Elecosoft Regulatory News (ELCO)

12 August 2021

Eleco plc

("Eleco", the "Company" or the "Group")

Directorate Changes

Following the strategy announcement earlier this year, the Board of Eleco plc, the AIM-listed construction software specialist, is pleased to announce a refresh of the Board.

After a formal and rigorous process to find additional Independent Non-Executive Directors (NEDs) with software and construction backgrounds, the Board would like to announce the immediate appointment of Dr. Annette Nabavi, a highly qualified board director with more than 30 years' experience in the technology, telecoms and digital industries who will bring additional expertise to advise with the shift from a perpetual to SaaS licence model. Additionally, Mark Castle, an experienced business leader, will join the Board with effect from 20 September 2021. Mr. Castle brings with him a wealth of experience in the Property, Construction, Consultancy and Built Environment Sectors and will help provide the voice of the customer on the Board.

Dr. Nabavi has held several Non-Executive Director roles, including a seven-year tenure at AIM-listed Maintel Holdings Plc, a cloud and managed services company, where she also chaired the Remuneration Committee. She has substantial experience in this area through her involvement with the Quoted Companies Alliance (QCA), where she supported the update to the Remuneration Committee Guide. In 2018, she was shortlisted for The Sunday Times' Non-Executive Director Awards as AIM Director of the Year.

Her current roles include Managing Director of Anchusa Consulting, where she advises on strategic issues and corporate finance in the technology and telecoms sector, and Partner at AHV Associates, a corporate finance advisory firm specialising in M&A and capital raising.

Dr. Nabavi is also Finance Director for Women in Telecoms and Technology, a Not-for-Profit organisation, and serves as a judge for the prestigious World Communications Awards. She holds an MA from Oxford University and a Doctorate from the University of Dijon.

Mark Castle is currently a Non-Executive Director of Mace Group, a global construction, property investment, consultancy, and facilities management business, which he joined in 2005. Working as Chief Operating Officer until earlier this year Mark oversaw Mace Group's construction growth from start-up to becoming a £1.6 billion revenue company within the group which operates in over 80 countries with 6,500 employees.

Prior to working at Mace Group, Mark was Managing Director UK of New York based Structure Tone, a $3bn revenue construction company, and before this was Managing Director London of Wates Group, a £1.4 billion revenue construction business headquartered in London. He is a Fellow of the Royal Institute of Chartered Surveyors. On joining the Board, Mark Castle will become Chair of the newly created ESG Committee.

Kevin Craig will be stepping down from the board at the end of August to focus on his other growing business interests, and David Dannhauser will also step down at the end of August. Dr. Nabavi will succeed Kevin Craig as Chair of the Remuneration Committee and become Senior Independent Director and Paul Boughton will become Chair of the Audit Committee.

The Company also confirms that Executive Chairman Serena Lang will return to her previous non-executive capacity as Non-Executive Chairman in September and Anders Karlsson, MD for Nordics, will leave the Board at the end of August but remain an important part of the Executive Team as one of the Company's key regional MDs.

It is the intention of the Board for all non-executive directors to stand for re-election at the AGM in 2022 and in subsequent years. This is in line with corporate governance best practice. The executive directors will continue to stand for re-election in accordance with the articles of Eleco.

Serena Lang, Executive Chairman, said:

"I am delighted to welcome Dr. Annette Nabavi to the Eleco Board as the Senior Independent Non-Executive Director and Chair of the Remuneration Committee. With our strategy now in place, Annette's impressive track-record in the technology, telecoms and digital industries will add tremendous value to us as we implement our next phase of growth. Further, her work with the QCA will be extremely beneficial as we focus on enhancing our corporate governance to ensure that it is the best in the business.

"I am also excited to be welcoming Mark Castle to the Board of Eleco in September. His long and illustrious career in construction and the built environment will be indispensable to us as we seek to move from a product centric to a customer centric model and expand our business in these sectors. Mark has huge experience in helping businesses to grow, always with a focus on driving customer service and shareholder value. His strong commercial and business acumen will prove a great asset to us, as will his expertise in performance and risk management, compliance, and support around ESG.

"On behalf of the Board, I would also like to thank Kevin and David for their unwavering support and guidance since joining the business and particularly their contributions to the development of the new strategy for the business and during this transitional period for Eleco. Kevin's experience of positioning, marketing, and growing successful growth businesses and his deep internal communications expertise have been extremely valuable in shaping our new strategy and we wish him all the best as he continues to drive his business. David's deep financial experience, robust constructive challenge and knowledge of the business have ensured rigour, discipline and continuity for the business as we have moved between finance directors and into this new phase of the Company's life and we wish him all the best in his new endeavours. Additionally, I would like to take the opportunity to thank Anders Karlsson, who has played a key role in the organisation over the past few years, including being instrumental in the strategy work and leading the UK whilst we recruited a replacement for Jonathan Hunter following his promotion to CEO.

"With a strengthened and highly capable management team in place, aligned with our newly revised strategy, which is being successfully implemented across the business, I am also pleased to be able to announce that I will be moving to the role of Non-Executive Chair. I have every confidence that, with these essential building blocks now firmly underpinning the business, Eleco will continue to deliver growth to the benefit of all shareholders."

About Eleco plc

Eleco plc is an AIM-listed (AIM: 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, Netherlands and the US.

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.

For further information please visit www.eleco.com.

Regulatory Disclosures:

The following information regarding the appointment of Dr. Annette Nabavi, age 69, is disclosed under Schedule 2(g) of the AIM Rules for Companies:

There is no further information to be disclosed in relation to the appointment of Dr Annette Patricia Nabavi pursuant to Schedule 2, paragraph (g) of the AIM Rules.

The following information regarding the appointment of Mark Castle, aged 56, is disclosed under Schedule 2(g) of the AIM Rules for Companies:

Mark Castle was a director of Nugent Construction when it went into receivership in 1993.

There is no further information to be disclosed in relation to the appointment of Mr. Mark Castle pursuant to Schedule 2, paragraph (g) of the AIM Rules.