Eleco Plc (formerly known as Elecosoft) is a developer of on-premise and Cloud/SaaS software for the Architectural, Engineering, Construction and Operator (AECO) and digital marketing industries. Its award winning 6D solutions (>100,000 users) cover project planning, estimating, design/CAD, visualisation, site operations and Building Information Management (BIM).

07 Apr 2020

Long term winner in new social distancing world

Today Elecosoft reports that 2019 turnover and adjusted PBT were “significantly higher” (ED £25.3m & £4.1m) than last year. With a robust balance sheet and high recurring revenues, they're well placed to cope with the uncertainty introduced by COVID-19.

Results have seen a marginal impact towards the end of Q1, and given the uncertainty of timing, the Board has decided to suspend the final dividend, and remove any indications of future performance from today’s pre-close statement.

In terms of valuation, the stock is attractively priced for patient risk tolerant investors - trading on a trailing EV/Sales multiple of 1.6x (see below) compared to typical industry multiples pre COVID-19 crisis of between 4.0x – 6.0x.

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