Eleco Public Share Discussion Threads

[ansc] 20/11/2018 13:11

With Brexit turmoil headlines dominating the daily news, it's worth recollecting what the chairman said on the subject in his Interim 'Outlook' statement back in September:

'Approximately a third of our revenue in the first half of 2018 was earned in the UK, with two thirds in Scandinavia, elsewhere in Europe, Australia or the US. The majority of our operating profits are earned in, and employees based in Sweden, Germany, the Netherlands, Belgium and the United States. This, combined with the recurring nature of our revenues, means that I believe we remain resilient to any potential effects of Brexit.'

[ansc] 19/11/2018 18:48

Powerproject wins Project Management/Planning Product award for the fifth consecutive year:

[clangor2] 19/11/2018 12:51

Amazed that investors haven't cottoned on that the Active Online GmbH acquisition could turn out to be an absolute stunner at a relatively cheap price. Elecosoft's previous two purchases, ICON at 3.4 times t/o and Shire Systems at 3.3 times, were both snips (imo) yet this one is only 1.4 times according to the figures quoted in the RNS.

But for me the icing on the cake is once Active and the company's own Esign have been integrated, you'll have a unit with software capable of decorating a new-build house throughout at the touch of a button. Imagine you have a new, small estate of say 30 houses, the builder furnishes the Show House as usual but will then be a position to say to any prospective purchaser that they can see the effect of any changes that they might like to make by simply viewing them on their computer. The builder of course will then have the added incentive of doing the furnishing themselves and cutting out the middle man.

Quite a prospect.

[smithie6] 12/11/2018 14:43

...sometimes...
...some holders sell some...to generate some cash...to help pay for taking up new shares....(which might have tax advantages & by taking up new shares they help the co.)

[ansc] 10/11/2018 10:36

Schroder Investment Capital now listed as a significant shareholder (3.05%) ..... another of the participants involved in the acquisition share placing?

[ansc] 09/11/2018 17:51

Sometimes I struggle to understand shareholders actions; I had interpreted the news of J O Hambro becoming a significant shareholder as being positive but the 10 trades marked today have all been sells!

[ansc] 09/11/2018 11:52

Before today's RNS, J O Hambro were not listed as a significant shareholder in the company so I'm assuming they were one of those involved in the acquisition share placing and must have taken a fair slice of the shares issued.

[edmonda] 09/11/2018 09:54

encouraging to see blue chip fund manager JO Hambro declaring a 6.4% stake today following this week's earnings accretive German acquisition.

Details of which are in this full research note:

[caterham88] 06/11/2018 11:25

The Active Online website is worth looking at to understand their products.

[bamboo2] 06/11/2018 08:26

6 November 2018

Elecosoft Plc

("Elecosoft" or the "Company")

Acquisition of Active Online GmbH ("Active Online")

Placing to raise GBP2.25 million

Elecosoft (AIM: ELCO), a developer of award winning software applications and related services within the architectural, engineering, construction and owner/operator sectors, is pleased to announce that it has signed an agreement for the acquisition of Active Online GmbH ("Active Online") for an initial consideration of EUR3.45m (comprising cash and ordinary shares) and a potential further bonus payment of up to EUR0.4m dependent on the attainment of specific performance and financial targets in the 3 years following completion (the "Acquisition").

The Board announces that it has also raised funds via an equity placing to raise GBP2.25m at 70 pence per new Ordinary Share, conditional on Admission (as defined and further explained below).

[edmonda] 06/11/2018 08:19

Latest note from Equity Development

[ansc] 03/11/2018 10:19

Result of scrip dividend scheme:



Comforting to see that chairman (J Ketteley) and non-exec (D Dannhauser) took up their full entitlement even at the conversion reference price of 84.8p/share ... confidence?

[ansc] 31/10/2018 18:04

Some sizeable trades have been marked in the last couple of days. A RNS due?

[smithie6] 30/10/2018 19:58

good/valid point..

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sp at 85p was better !

[ansc] 30/10/2018 18:05

All the winners were ELCO customers:



175k shares traded today out of a share cap totalling 77,854k or 0.23%. Share price plummets by 7.8% ..... logical?

[smithie6] 30/10/2018 16:34

anything pushing this down ?

[ansc] 17/10/2018 17:35

A classic 'smoke and mirrors' scenario after 16.00 by the Market Manipulators today, making it impossible to sort trade buys and sells. It'll take more than an overdone share price drop to change my stance.

[ansc] 16/10/2018 09:43

For anyone wanting to deal, a really tight spread just now - 81.125/81.5p.

[ansc] 16/10/2018 07:03

With distractions elsewhere recently, I hadn't looked at the Shire Systems acquisition in too much detail but, now 'back in harness', gave it more attention yesterday and have concluded that it's as much a snip of a purchase as the ICON acquisition was two years ago.

ELCO's interim figures (to 30th June) were revenue of £10.55m and operating profit of £1.22m, a return of 11.5%. When ICON was acquired, it's previous figures were revenue - £0.7m and operating profit - £0.2m, a return of 28.5%. Shire's figures (to 31 December '17) were revenue - £1.9m with operating profit - £0.7m giving a return of 36.8%; the figures for the first five months of 2018 were even better at £1.0m and £0.4m respectively.

When the Shire purchase was announced on 5th July, ELCO's chairman stated that the acquisition would be 'earnings enhancing' for the second half. What's not to like!

[ansc] 04/10/2018 17:16

Staircon exhibiting:

[rathkum] 20/9/2018 07:28

Don’t miss handsome little Elecosoft: its earnings are set to soar

Buy recommendation in 'Shares'

[petewy] 12/9/2018 08:05

Cheers Ed quote ED
New products coming on stream thick and fast
Let’s not forget too that Elecosoft is presently investing heavily in new products. In 2017 £2.75m was spent (14% of sales vs 15% 2016) on R&D (£1.7m) and capitalised
development (£1.05m vs £623k amortised). For H1’18 this represented another hefty 13%,
or £1.4m - primarily undertaken by ELCO’s 50 software engineers and 59 client support
staff, situated in Sweden, UK and Germany.

[edmonda] 12/9/2018 07:37

Good H1 results today: revs +7%, EPS 1.8p +38%, div 0.28p +40% and EBIT margins up sharply to 16.6%.

Updated ED research note with raised fair value now out, freely available here:

[smithie6] 28/8/2018 16:47

I'm not a fan of reading too much into chart signals/shapes...

But this one is showing a clear uptrend after the dip from the previous peak around 90p....with higher lows...slowly..

[smithie6] 24/8/2018 12:48

looking back at the recent Shire acquisition

I note that
- price is <10 x PBT. & < 2.5 x turnover & has a high % profitability wrt turnover so doesnt look expensive

- some words in RNS are good
"significant"
& adds a CMMS product
..so, one assumes that ELCO didnt have such a product before, so that looks like a +ve addition; & one assumes some cross selling opportunities

- decent size client base

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which as a consequence is generating some +ve commentator comments
& firmness in the share price action in recent days/weeks imo

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To copy a Tech. Invest phrase. ;-)
"strong hold"...imho

(what TI think about ELCO at the moment at the current share price ...I have no idea...I havent subscribed for a number of years, but its quite a good/decent tip sheet imo, but its not cheap)