Back to Regulatory News

Trading Update

RNS Number : 6122N
Eleco PLC
24 January 2023

Eleco Plc

(“Eleco”, “Group” or the “Company”)


Year-end Trading Update


Progressive SaaS transition underpins record Annualised Recurring Revenue growth

Trading in line with expectations


The Board of Eleco Plc (AIM: ELCO), the AIM-listed construction software specialist, is pleased to provide a trading update for the year ended 31 December 2022, based on unaudited management accounts for the period.

Annualised Recurring Revenues1 (ARR) at 31 December 2022 were approximately £18.2m (at 31 December 2021: £16.0m).    Total Recurring Revenues (TRR), a key metric for the Group, has increased to c£16.9m, or 64% of total revenue in 2022, representing an 8% uplift on the comparable period (2021: TRR of £15.4m, or 56% of total revenues).

As a result of this transition away from upfront perpetual licences, unaudited revenues for the year ended 31 December 2022 are anticipated to be £26.6m (£27.0m in constant currency terms).  This, together with earnings for the period, is in line with market expectations2


Cash generation remains strong, with an increase in free cash flow ahead of market expectations1 resulting in a significant increase in cash to £12.5m at 31 December 2022 (31 December 2021: £10.0m).  


The Company’s debt-free, robust cash status, while maintaining a consistent dividend policy, allows for the retention of surplus cash for corporate development initiatives to promote and invest in the future growth of the Group.   



Jonathan Hunter, Eleco’s CEO, commented:


“2022 has been a progressive year which has seen Eleco deliver another strong performance and progress on its SaaS journey.  We ceased offering Powerproject perpetual licences in the UK and our new cloud-based Lean planning software, Asta Connect, is set for release imminently.  This is closely aligned to the significant strides made in the successful transformation of our business into a customer-centric, high recurring revenue organisation.   


In accordance with the Group’s ESG objectives, cultural and employee value initiatives were developed and implemented to address the inflationary pressures across the Group and support the retention of existing colleagues and attraction of new talent.  

The progress in growing recurring revenues represents an important strategic step forward for the Group.  Our employees’ continuing dedication and outstanding effort on the SaaS/subscription transition will deliver sustainable revenue growth and greater predictability of earnings for Eleco going forward. 

When we commenced the transition to SaaS at the end of 2021, we announced that revenue and profit would be temporarily reduced for the first 18 months of the three-year process.  H1 of 2023 will therefore mark the mid-point of that transition.  Looking forward to FY23 as a whole, we expect to see growth in total revenues for the first time since we announced the SaaS transition.


We firmly believe that our strategic progress and growth endorses our transition to a SaaS model. We end the year with a strong balance sheet and growth in recurring revenue. This solid financial foundation gives the Board confidence in the year ahead and we will continue to look for opportunities to accelerate our growth, both organically and through acquisitions.”


2 ARR is defined as normalised annualised recurring revenues and includes revenues from subscription licenses, contract values of annual support and maintenance, and SaaS contracts. 

1 Market consensus for 2022 revenues was £27.3m, EBITDA of £5.1m, EBIT of £2.7m and free cash flow at £2.1m




Eleco plc

+44 (0)20 7422 8000

Jonathan Hunter, Chief Executive Officer

Neil Pritchard, Chief Financial Officer

finnCap Limited

+44 (0)20 7220 0500

Geoff Nash/ Emily Watts/Seamus Fricker (Corporate Finance)

Charlotte Sutcliffe / Harriet Ward (Sales)

SEC Newgate UK

+44 (0)20 3757 6882

Elisabeth Cowell/Bob Huxford


About Eleco plc

Eleco plc is a London Stock Exchange AIM-listed (AIM: ELCO) specialist international provider of software and related services to the Architectural, Engineering, Construction and Owner/Operator (AECO) industries and interior furnishing industries from centres of excellence in the UK, Sweden, Germany, Netherlands and the US.


The Company’s market-leading Elecosoft software solutions are developed by teams in the United Kingdom, Sweden and Germany, and its solutions cover project management, estimating, timber engineering, CAD and visualisation, asset and facility management and cloud-based digital marketing solutions.  For further information please visit


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.





Related News

Acquisition of Vertical Digital

RNS Number : 7121K Eleco PLC 16 April 2024   16 April 2024  Eleco Plc ("Eleco", the "Group" or the "Company")   Acquisition of Vertical...
Read more

Board Appointment

RNS Number : 5834J Eleco PLC 08 April 2024     Eleco plc   ("Eleco", "Group" or the "Company")   Board Appointment Eleco plc (AIM:...
Read more

Notice of Results and Company Presentations

RNS Number : 1581J Eleco PLC 04 April 2024   RNS 4 April 2023  Eleco Plc ("Eleco", the "Group" or the "Company")   Notice of...
Read more