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.

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 26.

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.

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.

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.

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.