Eleco Sees 2022 Revenue, Earnings Slip Slightly on Business Model Shift

Joe Hoppe

Eleco PLC said on Tuesday it expects sales and earnings to decline slightly in 2022, but broadly respond to market sentiment as it moves away from perpetual upfront licenses.

UK software company says it expects total revenue of £26.6m ($32.9m) in 2021, compared to market consensus of £27.3m .

Eleco said annualized recurring income increased from £16m to £18.2m, with total recurring income up 8% to around £16.9m.

The company did not provide profit before interest, tax, depreciation and amortization figures, but said it expected to meet market consensus at £5.1m. In 2021 he recorded an EBITDA of £7.2m.

The company previously expected a temporary decline in profits and revenue as it transitioned to a software-as-a-service model, and said the first half of 2023 would be the halfway point of the transition. For 2023 as a whole, total revenue growth is expected.

“This strong financial foundation gives the Board confidence in the coming year and will continue to seek opportunities to accelerate growth both organically and through acquisitions,” said CEO Jonathan Hunter.

Please contact Joe Hoppe at joseph.hoppe@wsj.com.

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