Eleco continues to be well positioned in a very exciting and attractive market as technology is seen as the catalyst to meet the growing demands of the building industry. Our customer base has been facing unprecedented labour challenges and escalating materials costs.
Eleco’s software plays a crucial role in mitigating these issues, driving productivity for our customers, and enabling them to better plan their resources. There is a drive for more efficient and sustainable building methodologies and techniques. Our technology solutions are widely recognised for allowing better decision making and collaboration across our clients’ projects, positioning us to benefit from increasing digitalisation trends in our core markets.
As a result, the increasing digital transformation within the built environment is a significant opportunity for Eleco to leverage its position as a proven provider of software for the construction and built environment sectors, strengthen its platform, and continue to drive organic growth.
Purpose
To solve the challenges of the built environment through digital transformation
Mission
To provide best-of-breed software to companies in the built environment
Vision
To create certainty for the built environment
Our values and behaviours play a key part in driving through our purpose: we believe that our brand values should be reinforced by our cultural values and behaviours. As the foundation of our culture, this combination defines how we engage with those we work with and for in order to achieve value-adding impactful outcomes for:
• The planet/environment and the wider society: being environmentally and socially responsible,
• Our people: creating an organisation/employer brand people want to work with and for,
• Our customers: making life easier for our customers through our products and services,
• Our shareholders: providing a return on our shareholders’ investment.
We measure the impact of our actions through Environmental, Social and Governance (ESG) performance indicators and outcomes as well as internal operational and external shareholder value measures.
Summary of principal risks
Eleco aims to deliver sustainable growth combined with continued investment in software product development, sales and marketing resources.
The development of new products and the enhancing of existing requires continual appraisal of investments and the returns. Product development is planned, reported and reviewed frequently, and Eleco works closely with key customers and channel partners while monitoring industry trends to ensure that new products and features align to market needs and expectations.
Risk
Products could fall behind competition in functionality and/or user interface, reducing revenue.
Mitigating actions/controls
Eleco is enhancing its Product Roadmapping process and integrating the additional development capability gained from Vertical Digital. This includes the creation of clearer multi-year roadmaps, better prioritisation of architectural improvements and more structured investment decisions focused on competitive advantage. Work continues to modernise key product architectures and reduce the reliance on single individuals with specialist knowledge. Improvements to user interface and user experience design remain a priority to ensure products continue to meet customer expectations.
Risk
Artificial Intelligence could enable competitor products to potentially outperform Eleco, and changes the operating model of our customers.
Mitigating actions/controls
Eleco’s approach to AI is focused on augmenting professional capability while maintaining customer control over critical decisions. A key mitigant against competitive and technological risk is the Group’s data advantage; clients have built data over decades of use across mission‑critical and regulated environments. This includes project and site schedules, asset histories, maintenance regimes, compliance workflows and programme and portfolio performance data. The scale, quality and dependency on this data materially strengthen the relevance and defensibility of Eleco’s solutions and is not readily replicable by new entrants to the market.
The Group’s software platforms are feature‑rich, well embedded and support complex, end‑to‑end workflows rather than surface‑level applications. This results in high switching costs and long‑term customer relationships. Eleco’s business logic, domain expertise and process models – which have been developed over many years – are integral to delivering reliable outcomes in complex, safety‑critical and regulated contexts and represent a further moat against competitors seeking to replicate functionality without equivalent depth or heritage.
Eleco is increasingly enabling secure access to data generated within its solutions, supporting deeper integrations and embedding its solutions further into customer workflows.
This strengthens Eleco’s position as a system of record and provides a controlled foundation for AI‑driven use cases.
Risk
Cyber attacks on Eleco products and infrastructure.
Mitigating actions/controls
Effective technology risk management and close monitoring are crucial for addressing potential IT security incidents and system failures, as well as protecting customer information from unauthorised access or disclosure. Consistent investment and adherence to regulatory standards help mitigate these risks. Eleco plc employs a range of cyber defence tools, including industrial-strength email and web filtering services, server and endpoint security suites, and hardware and software firewall protection suites. This includes a Secure Development Policy to enable our products to be secure when running on customers’ infrastructure.
All third-party partners used for communication, security, or hosting services are certified to ISO 27001 and SOC2 levels, which encompasses physical and cyber security measures to guard against attacks. Additionally, all Eleco plc employees receive regular cyber awareness and data protection training, and cyber security insurance is in place to further mitigate threats. Many Group companies are already certified to ISO 27001 standard.
As a requirement of ISO 27001, Eleco constantly reviews security measures and follows recruitment, confidentiality, and data security practices for the people aspects of security. In the extreme case, our End User Licence Agreement (EULA) and Terms & Conditions provide protection against breaches and data protection.
Risk
Inability to attract and/or retain employees.
Mitigating actions/controls
Eleco has won many awards for its products and has been recognised as a top performer in the market. Eleco continues to strengthen its employee value proposition, benchmark remuneration and promote a progressive workplace culture recognised by multiple Great Place to Work® certifications. Succession planning is being expanded in areas where single-resource dependencies exist, combined with targeted capability building and recruitment in specialist roles. Enhanced communication of career pathways and internal development opportunities further supports retention efforts.
Risk
Economic challenges may reduce demand for Eleco products.
Mitigating actions/controls
The building lifecycle software markets are changing as the built environment accelerates its digitalisation. We work closely with customers and the market risk is mitigated through diversity of our product portfolio and distributed geographic market exposure. Eleco maintains strong cost control to stay financially competitive and recovers such cost base increases through price rises where possible. Our product solutions and services help clients save time and bring efficiencies in a highly cost effective and value-for-money manner. Eleco’s position is further strengthened by servicing the maintenance stages of the building lifecycle and manufacturing, property and retail markets. These markets experience different economic pressures and can be stable when demand is low in other markets.
Risk
Competitor action may reduce Eleco market share.
Mitigating actions/controls
Eleco’s group structure with local business units enables us to be aware of trends in our markets and to respond locally. We continue to focus on excellent service, deep functionality and competitive pricing to ward off competitors. Customers are well versed in Eleco product solutions and our expanded service offerings. Feedback from customers and market trends are fed into our product roadmapping process.
Risk
Environmental and political uncertainty.
Mitigating actions/controls
Eleco works closely with customers and the market risk is mitigated through operational spread between countries with plans to expand geographically both directly and in non-geographically present countries through reseller partner channels. Eleco’s position is further strengthened by servicing the maintenance stages of the building lifecycle and manufacturing, property and retail markets, with different cycles and exposures to construction. As a flexible, geographically-distributed and multi-product solution organisation, Eleco is well-positioned to leverage demand from green projects. The wide use of remote working and supporting technology across the Group means greater resilience in the event of any pandemic-related lockdown.
Risk
Reputation may be negatively impacted by Eleco, employee or partner activity.
Mitigating actions/controls
Eleco takes an active role in identifying, assessing and escalating reputational risks for example through regular client meetings and, in the UK, through the Customer Success programme. Our policies aim to ensure reputational risk matters are managed in a globally consistent manner and align with our strategy. Eleco governance of reputational risk is an integral component of overall risk management, with a distinct category and reporting for reputational risk. Eleco mitigates these risks by taking steps to protect against data breaches; project management of customer deliveries; listening to customer and employee feedback to address areas of improvement and any training needs; developing strong company values and ethics and operating on them; and being aware of relevant social media adverse comments from stakeholders.
Risk
Risks may stem from the acquisition and integration of companies and businesses (M&A related risks).
Mitigating actions/controls
The Group performs strong due diligence processes and closely managed integration processes; we seek to reduce the likelihood of this risk materialising. The integration plan is for the long-term positioning of the acquired business in the ecosystem of the Group. The integrations of BestOutcome, Vertical Digital and Pemac were managed as specific integration projects and there is now a documented Eleco best practice approach for integrating new acquisitions.
Risk
Potential breach of regulatory compliance.
Mitigating actions/controls
Eleco uses the services of professional advisors, who are experts in their fields, to complement in-house knowledge. Transactions between group companies are carried out in accordance with Eleco’s interpretation of tax laws, tax treaties and OECD guidelines. Eleco has many systems, processes and controls in place to ensure compliance with regulations. Intercompany transactions are conducted at arm’s length and transfer pricing arrangements remain under continued review.