Eleco PLC Trading Update (3155H)
July 27 2023 - 2:00AM
UK Regulatory
TIDMELCO
RNS Number : 3155H
Eleco PLC
27 July 2023
27 July 2023
Eleco Plc
("Eleco", "Group" or the "Company")
H1 Trading Update
The Board of Eleco plc (AIM: ELCO), the AIM-listed specialist
software provider for the built environment, is pleased to provide
a trading update for the six months ended 30 June 2023 (the
'Period'), based on unaudited management accounts for the
Period:
-- Annualised recurring revenues(1) (ARR) at 30 June 2023
increased 18% to circa GBP19.7m (GBP16.7m at 30 June 2022).
-- Total recurring revenues (TRR) for the Period increased by
approximately 18% to GBP9.7m (H1 2022: GBP8.2m), representing 72%
of total revenue (H1 2022: 61% of total revenue).
-- Total revenues for the Period are expected to be circa
GBP13.5m (H1 2022: GBP13.4m). Revenues in the first half of 2023
reflect the SaaS transition and also the impact of the end-of-life
of the Group's Memmo and Sitecon products, the end-of-life of a
third-party resold product in Sweden, and the absence of the
revenue contribution from the German ARCON business disposed of in
February 2023.
-- Underlying cash generation in the business remained strong.
The cash position at the Period end of GBP9.4m (at 30 June 2022:
GBP11.3m; at 31 December 2022: GBP12.5m) is reflective of the
recently announced acquisition of BestOutcome Ltd. The Period end
balance is following the net cash consideration of GBP3.5m and an
increased final dividend and special dividend payments totalling
GBP0.9m in the Period (H1 2022: GBP0.3m).
(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 prior to the inclusion of the forthcoming
contribution from the BestOutcome 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 delighted with Eleco's trading performance for the first
six months of the financial year, and we remain in line with market
expectations for the financial year.
"As we emerge from H1 2023, which we previously flagged would be
the low point of the temporary financial impact of the SaaS
transition, we are reporting revenues above those of H1 2022 and we
look forward to an acceleration in total revenue growth for the
remainder of the year and beyond.
"We commence the second half of 2023 with the reintroduction of
the recognised and respected Asta product brand to reflect our
suite of broader project scheduling solutions.
"The recent addition of BestOutcome Ltd to the Eleco family,
with its SaaS recurring revenues, strengthens the existing Building
Lifecycle portfolio and further builds our offering to a more
diverse customer base to solve the challenges of the Built
Environment. Integration work is already well underway.
"Eleco continues to deliver on its SaaS strategic journey,
focussing on increasing organic recurring revenues, supplemented by
inorganic growth opportunities, to the benefit of its customers and
shareholders. The Board therefore remains confident in Eleco
delivering market expectations for the full year."
For further information, please contact:
Eleco plc +44 (0)20 7422 8000
Jonathan Hunter, Chief Executive Officer
-------------------------
Neil Pritchard, Chief Financial Officer
-------------------------
finnCap Limited +44 (0)20 7220 0500
-------------------------
Geoff Nash/ Emily Watts/ Seamus Fricker (Corporate Finance)
-------------------------
Charlotte Sutcliffe / Harriet Ward (ECM)
-------------------------
SEC Newgate UK +44 (0)20 3757 6882
-------------------------
Elisabeth Cowell/ Bob Huxford eleco@secnewgate.co.uk
-------------------------
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 and Veeuze from
centres of excellence in the UK, Sweden, Germany, the Netherlands
and the US.
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 .
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