Final Results

RNS

28 April 2026

Eleco Plc

(“Eleco”, the “Group” or the “Company”)

Annual Results

Audited Results for the Year Ended 31 December 2025

Strong Growth with Revenues, Adjusted Profitability and Cash ahead of Market Expectations

The Board of Eleco plc (AIM: ELCO), the specialist software provider for the built environment, is pleased to announce its audited results for the year ended 31 December 2025:

Financial highlights

Revenues

·    Total Revenues: £38.8m (at constant currency £38.4m) (2024: £32.4m), an increase of 20%

·    Annualised Recurring Revenues (ARR)¹ at 31 December 2025: £34.3m (at 31 December 2024: £26.6m), an increase of 29%

·    Total Recurring Revenue (TRR)²: £31.3m (2024: £24.9m), an increase of 26%, representing 81% of reported revenue (2024: 77% of reported revenue)

Profitability

·    Adjusted EBITDA⁴: £10.2m (2024: £7.7m), an increase of 32%

·    Adjusted profit before tax⁴: £7.3m (2024: £5.4m), an increase of 35%

·    Adjusted profit after tax⁴: £5.2m (2024: £4.2m), an increase of 24%

·    Adjusted basic earnings per share⁴: 6.3p (2024: 5.1p), an increase of 24%

·    EBITDA³ before impairment⁵: £9.2m (2024: £7.2m), an increase of 28%

·    EBITDA³ after impairment⁵: £6.9m (2024: £7.2m), a decrease of 4%.  The impairment charge relates to Veeuze, the Group’s former Visualisation business.  

·    Profit before taxation (PBT): £2.8m (2024: £4.3m), a decrease of 35%

·    Profit after taxation (PAT): £1.3m (2024: £3.3m), a decrease of 61%

·    Basic earnings per share: 1.6p (2024: 4.0p), a decrease of 60%

Cash and dividends

·   Cash: Strong cash generation with cash at 31 December 2025 up 16% to £16.3m (at 31 December 2024: £14.0m) despite acquisition payments and related costs for the PMI Software Ltd (Pemac) acquisition of £4.6m, and increased Interim and Final Dividends in 2025 

·    The Group remains free of debt

·    Free cash flow⁶: £8.2m (2024: £6.3m), an increase of 30%

·    Final dividend: 0.85p per share (2024: 0.70p per share), an increase of 21%

·    Total proposed final and interim dividends: 1.20p per share (2024: 1.00p per share), an increase of 20%

Operational highlights

M&A Strategy

·   Acquisition in January 2025 of Pemac, based in Ireland, a recognised leader in providing SaaS Computerised Maintenance and Management Software (CMMS), complementing the Group’s existing ShireSystem CMMS software.

·    Acquisition post year end of Kivue Ltd, a leading UK-based provider of Project Portfolio Management (PPM) SaaS software and associated services, complementing the Group’s PM3 PPM software.

·    Post year end, disposal of non-core Veeuze GmbH (Veeuze), a non-core, wholly owned German-based Visualisation business to a management buy-out, reinforcing the Group’s strategic focus on its higher growth Building Lifecycle businesses and continued emphasis on shareholder value.

Technology

·    Asta Powerproject awarded ‘Project Management Software of the Year’ at the UK Construction Computing Awards for the twelfth consecutive year, together with the prestigious ‘Company of the Year’ award, recognising Eleco’s commitment to innovation and excellence in the construction industry.

·    Release of Asta Vision Plus^TM, a new extension to the Asta Vision^TM platform, introducing API-led capabilities that prepare customers for predictive, AI-driven planning.  Asta Vision Plus provides customers with structured access to project data, deep integration capability with third-party systems, including specialist construction content platforms as well as large language model-based AI systems.

Post year end release of Asta Estimate^TM in the UK, a software solution for construction and carbon estimating used for tenders, improving productivity and to reduce project risk.  Asta Estimate is the only solution in the UK market that integrates cost, carbon, and schedule data into a single workflow via direct links to Asta Powerproject. This unique integration enables users to manage estimates alongside project schedules and sustainability metrics from the outset.

·    Advances in AI have enabled the Group to enhance its products, protect its installed customer base and reinforce its position in complex, highly regulated, human‑led industries, while also accelerating rapid prototyping and innovation. 

Growth

·    Record recurring revenue growth and record year-on-year software revenue growth.

·    Onboarded high-profile retail property customers comprising one of the top 10 UK supermarket retailers and two leading international fashion brands, marking continued momentum in expanding the Group’s global and domestic market presence.

·    Recertifications under the revised ISO 27001:2022 accreditations for Elecosoft UK, BestOutcome, and Pemac.

·    Improved operational gearing and enhanced adjusted profitability, together with further increased interim and final dividends.

Jonathan Hunter, Chief Executive Officer of Eleco plc, said:

“Eleco delivered further improvement in revenue, recurring revenues and adjusted profitability during 2025, despite a challenging geopolitical and macroeconomic backdrop. Performance for the year was ahead of market expectations across revenue, adjusted profitability, and cash generation, reflecting the resilience of the Group’s business model, the execution of our strategy and our continued focus on customers. “

“The successful integration of Pemac has strengthened the Group’s asset and maintenance management capabilities, while post year end the acquisition of Kivue has further enhanced our PPM software offering.  The divestment of our non-core Visualisation business through a management buy-out has simplified the portfolio,  improved the quality of earnings and protected shareholder value, while enabling management to accelerate growth across its core products.”

“The Group has entered 2026 with a more streamlined and high-quality portfolio. The Board remains firmly focused on strategic execution, organic growth and selective investment to drive sustainable shareholder value, and is confident in the outlook for 2026.”  

¹ ARR is defined as normalised annualised recurring revenues and includes revenues from subscription licences, contract values of annual support and maintenance, and SaaS contracts. This is calculated as normalised recurring revenue in the final month of the year multiplied by twelve. This ARR figure is calculated including the contribution from acquisitions to the Group going forward.

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

³ EBITDA is defined as Earnings before Interest, Tax, Depreciation, and Amortisation.

⁴ Adjusted measures are further defined in note 8 of this preliminary results statement with audited financials.

⁵ Impairment refers to the impairment of the carrying value of the assets of the Group’s former Visualisation business, Veeuze, of £2.3m in the year ended 31 December 2025 (2024: £Nil). 

⁶ Free cash flow is defined as adjusted operating cash flow, adjusted for tax, interest and any disposals of property, plant and equipment.  See also note 8. 

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, Kivue, Eleco Technologies from centres of excellence in the UK, Ireland, Sweden, Germany, the Netherlands, Romania, Australia 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, Building Information Modelling (BIM) and property management.

For further information please visit www.eleco.com. 

Chairman’s Statement

Introduction

I am pleased to report another year of strong growth for Eleco. In 2025 we delivered growth ahead of market expectations while achieving record levels of recurring revenue.

The pace of change within the industries and markets we serve continues to accelerate, with our customers embracing greater use of technology. Within that they are adopting digital workflow solutions, while seeking meaningful efficiencies through the harnessing and joining up of data, and effective use of artificial intelligence. Eleco, with its proven, world-class and comprehensive portfolio of software solutions across the product lifecycle, is extremely well positioned to capitalise on these growth drivers. Whether it be cost management, scheduling, project delivery or asset management and facilities, we have a solution and the industry-trusted experience to cater for our customers’ needs.

Strategic Progress

Organically, we continue to make key senior strategic hires as Eleco scales. Structurally, we are moving to a business model that focuses the Group on verticals and sector knowledge. Internal resources, systems and reporting all align to this objective.

Alongside this organic growth we remain active in the M&A space. In January 2025, we acquired and successfully integrated the Pemac business in Ireland. With this broader Group geographic footprint, Pemac, alongside ShireSystem, creates a strengthened, market-leading offering to the Computerised Maintenance Management System (‘CMMS’) market globally.

Post year end, in February 2026, Eleco complemented its Project Portfolio Management (‘PPM’) software offering with the acquisition of Kivue Ltd, with its focus on larger enterprise projects and a senior management and C-Suite audience. Integration of our two PPM businesses, Kivue and BestOutcome, into one is already underway. Following a comprehensive review, evaluation of strategic alternatives, and performance challenges, the Board has decided to strategically exit our Visualisation business, Veeuze, selling it to the current management team. This decision results in an impairment to the carrying value of this subsidiary, resulting in a non-cash charge to the income statement.

More generally, we continue to execute on our longer term strategy and identify and target potential M&A opportunities that meet our strategic objectives and deliver enhanced shareholder value.

Performance

The world is presently challenged with macroeconomic uncertainties and geopolitical headwinds. Despite this backdrop, the operational performance of the business continues to impress. Revenues, recurring revenues and operating profitability were all ahead of market forecasts.

Total revenue improved by 20 per cent to £38.8m (2024: £32.4m) (or 19 per cent on a constant currency basis to £38.4m). Following on from similar levels at the half year, yet with increased contribution from service revenues, total recurring revenues represented 81 per cent of total revenues (2024: 77 per cent). ARR (Annualised Recurring Revenue) was up 29 per cent to £34.3m (2024: £26.6m). TRR (Total Recurring Revenue) increased by 26 per cent to £31.3m (2024: £24.9m). Details on these recurring revenue definitions are provided in note 8.

The 2025 results demonstrate improved returns to our shareholders through improved profitability from our increasing scale. Adjusted EBITDA was higher by 32 per cent to £10.2m (2024: £7.7m), Adjusted profit before taxation was up 35 per cent to £7.3m (2024: £5.4m), Adjusted profit after taxation increased by 24 per cent to £5.2m (2024: £4.2m) and Adjusted EPS rose by 24 per cent to 6.3 pence per share (2024: 5.1 pence per share). Statutory measures are impacted by the impairment discussed earlier and in the CEO Report.

In uncertain macroeconomic and geopolitical times, Eleco’s robust balance sheet derived from its cash and absence of gearing, provides resilience. The Group also continues to enjoy a strong operating cash generation, notwithstanding the net cash requirements and related costs of the Pemac acquisition, totalling £4.6m, and an increased interim and final dividend payment to our shareholders. At 31 December 2025, cash was £16.3m (at 31 December 2024: £14.0m). After year end, the Kivue purchase led to a consideration outflow in cash terms of £1.8m. The Group remains free of debt.

Governance and Employees

We remain on the concerted journey of investing in people, systems and governance for the Group. The quality of our teams and of their teamwork are fundamental to the future success and growth of our business. On behalf of the whole Board, I provide my sincere thanks for their continued efforts, dedication and success.

Dividends

Eleco advocates a progressive and sustainable dividend policy. Continuing with returns commensurate with the ongoing improvement in underlying performance of the Group, the Board is proposing a final dividend of 0.85 pence per share (2024: 0.70 pence per share), which, with the interim dividend of 0.35 pence per share (2024: 0.30 pence per share), gives a combined total for the year of 1.20 pence per share, (2024: total of 1.00 pence per share), up 20 per cent.

The final dividend is payable on 3 July 2026 to shareholders on the Register on 19 June 2026. The ex-dividend date will be 18 June 2026.

Current Trading and Outlook

In 2025 Eleco delivered growth across all metrics, exceeding consensus market expectations for revenues, recurring revenues and operating profitability. We continue to deliver on our strategic objectives to further scale and enhance the Group both organically and inorganically, and look forward to that fulfilment.

Eleco has a diversified product solution portfolio which, despite some ongoing challenging market conditions in some verticals and sectors, remains well positioned in its innovation, resilient high recurring revenue business model and customer centricity and domain experience. With this foundation and positive market drivers, the Board is confident of the financial outlook in 2026.

Mark Castle

Chairman

27 April 2026

CEO Report

I am pleased to report that annual results for the full year ended 31 December 2025 are ahead of market expectations for revenue, operating profitability and cash generation. Recurring revenues exceeded previous record levels and now account for 81 per cent of total revenues (2024: 77 per cent), further strengthening the quality and resilience of the Group’s earnings.

This improved performance reflects the successful execution of our strategy, driven by our go-to-market initiatives (ARE: Attain new customers, Retain existing customers and Expand customer relationships); continued investment in technology and innovation, and a focused approach to M&A.

We are pleased with the acquisition and successful integration of PMI Software Limited, Ireland (trading as “Pemac”) in January 2025; a recognised leader alongside ShireSystem, in the SaaS Computerised Maintenance and Management Software (CMMS) market. More recently, in February 2026, we acquired Kivue Ltd, a UK-based project portfolio management (PPM) software business. Also in 2026, we have taken the difficult but necessary strategic decision to exit and impair our Visualisation business, allowing us to focus our capital and management attention on our higher-growth Building Lifecycle businesses going forward.

Trading

Group revenues increased by 20 per cent to £38.8m (2024: £32.4m), and by 19 per cent in constant currency terms to £38.4m. Organic growth was 11 per cent, excluding the impact of acquisitions.

Total Recurring Revenue (“TRR”), representing recurring revenues recognised across the year, increased by 26 per cent to £31.3m (2024: £24.9m), representing 81 per cent of total Group revenues (2024: 77 per cent). Annualised Recurring Revenue (“ARR”), calculated as normalised recurring revenue for December 2025 multiplied by twelve, increased by 29 per cent, reaching a new record of £34.3m (2024: £26.6m).

Within total revenues, UK customer-generated revenue increased by 16 per cent to £18.4m (2024: £15.9m), representing 47 per cent of total Group revenues (2024: 49 per cent). Overseas revenues grew by 24 per cent to £20.4m (2024: £16.5m), accounting for the remaining 53 per cent of total revenues (2024: 51 per cent). Despite ongoing macroeconomic challenges in the visualisation services sector in Germany, the overseas contribution was supported by improved trading in Sweden and the Rest of World, together with the contribution from the Pemac acquisition in Ireland.

Revenue growth, together with improved gross margins and control of overheads, including the absorption of additional acquisition cost bases, resulted in higher operating profitability. Adjusted Operating Profit (adjusted for non-recurring M&A costs, amortisation of acquired intangibles, share-based payments and before impairment) increased by 40 per cent to £7.3m (2024: £5.2m).

Adjusted EBITDA increased by 32 per cent to £10.2m (2024: £7.7m). Adjusted profit before taxation rose by 35 per cent to £7.3m (2024: £5.4m) while Adjusted profit after taxation increased by 24 per cent to £5.2m (2024: £4.2m). Adjusted basic earnings per share increased to 6.3 pence per share, a 24 per cent increase over the prior year (2024: 5.1 pence per share). Definitions of Adjusted performance measures are set out in note 8.

Statutory profitability measures include the impact of one-off items, most notably the impairment of the carrying value of assets relating to the Group’s former Visualisation business, Veeuze GmbH of £2.3m (2024: £nil). As a result, statutory operating profit decreased by 32 per cent to £2.8m (2024: £4.1m) and profit before taxation was 35 per cent lower at £2.8m (2024: £4.3m). Profit after taxation decreased to £1.3m (2024: £3.3m). EBITDA, before impairment however, increased by 28 per cent to £9.2m (2024: £7.2m). Statutory basic earnings per share decreased to 1.6 pence per share (2024: 4.0 pence per share).

The Group remains debt free and strongly cash generative. Cash at 31 December 2025 was £16.3m (at 31 December 2024: £14.0m). The strong position was achieved despite £4.6m of consideration and associated costs, less cash acquired, relating to the Pemac acquisition, together with increased interim and final dividend payments totals in year £0.9m (2024: £0.7m). Subsequent to the year end, cash reduced by £1.8m following the settlement of the cash consideration element of the Kivue acquisition, prior to acquisition-related expenses.

Strategy

Eleco’s long-term vision is to strengthen its digital presence, deepen customer engagement and relationships, and expand its market reach through strategic investments, technological advancements and clear, consistent brand direction. Through this strategy, Eleco aims to lead in providing digitally transformative solutions for the built environment. Central to this strategy is our belief that technology should enhance, not replace, professional expertise. The built environment is characterised by complexity, regulation and human judgement, where outcomes depend on skilled decision making rather than automation alone. Our solutions are therefore designed to keep people firmly “in the loop”, using digital tools and artificial intelligence to remove friction, improve insight and allow customers to apply their expertise more effectively.

The Group’s established and robust Growth Platform is underpinned by three strategic pillars:

1.         Go-to-Market

2.         Technology and Innovation

3.         Mergers and Acquisitions (M&A)

Go-to-Market

We have continued to enhance sales and marketing techniques, improve sales forecasting and pipeline analysis and implement customer success initiatives such as premium support. This has once again resulted in an increase in the average Annualised Recurring Revenue (ARR) per customer and a higher average number of licences per customer.

In parallel, we have developed our branding strategy, strengthening the Eleco master brand while preserving the value of our established product brands. This initiative is intended to improve consistency across customer touchpoints, support clear market positioning and provide a scalable visual platform for future growth. Implementation is progressing in a measured manner and is already supporting improved brand recognition for our newly-acquired businesses.

Net Revenue Retention in 2025, which is defined as the percentage of recurring revenues retained from existing customers, was at 110 per cent, an advance over the 109 per cent in 2024. The number of net new licences, new licences per customer, and customer numbers for the Group increased once again in 2025 over 2024.

The Building Lifecycle operations delivered strong growth of 29 per cent in line with our aim to drive growth with existing customers and their digital transformation plans. This was especially evident with our UK, Irish, Swedish and Benelux operations.

Against an ongoing backdrop of the relatively stagnant German economy and budget constraints amongst our visualisation clients, trading conditions for Veeuze remained challenging. While there was a modest improvement in the second half of the year, performance continued to be volatile and loss-making. In addition, the visualisation sector is undergoing rapid technological change, with increasing requirements for agile developments in artificial intelligence to remain competitive. Reflecting these market conditions, an impairment of the business’s carrying value has been recognised in the Group’s 2025 financial results.

Accordingly, decisive action was taken to address the underperformance of this non-core activity, with the divestment of the Veeuze business through a management buy-out. This transaction provides greater certainty for the business, its employees and its customers, and we wish them well in the next phase of their development. The transaction reinforces the Group’s strategic focus on its higher-growth core Building Lifecycle businesses, releases valuable management capacity and supports improved organic growth, profitability and cash generation over time.

The US market continues to represent an attractive long-term opportunity, where we are steadily increasing brand penetration, albeit against strong incumbent competition. As explained at the half year, two sizeable service orders for an Asta customer and a Veeuze visualisation customer were not repeated in 2025, resulting in total US revenue being 6 per cent below that of 2024. Nevertheless, US recurring revenues advanced by 18 per cent at $1.3m (2024: $1.1m), with customer numbers also increasing. We are encouraged by the uptake of Asta Vision and the expansion of Pemac in the USA.

Technology and Innovation

Technology and innovation is embedded in the Group’s DNA, and is reinforced by our deep domain expertise across our markets. The Group employs over 87 software engineers and reinvested 15 per cent of revenue in research and development during the year (2024: 17 per cent), focused on our core product solutions while delivering new customer-led functionality.

We continue to offer feature-rich, best-of-breed software that is highly valued by customers. Ongoing innovation initiatives are focused on artificial intelligence (AI), data accessibility and visibility, such as cloud collaboration solutions, mobile applications, reporting and analytics. We are increasingly expanding our e-commerce solution, starting with Asta, to make our software more accessible to all.

During the year, Asta won the UK Construction Computing Project Management Software of the Year Award for the twelfth consecutive year and Eleco was named Company of the Year at the same awards.

2025 saw the continued strong interest and geographical uptake in our Asta Vision Live real-time collaboration platform that enables multiple planners and other stakeholders (including senior management) to actively monitor and improve project delivery, thereby providing more effective resource allocation and reducing delays, cost and wastage.

Notable product releases during the year included Asta Powerproject 2026.1, featuring enhanced 3D and 4D capabilities, as showcased at Digital Construction Week, and a substantially enhanced Pemac Assets 4.2 release, incorporating customisable dashboard, improved mobile functionality and user experience, and strengthened GxP asset compliance. Alongside delivery of its feature roadmap, Pemac Assets was upgraded to the latest version of Python, ensuring that it remains secure, reliable and well-positioned for the future. BestOutcome PM3 releases included a new web-based Gantt chart with critical path analysis, together with multi-user and accessibility enhancements. Subsequent to the year end also saw the launch of AstaEstimate^TM in the UK, bringing together Bidcon and Asta Powerproject in an offering that combines cost, carbon and scheduling into a single workflow.

In applying new technologies, particularly artificial intelligence, the Group remains focused on supporting human decision making rather than automating it away. In complex, safety critical and labour intensive environments such as construction, infrastructure and asset management, effective outcomes depend on experience, judgement and accountability. Our approach to AI is therefore centred on augmenting professional capability, improving visibility and reducing manual effort, while ensuring that customers retain control over critical decisions.

The Group continues to apply artificial intelligence to enhance both product capability and operational efficiency. AI is increasingly embedded within our software development processes, supporting faster iteration, improved reuse of existing code and the modernisation of legacy platforms, while maintaining product quality and security. Within our product portfolio, AI-enabled functionality is enhancing insight, accessibility and integration, particularly through Asta Vision Plus^TM and Asta GPT^TM, strengthening the value proposition for customers. AI is also being used selectively within our consultancy and support operations to improve onboarding efficiency and scalability, helping to reduce manual effort and support growth without proportionate increases in cost.

In March 2026, we released Asta Vision Plus^TM, an extension to the Asta Vision platform that introduces API-led capabilities, providing customers with structured access to project data enabling deeper integration with third-party systems, including specialist construction platforms and large language model-based AI tools.

Mergers and Acquisitions

The Group’s M&A activities involve a considered evaluation of opportunities and potential targets that enhance shareholder value through the expansion of capabilities, profitability and geographic reach. Acquisitions are required to complement or extend the Group’s solutions, while existing businesses are continually assessed against the same strategic growth and return criteria.

2025 was an active year for the Group’s M&A programme, and at times it was appropriate to withdraw from marketed opportunities where assets were assessed as less attractive than initially anticipated, reflecting our continued commitment to disciplined capital allocation.

Equally, some businesses within the Group’s portfolio may exhibit growth profiles that diverge from our longer-term strategic direction. As a result, and as stated earlier, following a careful review, the Board took the difficult decision to divest, subsequent to the year end, its German-based Visualisation business, Veeuze, through a management buy-out. The transaction releases valuable management capacity at Group level to support the execution of our core strategy and future acquisition activity.

The integration of the Pemac maintenance management business, acquired in January 2025, has been successful, and has expanded the Group’s geographic footprint in Ireland and beyond. Together with our established ShireSystem and IconSystem products, which address complementary asset-intensive market segments, the Group has progressed towards a more unified Asset Management focus. It has been particularly encouraging to see improved alignment of customer verticals and propositions between Pemac and ShireSystem, alongside Pemac’s early expansion into the US market.

In February 2026, the Group acquired Kivue Limited (“Kivue”), a UK-based provider of Project Portfolio Management (“PPM”) SaaS software and associated services, for an enterprise value basis of £2.3m (comprising approximately £1.8m in cash and £0.5m in equity). Based in Reading, UK, Kivue with its Perform offering, complements the Group’s existing PM3 solution from BestOutcome which is used to manage strategic programmes and multiple portfolio management projects by Project Management Offices and Project Managers. The addition of Kivue further extends our reach into senior manager and C-Suite users managing complex enterprise portfolios.

People, Systems, ESG and Culture

Our people are central to Eleco’s success. Since 2023, we have published an internal Year in Review magazine to recognise and celebrate the dedication, achievements and contributions of colleagues across the Group, while providing a forum for sharing perspectives on topics that matter to them and to Eleco. This initiative supports our commitment to an inclusive culture and has helped raise awareness of the diversity of skills, experience and talent within the Group.

Sustainable growth remains a key priority which is embedded in the Group’s environmental, social and governance (ESG) agenda. Further details are provided in the Sustainability and ESG Committee Reports.

Alongside our investment in people, we continue to progress our system strategy. During the year, our Nordics operations, BestOutcome in the UK and the US business adopted the Group’s common ERP system, with additional modular enhancements deployed in Scandinavia. The Irish and Romanian operations are scheduled to follow in 2026, further improving consistency, scalability and control across the Group.

Our Markets

Societal, technological and macroeconomic trends including digitalisation, population growth, urbanisation and land-use pressure, and regulation, continue to shape the markets in which Eleco operates and provide significant long-term growth potential. Independent research by FMI estimates market opportunities of approximately US $1.9bn in construction project management software, US $3.4bn in maintenance and facilities management, and around US $6bn in BIM software solutions, all growing at high single to mid double-digit rates. According to the United Nations, the global population is expected to increase from 8.3bn today to 9.7bn by 2050, urban populations rising from 3.7bn to 6.5bn.

Organisations engaged in the design, construction and maintenance of buildings, infrastructure and industrial assets face mounting challenges including cost pressure, labour constraints, project complexity, safety and sustainability requirements and increasingly stringent legal and regulatory frameworks. As a result, customers are increasingly turning to proven, trusted, best-of-breed software solutions such as those provided by Eleco to improve efficiency, visibility and control across the full building lifecycle.

Summary and Outlook

Building further on our resilient business model with its high recurring revenues, the Group delivered impressive growth in revenues, adjusted operating profitability and cash in 2025. My sincere thanks to our employees and to our loyal customer base for getting us to where we are today, and for always challenging us to look towards tomorrow.

We continue to see a high rate of technological change in the marketplace driven by the population, urbanisation and complexity drivers outlined above. This digital transformation in the built environment presents a considerable organic opportunity for Eleco to attain new customers, retain existing ones and expand our customer relationships. Inorganically, we continue to explore strategic value-enhancing M&A activities for the Group and its shareholders.

The Board remains confident in Eleco’s future and its ability to perform in line with market expectations for the coming financial year.

Jonathan Hunter

Chief Executive Officer

27 April 2026

CFO Review

Introduction and Overview

I am delighted with our 2025 reported results: we have seen continued growth in revenues, recurring revenues, adjusted profitability and cash, and all ahead of market expectations. This performance is post our SaaS financial transition, demonstrating the robustness of our value proposition to our customers and the exceptional nature of our internal resources that we can bring to bear.

This superb performance is all the more creditable in what is undoubtedly a more uncertain and volatile world. It is testament to the reliance and robustness of our business model and the execution of our strategy. A high recurring revenue model provides a more sustainable, predictable and forward visibility for the investors in Eleco.

We do not and should not, however, rest on our laurels. Everything we do should be viewed through the lens of strategic fit and shareholder value. In the recent past, we have made some difficult decisions such as disposing of the non-core Arcon architectural software business and discontinued end-of-life product lines, and in 2025 the carrying value of our non-core Visualisation business, Veeuze GmbH, has been impaired.

Our core businesses and product solutions revolve around the whole lifecycle surrounding the built environment. The core drivers in the market are substantial, such as population growth and urbanisation, greater legal, regulatory and compliance demands and requirements, and increased complexity, time and cost pressure on projects. Eleco, with its best-of-breed innovative software, is at the centre of industry trends, such as the digitalisation of workflows, interoperability in technology ecosystems and harnessing of data to meet these challenges and opportunities.

Revenue and Gross Margins

I have great pleasure in reporting a 20 per cent increase in overall revenues to £38.8m (2024: £32.4m). This is ahead of market expectations, and a further demonstration of our successful execution of strategy over recent years.

The increase in constant currency terms amounted to a 19 per cent increase, and excluding contribution from the Pemac acquisition from mid-January 2025, organically the increase was 11 per cent. Acquisitions, such as Pemac, nonetheless represent an ongoing part of the business going forward.

Eleco Group provides a diversified portfolio of buildtech and proptech lifecycle technological solutions that are extremely well positioned to serve our many thousands of existing loyal and new customers in growing markets. Despite significant market presence, the opportunity for further upsell headroom and cross-sell penetration remains. We have no material customer concentration and are geographically diversified.

Analysis of revenue by geography shows that the revenue outside the UK, defined as overseas revenue, has grown as a proportion of the whole in 2025: to 53 per cent in 2025 (2024: 51 per cent). Within this overseas category, the largest contributor was ‘Rest of Europe’ (itself bolstered by the addition of Pemac in Ireland) at 20 per cent of Group revenues (2024: 16 per cent), followed by Scandinavia at 18 per cent of Group revenues (2024: 18 per cent), and Germany at 8 per cent (2024: 9 per cent). Revenue contributions in the UK amounted to 47 per cent of the Group total (2024: 49 per cent).

Analysis of revenue by recurring and non-recurring categories as proportion of Group revenues illustrates that Total Recurring Revenues (TRR), those revenues that are recurring when we look across the twelve months, moved ahead at 81 per cent (2024: 77 per cent); Services, a less resilient and more discretionary area in the face of macroeconomic pressures and uncertainties, 18 per cent (2024: 20 per cent); and, as anticipated, Perpetual licence sales lower at 1 per cent (2024: 3 per cent). TRR increased by 26 per cent to £31.3m (2024: £24.9m).

As we further transform as a high recurring revenue business, we increasingly embrace and value many SaaS software related metrics internally and externally report many of these additional performance, non-statutory measures. Central to these are the measures of recurring revenues which indicate the more predictable and sustainable business model we have transitioned to. In addition to the TRR measure mentioned above, Annualised Recurring Revenues (ARR), the normalised exit rate at the end of the year, provides a forward looking indicator and aid to investor visibility. ARR was higher by 29 per cent, being £34.3m (2024: £26.6m).

The building lifecycle classification of revenue at £31.1m (2024: £24.1m) represents 80 per cent of total revenues (2024: 74 per cent); with a further decline in revenue contribution by the CAD and Visualisation software sector to £5.8m (2024: £6.5m) or 15 per cent (2024: 20 per cent) of Group revenues. In 2025 we saw continuing challenging economic conditions for our German-based Visualisation business, and their customers’ budgetary constraints.

Another indicator for future revenues is the level of deferred revenues in the balance sheet. Deferred income is from software subscription licences and from software maintenance and support contracts and is credited to revenue in the income statement on a straight-line basis in line with the service and obligations over the term of the contract. I am delighted to report this increased by 39 per cent (2024: 23 per cent) to £16.8m (2024: £12.1m); organically, stripping out the effects of Pemac at £0.9m at acquisition, the increase was 31 per cent.

High gross margins are an indicator of the value we provide to our customers and add to their businesses. After taking the direct costs of servicing those revenues in cost of sales, Group gross margins remained healthy and ahead at 89.6 per cent (2024: 89.3 per cent). This is symptomatic of a higher mix of recurring revenues and in spite of integrating acquisitions with historically lower gross margins and the ongoing organic cost pressures from hosting providers to software companies such as ours.

Operating Expenses and R&D Investment

We continue to invest in Group resources in our pursuit of our strategy to scale the Group and meet the needs of the business in the face of competitive market pressures. Total operating expenses in 2025 increased by a headline £4.7m, or 19 per cent, to £29.6m in 2025 (2024: £24.9m).

The largest component of total operating expenses was selling and operating expenses which increased by £3.4m (or 16 per cent), to £24.6m (2024: £21.2m). However, when taking into account the absorption of Pemac’s overhead base for an eleven and a half month period and also a further three and a half months’ overhead addition from Vertical Digital, the net underlying increase was £1.5m, or 7 per cent. This net increase was driven by salary-related costs and represents both inflationary increases and heightened levels of Go-To-Market resourcing as we scale up the business. Operating expenses included negative foreign exchange of £0.1m, consistent with 2024 (negative foreign exchange of £0.1m).

Outside of these core underlying operating costs, depreciation and amortisation of intangible assets increased by £0.8m, or 25 per cent, to £4.0m (2024: £3.2m). Within this, amortisation from acquired intangibles, a feature of acquisition activity, increased by £0.5m to £1.1m (2024: £0.6m). Amortisation of other intangible assets, representing amortisation of capitalised development innovation and other internally generated internal system-related intangibles, rose by £0.3m to £2.2m (2024: £1.9m). Depreciation (including of right of use assets) increased by £0.1m to £0.8m (2024: £0.7m).

Share-based payments costs were very significantly higher at £0.7m in 2025 (2024: £0.1m). This is largely due to the 2024 charge being the net of an IFRS2 charge offset by a credit for staff leavers forfeiture of share options and write back of share options with stringent performance criteria. The 2025 figure is also reflective of the cumulative effect of overlapping charges for recent multi-year share option awards.

Acquisition-related expenses and stamp duties were slightly lower by £0.1m in 2025 at £0.3m (2024: £0.4m). The 2025 figure included only £0.1m relating to the Pemac acquisition (the majority being incurred in 2024 of £0.2m). The remainder in both years relates to other M&A activity, both where we have chosen to proceed to a successful outcome (such as the Kivue acquisition announced post year end) and also where we have chosen to not further progress some transactions.

Turning to research and development (R&D) expenditure, it is important that the Group continues to invest in its software solutions, bringing a superior reliability of existing solutions and also new innovation for its existing customers and enhanced offers to potential new customers. The benefits of a software company over some non-technology companies is the ability to bring such offers with a regular cadence and relative ease of deployment, thus reducing time-to-market constraints and improving both products for customers and returns for our shareholders.

Total R&D spend, at £5.8m (2024: £5.4m), represented 15 per cent of total revenue (2024: 17 per cent of total revenue); or 19 per cent of recurring revenues (2024: 22 per cent of recurring revenues). Of this total spend, approximately £3.5m was capitalised (2024: £3.0m), subject to amortisation (as discussed above), and £2.3m was expensed (2024: £2.5m), reflecting a shift to leading-edge innovation by our over eighty in-house software developers.

Profitability and Impairment

Another key benefit of software businesses is, beyond a core fixed overhead, to be able to scale up revenues without being subject to constraints in working capital (specifically inventory build) that non-technology companies might otherwise need to do to address market dynamics. This means time-to-market is not further delayed.

In 2025, we witnessed strong top-line organic and inorganic revenue growth, enhanced gross margins and gross profits, a less than proportionate increased investment in overheads, and consequently improved levels of operating profitability over 2024. Operating profitability before impairment improved by £1.1m, or 27 per cent, to £5.2m (2024: £4.1m). After taking into account the Veeuze impairment, EBITDA amounted to £6.9m (2024: £7.2m), a 4 per cent decrease.

When we look at the portfolio of businesses that we hold, whether long-held or recently acquired, we continually monitor and evaluate their performance in the light of many factors and competitive market pressures, and not least against our ongoing strategy and need to deliver superior returns for our investors. For these reasons, after a number of years significant stagnant macroeconomic conditions and specific challenges within the visualisation customer sector itself, the carrying value of assets held relating to the Veeuze Visualisation business has been impaired by £2.3m. Post year end, we have taken action to divest this business to a management buy-out, the remaining result of which will be reported in the 2026 financial year end.

For Eleco, this strategic decision is one-off in nature, meaning that Adjusted levels of profitability exclude this impairment of the Visualisation cash-generating unit, but non-Adjusted, statutory reported levels of profitability report this necessary, one-off impact. A reconciliation between statutory and Adjusted measures is provided in note 8.

Adjusted EBITDA was higher by 32 per cent to £10.2m (2024: £7.7m), Adjusted profit before taxation was up 35 per cent to £7.3m (2024: £5.4m), Adjusted profit after taxation increased by 24 per cent to £5.2m (2024: £4.2m) and Adjusted EPS rose by 24 per cent to 6.3 pence per share (2024: 5.1 pence per share).

On a non-Adjusted, statutory basis, EBITDA (after impairment) was £6.9m (2024: £7.2m), a decrease of £0.3m or 4 per cent. Operating profit (after impairment) decreased by 32 per cent to £2.8m (2024: £4.1m); profit before taxation was lower by 35 per cent to £2.8m (2024: £4.3m); and profit after taxation was down by 61 per cent to £1.3m (2024: £3.3m). Overall, basic earnings per share was 1.6 pence per share, a 60 per cent decrease over 2024, which was 4.0 pence per share.

Finance income slightly reduced by £0.1m, reflecting a lower interest rate environment; while finance expense was similar for the IFRS16 lease notional accounting interest charge but increased for the £0.2m addition of a notional interest charge for the unwinding of the discount on earnout consideration for the Pemac acquisition anticipated to be paid out in 2026 and 2027 (2024: £nil discounting).

The Group’s tax charge for 2025 was £1.5m (2024: £1.0m), which on higher total revenues year-on-year, gives an effective tax rate of 53.8 per cent (2024: effective rate of 22.3 per cent), and excluding the non-tax effecting impairment, the effective tax rate was 29.5 per cent. While the current tax rate moved in line with increased revenues, it was disproportionately higher for the mix of UK versus overseas elements. This UK current tax element was higher in 2025 by £0.4m with the full year effect of headline rates of 25 per cent, a less generous RDEC tax credit government regime, and absent of any prior year UK tax adjustment. Conversely, deferred tax credit adjustments increased for our German businesses by £0.6m.

Operating Cash, Cash and Liquidity

In uncertain macroeconomic and geopolitical times, Eleco’s resilient business model of high gross margins, high recurring revenues as a proportion of total revenues, high retention rates, lack of inventory build, and timely payment by our loyal and valued customers for the software stands us in good stead, and somewhat apart from some software businesses.

This cash generation allows us to fund investments in the business to drive organic growth, M&A from internal resources where possible to do so, and sustain a progressive and consistent dividend policy for our shareholders.

The Group’s cash position, as at 31 December 2025, was robust at £16.3m (2024: £14.0m). Had we not acquired Pemac in January 2025, the cash figure would have been higher by £4.6m on that one metric alone. The Group remains free of debt.

Cash generated from operations before working capital, reflective of underlying cash operating profits, increased by £2.6m to £9.9m (2024: £7.3m). Cash generated from operations after working capital movements increased by a similar £2.3m to £13.0m (2024: £10.7m). Net tax cash paid in 2025 in Group jurisdictions, following significant prepayments made in 2024, was significantly lower in cash terms in the year of £0.8m (2024: £1.7m).

Capital expenditure on intangible assets, comprising the capitalisation of software product development costs and acquired and other intangibles, further advanced by £0.9m to £4.2m (2024: £3.3m). Capital expenditure on property, plant and equipment at £0.1m was similar to the prior year (2024: £0.1m).

I am delighted to say that free cash flow, taking cash generated from operations after working capital less the intangibles and tangibles additions and taxation and net finance flows, increased by £1.9m to £8.2m (2024: £6.3m). This represents 158 per cent of operating profit before impairment (2024: 154 per cent).

Cash flows relating to finance costs, lease liabilities, equity dividends and any issue of shares, resulted in net outflows of £1.6m (2024: net outflows of £1.3m). Included within this were dividends paid in 2025, relating to the 2025 interim dividend and 2024 final dividend, amounting to £0.9m (2024: £0.7m), the increase reflective of our progressive dividend policy.

The net overall inflow of cash in the year was therefore £1.9m (2024: net cash inflow of £3.4m), added to by net exchange gains in 2025 of £0.5m (2024: net exchange losses of £0.3m).

Dividends

Unlike many other technology companies, the Company pays dividends in accordance with its progressive and sustainable dividend policy. The growth in our business and our unencumbered and cash generative status, allows us to both invest in the Group organically and inorganically, increasing the Group while also rewarding our loyal and supportive shareholders with such dividends.

The Board therefore proposes a final dividend of 0.85 pence per share, a 21 per cent increase (2024: 0.70 pence per share), which, with the interim dividend of 0.35 pence per share, gives a total for 2025 of 1.20 pence per share (2024: 1.00 pence). The proposed final dividend shall be paid on 3 July 2026 to shareholders on the share register as at 19 June 2026 with an associated ex-dividend date of 18 June 2026.

Summary

2025 marked a further acceleration in Eleco Group’s fortunes over the previous three years’ momentum. I’m especially proud of the value we create with the Eleco people we have: their dedication, skills and experience provide an unparalleled customer experience. Our deep and long-held domain experience means we solve the real-world, complex challenges our customers have and realise their commercial opportunities. These intangibles are not always readily identified on our balance sheet, nor is the value they add always fully captured in our financial performance.

Our innovative software solutions, paired with our increasingly honed go-to-market approach, embracing data, wider ecosystems and artificial intelligence, are well placed to solve the challenges of project delivery for the future: to time, reduced waste, lower cost and improved productivity. We remain focused on execution of strategy at pace and delivery of enhanced shareholder value.

Neil Pritchard

Chief Financial Officer

27 April 2026

Consolidated Income Statement

For the year ended 31 December 2025

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2025