Last checked at 29 Jul 2021 07:00
Eleco plc
("Eleco", the"Company" or the"Group")
Trading Update
The Board of Eleco plc (AIM: ELCO), the AIM-listed construction software specialist, is pleased to provide a trading update for the six months ended 30 June 2021 (the "Period"), based on unaudited management accounts for the period.
Unaudited revenue for the Period is expected to be not less than £13.7 million and has shown significant organic growth of 13% against the same period in 2020 and of 9% against the same period for 2019. This increase has been driven by the renewed focus and energy behind the business strategy. In addition, recurring revenue for the period is expected to be approximately £7.4 million, representing c. 8% growth against the same period last year and 12% in comparison to the same period for 2019.
The Board expects profit before tax for the Period to be not less than £2.2 million, an increase of approximately 17% compared with profit before tax for the same period last year and a 33% increase in comparison to the same period for 2019. Adjusted profit before tax* for the Period is expected to be not less than £2.6 million, an increase of approximately 22% compared with adjusted profit before tax for the same period last year and a 39% increase in comparison to the same period for 2019.
The Company also experienced strong cash conversion in the Period, enabling Eleco to significantly improve its net cash position from £6.1 million as at 31 December 2020 to approximately £8.5 million as at 30 June 2021 and the Company will continue to generate positive cash flow in the second half of the year.
The Board remains confident in meeting market expectations for the year and expect to release its interim results in late September.
(* Adjusted profit measures exclude acquisition and corporate finance related expenses and amortisation of acquired intangible assets.)
Serena Lang, Executive Chairman of the Company, commented:
"I am pleased to report that Eleco performed extremely well in the first half of 2021, with strong organic revenue, profit and cash flow growth, while also transforming the business to meet its future needs. This strong performance ideally positions us to accelerate the execution of our strategy to increase subscription income, which is focused on driving long-term organic revenue growth and enhancing the value we provide to our customers. Eleco will continue to generate positive cash flow in the second half of the year and is on track to deliver in line with market expectations."
Enquiries:
Eleco plc +44 (0)20 7422 8000
Serena Lang, Executive Chairman
Jonathan Hunter, Chief Executive Officer
Robert Tearle, Chief Financial Officer
finnCap Limited, NOMAD and broker +44 (0)20 7220 0500
Geoff Nash/ Kate Bannatyne (Nomad)
Richard Chambers, Charlotte Sutcliffe (ECM)
SEC Newgate UK +44 (0)20 3757 6880 eleco@secnewgate.co.uk
Elisabeth Cowell/ Bob Huxford/ Isabelle Smurfit
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 USA.
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.