Eleco PLC Year-end trading update (4475Z)
January 25 2022 - 2:00AM
UK Regulatory
TIDMELCO
RNS Number : 4475Z
Eleco PLC
25 January 2022
25 January 2022
Eleco Plc
("Eleco", "Group" or the "Company")
Year-end trading update
The Board of Eleco Plc (AIM: ELCO), the AIM-listed construction
software specialist, is pleased to provide a trading update for the
year to 31 December 2021, based on unaudited management accounts
for the period.
Unaudited revenue for the period is expected to be GBP27.3m, an
increase of 8% compared with the same period in 2020, and above
market expectations. This has been underpinned by double-digit
sales growth from its core Building Lifecycle portfolio . Recurring
revenue overall increased by GBP1.2m (9%) to GBP15.4m, following
the successful launch and acceleration of the Company's
SaaS/Subscription strategy.
The Board expects EBITDA for the period to be ahead of
expectations at GBP7m, (2020: GBP6.7m). Free cash flow is expected
to be in line with prior year at GBP5.5m.
Cash generation has been strong, resulting in a significant
increase in net cash which was GBP10m as of 31 December 2021,
compared to GBP6.2m as of 31 December 2020. In the second half of
2021 the strong net cash position allowed the Company to repay the
main bank debt outstanding of GBP2.8m. The Company now has no bank
debt and GBP0.1m of other borrowings.
Jonathan Hunter, CEO, commented:
"2021 has been a transformative year which has seen Eleco make
excellent progress with its refreshed strategy. Highlights include
winning Project Management Software of the Year at the UK
Construction Computing Awards, record sales growth for our
ShireSystem product, which is now the Group's second largest
product by revenue, and customer success stories including an
Irish-based international building materials manufacturer expanding
the use of ShireSystem software throughout six of its factories
located in Europe.
"We continued to strengthen our growth platform with the
successful merger of our UK building lifecycle businesses and the
merger of our German visualisation operations, providing greater
business development opportunities. In the last quarter of the
year, we also delivered SaaS/Subscription offerings across all our
Building Lifecycle products, with a particular focus on new
customers. In addition to establishing the senior leadership team
during 2021, we strengthened the Board with new and experienced
Non-Executives.
"We are therefore delighted to report that we expect to exceed
market expectations for 2021 and that our gross profits and EBITDA
levels continue to be strong. Our debt-free status leaves Eleco
well positioned for 2022 and we believe that our strong growth in
2021 endorses our decision to focus the business on its core
competencies while targeting growth in recurring revenue."
([1]) Market consensus for 2021 revenues was GBP26.9m, EBITDA of
GBP6.7m and free cash flow at GBP3.6m
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
Enquiries:
Eleco plc +44 (0)20 7422 8000
Serena Lang, Non Executive Chairman
-------------------------
Jonathan Hunter, Chief Executive Officer
-------------------------
Robert Tearle, Chief Financial Officer
-------------------------
finnCap Limited +44 (0)20 7220 0500
-------------------------
Geoff Nash/Kate Bannatyne (Corporate Finance)
-------------------------
Richard Chambers/Charlotte Sutcliffe (ECM)
-------------------------
SEC Newgate UK +44 (0)20 3757 6882
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Elisabeth Cowell/Bob Huxford/ Isabelle Smurfit eleco@secnewgate.co.uk
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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 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 .
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