Eleco Public Share Discussion Threads

[chrisdgb] 09/2/2022 15:38

Shame as I think we have a fantastic story here..........

[smithie6] 08/2/2022 20:35

"Robert Tearle {the FD} is stepping down from the Board as a Director of Eleco plc with immediate effect."

Seems strange to leave immediately.

Another pay-off to hit the accounts. 1 year's pay ??. Been so many.

[smithie6] 08/2/2022 20:30

Brummy git wrote

"To me as a shareholder, today’s news of the passing of the CFO baton should simply be viewed as part of Elecosoft's natural transition towards a more global & recurring revenue model."

Each to own opinion but for me he is clown & would be better off not to voice his opinions, since just reveals his whacko opinions.

[piedro] 07/2/2022 07:40

Another one down and only lasted a year.

Paul Hill can say what he likes but it does not change the fact that there is a high turnover of Directors in the company.



- The question is why?

[brummy_git] 07/2/2022 07:07

To me as a shareholder, today’s news of the passing of the CFO baton should simply be viewed as part of Elecosoft's natural transition towards a more global & recurring revenue model.

Find out all the details here.

www.linkedin.com/posts/paul-hill-a5994116_elco-elco-activity-6896348207958614016-5s2J

[ansc] 01/2/2022 10:53

Tried unsuccessfully to top-up yesterday after the recent (what I considered to be an) unwarranted downwards trend so this morning's markup doesn't surprise me ..... tho' I'd love to know the reason behind this sudden burst of buying activity.

[ansc] 25/1/2022 13:43

Bearing in mind that the company's chair, in her Interim Results statement, was predicting a 'temporary reduction in our level of profitability over the next 18 months as the SaaS subscription model and strategic initiatives bed in', I'm quite pleased with the announcement.

[piedro] 25/1/2022 08:48

"Unaudited revenue for the period is expected to be £27.3m, an increase of 8% compared with the same period in 2020, and above market expectations.
...
The Board expects EBITDA for the period to be ahead of expectations at £7m, (2020: £6.7m). Free cash flow is expected to be in line with prior year at £5.5m."

8% increase in revenues
4% increase in EBITDA
0% increase in free cash flow

- nothing fantastic in that IMO

[edmonda] 25/1/2022 08:00

We have nudged up our valuation to 154p/share (previously 150p). At 92p, Eleco trades on modest 2022 EV/sales & EV/EBITDA multiples of 2.4x and 12.1x.

[chrisdgb] 25/1/2022 07:50

Fantastic update, makes a mockery of the current price…..

[smithie6] 20/1/2022 21:21

....the dirs don't think the share price is cheap enough to buy any shares !!

Serena Lang bt some at 127p & 132p in Sept. '21.
(Probably to wave the flag because some shareholders were not happy & requested an EGM)

No dir. has bt any shares since.

The RNS saying reduction in turnover & profits in the next 2 years (was it 2 yrs ?) probably put them off !

[chrisdgb] 20/1/2022 11:29

Will be interesting to see the trading update, can't believe management will be too chuffed with the share price..........

[ansc] 15/1/2022 11:08

8,372 shares bought yesterday, 4043 sold and the share price is marked down 1p ..... risible!

[ansc] 12/1/2022 18:33

Relieved to see some reversing of the downward trend of the last four months.

[ansc] 11/1/2022 10:20

A trading update was released on 19th January last year so (hopefully) we could get one next week.

[smithie6] 01/1/2022 21:22

ansc

"Inevitably, this will soften revenues and profits in the short term as revenues are spread over a longer period of time and costs are added to drive growth. "

difficult for investors not to give a lower price to the shares in response to those words, imo, as has been happening

reduction in revenue & profit.
& adding costs

say no more.

[smithie6] 01/1/2022 21:13

virginia

"The really odd thing for me is the purchase of shares by directors at about 130p
Any thoughts"

....I put those buys down to the topic of 'loyalty'

recalling that 2 instis holding 11% submitted a request for a special meeting including voting yes/no for re-election of Serena Lang, & KC, & yes/no for the renumeration report (KC was head of that committee), &....

KC & SR trying to demonstrate his devotion to the company & 'please don't remove me'

the MD buy, trying to show that was loyal bod team member & to show loyalty to the new chairperson.

In the months before the request for that special GM, those people could have bought shares at noticeably lower prices 90p, 100p...during weeks, but they didn't, so, imo the director buys were not made because they thought it was a good time to buy at 130-140p, rather than at 90p only weeks before !!

(while yes, it is noteworthy the chunky total cost in £ of the buys by SL, but she has been on different bod.s for many years (decades ?) & is hence probably fairly well off, so for her the cost was perhaps not that big)

[ansc] 31/12/2021 14:17

Out of the old as we await the new: according to my notes, it's been a good year for ELCO shareholders (in spite of Covid-19) with the share price registering a gain of c.11%.

Just as a reminder, this was the chairman's 'Outlook' statement when the Interim results were announced:-

Outlook

Eleco delivered a positive performance in the first half of 2021, with growth in all regions and all customer segments. Importantly we were also able to strengthen our financial position considerably in the period. We are confident of meeting market expectations for the full year to 31 December 2021.

The Company is strategically investing to grow its business, most notably having set up a direct business in Texas in the USA and taken its maintenance management portfolio into the German market. These projects will take time to seed but ultimately are about growth. As the company continues to drive organic growth in its core markets, it will invest further in business development as well as software development to secure its market leading positions. At a group level, we have just recruited a Group Transformation Director and are still searching for a Chief Technology Officer.

The Company is also undergoing some major transformation projects including the digitisation of its back office systems which will not only enable efficiencies but also allow us to be more agile and innovative. Additionally the company is moving towards a SaaS subscription model for many new customers. Inevitably, this will soften revenues and profits in the short term as revenues are spread over a longer period of time and costs are added to drive growth. However, the shift will drive growth in customer lifetime value, lower customer acquisition costs and increase our recurring revenues as we move away from a perpetual licensing model.

We therefore expect a temporary reduction in our level of profitability over the next 18 months as the SaaS subscription model and strategic initiatives bed in and deliver our long term growth. We will continue to drive our strategy and concentrate our efforts on the software solutions that our customers require, focused on delivering ease of use and improved efficiencies to our customers, and thus enabling them to reduce their own and their customers' costs in difficult markets. I am confident therefore that with the close collaboration with our customers, we will continue to build Eleco from strength to strength.

[virginialouise] 30/12/2021 11:11

The really odd thing for me is the purchase of shares by directors at about 130p
Any thoughts

[smithie6] 29/12/2021 22:07

Mukul Mistry, BSc - Corporate Development Director.....joined in June 2018
& departed on 19 May 2020

with a big pay off I assume ?
£200-300k ??

he stayed for just a few weeks under 2 years
did he get 3 years pay, ~£600k ?!.....a lot of money for most people.

Mukul Mistry created some interest/hopes due to his track record & links I think with India.

Who is the devel. dir. now & do they have a good track record ?

-----

it takes time (& money !) for a Bus. Devel. Dir. to settle in & become skilled in the co. products & those of its competitors before having the knowledge & confidence to suggest or push for changes or for acquisitions

not good for a co. imo for such people to be coming & going after relatively short times

------

development wise the co. perf. is arguably very lacklustre over the last 3 years with the last reported turnover showing falls in some regions/countries. No dynamic product showing rapid organic growth, & failing imo to achieve growth outside of the historic mkts (UK, Scandanavia & Germany (selling/creating 3D products)

No success in breaking in to the USA mkt. in a noticeable way.
No success in growing construction mnmgt software sales outside of the traditional mkt of the UK.

Any opinions, where am I badly informed ?

[smithie6] 29/12/2021 21:04

145p to 93p

How come ?
Due to the expected reduction in PAT from increasing move to SAAS ?

& also partially due to the woman in the chairpersons's role becoming executive for X months perhaps being viewed badly by investors ? (incl. me !)
(she is now back to being non-exec. chairperson)

-----

or is there any II unrest continuing from the topics of the agenda in the requested Extraordinary GM ?
...which infers that those 2 big shareholders holding 11% wanted changes.

" 1. That Kevin Craig stand for re-appointment as a director
2. That Serena Lang stand for re- appointment as a director"

'Vote to approve, or not, the Renumeration Plan/report.'

KC has since departed. (hooray)
As someone mentioned there do seem to be a lot of bod changes, almost every year. Personality problems or is it normal ?

-----
or perhaps partly due to Serena Lang taking on 4-5 new extra senior staff, which will reduce the profit. £1/2 million/year ??
& reduction due to move to SAAS as well ??
....& with flat turnover the big shareholders perhaps don't want to see a fall in the reported profit (& with the pay off to the Devel. Dir. & the ex chairman, & tiny dividend yield, some shareholders might feel that considering the shareholders is being forgotten)

And perhaps some concern from some shareholders about whether the strategy including those appointments was/is correct. A change/modification in strategy compared with that of the long serving previous chairman Ketteley.

------

Anyone that paid 120, 130, 140p per share, nuts imo.

[piedro] 29/12/2021 11:13

Good luck to you.

Still a bit expensive IMO and for a company that has on average changed two directors
per year for the last ten years.

[chrisdgb] 29/12/2021 10:29

Predictions time of year and I am really excited for this in 2022, crazy pull back gives an excellent buying opportunity.....

[ansc] 21/12/2021 10:11

Online prices quoted this morning (for 5k0 - 90.03/92.55p).

[bobloblaw] 20/12/2021 19:36

Ludicrous indeed