Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Canaccord Genuity has reiterated a Buy rating on Eleco plc with a target price of AUD 3.59.

  • The target price represents an upside potential of about 20.14% from the current market price.

  • Eleco reported 13% revenue growth and 27% EBITDA increase for the first half of 2025.

Eleco plc (AIM:ELCO), a specialist software provider for the built environment, has received continued support from analysts, with Canaccord Genuity reaffirming its Buy rating. The firm set a target price of AUD 3.59, representing a potential upside of approximately 20.14% against current levels.

Financial Performance for H1 2025

For the six months ended 30 June 2025, Eleco delivered revenue growth and profitability improvements across key metrics.

  • Revenue: Total revenue reached £18.4 million, up 13% compared to £16.3 million in H1 2024.

  • Recurring Revenue: Annualised Recurring Revenue rose to £30.7 million, a 19% increase, while Total Recurring Revenue climbed 23% to £14.8 million, representing 81% of total revenue.

  • EBITDA: Earnings before interest, tax, depreciation, and amortisation increased 27% to £3.8 million, compared with £3.0 million a year earlier.

  • Profitability: Operating profit grew 27% to £1.9 million, while profit before tax rose 25% to £2.0 million.

  • Earnings Per Share: Basic EPS improved by 33% to 2.0 pence, reflecting stronger bottom-line growth.

Adjusted results also showed healthy progress, with adjusted EBITDA rising 30% to £4.3 million and adjusted profit before taxation up 23% to £2.7 million.

Operational Developments

During the first half of 2025, Eleco executed strategic initiatives to strengthen its market footprint:

  • Acquisition of PMI Software Ltd (PEMAC): The January 2025 acquisition bolstered Eleco’s SaaS Computerised Maintenance and Management Software (CMMS) offering, complementing its ShireSystem business.

  • Customer Wins: New high-profile retail property clients included a leading UK supermarket retailer and two major international fashion brands.

  • Certification Achievements: Elecosoft UK Limited, BestOutcome Limited, and PEMAC secured recertifications under ISO 27001:2022.

Dividend and Balance Sheet

Eleco reported cash of £12.2 million at 30 June 2025, remaining debt-free despite M&A activity. The Board declared an interim dividend of 0.35 pence per share, a 17% increase from H1 2024.