Eleco Public Share Discussion Threads

[ansc] 02/5/2014 14:05

Yes, I always get a tad anxious when announcements appear to be unduly delayed. Mind you, there has been a lot of disposals during the last financial year so perhaps the 'tidying up' of their accounts has been the reason.

Not expecting fireworks after the announcement (when it comes!) therefore but remain a believer that good times are again looming on ELCO's horizon. Hopefully, those who wrote the company off a couple of years ago will be forced to eat a plate of 'humble pie'.

[rathkum] 02/5/2014 13:42

Does it take four months to release year end accounts for a company the size of Eleco. Perhaps we need a full time accountant after all.

[ansc] 26/3/2014 12:24

"Asta Development, ELECO's leading project management software subsidiary, is holding its annual National User Forum today at The British Museum"

I wonder if any of today's attendees at the above will be impressed enough to invest in ELCO shares afterwards? I won't be holding my breath!

We must surely be getting close to the release of the 2013 results. Last year's delayed announcement was explainable but in 2012 they came out on 2nd April. I'm keen to add a few more but will wait to see the company's financial situation following their disposal of the Precast subsidiaries last December.

[mach100] 21/3/2014 20:04

Oi Ans! I represent that comment! Hummmppphhhh

[ansc] 17/3/2014 14:37

A touch of 'smoke and mirrors' from the Mingy Machs today. I can confirm that the alleged 20,833 sale this morning was in fact a buy. Need I say more?

[ansc] 07/3/2014 17:07

I certainly haven't seen it before, rathkum, well spotted! I definitely liked this piece:

["Asta Powerproject is quickly becoming popular in the U.S. as construction companies demand better, more intuitive scheduling software for their project needs," said Michael Romero, Asta's North America Channel Manager. "We are delighted that this approval will enable our customers to use our software on all USACE projects."]

and this:

[More than 60,000 schedulers worldwide rely on the software every day to create and update precise project schedules, collaborate across the enterprise, manage resources and costs, and report progress to owners and clients. For more information, visit www.astapowerproject.com.]

[rathkum] 07/3/2014 15:13

Is this old news or an update?



Published in Construction 6th March.


U.S. Army Corps of Engineers Approves Asta Powerproject for Required SDEF Exports

Asta Development, makers of construction scheduling software Asta Powerproject, announced that the U.S. Army Corps of Engineers (USACE) has approved Asta Powerproject as being fully compliant with their SDEF file exchange requirements.

Indianapolis (I-Newswire) March 6, 2014 - Asta Development, makers of construction scheduling software Asta Powerproject, announced that the U.S. Army Corps of Engineers (USACE) has approved Asta Powerproject as being fully compliant with their file exchange requirements.

USACE manages construction and maintenance projects throughout the United States and 130 countries around the world. It requires construction firms and other contractors doing business with them to provide project data in the Corps-developed Standard Data Exchange Format (SDEF) format to comply with reporting and submission standards.

The SEDF format uses a proprietary 132-character fixed field ASCII file protocol to provide a consistent way to exchange project planning and progress data between scheduling systems and project management software.

Asta Powerproject program files can be exported into SDEF file format meeting all known requirements in line with SDEF regulation ER 1-1-11. Only two other software packages can claim this distinction.

"Asta Powerproject is quickly becoming popular in the U.S. as construction companies demand better, more intuitive scheduling software for their project needs," said Michael Romero, Asta's North America Channel Manager. "We are delighted that this approval will enable our customers to use our software on all USACE projects."

The U.S. Army Corps of Engineers has approximately 37,000 dedicated civilians and soldiers delivering engineering services worldwide. Their focus is on building and maintaining America's infrastructure, constructing military facilities in deployment zones, dredging waterways to support the movement of critical commodities, and cleaning sites contaminated with hazardous, toxic or radioactive.

More than 60,000 schedulers worldwide rely on the software every day to create and update precise project schedules, collaborate across the enterprise, manage resources and costs, and report progress to owners and clients. For more information, visit www.astapowerproject.com.

[ansc] 20/2/2014 17:07

They say there's no such thing as bad publicity. Article in AEC Magazine featuring Michael McCullen CEO of Asta Development:

hxxp://aecmag.com/comment-mainmenu-36/594-enabling-bim

[lgw500] 13/2/2014 15:22

Maybe Eleco doesn't require a finance director. Bid target, anyone?

[ansc] 11/2/2014 14:05

Yes, excellent find, rathkum, the potential, if it succeeds, is phenomenal. My one concern is the oft-touted difficulty of getting a toe-hold in India.

Just over four months since ELCO's FD departed and no replacement announced yet. Puzzling what with the annual results announcement not too far away (hopefully!).

[tanneg] 10/2/2014 19:25

Great find but why no RNS here or updated website?

[rathkum] 10/2/2014 10:17

ElecoSoft, UK based European Leader in Software and Services for the Construction Sector, Announces Indian Subsidiary

10th February 2014 13:50 IST

ElecoSoft, UK based European Leader in Software and Services for the Construction Sector, Announces Indian Subsidiary
Bangalore,
Karnataka, India (ElecoSoft)

Launches Asta Powerproject, Europe's leading project, portfolio and resource management solution for construction project management
Praveen Rao appointed CEO for ElecoSoft India


ElecoSoft, a UK based European industry leader in a range of software and services that enable project management, site control, building design and 3D visualisation for the construction sector, today announced its subsidiary in India. This is ElecoSoft's first market expansion outside Europe. The first product to be introduced is Asta Powerproject (APP). It is designed to help clients plan and execute successful projects within set deadlines, optimize time management and avoid project management process discrepancies. It has been proven to save up to 40% of project cost through improved efficiencies.

The total addressable market for ElecoSoft in construction project management is over $50 million (138 crore Indian Rupees). APP is targeted at the construction, civil engineering, public sector, facilities management verticals; as well as project management consultancies. The greatest focus is on the large market of progressive upcoming and established builders primarily based in the metro cities, who want to deliver highly competitive construction projects.

Benefits of Asta Powerproject:


Improved high performance scheduling
Control of project and resource plans
Control costs and improve time efficiencies
Acutely accurate progress reporting
Scalability of users from 1 to 1000+
Enhanced presentation plans
Mobile access
Easy management of sub-contractors


"Efficient management in all areas of construction projects has always been fundamentally important. The modern construction climate now requires more demanding schedules to ensure maximum cost savings, while maintaining safety standards and reducing carbon emissions. The cost of developing projects rising by 20%-30%, coupled with the depreciation of the rupee has resulted in the lack of new projects being undertaken. The Indian construction sector requires effective time and work management with regards to materials, manpower and timelines. Considering this, we believe there is tremendous potential in the Indian market for ElecoSoft, given our sharp focus on innovative products for the construction sector that shorten production time and allow careful allocation of company time and assets." said Praveen Rao, CEO, ElecoSoft India.

Benjamin, Head of Planning and Director, Spherical Constructions, says "The user interface of APP is very friendly to our Planners and Project Managers. It is a simple tool to use but delivers highly complex schedules in a visual format. We believe our investment in this kind of software will give us improved cost control and efficiencies that will be benefiting us on an organizational level."

There is a high demand for resource and raw material to ensure that the country's infrastructure goals are realized. Ensuring capital efficiency continues to be a problem as plummeting interest rates means that a number of projects schedules and costs will suffer for due to delayed payments and working capital issues. These problems are easily tackled when an overall view and management of human capital, work hours, asset allocation and capital flow is established along with an ability to be forensically resolve issues at a granular level in a construction activity.

"Asta Powerproject has been used to manage many high profile projects around the world such as the London Olympics 2012 Stadium, Schipol Airport in Amsterdam, Jumeirah Park in Dubai, The Shard London, the Lloyds Gherkin and The Petronas Towers in Kuala Lumpur. ElecoSoft aims to be associated with similarly prominent development projects and companies in India," Mr. Rao further added.

Asta Powerproject, since 1988, has been used by 90% of the top UK main contractors and sold worldwide to over 60,000 users in 7 different languages. It can provide any size of company – from the smallest planning consultancy to the largest global contractor – with a firm foundation for project management achievement and future growth. It is used on all types of projects including: house building; general commercial build such as schools, offices and hospitals, as well as road and rail construction and maintenance.

This international Award winning solution is used by some of the leading names in construction world-wide like Bovis Lend Lease, Atkins, Kier, Mace, Balfour Beatty, Athena Project Services amongst a few.

"The Indian construction industry is currently the second largest accounting for 11 percent of India's GDP and is expected to be the world's third largest construction market by 2025 adding 11.5 million homes a year to become a $1 trillion a year market, according to Global construction perspectives and Oxford Economics. We believe it is the right market for us to first expand into as we take our leadership in Europe, global. Praveen Rao who has led global sales and marketing for outsourcing, banking and trading technology companies in London and India is leading our foray into this very important market for us" said Michael McCullen, Group CEO, Eleco Plc.

About ElecoSoft

ElecoSoft® develops and delivers innovative ideas and outstanding software and services with cutting edge technology, to the project management, construction, pharmaceutical, timber engineering and design, 3D visualisation, data compression, site control, stair design, flooring and marketing sectors principally in the UK, Scandinavia and Germany.

[rathkum] 06/2/2014 18:38

A very positive "forward-looking statement" accompanying the forthcoming results would do it. We are certainly not in sky-high rating territory yet as some of the companies that were showcasing their wares at the Investors Forum London this week.

[ansc] 05/2/2014 18:07

Having made ELCO my 'gamble for 2013', after some lenghty pondering (and a certain amount of naval-gazing!), I've decided to make ELCO one of my two 'shares for 2014'; to me, their prospects now look really exciting.

Can lightening strike twice?!

[ansc] 21/1/2014 15:56

I liked the way the advert rathkum refers to, actually in the Shares mag itself, describes Eleco as one of the 40 'leading-edge' companies ...... Sounds good to me!

On the topic of promotions, the Asta National User Forum is being held in the British Library 0n 26th March. I'm reliably informed that Asta will be previewing new technologies which will change the look of project project management software used in construction. Any ELCO shareholder interested in going should contact Jonathan Hunter (General Manager) at HQ who can arrange for a special invitation to be issued.

[rathkum] 17/1/2014 08:11

Eleco to showcase at the London Innovators and Investors Forum 2014
16 January 2014 | 13:26pm

StockMarketWire.com - Eleco Plc (ELCO) [LON:ELCO] will be showcasing their company at the Shares Magazine/Cenkos Innovators and Investors Forum in London on 4th February 2014. This successful event is a one day conference and expo showcasing up to 40 leading technology companies in front of an invited audience of institutional and private investors. Companies present include: Allocate Software, Angle, Avanti Communications, Bango, Bond International Software, Brady, Cenkos Securities, CML Microsystems, Earthport, Eleco, Enables IT, Escher Group Holdings, Filtronic, Forbidden Technologies, Globo, Imperial Innovations, incadea, InternetQ, KBC Advanced Technologies, Kromek Group, Optimal Payments, Quindell, Regenersis, Rightster,Shares Magazine, StatPro and Transense Technologies. More companies to be announced. More details at:
- See more at:

[ansc] 08/1/2014 14:50

With ELCO having 'morphed' dramatically from niche construction to niche software company over the past 20 months, how should one attempt to value the company now?

Rathkum has quite sensibly suggested that, being software orientated, a valuation of 1 - 2 times turnover wouldn't be out of order. ElecoSoft should be capable (even during the difficult 12 months of 2013) of achieving £17m and, at say (for arguments sake) 1.5 times turnover gives a valuation of £25.5m or 42p/share.

An alternative scenario could be to view ElecoSoft as an IT company where 20 - 30 times earnings/share is considered reasonable. On past performance, ElecoSoft will have (hopefully) made around 3p earnings last year which gives [20 (conservatively) x 3p x 61m shares] a company valuation of £36.6m or 60p/share.

Hmm. I know which one I prefer! Obviously, a lot of water has yet to flow under the bridge before we reach a plausible understanding but at least the decks have been cleared. It looks as though I'll be hanging on to my little holding for a while yet and, if we eventually reach a middle-of-the-range 50p/ share, that'll do very nicely!!

[ansc] 06/1/2014 09:50

Confession, I haven't the slightest idea of what is happening here currently ..... but I'm certainly not complaining!

What an about-turn! Six months or so ago I was buying these for 7.5 - 8.0p. This morning, you can sell 25k and get 28.35p. Oh that some of my other 'no-hopers' would perform likewise!

[stevemarkus] 23/12/2013 09:40

Wish I'd known about this on Friday! I'd have bought mine back as well. Now... well certainly the news is more in the price, as the company will still have some debt, and I'm not entirely sure what profits the software side will produce, perhaps £2M. Mmm.... there probably is still some upside, but not as much.

Cheers,
Steve.

[westcountryboy] 21/12/2013 11:42

I had to scramble to buy back 40,000 shares that I sold earlier in the year (for 15p or so!). Interesting that there were comparatively few trades yesterday afternoon, so in fact mine were a largish proportion of those shown. We are not yet on many people's radar...

[rathkum] 20/12/2013 22:52

I always felt this move was on the cards. Now that we are a pure software company it's now a matter of when not if for Mr Ketteley to put his feet up that opens the door for Eleco to be bought out.

Software companies are generally worth somewhere between 1 and 2 times annual revenue. As Eleco has leading edge technology, is profitable, growing (rapidly?) and is the dominant player in market sector niche, then it may be worth much more than 2 times annual revenue. Most software companies, however, will likely fall within the 1 to 2 times annual revenue rule of thumb. Given current annual turnover range between £16m-£18m, it is anyone's guess what valuation the market gives post divestment.

[mach100] 20/12/2013 20:08

Ansc. You have been very informative here. I am thinking of buying in after the divestment. Looks like an anchor has been removed! The software side seems impressive. Is the pension deficit still an issue?

[ansc] 05/12/2013 16:15

No further marks recorded since this morning but the online prices - 5k again - have narrowed to 18.75p/18.56p. A buy waiting in the wings?

[ansc] 05/12/2013 11:59

Current online prices - for a mere 5k - are 18.75p/18.15p. Highly unlikely (imho), therefore, that this mornings two 100k indicated sales would have been offered 18.5p. Draw your own conclusion.