Elecosoft plc (AIM: ELCO), the construction software specialist, is pleased to announce its results for the year ended 31 December 2019.
· Revenue up 14% to £25.4m (2018: £22.2m) of which 57% was recurring maintenance, support and subscription revenue (2018: 55%)
· Reported operating profit up 43% to £3.8m (2018***: £2.7m)
· Profit before tax up 45% to £3.5m (2018***: £2.4m)
· Reported basic earnings per share up 43% to 3.3p (2018***: 2.3p)
· Adjusted operating profit* up 15% to £4.5m (2018***: £4.0m)
· Adjusted earnings per share* up to 4.1p (2018***: 3.8p)
· Free cash flow** up 29% to £4.1m (2018***: £3.1m)
· Net cash £1.1m, with £7.2m cash at year end (2018: £1.8m net bank debt)
(* Adjusted profit measures exclude acquisition related expenses and amortisation of acquired intangible assets.)
(* Non-gaap measures, see note 8.)
(** Free cash flow represents cash generated in operations less purchase of intangible assets and property, plant and equipment, net of finance costs and tax plus any proceeds from disposals of property, plant and equipment.)
(*** 2018 restated for the impact of IFRS16)
· Major release of Powerproject ® XV.
· Elecosoft products Powerproject SaaS, IconSystem and ShireSystem listed on “G-Cloud 11” the Crown Commercial Services (“CCS”) digital marketplace, a service for supply of cloud applications and public sector procurement.
· Release of new Site Progress Mobile application in the UK, Sweden and Germany.
· Major release of ShireSystem software version better supporting facilities management.
· ShireSystem release of its Mobile Pro application for iOS.
· IconSystem successfully secured orders in hospitality.
· New Staircon all-time-high sales in the US market.
· Release of Artificial Intelligence (“AI”) visualisation tool for interior flooring segment.
· UK Construction Computing Award win for sixth successive year.
· All CMYA Gold winners used Powerproject.
Executive Chairman, John Ketteley said:
“Elecosoft delivered a year of growth, cash generation and product innovation in 2019, despite the uncertain trading conditions experienced in the lead up to Brexit. We increased our revenues by 14 per cent, our profit before tax by 45 per cent and our earnings per share by 43 per cent. Powerproject XV, our latest project management programme, also won the “Hammers” award for the UK Project Planning and Management Software of the year, for the sixth time.
During the year under review, we also eliminated our net bank debt of £1.8m as at 31 December 2018 and generated a net cash position as at 31 December 2019 of £1.1m. One cannot underestimate the severity the challenges being experienced in all world markets as a consequence of the impact of Coronavirus, and accordingly since the beginning of 2020, we have concentrated on cash generation and conservation, adjusting product consultancy and training programmes so that they can be delivered better over the web – and thus far, these actions have proved effective in dealing with the Coronavirus threat. “