Elecosoft PLC posts better-than-expected annual earnings

Elecosoft PLC’s (LON:ELCO) strong annual earnings have been driven by a boost in software sales alongside an increase in consultancy revenue.

The company, which specialises in software development for the architecture, engineering, retail and construction industries, saw a strong finish to the financial year, further benefiting from the Brexit-related devaluation of the pound currency.

In particular, an increase in revenue relating to its acquiring of Asta Powerproject and Bidcon software had stimulated record sales internationally, for the twelve months till end-of-December.

John Ketteley, Executive Chairman of Elecosoft stated:

“Elecosoft produced a strong trading performance in 2016 and made the successful acquisition of ICON. We are confident that 2017 will be a year of further progress as Elecosoft begins to realise its potential as a specialist international provider of market leading software solutions and applications for construction, retail and related industries.

The figures however did not take into account costs relating to its acquisition of Integrated Computing and Office Networking Limited (ICON), which it took over in October for £2.4 million and involved a loan of around £1.8 million. Nevertheless the company expect to produce pre-tax-profits to be “significantly ahead” of previous market expectations.

Elecosoft is a UK based company, which operates internationally, with European operations in Germany, Sweden, Benelux as well as business in the United States. As of currently, it estimates to hold around an 80 percent of the European flooring market. In addition, it has been involved in projects such as The Reichstag Dome in Berlin, The Petronas Twin Towers in Malaysia, assisting with Earthquake relief in Christchurch, New Zealand, as well as the development of Hong Kong international Airport.

Shares in the company rallied in early morning trading, up by 19.13 percent as of 09.38 AM (GMT).