RNS 

24 July 2025

Eleco Plc

("Eleco", "Group" or the "Company")

H1 Trading update

The Board of Eleco plc (AIM: ELCO), the specialist software provider for the built environment, is pleased to provide a trading update for the six months ended 30 June 2025 (the 'Period'), based on unaudited management accounts for the Period. 

Trading highlights

Eleco delivered further growth in Total Revenue, Annualised Recurring Revenue¹ ("ARR") and Total Recurring Revenue² ("TRR"), reflecting continued progression on its growth strategy and business model:

·    ARR¹ at 30 June 2025 increased 19% to c.£30.7m (£25.8m at 30 June 2024), a record amount for the Group.

·    TRR² increased by approximately 23% to £14.8m (H1 2024: £12.0m), representing 81% of total revenue (H1 2024: 74% of total revenue). Organic³ TRR increased approximately 16% to £13.9m (H1 2024: £12.0m).   

·    Total revenue for the period increased by 13% to circa £18.3m and in constant currency terms approximately £18.4m (H1 2024: £16.3m).   

·    Cash at 30 June 2025 was £12.2m (at 30 June 2024: £12.0m; at 31 December 2024: £14.0m) reflecting strong cash generation notwithstanding the PEMAC acquisition consideration and related costs of circa £5.2m and an increased final dividend payment of £0.6m (H1 2024: final dividend payment of £0.5m).

·    The Group remains free of debt.   

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 with the inclusion of contributions from acquisitions as part of the Group business going forward.

² TRR is defined as the recurring revenues from subscription licences, contract values of annual support and maintenance, and SaaS contracts

³ H1 of 2025 includes approximately five and a half months contribution of the PEMAC acquisition.  The prior interim period included approximately two and a half months contribution of the Vertical Digital 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:

"The Group has delivered record recurring revenue in H1 2025, strong cash generation and improved operational gearing, despite challenging geopolitical and macroeconomic conditions. New customer acquisition ("new logos") and expansion within the existing recurring revenue customer base are progressing well and we continue to see positive opportunities following the successful acquisition of PEMAC, which has broadened our CMMS Asset Management and Maintenance customer base." 

"During the period, construction markets have continued to experience deferred pipelines which in turn have reduced growth in our one-off services and training income.  We have implemented measures and initiatives to mitigate and address these non-recurring effects as we expand recurring revenues, which now account for 81% of total revenues at the half year."   

"The Board remains confident in delivering results in line with market expectations for the full year."

For further information, please contact:

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.