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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Eleco Public Limited Company | LSE:ELCO | London | Ordinary Share | GB0003081246 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 97.00 | 96.00 | 98.00 | 97.00 | 97.00 | 97.00 | 11,573 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Computer Programming Service | 26.57M | 2.4M | 0.0291 | 33.33 | 79.83M |
From Apr 2019 to Apr 2024
TIDMELCO
RNS Number : 6394R
Elecosoft PLC
25 September 2017
25 September 2017
Elecosoft plc
("Elecosoft", the "Company" or the "Group")
Interim Results
For the Six Months Ended 30 June 2017
Elecosoft plc (AIM: ELCO), the AIM-listed international construction software specialist, is pleased to announce its unaudited results for the six months ended 30 June 2017.
Financial Highlights
-- Revenue up 14% to GBP10,010,000 (2016 H1: GBP8,769,000) of which 48% was from recurring maintenance and support revenue (2016 H1: 47%)
-- Operating profit up 76% to GBP1,059,000 (2016 H1: GBP601,000) -- Profit before tax up 81% to GBP1,007,000 (2016 H1: GBP557,000) -- EBITDA up 66% to GBP1,598,000, (2016 H1: GBP963,000)
-- Expensed product development of GBP1,054,000 (2016 H1: GBP1,258,000) with a further GBP494,000 capitalised of new software programmes (2016 H1: GBP175,000)
-- Basic earnings per share up 83% to 1.1p (2016 H1: 0.6p) -- Increased interim dividend of 0.20p proposed, (2016 H1: 0.15p)
At constant exchange rates
-- Revenue of GBP9,504,000, up 8% (2016 H1: GBP8,769,000) -- 65% rise in operating profit to GBP990,000 (2016 H1: GBP601,000) -- 68% rise in profit before tax to GBP938,000 (2016 H1: GBP557,000)
Operational Highlights
-- Introduced Powerproject(R) Software as a Service (SaaS) in the UK -- Introduced Staircon(R) into the Canadian and Australian markets
-- Continued progress with cross-selling Powerproject(R) to new and existing customers in Sweden
-- Development of the Icon(R)VR surveying service with its first client adoption in August 2017
-- Elecosoft's total product portfolio showcased at Europe's largest construction exhibition, BAU Munich in Germany in January 2017
-- Increased investment in the period in both existing and new software products, including new SaaS web applications.
-- New Board appointments included Anders Karlsson, Executive Director; Kevin Craig, Non-Executive Director; and Serena Lang as Non-Executive Deputy Chairman
Executive Chairman, John Ketteley said: "Elecosoft delivered a positive performance in the first six months of 2017, with growth in all our geographic regions. We also decided to unify all our software brands under the Elecosoft(R) brand worldwide. This is a momentous and positive step for all involved in the Elecosoft group and I am confident that it is a decision that will benefit all our customers, employees and shareholders as we move forward. We have also made an excellent start to the second half of the year."
About Elecosoft plc
Elecosoft is listed on the Alternative Investment Market in London (AIM: ELCO). It is a specialist international provider of software and related services to the architectural, engineering, construction and digital marketing industries from centres of excellence in the UK, Sweden, Germany and the US. Elecosoft's market leading software solutions are developed by teams in the United Kingdom, Sweden and Germany; and its software programs cover project management, construction site management, estimating, timber engineering, 3D design and visualisation, and cloud based digital marketing solutions.
Chairman's Statement
I am pleased to report an improved trading performance for the six months ended 30 June 2017. Elecosoft's unaudited profits before tax in respect of the period were significantly higher than those achieved in the same period last year; and it also increased its cash generation from operations and strengthened its financial position in the period under review. As a consequence, the Board has declared a significantly increased interim scrip dividend with a cash alternative, details of which are set out below.
Trading Performance
Unaudited Group revenue in the period increased by 14 per cent to GBP10,010,000 (2016: GBP8,769,000); 33 per cent of Group revenue was generated from our UK operations, and 67 per cent from our overseas operations and customers.
Unaudited revenue in the UK for the period amounted to GBP3,325,000 (2016: GBP2,825,000), an increase of 18 per cent. This included GBP419,000 generated by ICON, which was acquired by Elecosoft in October 2016. Revenue of our overseas operations for the period under review amounted to GBP6,685,000 (2016: GBP5,944,000), an increase of 12 per cent.
License sales in the period under review increased from GBP2,738,000 to GBP2,859,000, an increase of 4 per cent; recurring revenue in the period amounted to GBP4,847,000 (2016: GBP4,102,000), an increase of 18 per cent; and services revenue was GBP2,304,000 (2016: GBP1,929,000), growing 19 per cent.
Unaudited operating profit for the period under review was GBP1,059,000, (2016: GBP601,000), an increase of 76 per cent after charging software development costs and amortization totalling GBP1,474,000 (2016: GBP1,541,000) made up of GBP1,054,000 of development costs (2016: GBP1,258,000) and amortization of intangible assets of GBP420,000 (2016: GBP283,000) for the period.
EBITDA for the period under review was GBP1,598,000, (2016: GBP963,000), an increase of 66 per cent.
Unaudited profit before tax for the period was GBP1,007,000, (2016: GBP557,000), an increase of 81 per cent. Unaudited earnings for the period were GBP804,000 (2016; GBP431,000), equivalent to basic unaudited earnings per share of 1.00p, which compare with unaudited earnings for the same period last year of GBP431,000, and basic unaudited earnings per share of 0.6p.
Financial Performance
The Group generated cash from operations in the period under review of GBP2,277,000 compared with GBP1,439,000 of cash generated in the same period last year. This improvement in our financial position has facilitated our continuing investment in our software development activities in the period.
The Group had net cash at 30 June 2017 of GBP259,000 after financing the acquisition of ICON in October 2016 compared to GBP302,000 at 30 June 2016. Our net cash position at 30 June 2017, comprised Sterling Borrowings of GBP2.9m, finance lease obligations of GBP0.3m, more than offset by cash balances totalling GBP3.5m held principally in Swedish Krona, Euro's and US Dollar's.
Our Sterling borrowings at 30 June 2017 included GBP2,765,000 of medium term Sterling borrowings which were raised from Barclays Bank as part of the financing of the acquisition of ICON in May 2016. The Directors consider that in the absence of unforeseen circumstances, the Group would be in a position to comfortably service and repay its medium-term Sterling borrowings in accordance with their terms.
Software Development
The volume, quality and innovation in the output of the software produced by our software teams located in the UK, Sweden and Germany, have been major factors in the growth of Elecosoft in recent years, into a profitable international provider of outstanding market leading construction software.
Software development expenditure in the period under review increased to GBP1,548,000 (2016: GBP1,433,000) and represents the equivalent of 16 per cent of sales in the period (2016: 16 per cent). Our commitment to the continuing enhancement of our current market leading construction software portfolio reflects Elecosoft's policy commitment to our customers to maintain and enhance our software offering worldwide now under the strong Elecosoft brand.
Development expenditure capitalised in the period was GBP494,000 (2016: GBP175,000). The capitalised development projects are spread across Germany, Sweden and the UK with the majority of our latest investment programs involving the introduction of SaaS web applications, which will enhance our project management and site management offerings.
Trading Highlights
We continued to make progress in the period, with the integration of ICON following the acquisition in October 2016. I am therefore pleased to report that Elecosoft's IconSystem(R) which is the market leading Property Information Management system in the retail sector, is now becoming recognised in other property management sectors. It gives us pleasure to mention that McCarthy & Stone, the UK's leading retirement housebuilder, has pioneered the use of IconSystem(R) to improve its planning, design, fabrication, construction regimes and also to improve the co-ordination of its build process and I would like to take this opportunity to congratulate McCarthy & Stone on its achievement in winning the prestigious 'Digital Construction Award', which was presented at the recent Construction Excellence Awards.
In the UK, we focused on sales and support efforts to our existing customers by concentrating on the provision to them of software tools fully scoped for their businesses and as a consequence, we noted that our Powerproject BIM and Site Progress Mobile programs gained more acceptance in the construction industry. We successfully launched our SaaS offering of Powerproject(R) in the UK in the period. Product updates in Powerproject(R) and BIM were also demonstrated and well received by our client base in the UK at eight national user forums, which attracted more than 300 attendees.
Our Swedish colleagues also succeeded in securing major orders in Australia and Canada for the sale of Staircon(R), Elecosoft's leading staircase design and manufacturing software.
Management Changes
Graham Spratling resigned as Finance Director of Elecosoft in January after ten years of service with the Group and we wish him well. His successor, David Pearson, who joined the Group in February 2017 left the Group in August 2017 and we have taken steps to recruit a new Finance Director as his replacement. Our Nominations Committee is currently undertaking a search for a new Finance Director and will announce his or her appointment in due course.
I would like to welcome Kevin Craig's appointment as a Non-Executive Director on 27 March 2017. Kevin Craig, aged 45, is Founder and CEO of PLMR which is one of the UK's top communication firms. Kevin has spent his career across the public and private sector advising a whole range of clients from political lobbying, PR to crisis management. Most recently Kevin has been involved with a number of significant transactions across the healthcare and infrastructure sectors.
Also, I am pleased to announce the appointment of Anders Karlsson as an Executive Director on 27 March 2017. Per Erik Anders Karlsson (Anders), aged 52, has over 23 years' experience across the software development, digital and industrials sectors and has held numerous Chief Executive and board level positions during his career. Anders is CEO of the Company's wholly owned subsidiary, Consultec Elecosoft AB, overseeing the successful expansion phase of the company's lifecycle. Previously he held similar senior roles within the software development and digital space including CEO of Zone Systems between 2010 and 2014 and Managing Director at Consultec Byggprogram AB between 2005 and 2010. Anders has also held a board position at Visit Skelleftea.
Dividend
Having regards to Elecosoft's strong trading performance and cash generation in the period under review and a good start to the second half, the Board has decided to declare an increased scrip dividend of 0.20p per ordinary share or alternative cash dividend of 0.20p per ordinary share (2016: cash dividend 0.15p) an increase of 33%, covered 5.5 times by unaudited earnings for the period of 1.1p per ordinary share.
The scrip reference price is 43.25p calculated from the average of the closing price for an ordinary share of the company as derived from the daily official list of the London Stock Exchange during the period of five dealing days ending 22 September 2017.The interim dividend will be paid on 6 November 2017 to shareholders on the register at the close of business on 6 October 2017 and the ex-dividend date will be 5 October 2017.
Outlook
Elecosoft delivered a positive performance in the first six months of 2017, with growth in all geographic regions and we have enjoyed an excellent start to the second half. However, we are not complacent and we will remain focused and we will make every effort to meet any challenging and uncertain conditions that may arise in the markets we serve. In doing so, we will continue to concentrate our efforts on the development of the market leading software programs that our customers require and in doing so, I am confident that as we do so, we shall be able to rely, as we always do, on the close co-operation of our customers, for which we thank them.
I am confident that our decision to unify all our software brands under the Elecosoft brand. This will facilitate the cross-selling of our present product range to the construction industry in the markets we serve. It will also assist us to accelerate the implementation of the marketing and communications strategies in markets other than the construction markets in which we have concentrated our efforts thus far. Thus, we regard the adoption of Elecosoft as our unifying brand as a momentous and positive step for Elecosoft plc, which will benefit our customers, our employees and our shareholders, and we look forward to the future with confidence.
Condensed Consolidated Income Statement
For the six months ended 30 June 2017
Hot Features
Premium
six months to
30 June
------------------------------
Year Ended
2017 2016 31 December
(unaudited) (unaudited) 2016
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ------------ ------------ ------------
(restated)
Revenue 3,4 10,010 8,769 17,795
Cost of
sales (1,293) (1,179) (2,374)
Gross profit 8,717 7,590 15,421
Operating expenses before
amortisation of intangible
assets, acquisition expenses
and termination payments (7,238) (6,597) (12,818)
Amortisation of intangible
assets (420) (283) (631)
Operating expenses before
acquisition expenses and
termination payments (7,658) (6,880) (13,449)
Operating profit before acquisition
expenses and termination
payments 1,059 710 1,972
Acquisition expenses - - (212)
Former Directors' termination
payments - (109) (166)
--------------------------------- ------ ------------ ------------ ------------
Selling and administrative
expenses (7,658) (6,989) (13,827)
Operating profit 4,5 1,059 601 1,594
Finance income 6 - 2 3
Finance
cost 6 (52) (46) (93)
Profit before
tax 1,007 557 1,504
Tax (203) (126) (261)
Profit for the
financial period 804 431 1,243
-------------------------------- ------ ------------ ------------ ------------
Attributable
to:
Equity holders
of the parent 804 431 1,243
-------------------------------- ------ ------------ ------------ ------------
Earnings per share
Basic earnings
per share 7 1.1 p 0.6 p 1.7 p
-------------------------------- ------ ------------ ------------ ------------
Diluted earnings
per share 7 1.0 p 0.6 p 1.6 p
-------------------------------- ------ ------------ ------------ ------------
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2017
six months to
30 June
--------------------------
Year Ended
2017 2016 31 December
(unaudited) (unaudited) 2016
GBP'000 GBP'000 GBP'000
---------------------------------- ------------ ------------ ------------
Profit for the
period 804 431 1,243
Other comprehensive
income:
Items that will be reclassified
subsequently to profit or loss:
Translation differences
on foreign operations (23) 76 92
Other comprehensive
income net of tax (23) 76 92
Total comprehensive
income for the period 781 507 1,335
------------------------------------ ------------ ------------ ------------
Attributable
to:
Equity holders
of the parent 781 507 1,335
----------------------------------- ------------ ------------ ------------
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 June 2017
Share Share Translation Other Retained
capital premium reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------- --------- ------------ --------- ---------- --------
At 1 January 2017 771 578 (80) (339) 8,786 9,716
Dividends - - - - (135) (135)
Share-based payments - - - 6 - 6
Transactions with
owners - - - 6 (135) (129)
--------- --------- ------------ --------- ---------- --------
Profit for the
period - - - - 804 804
Other comprehensive
income:
Exchange differences
on translation
of net investments
in foreign operations - - (23) - - (23)
Total comprehensive
income for the
period - - (23) - 804 781
--------- --------- ------------ --------- ---------- --------
At 30 June 2017
(unaudited) 771 578 (103) (333) 9,455 10,368
========= ========= ============ ========= ========== ========
Share Share Translation Other Retained
capital premium reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------- --------- ------------ --------- ---------- --------
At 1 January 2016 749 - (172) (338) 7,654 7,893
Share-based payments - - - (9) - (9)
Transactions with
owners - - - (9) - (9)
--------- --------- ------------ --------- ---------- --------
Profit for the
period - - - - 431 431
Other comprehensive
income:
Exchange differences
on translation
of net investments
in foreign operations - - 76 - - 76
Total comprehensive
income for the
period - - 76 - 431 507
--------- --------- ------------ --------- ---------- --------
At 30 June 2016
(unaudited) 749 - (96) (347) 8,085 8,391
========= ========= ============ ========= ========== ========
Share Share Translation Other Retained
capital premium reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------- --------- ------------ --------- ---------- --------
At 1 January 2016 749 - (172) (338) 7,654 7,893
Dividends - - - - (111) (111)
Share-based payments - - - 13 - 13
Elimination of
cancelled share-based
payments - - - (14) - (14)
Issue of share
capital 22 578 - - - 600
Transactions with
owners 22 578 - (1) (111) 488
--------- --------- ------------ --------- ---------- --------
Profit for the
period - - - - 1,243 1,243
Other comprehensive
income:
Exchange differences
on translation
of net investments
in foreign operations - - 92 - - 92
Total comprehensive
income for the
period - - 92 - 1,243 1,335
--------- --------- ------------ --------- ---------- --------
At 31 December
2016 771 578 (80) (339) 8,786 9,716
========= ========= ============ ========= ========== ========
Condensed Consolidated Balance Sheet
At 30 June 2017
30 June
--------------------------
2017 2016 31 December
(unaudited) (unaudited) 2016
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ------------ ------------ ------------
Non-current
assets
Goodwill 11,487 10,237 11,469
Other intangible
assets 9 3,434 1,899 3,321
Property, plant and
equipment 786 596 868
Total non-current
assets 15,707 12,732 15,658
--------------------------------- ------ ------------ ------------ ------------
Current assets
Inventories 3 5 11
Trade and other receivables 2,871 2,679 3,674
Current tax
assets 77 213 67
Cash and cash equivalents 3,510 2,540 2,576
Total current
assets 6,461 5,437 6,328
-------------------------------- ------ ------------ ------------ ------------
Total assets 22,168 18,169 21,986
-------------------------------- ------ ------------ ------------ ------------
Current liabilities
Bank overdraft 10 (179) (541) (339)
Borrowings 10 (790) (750) (790)
Obligations under
finance leases (123) (158) (163)
Trade and other
payables (1,050) (1,068) (1,459)
Provisions (243) (116) (228)
Current tax
liabilities (233) (73) (89)
Accruals and deferred
income 11 (6,398) (5,898) (6,003)
Total current
liabilities (9,016) (8,604) (9,071)
-------------------------------- ------ ------------ ------------ ------------
Non-current
liabilities
Borrowings 10 (1,975) (597) (2,370)
Obligations under
finance leases (184) (192) (218)
Deferred tax
liabilities (584) (218) (570)
Non-current
provisions (41) (167) (41)
Total non-current
liabilities (2,784) (1,174) (3,199)
--------------------------------- ------ ------------ ------------ ------------
Total liabilities (11,800) (9,778) (12,270)
-------------------------------- ------ ------------ ------------ ------------
Net assets 10,368 8,391 9,716
================================== ====== ============ ============ ============
Equity
Share capital 771 749 771
Share premium
account 578 - 578
Translation
reserve (103) (96) (80)
Other reserve (333) (347) (339)
Retained earnings 9,455 8,085 8,786
Equity attributable to shareholders
of the parent 10,368 8,391 9,716
========================================== ============ ============ ============
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2017
six months to
30 June Year Ended
--------------------------
2017 2016 31 December
(unaudited) (unaudited) 2016
GBP'000 GBP'000 GBP'000
------------------------------------ ------------ ------------ ------------
Cash flows from operating
activities
Profit before
tax 1,006 557 1,504
Net finance costs 52 43 90
Depreciation charge 119 79 207
Amortisation charge 420 283 631
Profit on sale of property,
plant and equipment (8) (20) (28)
Share-based payment
charge 6 (9) 13
Decrease in provisions (5) (60) (75)
Cash generated in operations
before working capital movements 1,590 873 2,342
Decrease in trade and
other receivables 891 958 403
Decrease/(increase) in inventories
and work in progress 8 5 (1)
Decrease in trade and
other payables (212) (397) (322)
Cash generated
in operations 2,277 1,439 2,422
Interest
paid (54) (50) (85)
Interest
received - 2 3
Net income tax
paid (50) (101) (17)
Net cash inflow from
operating activities 2,173 1,290 2,323
-------------------------------------- ------------ ------------ ------------
Investing activities
Purchase of intangible
assets (531) (218) (754)
Purchase of property,
plant and equipment (62) (128) (449)
Acquisition of subsidiary
undertakings net of cash
acquired - (63) (1,700)
Proceeds from sale of
property, plant, equipment
and intangible assets 96 48 100
Net cash outflow from
investing activities (497) (361) (2,803)
-------------------------------------- ------------ ------------ ------------
Financing activities
Proceeds from new
bank loan - - 3,160
Repayment of bank
loans (395) (375) (1,722)
Repayments of obligations
under finance leases (133) (73) (153)
Equity dividends
paid (135) - (111)
Net cash (outflow)/inflow
from financing activities (663) (448) 1,174
--------------------------------------- ------------ ------------ ------------
Net increase in cash
and cash equivalents 1,013 481 694
-------------------------------------- ------------ ------------ ------------
Cash and cash equivalents
at beginning of period 2,237 1,283 1,283
Effects of changes in
foreign exchange rates 81 235 260
Cash and cash equivalents
at end of period 3,331 1,999 2,237
-------------------------------------- ------------ ------------ ------------
Cash and cash equivalents
comprise:
Cash and short
term deposits 3,510 2,540 2,576
Bank overdrafts (179) (541) (339)
3,331 1,999 2,237
------------------------------------ ------------ ------------ ------------
Notes to the Condensed Consolidated Financial Statements
1. General information
The company is a public limited company incorporated and domiciled in the UK. The address of its registered office is 66 Clifton Street, London, EC2A 4HB.
The company is listed on the Alternative Investment Market ("AIM")
The condensed consolidated interim financial information does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group's consolidated financial statements for the year ended 31 December 2016 have been filed at Companies House. The audit report was not qualified and did not contain a statement under section 498(2) or section 498(3) of the Companies Act 2006.
2. Basis of preparation
The condensed consolidated interim financial statements for the six months to 30 June 2017 have been prepared in accordance with the accounting policies which will be applied in the twelve months financial statements to 31 December 2017. These accounting policies are drawn up in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and as adopted for use in the European Union that are effective at 30 June 2017.
The condensed consolidated interim financial statements are unaudited and have not been subject to review. They do not include all the information and disclosures required in the annual financial statements, and therefore should be read in conjunction with the Group's published financial statements as at 31 December 2016. The comparative figures for the year ended 31 December 2016 are not the Company's statutory accounts for that period but have been extracted from these accounts.
The condensed consolidated interim income statement for 2016 was restated for the reclassification of a director's termination payment that was accrued in December 2016. These costs were reclassified to directors' termination payments in the income statement.
The Directors, having considered the Group's current financial resources, have concluded that they are adequate for the Group's present requirements. Therefore, the condensed consolidated interim financial information has been prepared on the going concern basis.
New accounting standards and interpretations are effective for the first time in the current period but have had no impact on the results or financial position of the Group. Furthermore, new standards, new interpretations and amendments to standards and interpretations that have been issued but are not effective for the current period have not been adopted early.
Estimates
Application of the Group's accounting policies in preparing condensed consolidated interim financial statements requires management to make judgements and estimates that affect the reported amount of assets and liabilities, revenues and expenses. Actual results may ultimately differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2016.
Risks and uncertainties
A summary of the Group's principal risks and uncertainties was set out on page 21 of the 2016 annual report and accounts. The Board considers these risks and uncertainties are still relevant to the current financial year and the impact of changes in the UK economy is reviewed in the Chairman's statement contained in this report.
The Interim Report was approved by the Directors on 20 September 2017.
3. Revenue
Revenue disclosed in the income statement is analysed as follows:
Year
ended
six months to
30 June 31 December
------------------
2017 2016 2016
GBP'000 GBP'000 GBP'000
----------------------- -------- -------- ------------
Licence sales 2,859 2,738 4,955
Recurring maintenance
and support revenue 4,847 4,102 8,622
Services income 2,304 1,929 4,218
10,010 8,769 17,795
-------- -------- ------------
4. Segmental information
Operating segments
The Group comprises of software business activity only and as such the information is presented in line with management information, as one segment.
Adjusted operating profit represents operating profit before tangible asset depreciation, expensed product development costs, intangible asset amortisation, acquisition expenses and former director's termination payments. Development project costs are expensed as incurred unless they meet the accounting policy requirements for capitalisation. The projects capitalised in the six months to 30 June 2017 are explained in the Chairman's Statement and the accounting policy requirements are set out on page 47 of the 2016 annual report and accounts.
(restated)
Year
ended
six months to
30 June 31 December
------------------
2017 2016 2016
GBP'000 GBP'000 GBP'000
Revenue 10,010 8,769 17,795
-------------------------------- -------- -------- ------------
Adjusted operating
profit 2,652 2,330 4,778
Depreciation charge (119) (79) (207)
Product development
costs (1,054) (1,258) (1,968)
Operating profit before
amortisation of intangible
assets, acquisition expenses
and termination payments 1,479 993 2,603
Amortisation of intangible
assets (420) (283) (631)
Acquisition expenses - - (212)
Former Director's termination
payments - (109) (166)
Operating profit 1,059 601 1,594
Net finance cost (52) (44) (90)
Segment profit before
tax 1,007 557 1,504
Tax (203) (126) (261)
--------------------------------
Segment profit after
tax 804 431 1,243
-------------------------------- -------- -------- ------------
Product development
costs expensed (1,054) (1,258) (1,968)
Internal development costs
capitalised (494) (175) (625)
-------------------------------- -------- ------------
Total development
costs (1,548) (1,433) (2,593) -------------------------------- -------- -------- ------------ Operating profit 1,059 601 1,594 Amortisation of intangible assets 420 283 631 Depreciation charge 119 79 207 EBITDA 1,598 963 2,432 -------------------------------- -------- -------- ------------
Geographical, product and sales channel information
Revenue by geographical segment represents revenue from external customers based upon the geographical location of the customer.
six months to Year
30 June ended
------------------
31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
---------------- -------- -------- ------------
UK 3,325 2,825 5,498
Scandinavia 3,638 3,451 6,745
Germany 1,565 1,425 2,982
USA 350 236 601
Rest of Europe 999 717 1,653
Rest of World 133 115 316
10,010 8,769 17,795
-------- -------- ------------
Revenue by product group represents revenue from external customers.
Year
ended
six months to
30 June 31 December
------------------
2017 2016 2016
GBP'000 GBP'000 GBP'000
-------------------- -------- -------- ------------
Project management 4,559 4,272 8,452
Site management 225 229 474
Estimating 1,521 1,507 2,964
Engineering 1,672 1,389 2,827
CAD/Design 562 573 1,137
Visualisation 979 799 1,821
Information
management 492 - 120
10,010 8,769 17,795
-------- -------- ------------
The Group utilises resellers to access certain markets. Revenue by sales channel represents revenue from external customers.
Year
ended
six months to
30 June 31 December
------------------
2017 2016 2016
GBP'000 GBP'000 GBP'000
---------- -------- -------- ------------
Direct 9,398 8,273 16,674
Reseller 612 496 1,121
10,010 8,769 17,795
-------- -------- ------------
5. Operating profit
Operating profit for the period is after charging/(crediting) the following items:
Year
ended
six months to
30 June 31 December
------------------
2017 2016 2016
GBP'000 GBP'000 GBP'000
--------------------------------- -------- -------- ------------
Software product development 1,054 1,258 1,968
Depreciation of property,
plant and equipment 119 79 207
Amortisation of intangible
assets acquired 255 173 389
Amortisation of capitalised
development costs 165 110 242
Profit on disposal of
property, plant and equipment (8) (20) (28)
Foreign exchange (gains)/losses 13 (10) (73)
Acquisition
expenses - - 212
Directors termination
payment - 109 166
6. Net finance (cost)/income
Finance income and costs disclosed in the income statement is set out below:
Year ended
six months to
30 June 31 December
------------------
2017 2016 2016
GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- ------------
Finance income:
Bank and other interest
receivable - 2 3
Finance costs:
Bank overdraft and loan
interest (49) (41) (84)
Finance leases and hire
purchase contracts (3) (5) (9)
Total net
finance cost (52) (44) (90)
--------------------------- -------- -------- ------------
7. Earnings per share
The calculations of the earnings per share are based on profit after tax attributable to the ordinary equity shareholders of the Company and the weighted average number of shares in issue for the reporting period.
Year ended
six months to
30 June 31 December
----------------------------
2017 2016 2016
-------------------------- ----------- ----------- -------------
Profit attributable
to shareholders GBP804,000 GBP431,000 GBP1,243,000
-------------------------- ----------- ----------- -------------
Basic weighted average
number of shares 76,192,757 73,970,534 74,433,243
Dilutive effect
of share options 1,028,721 294,000 1,029,000
Diluted weighted average
number of shares 77,221,478 74,264,534 75,462,243
--------------------------- ----------- ----------- -------------
Earnings per share
-------------------------- ----------- ----------- -------------
Basic earnings
per share 1.1 p 0.6 p 1.7 p
Diluted earnings
per share 1.0 p 0.6 p 1.6 p
--------------------------- ----------- ----------- -------------
Shares held by the Employee Share Ownership Trust are excluded from the weighted average number of shares in the period.
8. Dividends
The Board have recommended the payment of an interim scrip dividend of 0.20p per ordinary share or cash dividend alternative of 0.20p per ordinary share (2016 H1: cash dividend 0.15p) Dividends of GBP134,000 (2016 H1: GBPnil) were paid during the six months to June 2017.
9. Other intangible assets
Other intangible assets comprise capitalised development costs, acquired customer relationships and purchased intangible assets. Additions in the six months to 30 June 2017 represent purchased intangible assets of GBP37,000 (2016: GBP43,000) and internal development costs capitalised of GBP494,000 (2016: GBP175,000) Internal development relates to software development projects that meet the accounting policy criteria for capitalisation.
10. Borrowings
The bank loans and overdrafts are repayable as follows:
at 30 June at 30 June at 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
In one year
or less 969 1,291 1,129
Between one and
two years 790 597 790
Between two and
five years 1,185 - 1,580
2,944 1,888 3,499
----------------- ----------- ----------- ---------------
11. Accruals and deferred income
at 30 June at 30 June at 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Accruals 1,760 1,696 1,602
Deferred
income 4,638 4,202 4,401
6,398 5,898 6,003
---------- ----------- ----------- ---------------
Deferred income represents income from software maintenance and support contracts and is taken to revenue in the income statement on a straight line basis in line with the service and obligations over the term of the contract.
12. Related Party Disclosures
Transactions between Group undertakings, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
The Directors of the Company had no material transactions with the Company during the six months to 30 June 2017, other than a result of service agreements. An amount of GBP3,000 (2016: GBP3,000) was paid to JHB Ketteley & Co Limited for a contribution to the office costs at Burnham-on-Crouch.
For further information please contact: Elecosoft plc www.elecosoft.com JHB Ketteley, Executive Chairman Tel: 0207 422 0044 Jonathan Hunter, Group Marketing & Business Development Director finnCap Ltd Adrian Hargrave / Kate Bannatyne Tel: 0207 220 0500 (Corporate Finance) Camille Gochez (Corporate Broking) Redleaf Communications Elisabeth Cowell / David Ison Tel: 0207 382 4730 / Fiona Norman elecosoft@redleafpr.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUPPBUPMPUC
(END) Dow Jones Newswires
September 25, 2017 02:01 ET (06:01 GMT)
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