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Eleco PLC on Tuesday reported a decline in both interim revenue and profit as costs grew, but it maintained its interim dividend.
For the six months that ended on June 30, the London-based construction software developer said pretax profit fell 26% to £1.7 million from £2.3 million a year ago, as revenue dropped by 2.9% to £13.4 million from £13.8 million.
Cost of sales grew 23% to £1.6 million from £1.3 million a year earlier.
However, Eleco said recurring revenue amounted to £8.2 million, up 9.3% from £7.5 million, accounting for about 61% of total revenue, compared with 55% a year ago. This demonstrates the ‘positive progress we are making in the delivery of our strategy’ it said.
Chair Serena Lang said: ‘Eleco delivered a positive performance in the first half of 2022, with growth in subscription revenues, a key indicator in our transition to a [software as a service] business. We operate in a very exciting market and are well positioned to meet the growing demands of the built environment thanks to our planning and productivity-driving best in class software.’
It declared an interim dividend of 0.20 pence per share, unchanged from a year prior.
Looking ahead, Eleco said it remains confident in delivering in line with market expectations for the full-year.
Eleco shares were down 0.7% at 70.00 pence each on Tuesday morning in London.
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