Share Name Share Symbol Market Type Share ISIN Share Description
Elecosoft Plc LSE:ELCO London Ordinary Share GB0003081246 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  -2.50 -4.85% 49.00 22,209 12:54:06
Bid Price Offer Price High Price Low Price Open Price
48.00 50.00 51.50 49.00 51.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 22.22 2.43 2.40 20.4 40
Last Trade Time Trade Type Trade Size Trade Price Currency
12:55:50 O 2,500 49.00 GBX

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Elecosoft Daily Update: Elecosoft Plc is listed in the Construction & Materials sector of the London Stock Exchange with ticker ELCO. The last closing price for Elecosoft was 51.50p.
Elecosoft Plc has a 4 week average price of 49.50p and a 12 week average price of 49.50p.
The 1 year high share price is 88.50p while the 1 year low share price is currently 49.50p.
There are currently 81,819,407 shares in issue and the average daily traded volume is 31,683 shares. The market capitalisation of Elecosoft Plc is £40,500,606.47.
ansc: Elecosoft Powerproject wins Construction Computing's Project Management Software Award for the sixth year running ..... I wonder if they win it for ten years on-the-trot, will they be allowed to keep it?!
ansc: Elecosoft selected to join G-Cloud 11 Framework John Ketteley, Executive Chairman of Elecosoft said, "We at Elecosoft are delighted that UK public sector bodies are now able to improve their performance by sourcing Elecosoft's Powerproject SaaS, IconSystem and ShireSystem cloud based software programmes from G-Cloud 11, the Crown Commercial Service's digital marketplace."
nigeldoug1: Why is the share price going down given it is meeting market expectations....concerning?
ansc: As at 11.02, my Abacus is showing that there have been 151k shares marked as 'buys' this morning with 38k marked as 'sells'; the share price reaction, however, doesn't appear to fit ..... there must be some large 'sells' waiting in the wings!
ansc: With the share price having been in the doldrums recently plus the Brexit shenanigans looming large today , a burst of buying interest this morning. The question is ... why?
ansc: 10.4k shares sold this morning (0.013% of share capital)and the share price was marked down 5.7%. Unbelievably, a few investors (?) were panicked into selling ... one up to the Market Manipulators.
ansc: Cheers, rathkum, seasons greetings to you and yours and I'll second your wish for a profitable 2019, Brexit or not. Are you being a tad optimistic re a trading update next week as last year it came on 23rd January and Shire Systems has had to be integrated as well during the last six months. Whenever, I'm looking forward to it optimistically like you. It's worth remembering that the year ending December, 2018, results govern whether the share options mentioned in the RNS (of 28 October '16) get granted. There were two conditions attached, firstly revenue of at least £21.4m and secondly eps of at least 2.76p/share. The revenue condition is virtually 'a gimme' as not only Shire but also ICON have been acquired since then; for eps, I'm hoping close to 3.0p for the same reason. The share price was 28.7p back then so a juicy 250% gain is quite an incentive!
ansc: 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?
smithie6: future target share price ?? difficult how far in the future does one look --- 2018 results RNS says comfortably in line to meet (& being after only 4 months of trading gives a good chance of a higher result) 3.5p an EPS increase of 50% ! a P/E of 25 gives 87.5p a P/E of 30 gives 105p a P/E of 35 gives 122.5p --- 2019 results 3.9-4.0p is currently predicted but history is for upgrades of predictions and solid record of the delta in EPS increasing so Im gonna plump for same delta as prediction for 2018, ie. + 1.3p (which my guess/bet is that it will be exceeded in reality) 3.5p+ 1.3p = 4.8p if 4.8p for 2019 then P/E of 20 gives 96p P/E of 25 gives 120p P/E of 30 gives 144p --- noting these are guestimates as illustrations looking into the future which infers a risk wrt not achieving (or exceeding !) & in many cases when there is a growth situation the mkt doesnt price shares based on P/E & instead there can be a push to own a part of a growth story (eg. ELCO from 50p to 85p) & the P/E can go nuts, as happened at Accesso, years in advance of the reported EPS justifying the high share price being paid X yrs before. (& institutions famously didnt sell 1 share & kept holding for years. And saw their gain rocket) (& even though that share price has rocketed it "still" now has a skyhigh P/E at ~60 !, because the growth has been very high)
rathkum: Elecosoft in the top 8 among software companies according to this blogger. Posted Yesterday by Australian small-cap companies Going Global - Small thinking BIG We went through the exercise of reviewing the 100 micro-cap companies listed in the UK, categorized under the Software and Computer Services sector and over 200 similar companies listed on the NASDAQ in the United States. We also looked at select micro and small cap listed software companies in Europe and Asia. We are looking for companies that are taking their software/systems/smart hardware to the global stage, so we are really looking for classical growth companies, which have quite strong underlying business models. This strength in the business model in early stage companies typically takes the form of enterprise value to sales at less than 2 times and enterprise value to recurring revenues at less than 3 times. As the company matures the enterprise value to EBITDA starts heading towards 10 times and the Price to Earnings ratio falls to 20 times or below. We have boiled down the few hundred companies to just 8 names which have attractive investment characteristics in our opinion. This number fell to 7 after Cimatron (NASDAQ: CIMT) received a takeover offer from 3D Systems (NYSE: DDD) at a 50 percent premium to the price it was trading at when we first mentioned the company. The attractions we look for in these early stage nano-cap and micro-cap companies include (I) lowly Enterprise Value/Sales metrics, (II) high levels of recurring revenue and (III) high levels of investment in software development which indicates management are building sustainable businesses based around intellectual property and know-how. We accept investors are making small leaps of faith and in all likelihood not all these company's will fire. The ideal companies exhibit quite of a few of the below characteristics in our opinion and there really is no perfect combination, rather we like to see a high concentration of the following characteristics. Domain knowledge, innovation, decent R and D (~15% of sales). Cashflow positive, or trending positively. Decent balance sheet, ideally with lazy cash balances, retained earnings, limited dilution. Revenue growth (higher the better). Lucrative industry settings (peers earn decent operating profit margins). High percentage of recurring revenue (subscription, maintenance etc). Decent client base, ideally with global focus, recent client wins. Good amount of executive share ownership with recent buying, some youth on the Board. Website is busy with client interfacing activities (seminars, conference attendances, webinars). Set-backs are explainable and addressable. Open and transparent company. Elecosoft (LSE: ELCO) trades at very acceptable ratios of 1.2 times historical sales with EV/Recurring Revenues a similarly attractive metric of 3 times. On first glance the building software appears to cover the wide space of estimation, visualisation, project management, CAD/CAM design, compression technology and building information management (BIM). The 2014 launch of the bundled product 'ELECO BIMCloud' which incorporates much of this functionality has the potential to be game changing software product that should benefit from 2016 regulatory changes in the UK. The company trades on an EV/EBITDA multiple of 11.3 times for 2015, albeit there is some capitalisation of software development. Daktronics (NASDAQ: DAKT) designs, manufactures and sells computer-programmable information display systems, including massive sports screens. The $506 million capitalised company (at share price $11.57) has $80 million net cash sitting on its balance sheet, with sales of $655 million expected in the April 2016 year. Investors are looking for an EBITDA of $57.4 million leaving the company on a very reasonable EV/EBITDA multiple of 7.4 times. The price to earnings is a tad more ritzy at 21 times for 2016. The market leadership in this niche area of information displays, as well as respectable financial metrics are the attraction for investors. The £36 million capitalised UK company Kalibrate Technologies (LSE: KLBT) trades on an EV/Sales metric of 1.6 times for 2015, with its most compelling investment metric being its EV/Recurring revenue ratio of just 2.5 times. The fully taxed 2015 price to earnings ratio at 20.6 times is pretty ritzy however. The story driving the company’s growth is pretty compelling with deregulation of fuel pricing in many countries around the world requiring more sophisticated systems to handle variable pricing strategies in petrol stations. I also like the fact the biggest source of competition are in-house developed systems, which are less likely to keep up with the functionality and compliance reporting required in today’s fuel market. I’m forecasting 10% revenue growth in 2016, with top line revenue growth one of the better facets of this company. The story is complicated by the move to cloud in its infancy, with cloud sales resulting in less immediate profit recognition, while being more profitable over the medium term. The £38 million capitalised Lombard Risk Management (LSE: LRM) sells risk management and compliance software to a blue chip client base of banks and financial institutions. Lombard’s most compelling investment feature has been its top line revenue growth which has been growing at over 19% per annum (2012-2015). The biggest detractor has been that free cashflow generation which was negative in 2015. The outflow is largely explained by the combined technology and research and development spend exceeding 35% of sales revenue, in each of the last 3 years. The investment rationale, is this large technology spend has peaked and can start falling as a percentage of sales, finally propelling the company into decent free cashflow generation in 2016 and beyond. The Founder being replaced as CEO in 2015 may signal the Board recognises the importance of cashflow generation going forward. The company trades on reasonable EV/Revenues ratio of 1.5 times for 2015 and reasonable EV/Recurring revenues ratio of 3.5 times. This name is also not without corporate appeal and historically has been involved in takeover discussions. The €72 million euro capitalised German company MSG Life (Germany:MSGL) provides software and consulting services to German life insurance companies as well as health insurance software to US companies. The company is guiding revenues of €105 million euros and EBITDA of €8 million euros in 2015. MSG Life trades on a cheap EV/Sales metric of just 0.6 times and an attractive EV/EBITDA of 8.4 times. The company even trades a respectable Price to Earnings ratio of 13.1 times for 2015. The EV/Recurring maintenance revenue is 4.3 times which is on the more expensive side of the software companies mentioned in this article. One of the downsides for MSG Life is the company has a very poor historical track record of profit delivery. QAD Inc (NASDAQ: QADA) provides enterprise resource planning software to manufacturers globally. The most compelling feature for investors is this husband and wife run software company, trades on an EV/Sales ratio of circa 1.2 times for 2016. The other compelling investment metric for QAD is its EV/Recurring revenue sits at 2.1 times. While these metrics are very attractive for a software company the price to earnings multiple for the same year at 31.1 times is pretty ritzy. The company is capitalised at around $475 million USD (QADA share price = $26.44, QADA share price =$21.50) and is covered by 5 brokers in the US. The investment rationale here is QAD can raise its EBIT/Sales margins from a miserable 6.2% (2015) to something approaching 15% in future years. The speed the company can normalise its operating margins towards peer margins will determine how quickly shareholders will get rewarded. The company currently has around $105 million net cash on its balance sheet post its recent capital raise with an acquisition likely to be additive to earnings. The $63 million USD capitalised Top Image Systems (NASDAQ: TISA) provides document capture software, enabling business to efficiently extract data from paper documents, email, mobile, and computerise the data, routing it to the appropriate area within the enterprise. The company’s mobile imaging technology gives it the ability to sell the software on a per usage basis in what should be a booming mobile market for data capture. Top Image Systems trades on very reasonable EV/Sales metrics of 1.4 times for 2015 which is its most compelling investment metric. After the recent acquisition of cloud based documents management company ‘eGistics̵7; around half the company’s income is now recurring in nature with its EV/Recurring revenues a healthy 2.6 times. The company is profitable with medium term guidance being EBITDA/Sales margins are heading towards 15%. The investment rationale is the combination of 10-15% organic revenue growth and a more scalable business model should result in operating profit margins strengthening and shareholders rewarded. Elecosoft (ELCO) - Software for the construction industry BUSINESS DESCRIPTION Elecosoft (ELCO) is a London AIM listed integrated software and services company. This software business was established in 1994 and largely serves the Swedish, German and United Kingdom construction industry or more particularly the architectural, engineering and construction ("AEC") sectors. ELCO's software business is focused on visualisation, CAD/design, estimation, engineering, site control, project management and going forward this will be wrapped up into a building information modelling or BIM product. The company's core software smarts sits in its estimation software 'Bidcon' which came out of Sweden and its Project Management software 'Asta Powerproject' from the United Kingdom. The company's competence and background around visualization, CAD/CAM software, estimating and project management lend themselves nicely to the 2014 launch of their ELECO BIMCloud product. ELCO's traditional 'home markets' are UK (26% of sales 2014), Sweden (48% of sales), Germany (15% of sales) and rest of world (11% of sales in 2014) although Elecosoft Asta project management software recently landed a decent reference client in the USA (US State Department of Transport). The company only emerged as a pure-play in 2014, after a number of very difficult trading years. ELCO sell multiple products mostly though their direct European sales teams (sales 95% direct) while using resellers for other international markets. The company had 186 employees as at 31 December 2014 with historical revenue splits 24% initial licence fees, 45% maintenance and 31% services. The project management teams are located in the UK, visualisation and 3D CAD Germany while estimation and engineering are based in Sweden. The Swedish business 'Consultec' includes both engineering and estimation software as well as architecture services (modern timbers), Design services (buildings), Estimating services (ventilation and electrical), and construction services (industrial buildings). The Consultec website raises the point that by providing distinct building services in Sweden this makes them better placed to provide relevant software to the industry. Consultec has circa 90 employees with revenues declining from £8.3 to £7.9 million in 2014 with ELCO subsequently restructuring this business. The calendar 2014 year was the first financial year that ELCO operated as a software only company albeit there was a fair bit still happening. The company changed banks, employed a new CEO and CFO (who has since left) and raised fresh equity capital (priced at 20.75p). The CEO ran the software business of ELCO between 2005-2007 and returned to the company from Microsoft in mid 2014. The flagship product is the project manager software 'Asta Powerproject' with ELECO BIMCloud launched in 2014, also offering potential. ELCO's software product range is closely aligned to many of the roles undertaken in typical construction projects. ELECOSOFT PRODUCT RANGE - by User Roles / Core Function / Product Name (s) Designers / Visualization / Interiormarket, ESIGN Software (Germany)* Architects / CAD Design / Arcon Evo, o2c (Germany)* Estimators / Estimation, Project Planning / Bidcon (Sweden) Structural Engineers / Engineering / Staircon, Statcon, Framing CAM/CAM (Sweden) Site Managers / Site Control / Matrix (UK) Project Managers / Project Management / Asta Powerproject, Sitecon, ElecoM@trix (UK)* Main Contractors / Building Information Modelling (BIM) / ELECO BIMCloud (* denotes the inclusion of the above functionality) (UK) The company launched cloud product 'ELECO BIMCloud' at the end of 2014 which is focused around collaboration and pulls much of the above products functionality (Project Management, 3D data compression, Cloud Functionality, Data exchange) while offering some integration with third party software (i.e. Autodesk Revit). The company believe the UK Government mandate on the use of building information modelling (BIM) systems from 2016 should provide a positive impetus in the uptake of BIMCloud. The company has a reasonable presence in Europe as the below brag sheet suggests so legitimately do stand to benefit especially if BIM is more widely mandated. ELECOSOFT BRAG SHEET 69 from the top 75 contractors in the UK use Elecosoft. 20 from the top 22 contractors in Sweden use Elecosoft. 14 of the leading construction companies in Germany use Elecosoft. Asta Power Project voted best project management and planning software at the 2014 UK Construction Computing Awards. ESIGN software GmbH 'FloorMarket' product used by 42 manufacturers in 9 European counties. 100,000 users of Asta Power Project ELCO argue the construction systems market is fragmented with small players unable to compete because of limited software development budgets, while larger companies don't have the depth and specialty knowledge in their applications. ELCO are bundling more of their intellectual property into their new BIM product. The ELCO software products look to have their architecture largely developed in the server environment so it will take time and money to properly position them into the cloud or a SaaS product. In 2014 the company spent £2.6 million on software development, with £0.55 million capitalised (2013 £0.4 million capitalised) and £2.05 million expensed. This equates to software development spend as a percentage of sales of 15.8%. CURRENT SOFTWARE DEVELOPMENT FOCUS Rewrite and release Arcon Evo CAD design software in 2015 New Bidcon product incoporating functionality from number of legacy products (2015/2016) Continue to develop BIMCloud functionality Look for software integration opportunities VALUATION DISCUSSION ELCO has circa 75 million shares on issue so at the current 25p share price, the company is capitalized at £18.75 million pounds, while generating sales of £16.5 million in 2014. The capitalisation to historical sales ratio was 1.15 times. The company had net debt of £1.6 million at 31 December 2014, giving an enterprise value (EV) of £20.4 million and an EV/Historical Sales ratio of 1.25 times. The EV/Recurring revenues (2014 maintenance revenue = £7.35 million) ratio was 2.8 times. The company generated EBITDA and operating profit of £1.5 and £0.9 million in 2014, which places the company on an EV/EBITDA and an EV/EBIT of 13.6 and 22.7 times respectively. The flagship product Asta Power Project grew revenues double digit in 2014, with the Power Project and BIMCloud product expected to be the strongest growing products going forward. Asta - Deeper Dive The UK business accounted for 26% of sales in 2014 or circa £4.3 million. Astra is the fastest growing of Elecosoft's software applications and recorded a decent US sales to the US State Department of Transport through a re-seller. Its also Asta PowerProject that forms the basis of the BIM cloud which has decent growth expectations in 2016 and 2017. BIM came to market in late 2014 Everything linked to architecture design models. 70 BIM providers in the market globally. 100,000 users globally use AstaPowerProject. Makes the design models available over consumer technology Designed to IFC standards (Industry Foundation Class) - Current version is IFC4. UK leader in BIM (Business Informational Modeling) Asta PowerProject is a Planning tool (US call them scheduling tools) Asta PowerProject has dash boards, which is a summation of projects. Works with AutoDesk Revit, ArchiCAD, VectorWorks, Sketchup,Tekla Asta are Learning themselves and evolving. Lots to be gained by collaboration. UK is taking the lead in the adoption of BIM which is changing the way projects are delivered. "Scheduling software in PowerProject is tried and tested, and combined with 3D functionality its an obvious marriage" [Client comment]. Can link to third party price data bases.
Elecosoft share price data is direct from the London Stock Exchange
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