Almost every organization on the planet is busily trying to digitalize, automate and smart-enable its operations. Not only to communicate/understand their customers & employees better, but also transform their businesses, become more efficient and vastly improve the quality of products & services.
The construction & property maintenance industry is no different, yet it has traditionally been slow to embrace this new paradigm. However things are changing and fast.
Here BuildTech software developer Elecosoft said today that trading is in line FY expectations - with H1 revenues jumping 22% in constant currency terms (20% reported) to £12.7m (ED est), EBIT margins similar to H1'18 (ie 16.6%) and net debt closing June at a modest £0.6m (or 0.1x EBITDA) vs £2.1m in Dec'18.
What's more, this encouraging top line growth is higher than our FY19 forecasts of +18.8% YoY (based on 5% LFL CC), and more so given we'd assumed an H2 bias due to tough comparatives and Q2'19 product launches.
Going forward, we reiterate our FY19 EBIT forecast of £4.5m (margin 17.1%) on turnover of £26.4m, and likewise hold the valuation at 115p/share. Nonetheless, if this momentum is maintained, then there is scope for upgrades as the year progresses.
