25th Jan 2019 09:52
LONDON (Alliance News) - Elecosoft PLC on Friday said it expects to report "significant" earnings growth in 2018, helped by an increasing number of clients and acquisitions.
The stock was trading 12% higher on Friday at 77.50 pence a share.
The AIM-listed construction software company has performed well, it said, and continues to achieve year-on-year growth in revenue notwithstanding macroeconomic uncertainty and unfavourable exchange rates.
The strong trading performance in 2018 has been underpinned by Elecosoft's strategy of securing new direct customers, it said.
As a result, the company expects its 2018 results, excluding the acquisitions of Shire Systems Ltd and Active Online GmbH, to be "significantly higher" year-on-year and comfortably in line with market expectations.
Back in July 2018, the company bought computerised maintenance management software provider Shire Systems for GBP6.3 million in cash, to strengthen its position in the maintenance market.
Meanwhile, German visualisation software firm Active Online was purchased in November last year for GBP3.0 million.
"2018 has been another significant year for Elecosoft with the acquisition of both ShireSystems and ActiveOnline, which complement our existing growing businesses," said Executive Chair John Ketteley.
"These two acquisitions each represent significant milestones for Elecosoft as a leading developer of co-ordinated building information modelling led software systems for use in each stage of a building's life cycle and also as a developer of internet visualisation tools for the interior fit out industry,'' added Ketteley.
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