TIDMELCO
RNS Number : 6122N
Eleco PLC
24 January 2023
Eleco Plc
("Eleco", "Group" or the "Company")
Year-end Trading Update
Progressive SaaS transition underpins record Annualised
Recurring Revenue growth
Trading in line with expectations
The Board of Eleco Plc (AIM: ELCO), the AIM-listed construction
software specialist, is pleased to provide a trading update for the
year ended 31 December 2022, based on unaudited management accounts
for the period.
Annualised Recurring Revenues(1) (ARR) at 31 December 2022 were
approximately GBP18.2m (at 31 December 2021: GBP16.0m). Total
Recurring Revenues (TRR), a key metric for the Group, has increased
to cGBP16.9m, or 64% of total revenue in 2022, representing an 8%
uplift on the comparable period (2021: TRR of GBP15.4m, or 56% of
total revenues).
As a result of this transition away from upfront perpetual
licences, unaudited revenues for the year ended 31 December 2022
are anticipated to be GBP26.6m (GBP27.0m in constant currency
terms). This, together with earnings for the period, is in line
with market expectations(2) .
Cash generation remains strong, with an increase in free cash
flow ahead of market expectations(1) resulting in a significant
increase in cash to GBP12.5m at 31 December 2022 (31 December 2021:
GBP10.0m).
The Company's debt-free, robust cash status, while maintaining a
consistent dividend policy, allows for the retention of surplus
cash for corporate development initiatives to promote and invest in
the future growth of the Group.
Jonathan Hunter, Eleco's CEO, commented:
"2022 has been a progressive year which has seen Eleco deliver
another strong performance and progress on its SaaS journey. We
ceased offering Powerproject perpetual licences in the UK and our
new cloud-based Lean planning software, Asta Connect, is set for
release imminently. This is closely aligned to the significant
strides made in the successful transformation of our business into
a customer-centric, high recurring revenue organisation.
In accordance with the Group's ESG objectives, cultural and
employee value initiatives were developed and implemented to
address the inflationary pressures across the Group and support the
retention of existing colleagues and attraction of new talent.
The progress in growing recurring revenues represents an
important strategic step forward for the Group. Our employees'
continuing dedication and outstanding effort on the
SaaS/subscription transition will deliver sustainable revenue
growth and greater predictability of earnings for Eleco going
forward.
When we commenced the transition to SaaS at the end of 2021, we
announced that revenue and profit would be temporarily reduced for
the first 18 months of the three-year process. H1 of 2023 will
therefore mark the mid-point of that transition. Looking forward to
FY23 as a whole, we expect to see growth in total revenues for the
first time since we announced the SaaS transition.
We firmly believe that our strategic progress and growth
endorses our transition to a SaaS model. We end the year with a
strong balance sheet and growth in recurring revenue. This solid
financial foundation gives the Board confidence in the year ahead
and we will continue to look for opportunities to accelerate our
growth, both organically and through acquisitions."
(2) ARR is defined as normalised annualised recurring revenues
and includes revenues from subscription licenses, contract values
of annual support and maintenance, and SaaS contracts.
(1) Market consensus for 2022 revenues was GBP27.3m, EBITDA of
GBP5.1m, EBIT of GBP2.7m and free cash flow at GBP2.1m
Enquiries:
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 (Sales)
-------------------------
SEC Newgate UK +44 (0)20 3757 6882
-------------------------
Elisabeth Cowell/Bob Huxford eleco@secnewgate.co.uk
-------------------------
About Eleco plc
Eleco plc is a London Stock Exchange 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 .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTSEEFUDEDSELF
(END) Dow Jones Newswires
January 24, 2023 02:00 ET (07:00 GMT)
Eleco Public (LSE:ELCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Eleco Public (LSE:ELCO)
Historical Stock Chart
From Apr 2023 to Apr 2024