19th Mar 2019 09:38
LONDON (Alliance News) - Elecosoft PLC on Tuesday expressed confidence for the year ahead following double-digit revenue growth on improved software sales and acquisitions.
The construction software company reported revenue growth of 11% to GBP22.2 million in 2018, pushing pretax profit up by 7.7% to GBP2.4 million from GBP2.3 million.
During the year, Elecosoft completed two acquisitions: management software firm ShireSystem and visualisation software company ActiveOnline.
Excluding acquisitions, revenue advanced by 5%. Revenue growth was driven by direct sales increasing of 12% to GBP21.0 million and sales through reseller channels up by 4% to GBP1.3 million.
The core business has grown in spite of the macroeconomic uncertainties and unfavourable movements in trading currencies, the AIM-listed company noted.
Geographically, revenue in the UK and Germany registered 23% growth, revenue in the US grew by 18%, while Scandinavia revenue fell by 6%. The rest of Europe and the rest of world saw revenue growth of 34% and 14%, respectively.
Software development spend up rose slightly to GBP2.8 million from GBP2.7 million in 2017, as development teams in the UK, Germany, Sweden and Spain expanded. As a result, the average number of employees in the Elecosoft team has increased to 228 in 2018 from 201 a year earlier.
The company invested in its Memmo, Staircon Online Designer and Powerproject Vision projects which launched in the second half of 2018. In addition, its Powerproject Version 15 is expected to be launched in 2019.
Elecosoft proposed a final dividend of 0.40 pence, increasing the total payout for the year to 0.68p, up 13% year-on-year.
Looking ahead, the company has performed well in the first two months of 2019 despite the uncertainties brought on by Brexit.
Elecosoft anticipates releasing a number of new products in the next few months, including Version 15 of Powerproject and Site Progress Mobile.
"Brexit may well continue to effect markets in 2019. However, given the strength of Elecosoft's finances, the international spread of its markets, and the creativity and quality of Elecosoft's market leading software portfolio, I look forward to the year ahead with confidence," said Executive Chair John Ketteley.
Elecosoft shares were trading 11% lower on Tuesday at 70.06p each.
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