RNS
28 January 2025
Eleco plc
("Eleco",
the "Group" or the "Company")
Year-end trading
update
Strong 2024 and ahead of
Market Forecasts
The
Board of Eleco plc (AIM: ELCO),
the specialist software provider for the built
environment, provides a trading update for the year ended 31
December 2024, based on unaudited management accounts for the
period.
Despite global
macroeconomic and geopolitical headwinds, Eleco continued to
progress on its growth strategy:
· Total Revenue is
estimated to be ahead of prior year by 16% at £32.4m (2023:
£28.0m). and by 17% to £32.8m in constant currency terms. Estimated
organic growth was 9%, excluding acquisition
effects1.
· Annualised Recurring
Revenue2 ("ARR") at 31 December 2024
increased 18% to c.£26.6m (£22.6m at 31 December
2023).
· Total Recurring
Revenue3 ("TRR") increased 20% to c.£24.9m (2023:
£20.7m), representing 77% of total revenue, and 79% excluding the
Vertical Digital Acquisition (2023: 74% of total
revenue).
· Cash at 31 December
2024 was £14.0m4 (at 31 December 2023: £10.9m),
reflecting strong cash generation, outside of an acquisition
payment and related costs for Vertical Digital of £1.3m, and
increased Interim and Final Dividends.
· The Group remains
free of debt.
The
Group's year end results will be published in April, with a date to
be confirmed in due course.
Jonathan Hunter, Chief Executive Officer of Eleco plc
said:
"We are delighted to report
continued success and improvements in Eleco's trading performance
for the full 2024 financial year, which was ahead of market
consensus, while reaching several strategic milestones for the
Group. We demonstrated solid growth in total and recurring revenues
and delivered strong cash generation despite acquisition payments
and dividend increases."
"Strategically, we enhanced
our technical capabilities, talent and scalability through the
acquisition of Vertical Digital and more recently strengthened our
Asset Management operations with the acquisition of
PEMAC."
"Eleco is recognised as a
Great Place to Work® and we are very proud that anyone joining the
Company becomes part of our talented and diverse team of over 300
colleagues. We believe that we are not simply a technology
business but a trusted partner to our customers, supporting their
success through our solutions."
"As Eleco continues to
strengthen its reputation, we remain excited about opportunities
open to us."
1 Revenues in 2024 include the
full year contribution of the BestOutcome acquisition and
approximately eight and a half months' contribution of the Vertical
Digital acquisition. There is no contribution from the PEMAC
acquisition announced post 2024 year end. 3 2
ARR is defined as normalised annualised recurring revenues and
includes revenues from subscription licences, 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.
3 TRR is defined as the
recurring revenues from subscription licences, contract values of
annual support and maintenance, and SaaS contracts.
4
Post year end, the cash in the Group reduced following the
payment of the initial consideration for PEMAC of €6.0m
(c£5.1m).
For
further information, please contact:
|
Eleco plc
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+44 (0)20
7422 8000
|
|
Jonathan Hunter, Chief Executive
Officer
|
|
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Neil Pritchard, Chief Financial
Officer
|
|
|
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|
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Cavendish Capital Markets Limited
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+44 (0)20
7220 0500
|
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Geoff Nash/ Seamus Fricker/ Elysia
Bough (Corporate Finance)
|
|
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Louise Talbot (Sales) / 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, PEMAC, Vertical Digital and Veeuze from
centres of excellence in the UK, Ireland, 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.
