4th Jun 2014 11:53
LONDON (Alliance News) - Eleco PLC Wednesday reported an increase in both its pretax profit and revenues in 2013, supported by growth in its construction software businesses in the UK, Germany and Sweden, and said it remains optimistic about its prospects for the current financial year.
The supplier of specialist software systems for the construction industry said it doubled its pretax profit in 2013 to GBP1.0 million, up from GBP0.5 million in 2012.
However, the group reported a net loss of GBP10.2 million for the year, compared with a net loss of GBP2.7 million in 2012 having sold its loss-making UK building systems businesses within its ElecoBuild division.
Revenues for the year increased to GBP16.3 million, from GBP15.8 million in revenues reported a year earlier, which it said was boosted by recurring maintenance and support revenue.
The group said it remains optimistic about the prospects for 2014, having seen a positive start to the first-half in most of its core markets in which it operates.
"Our development teams also developed a number of new state of the art software programs and I am confident that the improvement in Eleco's financial position will enable it to launch and deliver these to Eleco's already strong customer base in its established markets and to exploit them in new overseas markets," said Executive Chairman John Ketteley in a statement.
During the year, Eleco divested its loss-making UK building systems businesses, began the process of refinancing and re-banking the group, and focuses on expanding its profitable international construction software businesses in the UK, Germany and Sweden.
The group said it was able to reduce its net bank borrowings in 2013 to GBP4.3 million, down from GBP6.5 million, despite an increase in software development costs and interest and banking costs.
Eleco shares were up 0.4% at 23.85 pence Wednesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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