Elecosoft PLC Trading update (9809I)
April 07 2020 - 2:00AM
UK Regulatory
TIDMELCO
RNS Number : 9809I
Elecosoft PLC
07 April 2020
For release 07 April 2020
Elecosoft Plc
("Elecosoft" or the "Company")
Trading update
The Board of Elecosoft (AIM: ELCO) releases the following
trading statement in respect of the year ended 31 December 2019
("FY19").
Trading
Further to the trading statement of 21 January 2020, the Board
confirms that the unaudited results for FY19 show that turnover and
profit before tax of Elecosoft for the year ended 31 December 2019
are each significantly higher than the respective levels achieved
in the year ended 31 December 2018.
Elecosoft also improved its cash generation significantly in
2019, having eliminated its net bank debt position of GBP1.8m as at
31 December 2018, and ending the year ended at 31 December 2019
with a net cash position of GBP1.1m.
Despite the macroeconomic uncertainty caused by the Covid-19
pandemic, Elecosoft traded well in the first quarter of 2020.
However, feedback from some of our customers and channel partners
suggests that we are likely to experience a degree of disruption to
our operations going forward due to the impact of the Covid-19
outbreak in the period. For example, we have already experienced
some disruption to the delivery of our face-to-face services which
currently account for 19 per cent of our total revenues. However,
we have already taken steps to mitigate the impact of this
disruption and all our face-to-face training and consultancy
offerings are now being offered and delivered online to our
customers.
The Board of Elecosoft concluded, on advice, that home working
arrangements would provide a safer working environment for
Elecosoft employees during the Covid-19 pandemic, than working in
their Elecosoft offices. The health and wellbeing of our employees
are our priority and accordingly, all employees in all the
countries in which we have business units, including Sweden, are
now enabled to work from home. Home working has also enabled us to
deal very effectively with a significant increase in the demand
that we have experienced for our hosted and mobile training and
support services, as well as reducing costs.
Financial
We are always conscious of the need to manage and conserve our
cash resources carefully and in present conditions we have been
even more vigilant in the control of operational costs and our
general overheads because the maintenance of our financial strength
is critical.
The Board approved and paid an interim dividend in October 2019
in respect of the year ended 31 December 2019 and Elecosoft's
excellent trading performance and cash generation in the second
half of 2019 would normally have warranted the declaration of final
dividend. However, in view of the uncertainties currently posed by
the Covid-19 pandemic, we do not consider ourselves to be in
"normal times" and therefore the Board has decided not to recommend
the payment of a final dividend or to declare a second interim
dividend, in respect of the year ended 31 December 2019.
Audited Accounts for the year ended 31 December 2019
Audited accounts of Elecosoft for the year ended 31 December
2019 will be released in due course. Shareholders and the Market
will be informed of the date of the release when the date is
confirmed.
The Board and its advisors have given careful consideration to
the rapidly evolving Government guidance in respect of the COVID-19
pandemic and concluded that it would not be appropriate to include
in this trading statement any reference which might be construed as
predicting the company's likely trading performance in the
short-term.
Enquiries:
Elecosoft plc +44 (0)20 7422 8000
JHB Ketteley, Executive Chairman
Jonathan Hunter, Chief Operating
Officer
Ben Moralee, Group Finance Director
finnCap Limited +44 (0)20 7220 0500
Geoff Nash /Kate Washington (Nomad)
Camille Gochez (ECM)
Newgate Communications +44 (0)20 3757 6880
Elisabeth Cowell/Isabelle Smurfit elecosoft@newgatecomms.com
About Elecosoft plc
Elecosoft plc is an AIM-listed (AIM: ELCO) software company with
interests based principally in the UK, Sweden, Germany, Benelux,
and the US. Elecosoft develops award winning software applications
and related services to the architectural, engineering,
construction and owner/operator sectors.
Elecosoft delivers a portfolio of software for project
management, estimation, visualisation, Building Information
Modelling (BIM), property management and digital marketing
disciplines.
Elecosoft's software and services are used during early planning
stages through to construction and facilities management, driving
the performance and day-to-day operations of its customers'
businesses.
For further information please visit www.elecosoft.com .
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Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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