|One only has to look at the resource companies who release RNS's that are patently untrue. What has AIM Regulation done about them? Some scum bag directors get censored by AIM - years too late. No jail, no fines, just a slap.
Sadly I do not expect AIM will change its ways|
|Extracts from finnCap's update yesterday:
[>We lift our CY group revenue forecast from £17.2m to £17.3m and introduce a
FY 2017 forecast of £18.8m; with £17.9m organic and £0.9m from the
acquisition. ICON’s profit impact in the remainder of this year will be minimal,
so we retain an expected adj. PBT of £1.4m (H1 reported £0.7m), but we now
expect FY 2017 adj. PBT of £1.75m post acquisition, with £0.2m from ICON.
>There is significant upside potential since Elecosoft’s German and Swedish
revenue and profit will see translation gains following the fall in GBP.
>With a full year of the acquisition, the stock is on a forward P/E of 16.5x, a
marked discount to the software sector reflecting the sector’s lack of knowledge
of the stock which transitioned from being a construction materials business.
>The stock offers exposure to a high-quality software supplier with high recurring
revenue, excellent quality of earnings, demonstrating strong growth in revenue
and margins on the back of growing recognition and use of data management
in building design, construction and operation, and generating cash with a
Having pondered at length last night over the potential benefits to ELCO of the ICON acquisition , I just could not stop myself tucking a few more away today (breaking my determination not to add any more to my already overflowing ELCO pot).
I agree wholeheartedly with you, rathkum, it beggars belief as to why any investor would want to jump ship at this juncture. My only fear is that, with interest rates so abysmally low, I might be tempted to transfer the cash in our fixed-rate ISAs (on maturity next year) and go and buy a few more!|
|ELCO paid just over 2.6x ICON revs to 31-Oct-2016:
ICON is based in Market Harborough, Leicestershire, and employs 16 staff. The business reported revenues of GBP0.7 million for the year to 31 October 2015 and is on track to report revenues of GBP0.9 million for the year to 31 October 2016. In the year ended 31 October 2015, it generated a normalised pre-tax profit of GBP0.2m and had net assets of GBP0.3m.
Very good acquisition imo.|
|See the sellers were out in force yesterday and a handful today. Beggars belief why you would sell out after yesterday's RNS and the penetration taking place in the USA market. So I guess now that all the desperadoes are out we can only go one way.
Asta Powerproject 4D Capability Showcased at BIM Forum This Week
ATLANTA, GA - 10/17/2016 (PRESS RELEASE JET) — Asta Powerproject makes it easy for construction project managers, schedulers, and superintendents to access the power of 3D BIM modelling.
Already the global choice for construction project scheduling, Asta Powerproject added BIM functionality in 2015 and will be showcased in Atlanta this week at the BIM Forum.
The conference on October 17-19 brings together architects, engineers, and construction pros to explore how BIM is transforming the way the “human-made landscape” of buildings, parks, cities, and neighborhoods get made.
Building Information Modeling (BIM) digitally represents the physical and functional characteristics of a building in three dimensions (3D) so that all contractors and owners are operating from the same information source and can more easily and visually spot potential construction issues earlier. That insight, in turn, saves firms time and money.
Conference goers will attend educational sessions on new ways to incorporate the power of BIM into real-world projects. Some discussion topics include adopting and using a national BIM standard, enabling BIM collaboration across AEC teams, and managing workflows. In-depth case studies of major new builds and remodels using BIM will also be featured.
Attendees will also have a chance to experience BIM software tools first-hand.
For many construction teams, Asta Powerproject’s BIM module will offer the right mix of features and value. The module, an optional upgrade, gives project planners the key benefits of BIM and 4D planning without the heavy expense or learning curve of a separate system.
Asta Powerproject reads industry-standard IFC databases and shows the 3D model in a window right in the scheduling application. This major upgrade ties the time component of scheduling to the 3D model, resulting in “4D”. Users can see where the build should be a various stages of the timeline and even adjust the timeline by clicking on an element in the BIM model to bring up its corresponding schedule.
“Asta Powerproject’s BIM functionality is allowing our non-architect customers to tap into the power of 3D models for planning and new business presentations,” said Jim Dawkins, U.S. channel manager for Elecosoft. “While there is no government mandate here in the States yet, our users say the competitive and project management benefits are ample reasons to add BIM to their planning processes now.”|
|Sellers now able to get 28.13p (for 20k), 40% more than those PIs received who got out 10 weeks ago. But will 28p appear to have been a good price in 18 months time? I, for one, hope to be around to find out.|
|On the ICON system website, there is a short video featuring clients Asda, Sainsburys and Waitrose singing their praises:
I know I tend to wear 'rose-tinted glasses' in respect of ELCO, but this acquisition really does look to be a steal!|
|"Referring recently to ICON Orbit, ICON's browser based BIM model viewer, Jim Awe, Chief Software Architect at Autodesk Inc. was quoted as saying:
"For far too long, developers have been forced to sync associated data back into the original 3D model where it doesn't really belong. What ICON has done is an awesome demonstration of the principle of Internet-enabled design data. The data can reside and be managed in the appropriate place, but is still visible and accessible in the context of the model."
Our ground-breaking Revit® Integration Solution, ICONBIM, consists of two main items of functionality:
There is a web-based Family Library, complimented by a Specification Importer that can be used to pull data from the Internet, directly into a Revit Project.
|Based on the 2015 figures given in this morning's statement, ICON appears to have an impressive profit margin of 28.5%; if some of their know-how can rub off onto ELCO's seemingly meagre 6.85% (for the last half year), fasten your seat belts!|
|finnCap reiterate 35p target|
|I like this acquisition in the SaaS space. Here's TechMarket View:
AIM-listed construction software specialist Elecosoft is strengthening its proposition with the acquisition of SME Integrated Computing & Office Networking Ltd, or ICON, for a total consideration of £2.4m.
ICON provides SaaS-based building information and related data management and storage systems to the UK retail sector. It’s only small – employing 16 staff and turning over just £0.7m in the year to end October 2015 with a PBT of £0.2m – but it has an impressive blue chip customer base including ASDA, Boots, the Central England Co-operative, John Lewis, Morrisons, Sainsbury's and Waitrose.
The acquisition, which is being financed by a fixed term loan of £1.8m, looks to be a good fit for Elecosoft, which specialises in visualisation, estimation and project management software. Elecosoft will be hoping to leverage the expertise of ICON’s SaaS developers in the development of its own products and to cross sell software to their respective customers, enhancing recurring revenue. However, the success of the acquisition will depend on keeping key ICON personnel, so we’re pleased to see that Chris Lovelock, a founder of ICON, will remain a director of the company. In summary, this is a positive step for Elecosoft, which appears to be on a much more even keel following its refinancing in 2014 and 2015’s balance sheet reconstruction (see Elecosoft building on stronger foundations).|
|Expansion continues, new shares being issued at 27.0p:
|There was obviously a reason why the Mingy Machs have been absorbing so many sales (c.26p) recently without dropping the price, that 100k buy earlier today explains it all.|
|An interesting summary - 'The Digital Age of Construction' [as always, read the full article]:
|If you've got it, flaunt it:
Elecosoft to showcase the full breadth of its digital construction solutions at Autumn construction shows
Elecosoft will showcase its digital construction software portfolio at the Build Show and the Digital Construction Week Show this month. Elecosoft will appear on stand B3/637 at Build (18-20th October) at the NEC, Birmingham, and on stand M4 at the Digital Construction (26-27th October) at the Business Design Centre, London. Visitors to both of these events will be able to explore Elecosoft products such as Asta Powerproject®, Bidcon®, Staircon®, Matrix, Arcon Evo® and Framing, which are helping design and construction professionals in a range of disciplines work effectively as the sector moves steadily towards 4D and 5D BIM and a digital construction future. Elecosoft is also currently having a successful time at W16 at the NEC, Birmingham where it is showing Staircon® and Matrix.
Elecosoft products help professional AEC users with challenges ranging from interiors visualisation through architectural design and staircase engineering, to project and site management, cost estimation, and more. Its flagship suite of Asta Powerproject® products is used by more than 90% of UK construction contractors and is constantly evolving. Visitors can take advantage of the show presence to:
View the latest Asta Powerproject® BIM module in action for 4D planning:
* Learn how our estimating tool, Bidcon® integrates seamlessly to enable cost estimators and quantity surveyors to collaborate on BIM projects for 5D planning ~
* See how site managers can easily deliver progress updates from the field with Site Progress Mobile – available for iOS, Windows and Android ~
* Discover specialised software solutions from the Elecosoft portfolio, such as Staircon® for cost-effective stair design and manufacturing and Framing for the design and manufacturing of modular timber frame and floor cassettes
Jason Ruddle, COO of Elecosoft plc commented: “Industry shows like the Build Show and the Digital Construction Show give us a great chance to show how our solutions are evolving and continue to track with the industry and our client needs. We know our customers are continually looking to unlock the benefits of digital construction, and that a broad range of different professional users are involved in creating successful construction projects in a digital age. At these shows we can tap into what industry decision-makers are thinking, planning and investigating right now to ensure we continue to meet their needs.”|
|Another admirer of Asta Powerproject proffering business justification:
Why InCo Projects chose Asta Powerproject BIM
InCo Projects is a modern and progressive company that provides contracting and consultancy services for the construction and management of building projects. Jonathon Stanton, 4D Planner at InCo Projects describes what he likes about Asta Powerproject BIM:
“We chose to use Asta Powerproject BIM because of its instantaneous progress update abilities. Changes to programme dates are immediately reflected in models. Combined with the ease of use of the Asta Powerproject gantt interface it is much simpler and saves time rather than working between multiple software.
What I like most about Asta Powerproject BIM is it’s simple and clear traffic light approach to showing delay. It becomes much easier to visually show a project team the impact of delays.
Using Asta Powerproject BIM will help me with my work by allowing me to more clearly demonstrate to a project team/client the current status of a project and where issues lie, through use of the linked 3D model.
I really like how it allows you to demonstrate changes live in a meeting situation providing great benefit to the project teams visualisation of the construction sequence.
Further, working side by side with our modelling team we will be able to set up naming conventions to best use the ‘Product Search’ feature which allows you to immediately link having set up naming conventions already, and save valuable time when linking models based on the library we build up.”|
|Techinvest said the following post their meeting with the Co last month:
"Elecosoft is now well financed and has assembled a significant portfolio of market leading and award winning construction software applications. The outlook for H2 points to further progress. Broker finnCap believes the shares are undervalued on an anticipated EV/EBITDA multiple of under 10 times for 2016. We agree. Strong Hold"|
|AIM’s rejuvenated growth stories
Hats off to management for a terrific turnaround!
|Following the release of the Interim statement on Wednesday, ELCO's brokers (finnCap) have reiterated their full-year forecast of 1.3p eps and maintained their target price of 35p.|
|Well, those who bought 6/7 weeks ago around 20p aren't complaining :-)|
|Those who were selling just recently (@ c.24p) must be kicking themselves as this morning you could get 26.6p for 25k, roughly 11% more. And those who sold six/seven weeks ago (@ sub 20p) must be feeling absolutely gutted! No online price available to buy just 5k tho'. That tells a tale.|
|As is (supposedly) usual with ELCO, shares are in short supply which allows the Mingy Machs to hoist the price on minimal volume ..... such as this morning's hike. And yet, six weeks ago you could trade 25k with no trouble at all simply because there were sellers and buyers given a reasonable (i.e. 5%) spread. Therein lies the solution, a 5% spread = trade-able, 10%+ no chance.|
|Another snippet from this morning's statement:
Elecosoft is now well financed and has been able to assemble a significant portfolio of market leading and award winning construction software applications for 5D BIM, project management, estimation, 3D architectural design and timber engineering construction, as well as a number of outstanding digital visualisation, internet and augmented reality software applications aimed at the interior marketing arena. As we move forward we will continue to invest in new technologies, to grow our customer reach, and to strengthen our position as an international provider of innovative market leading software applications in our chosen fields.
The majority of our software solutions are based on Microsoft technology and are created by our software development teams in the UK, Sweden and Germany, whose development strategies evolve essentially from the regular detailed reports which they receive from our sales, training and support colleagues who are close to their customers in the markets we serve.
Despite the uncertainties caused by the UK Referendum in June, the second half of the year has started well. However we will continue to monitor markets for any untoward developments which could impact the progress of our businesses, while striving to provide innovative market leading software solutions, high quality maintenance and dedicated training to both our new and existing customers.|
|Edison update on Research Tree:
"This is a good set of interims for the architectural and construction software supplier, showing sales and earnings growth assisted by FX moves and generating cash, which prompts an initial dividend declaration. Stripping out the sale of the Swedish architectural practice last December, on a LFL basis H1 revenue was up 10% YoY to £8.8m; although only 6% at constant currency. Encouragingly, 47% of the sales were recurring support & maintenance income. Because of that, gross margins for the software business remained high at 87% while operating expenses - although still comparatively heavy - were controlled, so operating margins improved 90bp to 8%, the gearing delivering 25% growth in adj. operating profit to £0.7m. With debt paid off in H2 2015, there was little interest charged so adj. PBT rose 32% to £0.7m and adj. EPS rose 23% to 0.7p. While assisted by the improved FX rate boosting its European (Swedish/German) earnings, this is still a good performance in line with our expected 25% earnings growth for the year and we make no changes to our FY 2016 forecast for £17.2m sales and FD adj. EPS of 1.3p. There was also notably good cash conversion as trade debtors were collected, seeing £1.4m from operations and only £0.3m capex, ending the period with net cash of £0.3m, from the net debt of £0.8m at the end of last year. Underlining management confidence, an interim dividend of 0.15p, has been declared, with the prospect of a FY dividend at 4x EPS cover; a prospective yield of 1.3% on the current price."|
|Nice results - in a strong position to meet mkt expectations. Revs +10%,pbt +14%, eps 0.6p and a divi to boot!|