Organically, the business remains focused on providing leading edge software solutions, heightened innovation and developing senior strategic hires as we further scale up the business.

In January 2025, we acquired the Ireland-based PEMAC business which has been successfully integrated in the first half of 2025. PEMAC has not only added to our widening geographic footprint, but has considerably strengthened and expanded our facilities management CMMS offering (alongside our existing ShireSystem solution) to become the market leader in this space.

We continue to identify and target potential M&A opportunities in our chosen geographies in accordance with our strategic objectives and enhancing long-term shareholder value.

It is pleasing to see Eleco deliver further enhanced performance in the first half of 2025 despite macroeconomic and geopolitical headwinds. Revenues and recurring revenues are ahead of prior half year performance, alongside increased profitability.

Total Recurring Revenue represented 81 per cent of total revenues in the half year (H1 2024: 74 per cent). ARR (Annualised Recurring Revenue) increased 19 per cent to £30.7m (H1 2024: £25.8m). Total Recurring Revenue grew by 23 per cent to £14.8m (H1 2024: £12.0m). Total revenue was higher by 13 per cent to £18.4m and £18.4m in constant currency terms (H1 2024: £16.3m).

As we continue to scale up, the Group displays operational gearing leading to improved returns for its shareholders. In H1 2025, Adjusted EBITDA increased by 30 per cent to £4.3m (H1 2024: £3.3m). Adjusted profit before taxation rose 23 per cent to £2.7m (H1 2024: £2.2m). Adjusted EPS was also 29 per cent higher at 2.7 pence (H1 2024: 2.1 pence).

The Group also continues to enjoy strong operating cash generation, notwithstanding the cash requirements and related costs of the PEMAC acquisition, totaling £5.6m, and an increased final dividend payment to our shareholders in the half year to £0.6m (H1 2024: £0.5m). At 30 June 2025, cash was £12.2m (at 30 June 2024: £12.0m; at 31 December 2024: £14.0m). The Group remains free of debt.

Our long-established ESG Implementation Team has been working closely with our external ESG advisors to further enhance our internal monitoring and data reporting capture. The team has also undertaken internal monitoring of ESG initiatives throughout the Group.

Also during the period we have further enhanced our internal governance surrounding the identification, mitigation and treatment of risks facing the business, providing for a cadence of monitoring and reporting in all subsidiary locations.

Finally, we are pleased to report that we have recently achieved ISO recertifications under the revised ISO 27001:2022 accreditations for our two UK trading subsidiaries together with our new Irish subsidiary PEMAC.

We are in the process of further investing in people, systems and governance as we scale up the Group and embark on the next step of our strategic journey.

The quality of our individuals and their teamwork has been key to the success, growth and ambitious nature of our business. On behalf of the Board, I would like to provide my sincere thanks for their hard work, dedication and achievements.

Eleco promotes a progressive and sustainable dividend policy and returns have increased in line with the continued growth in profitability. The Board is increasing the interim dividend by 17 per cent to 0.35 pence per share (H1 2024: 0.30 pence per share).

This interim dividend is payable on 13 October 2025 to shareholders on the Register on 26 September 2025. The ex-dividend date will be 25 September 2025.

We have delivered yet again on growth and financial performance promises in the first half of 2025, underpinned by a clear strategy and robust business model. We are also delighted with the successful acquisition and integration of PEMAC.

More generally, despite challenging market conditions affecting some of our sectors, Eleco remains well positioned, with its high recurring revenue and customer-centric business model. We look forward to executing the next stage of our strategic plans with further delivery on both organic and inorganic growth.

Looking ahead, the Board remains confident in delivering results in line with market expectations for the full year.