conditions experienced in the lead up to Brexit," Executive Chair John Ketteley said.
"During the year under review, we also eliminated our net bank debt of GBP1.8 million as at December 31, 2018 and generated a net cash position as at December 31 of GBP1.1 million. One cannot underestimate the severity the challenges being experienced in all world markets as a consequence of the impact of coronavirus, and accordingly since the beginning of 2020, we have concentrated on cash generation and conservation, adjusting product consultancy and training programmes so that they can be delivered better over the web - and thus far, these actions have proved effective in dealing with the Coronavirus threat."
Elecosoft opted not to pay a final dividend, having made a 0.40 pence per share payout for the end of 2018.
"Elecosoft's strong trading performance and cash generation in 2019, and, ironically, the strong start to trading in 2020, would normally have warranted the payment of an increased final dividend. However, having regard to the uncertainties created by the Coronavirus situation and the need to conserve our cash resources, the Board has decided to not recommend a final dividend," the company said.
Having made a 0.30p payout for the first half of 2019, its total dividend for the year was cut by 56% from 0.68p.
Shares in the company were 7.8% higher at 79.80p each in London on Monday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Elecosoft (ELCO)