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Eleco

  • BY: Andrew Hore |
  • POSTED: 16/05/2013 |

Construction software and building products group Eleco reported an ncreased loss in 2012.

Software developer ElecoSoft has become the core business. Revenues were fell slightly from £16.2m to £15.8m because of changes in exchange rates.That includes recurring maintenance revenues of £7m. The operating profit was slightly higher at £2m but this was before £152,000 of redundancy costs. Only £149,000 of the £2.1m of development costs was capitalised. New versions of the architectural and visualisation software are being released. A new office has been opened in India.

EcoBuild’s precast concrete activities continued to find trading tough and more redundancies were made. Lower precast capacity and disposals meant that revenues fell from £22.9m to £18.4m. The underlying loss trebled ot £1.2m even before £1.1m of write-offs and redundancies. Bad weather meant that there was poor start to 2013.

Group revenues fell from £38.1m to £34.2m, while the overall loss was £2.4m, including exceptional costs of £1.61m.

Net debt was £7.07m at the end of 2012 with £800,000 of deferred consideration for disposals held in escrow. The bank debt all relates to EcoBuild.

In September 2012, Eleco discharged its obligation of £595,000 to the Eleco pension scheme and it is no longer legally obligated to the scheme. That cost £375,000 in professional fees. The liability in the balance sheet is £6m. A new schedule of contributions and deficit reduction plan has been agreed for the scheme.

Executive chairman John Ketteley believes that the restructuring that has been undertaken means that the business will make a full recovery.

At 7p a share, Eleco is valued at £4.25m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf

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