5th May 2015 08:44
LONDON (Alliance News) - Eleco PLC said Tuesday it has seen a positive start to 2015, saying it has laid a "firm foundation" for its future growth after a period of restructuring and refinancing, and the strength of sterling constrained its performance in 2014.
Eleco provides software and services for the architectural, engineering and construction industries. 2014 was its first year operating solely as a software business, as in 2013 the company sold its loss-making UK building systems businesses.
The company posted a pretax profit of GBP684,000 for 2014, up from GBP624,000 in 2013, as revenue rose to GBP16.5 million from GBP16.3 million. Revenue growth was hampered by the weakness of the euro and Swedish krona against sterling, and at constant exchange rates revenue would have risen 7%, it said.
Eleco refinanced during the year with Barclays Bank PLC on more favourable terms than its previous arrangements with Lloyds Banking Group PLC. It said it believes its current bank facilities will provide it with adequate working capital for its present requirements.
The company did not propose a dividend for the year. It said that the resumption of dividend payments would be possible after shareholders and the court clear proposals to restructure its balance sheet and reserves. It said it would only resume the dividend when it is satisfied it would be well covered by earnings and positive cash flow.
"We strengthened our board and management team in the year under review, encouraged much greater collaboration between our international software teams; and we set our skilled and talented sales forces the task of increasing the market penetration of a number of our award winning software programs. These initiatives have already made a positive impact, and I look to the future with confidence," said Chairman John Ketteley in a statement.
Shares in Eleco are trading up 8.3% at 24.30 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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