29th Sep 2014 10:38
LONDON (Alliance News) - Eleco PLC said Monday the recovery of its business has begun as it saw profit improve in the half year to end-June, following a period of restructuring and refinancing.
The software company posted a pretax profit of GBP536,000, up from GBP235,000 a year before, as revenue improved to GBP8.6 million from GBP8.3 million. The strength of sterling against the euro and Swedish krona hit revenues by GBP497,000 in the half year.
Eleco has refinanced with Barclays Bank PLC on more favourable terms than its previous arrangements with Lloyds Banking Group PLC. It has also put together proposals to restructure its balance sheet, which it will shortly put to shareholders for approval.
Eleco did not propose an interim dividend, and said it would not be able to recommence the payment of dividends until its balance sheet reconstruction proposals have been approved by shareholders and the court.
The company posted software development costs of GBP1.4 million during the period, as it developed the latest version of its Asta Powerproject BIM software. The product has been very well received by user groups across the UK, and will be launched on the market in the last quarter of 2014.
The company said that, despite the difficulties that have hampered it over the past few years, its software interests have been "consistently profitable".
"Following the successful restructuring and refinancing of the group earlier this year and the positive approach we received from our bankers, Barclays Bank, together with support from our shareholders, customers and employees, I believe that ELECO is now well placed to realise its full potential," said Executive Chairman John Ketteley in a statement.
Shares in Eleco are untraded Monday at 21.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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