RNS
25 July 2024
Eleco Plc
("Eleco",
"Group" or the "Company")
H1 Trading
update
The Board of Eleco plc (AIM: ELCO),
the specialist software provider for the built environment, is
pleased to provide a trading update for the six months ended 30
June 2024 (the 'Period'), based on unaudited management accounts
for the Period.
Trading highlights
Eleco delivered further record
growth in both Annualised Recurring Revenue1 ("ARR") and Total
Recurring Revenue2
("TRR"), reflecting
continued progression on its growth strategy.
·
ARR at 30 June 2024 increased 31% to circa £25.8m
(£19.7m at 30 June 2023).
·
TRR increased by approximately 24% to £12.0m
(H1 2023: £9.7m), representing 74% of total revenue (H1 2023: 72%
of total revenue), and 75% of total revenue excluding the effects
of the Vertical Digital acquisition.
·
Total revenue for the period increased by 21% to
circa £16.3m and in constant currency terms approximately £16.5m
(H1 2023: £13.5m). The organic growth rate for the period over its
comparable period was 12%, excluding acquisition
effects3.
·
Cash as at 31 June 2024 was £12.0m (at 30 June
2023: £9.4m; at 31 December 2023: £10.9m) reflecting strong cash
generation notwithstanding the Vertical Digital acquisition
consideration of £1.1m and an increased final dividend payment of
£0.5m (H1 2023: final dividend payment of £0.4m).
1 ARR is defined as
normalised annualised recurring revenues and includes revenues from
subscription licenses, contract values of annual support and
maintenance, and SaaS contracts. This ARR figure is calculated
with the inclusion of contributions from acquisitions as part of
the Group business going forward.
2 TRR is defined as the recurring revenues from subscription
licences, contract values of annual support and maintenance, and
SaaS contracts
3 Revenues in H1 of 2024 include the first half
contribution of the BestOutcome acquisition and also approximately
two and a half months contribution of the Vertical Digital
acquisition.
The Interim Results will be reported
in full in September with a date to be confirmed in due
course.
Jonathan Hunter, Chief Executive Officer of Eleco plc
said:
"We are proud to report positive momentum in Eleco's trading
performance for the first six months of the 2024 financial year,
moving significantly ahead of the first six months of 2023.
"As anticipated with the launch of AstaGPT, our customers have
benefited from using Generative AI to find tailored support from
the wealth of our knowledge bank of documentation. AstaGPT
was shortlisted for the Innovation of the Year at the Digital
Construction Awards 2024. We also recently launched Asta
Vision LiveTM, a powerful new collaboration capability
which allows multiple project planners and stakeholders to work
simultaneously on a project in an encrypted, SaaS cloud-based
environment.
"Integration of the April-acquired Vertical Digital business
is progressing well. This has bolstered our ability to meet
our internal technical resourcing demands, utilising its proven
track record in agile and innovative software development and
consulting.
"Eleco is well positioned in an attractive market that is
increasingly utilising technology to meet the demands of the built
environment and the Company continues to strengthen its reputation
as a trusted provider of best-of-breed technology
solutions.
"The Board remains confident that Eleco will perform in line
with market expectations for the full year."
For
further information, please contact:
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Eleco plc
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+44 (0)20 7422 8000
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Jonathan Hunter, Chief Executive
Officer
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|
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Neil Pritchard, Chief Financial
Officer
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Cavendish Capital Markets Limited
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+44 (0)20 7220 0500
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Geoff Nash/ Emily Watts/ Seamus
Fricker (Corporate Finance)
|
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Louise Talbot/ Tim Redfern/ Harriet
Ward (ECM)
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About Eleco plc
Eleco plc is an AIM-listed (AIM:
ELCO) specialist international provider of software and related
services to the built environment through its operating brands
Elecosoft, BestOutcome, Verticial Digital and Veeuze from centres
of excellence in the UK, Sweden, Germany, the Netherlands, Romania
and the USA.
The Company's software solutions are
trusted by international customers and used throughout the building
lifecycle from early planning and design stages to construction,
interior fit out, asset management and facilities management to
support project management, estimation, visualisation, Building
Information Modelling (BIM) and property management.
For further information please
visit www.eleco.com.