16 sep 25   eleco plc - interim results eleco plc | elco | 158 0 0.0% | mkt cap: 132.4m    rns number : 4208z eleco plc 16 september 2025   rns   16 september 2025       eleco plc   ("eleco", the "group" or the "company")   interim results   interim results for the six months ended 30 june 2025   continued growth, enhanced profitability and record recurring revenues   the board of eleco plc (aim: elco), the specialist software provider for the built environment, is pleased to announce its interim results for the six months ended 30 june 2025, based on unaudited management accounts:   financial highlights   revenues ·    annualised recurring revenue (arr)1: £30.7m (h1 2024: £25.8m), an increase of 19% (or 12% on an organic basis) ·   total recurring revenue (trr)2: £14.8m (h1 2024: £12.0m), an increase of 23%, representing 81% of total revenue (h1 2024: 74%) ·    total revenue:  £18.4m (h1 2024: £16.3m) an increase of 13%   profitability ·    ebitda3: £3.8m (h1 2024: £3.0m), an increase of 27% ·    operating profit: £1.9m (h1 2024: £1.5m), an increase of 27% ·    profit before taxation (pbt): £2.0m (h1 2024: £1.6m), an increase of 25% ·    profit after taxation (pat): £1.6m (h1 2024: £1.3m), an increase of 23% ·    basic earnings per share: 2.0p (h1 2024: 1.5p), an increase of 33%   ·    adjusted ebitda4: £4.3m (h1 2024: £3.3m), an increase of 30% ·    adjusted operating profit4: £2.7m (h1 2024: £2.2m), an increase of 23% ·    adjusted profit before taxation4: £2.7m (h1 2024: £2.2m), an increase of 23% ·    adjusted profit after taxation4: £2.2m (h1 2024: £1.7m), an increase of 29%    ·    adjusted basic earnings per share4: 2.7p (h1 2024: 2.1p), an increase of 29%   cash and dividend ·    cash at 30 june 2025: post m&a activity, was £12.2m (at 30 june 2024: £12.0m, at 31 december 2024: £14.0m). the group remains free of debt.  ·    interim dividend: 0.35p per share (h1 2024: 0.30p per share), an increase of 17%   operational highlights ·   acquisition in january 2025 of pmi software ltd (pemac), ireland, a recognised leader in providing saas computerised maintenance and management software (cmms). integration into the group is progressing well and has increased eleco's cmms offer, alongside the group's established shiresystem business ·    onboarded high-profile retail property customers comprising one of the top 10 uk supermarket retailers and two leading international fashion brands, marking continued momentum in expanding the group's global and domestic market presence ·    record recurring revenue growth and record software year-on-year total revenue ·   recertifications under the revised iso 27001:2022 accreditations for elecosoft uk limited,  bestoutcome limited, and pemac ·    improved operational gearing and enhanced profitability, together with a further increased interim dividend   jonathan hunter, chief executive officer of eleco plc, said:   "i am pleased to report ongoing improvement in revenue, recurring revenues and enhanced profitability measures in the first half of 2025, which is testament to our resilient business operating model in otherwise challenging geopolitical and macroeconomic times."    "in addition to positive progress in introducing new customers and expansion of existing customers, we see promising opportunities following the successful acquisition of pemac in january 2025 which has broadened our customer base and geographic reach, building further on our cmms software offering alongside our established shiresystem solution."   "leveraging our talent, technological capabilities and strong customer relationships, along with current initiatives to address services revenues, we remain confident in eleco's forward trajectory and delivery of full year 2025 results in line with market expectations."    1 arr is defined as normalised annualised recurring revenues and includes revenues from subscription licences, contract values of annual support and maintenance, and saas contracts.  normalisation is calculated as recurring revenue in the final month of the period multiplied by twelve.  this arr figure is calculated including the contribution from acquisitions to the group going forward. 2 trr is defined as the recurring revenues from subscription licences, contract values of annual support and maintenance, and saas contracts. 3 ebitda is defined as earnings before interest, tax, depreciation, and amortisation and impairment of intangible assets. 4 adjusted measures are further defined in note 12.  5 free cash flow is defined as adjusted operating cash flow, adjusted for tax, interest and any disposals of property, plant and equipment.    for further information, please contact: eleco plc +44 (0)20 7422 8000 jonathan hunter, chief executive officer  neil pritchard, chief financial officer    cavendish capital markets limited +44 (0)20 7220 0500 geoff nash / seamus fricker / elysia bough (corporate finance)  louise talbot (sales) / harriet ward (ecm)    sec newgate uk +44 (0)20 3757 6882 bob huxford / harry handyside eleco@secnewgate.co.uk      about eleco plc eleco plc is an aim-listed (aim: elco) specialist international provider of software and related services to the built environment through its operating brands elecosoft, bestoutcome, pemac, vertical digital and veeuze from centres of excellence in the uk, ireland, sweden, germany, the netherlands, romania, australia and the usa. the company's software solutions are trusted by international customers and used throughout the building lifecycle from early planning and design stages to construction, interior fit out, asset management and facilities management to support project management, estimation, visualisation, building information modelling (bim) and property management. for further information please visit www.eleco.com.     chairman's statement   introduction it gives me great pleasure to report another set of successful results for eleco for the first half of 2025. our customers continue to embrace new technology and wider digitalisation of workflows, and with its geographical reach and comprehensive software portfolio, eleco is extremely well positioned to capitalise further on technological solutions within the building and property lifecycle. eleco has proven, industry-trusted capabilities with lifecycle services in cost management, scheduling, project delivery and asset management & facilities. strategic progress organically, the business remains focused on providing leading edge software solutions, heightened innovation and developing senior strategic hires as we further scale up the business. in january 2025, we acquired the ireland-based pemac business which has been successfully integrated in the first half of 2025. pemac has not only added to our widening geographic footprint, but has considerably strengthened and expanded our facilities management cmms offering (alongside our existing shiresystem solution) to become the market leader in this space. we continue to identify and target potential m&a opportunities in our chosen geographies in accordance with our strategic objectives and enhancing long-term shareholder value. performance it is pleasing to see eleco deliver further enhanced performance in the first half of 2025 despite macroeconomic and geopolitical headwinds. revenues and recurring revenues are ahead of prior half year performance, alongside increased profitability. total recurring revenue represented 81 per cent of total revenues in the half year (h1 2024: 74 per cent). arr (annualised recurring revenue) increased 19 per cent to £30.7m (h1 2024: £25.8m). total recurring revenue grew by 23 per cent to £14.8m (h1 2024: £12.0m). total revenue was higher by 13 per cent to £18.4m and £18.4m in constant currency terms (h1 2024: £16.3m). as we continue to scale up, the group displays operational gearing leading to improved returns for its shareholders. in h1 2025, adjusted ebitda increased by 30 per cent to £4.3m (h1 2024: £3.3m). adjusted profit before taxation rose 23 per cent to £2.7m (h1 2024: £2.2m). adjusted eps was also 29 per cent higher at 2.7 pence (h1 2024: 2.1 pence). the group also continues to enjoy strong operating cash generation, notwithstanding the cash requirements and related costs of the pemac acquisition, totaling £5.6m, and an increased final dividend payment to our shareholders in the half year to £0.6m (h1 2024: £0.5m). at 30 june 2025, cash was £12.2m (at 30 june 2024: £12.0m; at 31 december 2024: £14.0m). the group remains free of debt. environmental, social & governance (esg) our long-established esg implementation team has been working closely with our external esg advisors to further enhance our internal monitoring and data reporting capture. the team has also undertaken internal monitoring of esg initiatives throughout the group. also during the period we have further enhanced our internal governance surrounding the identification, mitigation and treatment of risks facing the business, providing for a cadence of monitoring and reporting in all subsidiary locations. finally, we are pleased to report that we have recently achieved iso re-certifications under the revised iso 27001:2022 accreditations for our two uk trading subsidiaries together with our new irish subsidiary pemac. employees we are in the process of further investing in people, systems and governance as we scale up the group and embark on the next step of our strategic journey. the quality of our individuals and their teamwork has been key to the success, growth and ambitious nature of our business. on behalf of the board, i would like to provide my sincere thanks for their hard work, dedication and achievements. dividend eleco promotes a progressive and sustainable dividend policy and returns have increased in line with the continued growth in profitability. the board is increasing the interim dividend by 17 per cent to 0.35 pence per share (h1 2024: 0.30 pence per share). this interim dividend is payable on 13 october 2025 to shareholders on the register on 26 september 2025. the ex-dividend date will be 25 september 2025. current trading and outlook we have delivered yet again on growth and financial performance promises in the first half of 2025, underpinned by a clear strategy and robust business model. we are also delighted with the successful acquisition and integration of pemac. more generally, despite challenging market conditions affecting some of our sectors, eleco remains well positioned, with its high recurring revenue and customer-centric business model. we look forward to executing the next stage of our strategic plans with further delivery on both organic and inorganic growth. looking ahead, the board remains confident in delivering results in line with market expectations for the full year.       mark castle chairman 15 september 2025               ceo's statement     introduction   i am pleased to report positive performance in the first half of 2025, with a further increase in recurring revenue, which now represents 81 per cent of total group revenue. this is testament to the successful execution of go-to-market initiatives, ongoing technology investments and targeted acquisitions.   we were delighted to welcome pemac to the group in january 2025. located in ireland, and a recognised leader in saas computerised maintenance and management software (cmms), the company has enhanced eleco's overall offering to support customers' evolving needs. integration has progressed well, and together with shiresystem, eleco now has a strengthened capability and sizeable presence in the growing cmms asset management and maintenance market sector as manufacturing businesses seek to improve work practices.   trading   group revenue increased by 13 per cent in h1 2025 to £18.4m (h1 2024: £16.3m); and £18.4m at constant currency.   total recurring revenue (recurring revenue across the whole six-month period) increased by 23 per cent to £14.8m (h1 2024: £12.0m).  arr (annualised recurring revenue which is the recurring revenue in the month of june 2025 multiplied by twelve) increased by 19 per cent to a new record of £30.7m (h1 2024: £25.8m).   revenue from uk customers rose 14 per cent to £8.7m (h1 2024: £7.6m), representing 47 per cent of total group revenues. overseas revenue grew by 11 per cent to £9.7m, accounting for the remaining 53 per cent of total revenue. with persisting macroeconomic challenges in the visualisation services sector in germany, the overseas contribution was supported by the recent additions to the group from romania and ireland.   adjusted operating profit increased 23 per cent to £2.7m (h1 2024: £2.2m) in the first six months of 2025.  the management of overheads while absorbing the cost bases of acquisitions has delivered profit margin growth despite slightly lower gross margins.   adjusted ebitda increased by 30 per cent to £4.3m (h1 2024: £3.3m); adjusted profit before taxation was also up 23 per cent to £2.7m (h1 2024: £2.2m) and adjusted profit after taxation improved by 29 per cent to £2.2m (h1 2024: £1.7m). adjusted basic earnings per share (eps) at the period end was 2.7 pence (h1 2024: 2.1 pence), a 29 per cent rise.   in a similar vein, unadjusted measures of profitability showed commensurate percentage improvements: ebitda increased by 27 per cent to £3.8m (h1 2024: £3.0m); operating profit further improved by 27 per cent to £1.9m (h1 2024: £1.5m); profit before taxation was significantly ahead by 25 per cent to £2.0m (h1 2024: £1.6m); and profit after taxation up a pleasing 23 per cent to £1.6m (h1 2024: £1.3m). basic eps therefore showed a 33 per cent increase for our shareholders at 2.0 pence per share (h1 2024: 1.5 pence per share).   the group remains free of debt and is operating cash generative. the cash position at 30 june 2025 was £12.2m (at 30 june 2024: £12.0m; at 31 december 2024: £14.0m). this is all the more impressive given that £5.6m was paid in consideration and associated costs in relation to the pemac acquisition as well as an enhanced final dividend payment in the first half of £0.6m (h1 2024: final dividend payment of £0.5m).     strategy   eleco's long-term vision focuses on strengthening its digital presence, improving customer engagement and expanding its market reach through strategic investments, technological advancements and a clear brand direction.   our established, resilient growth platform is underpinned by three strategic pillars, namely: ·    go-to-market ·    technology and innovation ·    mergers and acquisitions (m&a)  go-to-market   the focus on enhancing sales and marketing techniques, improving sales forecasting and pipeline analysis along with the implementation of customer success initiatives has once again shown an increase in the average annualised recurring revenue (arr) per customer and in addition a higher average number of licences per customer.   net revenue retention in the first half stood at over 110 per cent on an annualised basis (h1 2024: 108 per cent). overall the number of net new customers increased in the first half of 2025, together with the number of new licences as well as the number of licences per customer. the uk market continues to be a driver of revenues as industries digitalise and mature in their approach to data management. the us market presents a great opportunity but also a strong competitive incumbent base.  in the first half of 2024, two substantial service orders for an asta customer and a veeuze visualisation customer were not repeated in 2025, which resulted in the total us revenue being 8 per cent below in 2025.  nevertheless, the us continues to advance, with 38 new customers in the first half and recurring revenue increasing 25 per cent compared with the same period in 2024.  new opportunities continue to be encouraging however as several customers seek to implement asta vision.   although visualisation services revenue declined in germany due to budget constraints among interior manufacturing clients, the rest of europe and scandinavia saw strong growth of 33 per cent and 15 per cent respectively, driven in part by the pemac and vertical digital acquisitions.   technology and innovation   output from our 80 talented research and development colleagues, led by eleco's cto alex gheboianu, has been excellent.  the group invested 16 per cent of total revenue (h1 2024: 17 per cent) in technology and innovation to enhance its core product solutions and develop new improvements to ensure its feature-rich, best-of-breed software remains highly-valued by customers.   during the first half year period of 2025, we continued to see strong interest and uptake in our asta vision live real-time collaboration platform that enables multiple planners and other stakeholders (including senior management) to actively monitor and improve project delivery, thereby providing more effective resource allocation and reducing delays, cost and wastage.   notable major product releases in the period included a new 2026.1 release of asta powerproject with enhanced 3d and 4d capability, as showcased at the industry event digital construction week, and a substantially enhanced pemac assets 4.2 release, with a customisable and improved dashboard, mobile and user experience and gxp asset compliance. also during the period and alongside delivering the feature roadmap, pemac assets was updated to the most recent version of python ensuring that it is utilising the latest code base, and remains secure and reliable for the future. bestoutcome pm3 releases included a new web gantt chart capability with critical path project analysis, multi-user and other accessibility upgrades.   we continue to see the adoption of ai to improve productivity and the automation of time-consuming tasks.  asta gpttm now supports multiple languages and is widely used by our customers. internal ai projects spanning tendering, data migration, code writing and testing, customer onboarding and help functionality and dashboards have shown clear net benefits, and we plan to expand these initiatives across the group.   mergers and acquisitions (m&a)   the group's m&a activities involve a considered and evaluated exploration of opportunities to enhance the value of the group whilst also expanding discrete capabilities and geographies.   integration of the pemac maintenance management business, acquired in january 2025, is progressing very well and has expanded our geographic footprint in ireland and beyond. furthermore, it has doubled down on our cmms offering to our customers sitting alongside our already established shiresystem business which addresses similar but different market verticals and customer desired offerings.   our markets   the built environment sector comprises companies engaged in the design, construction, and management of building assets and infrastructure, serving a vital function in urban development and sustainability. historically regarded as slow to adopt new technologies, the sector is now rapidly evolving to address increasingly complex requirements related to design, legal and regulatory compliance, safety, sustainability and competitive cost pressures. many of the companies in the built environment are turning to technology to meet the present and future demands which are driven by macroeconomic and societal factors such as population growth, urbanisation and digitalisation.   eleco's solutions are iteratively developed with customers to address complex mission critical planning, estimating, maintenance and management of projects and operations with a focus on efficiency, productivity, compliance and scalability.  this approach reinforces our reputation as a trusted partner and enabler for our customers.   summary and outlook   the group delivered record recurring revenue and strong cash generation in the first half of 2025.   the ongoing improvement in revenue and enhanced profitability is testament to our resilient business operating model in otherwise challenging geopolitical and macroeconomic times.   we appreciate the ongoing support and trust of our customers and stakeholders, as well as the  exceptional effort, dedication and creativity of our employees, whose contributions are important to eleco's performance.   we remain focused on our strategic intent to attain new customers, retain existing customers and expand customer relationships. in addition, we continue to explore opportunities for value-enhancing m&a for the group and its shareholders.   the built environment is going through a marked digital transformation accelerated by ai, and i believe that eleco is well placed to seize these further opportunities. through leveraging our talent, technological capabilities and strong customer relationships, along with current initiatives to address services revenues, the board remain confident in eleco's forward trajectory and delivery of full year 2025 results in line with market expectations.   jonathan hunter chief executive officer 15 september 2025   condensed consolidated income statement for the financial period ended 30 june 2025      six months to 30 june year ended 31 december 2024 £'000 continuing operations note 2025 (unaudited) £'000 2024 (unaudited) £'000 revenue 3, 4 18,354 16,252 32,394 cost of sales  (2,032) (1,550) (3,482) gross profit  16,322 14,702 28,912 depreciation and amortisation of intangible assets  (1,935) (1,449) (3,183) acquisition-related expenses and stamp duties  (106) (225) (432) share-based payments  (323) (103) (60) other selling and administrative expenses  (12,044) (11,378) (21,181) selling and administrative expenses  (14,408) (13,155) (24,856) operating profit 5 1,914 1,547 4,056 finance expense 6 (35) (30) (72) finance income 6 108 116 310 profit before taxation  1,987 1,633 4,294 taxation  (341) (358) (960) profit after taxation for the financial period  1,646 1,275 3,334 attributable to:     equity holders of the parent  1,646 1,275 3,334 earnings per share (pence per share)       basic earnings per share 7 2.0p 1.5p 4.0p diluted earnings per share 7 2.0p 1.5p 4.0p      condensed consolidated statement of comprehensive income for the financial period ended 30 june 2025  six months to 30 june year ended 31 december 2024 £'000  2025 (unaudited) £'000 2024 (unaudited) £'000 profit for the period 1,646 1,275 3,334 other comprehensive income/(expense):    items that will be reclassified subsequently to profit or loss:     translation differences on foreign operations (28) (293) (196) other comprehensive expense net of taxation (28) (293) (196) total comprehensive income for the period 1,618 982 3,138 attributable to:     equity holders of the parent 1,618 982 3,138   condensed consolidated statement of changes in equity for the financial period ended 30 june 2025     share  capital £'000 share premium £'000 merger reserve £'000 translation reserve £'000 share options reserve £'000 employee share ownership trust £'000 retained earnings £'000   total £'000 at 1 january 2025 833 2,468 1,002 (705) 891 (358) 26,041 30,172 dividends - - - - - - (578) (578) share-based payments - - - - 323 - - 323 deferred tax on share options - - - - 57 - - 57 elimination of exercised share-based payments - - - - (34) - 34 - issue of share capital 2 101 - - - - - 103 transactions with owners 2 101 - - 346 - (544) (95) profit for the period - - - - - - 1,646 1,646 other comprehensive expense:                 exchange differences on translation of net investments in foreign operations - - - (28) - - - (28) total comprehensive(expense)/income for the period - - - (28) - - 1,646 1,618 at 30 june 2025 (unaudited) 835 2,569 1,002 (733) 1,237 (358) 27,143 31,695   share capital £'000 share premium £'000 merger reserve £'000 translation reserve £'000 share options reserve £'000 employee share ownership trust £'000 retained earnings £'000   total £'000 at 1 january 2024 832 2,418 1,002 (509) 621 (358) 23,353 27,359 dividends - - - - - - (453) (453) share-based payments - - - - 103 - - 103 deferred tax on share options - - - - 71 - - 71 elimination of exercised share-based payments   -   -   -   -            (10)   -   10   - issue of share capital 1 26 - - - - - 27 transactions with owners 1 26 - - 164 - (443) (252) profit for the period - - - - - - 1,275    1,275 other comprehensive expense:         exchange differences on translation of net investments in foreign operations - - - (293) - - - (293) total comprehensive (expense)/income for the period - - - (293) - - 1,275 982 at 30 june 2024 (unaudited) 833 2,444 1,002 (802) 785 (358) 24,185 28,089   share capital £'000 share premium £'000 merger reserve £'000 translation reserve £'000 share options reserve £'000 employee share ownership trust £'000 retained earnings £'000   total £'000 at 1 january 2024 832 2,418 1,002 (509) 621 (358) 23,353 27,359 dividends - - - - - - (665) (665) share-based payments - - - - 41 - 19 60 deferred tax on share options - - - - 229 - - 229 issue of share capital 1 50 - - - - - 51 transactions with owners 1 50 - - 270 - (646) (325) profit for the year - - - - - - 3,334    3,334 other comprehensive expense:         exchange differences on translation of net investments in foreign operations - - - (196) - - - (196) total comprehensive (expense)/income for the year - - - (196) - - 3,334 3,138 at 31 december 2024 833 2,468 1,002 (705) 891 (358) 26,041 30,172  condensed consolidated balance sheet at 30 june 2025        30 june       note 2025 (unaudited) £'000 2024 (unaudited) £'000 31 december 2024 £'000 non-current assets     goodwill  21,272 18,987 18,852 other intangible assets  13,658 10,024 10,333 property, plant and equipment  618 775 629 right-of-use assets  1,181 1,012 1,290 deferred tax assets  902 342 549 total non-current assets  37,631 31,140 31,653 current assets     inventories  35 136 4 trade and other receivables  6,451 4,847 5,434 current tax assets  969 675 746 cash and cash equivalents  12,234 12,002 13,975 total current assets  19,689 17,660 20,159 total assets  57,320 48,800 51,812 current liabilities     lease liabilities  (596) (583) (578) trade and other payables  (2,531) (2,031) (2,269) accruals and deferred income 10 (18,659) (14,776) (15,264) current tax liabilities  - (33) (65) total current liabilities  (21,786) (17,423) (18,176) non-current liabilities     lease liabilities  (768) (762) (882) deferred tax liabilities  (3,045) (2,500) (2,556) provisions  (26) (26) (26) total non-current liabilities  (3,839) (3,288) (3,464) total liabilities  (25,625) (20,711) (21,640) net assets  31,695 28,089 30,172 equity     share capital  835 833 833 share premium  2,569 2,444 2,468 merger reserve  1,002 1,002 1,002 translation reserve  (733) (802) (705) share options reserve  1,237 785 891 employee share ownership trust  (358) (358) (358) retained earnings  27,143 24,185 26,041 equity attributable to shareholders of the parent  31,695 28,089 30,172   condensed consolidated statement of cash flows for the financial period ended 30 june 2025     six months to 30 june year ended 31 december 2024 £'000   note 2025 (unaudited) £'000 2024 (unaudited) £'000 cash flows from operating activities     profit after taxation for the financial period  1,646 1,275 3,334 income tax expense  341 358 960 amortisation of intangible assets  1,545 1,126 2,492 depreciation charge  390 323 691 (profit)/loss on sale of property, plant and equipment  (24) - 6 finance expense  35 31 72 finance income  (108) (117) (310) share-based payments expense  323 103 60 cash generated from operations before working capital movements  4,148 3,099 7,305 (increase)/decrease in trade and other receivables  (608) 186 (206) (increase)/decrease in inventories and work in progress  (31) (26) 109 increase in trade and other payables, accruals and deferred income  2,023 2,570 3,468 cash generated from operations  5,532 5,829 10,676 net taxation paid  (471) (1,053) (1,716) net cash inflow from operating activities  5,061 4,776 8,960      investing activities     investment in development expenditure  (1,791) (1,450) (2,958) investment in other intangible assets  (77) (111) (271) purchase of property, plant and equipment  (34) (11) (85) acquisition of subsidiary undertakings net of cash acquired 14 (4,439) (1,280) (1,252) proceeds from sale of property, plant and equipment  32 - 2 finance income  108 117 310 net cash outflow from investing activities  (6,201) (2,735) (4,254)      financing activities     finance expense  (35) (31) (72) repayments of principal of lease liabilities  (340) (309) (650) equity dividends paid 8 (578) (453) (665) issue of share capital  103 26 50 net cash outflow from financing activities  (850) (767) (1,337) net (decrease)/increase in cash and cash equivalents  (1,990) 1,274 3,369      cash and cash equivalents at beginning of period  13,975 10,903 10,903 exchange gains/(losses) on cash and cash equivalents  249 (175) (297) cash and cash equivalents at end of period  12,234 12,002 13,975            notes to the condensed consolidated interim financial information     1.     general information   the company is a public limited company incorporated and domiciled in the uk. the address of its registered office is dawson house, 5 jewry street, london, ec3n 2ex.   the company is listed on aim, a market operated by the london stock exchange plc.  the company is limited by shares and the registered number is 00354915.    the condensed consolidated interim financial information does not constitute statutory accounts within the meaning of section 435 of the companies act 2006. the group's consolidated financial statements for the year ended 31 december 2024 have been filed at companies house. the audit report was not qualified and did not contain a reference to any matter to which the auditor drew attention by way of emphasis and did not contain a statement under section 498(2) or section 498(3) of the companies act 2006.   2.     basis of preparation   the condensed consolidated interim financial statements for the six months to 30 june 2025 have been prepared in accordance with the accounting policies which will be applied in the twelve months financial statements to 31 december 2025. these accounting policies will be drawn up in accordance with applicable law and uk-adopted international accounting standards (uk-ias) that will be effective at 31 december 2025.   the condensed consolidated interim financial statements are unaudited. they do not include all the information and disclosures required in the annual financial statements or for full compliance with uk-ias, and therefore should be read in conjunction with the group's published financial statements for the year ended 31 december 2024. the comparative figures for the year ended 31 december 2024 are not the company's statutory accounts for that period but have been extracted from these accounts.   the directors, having considered the group's current financial resources, have concluded that they are adequate for the group's present requirements. therefore, the condensed consolidated interim financial information has been prepared on the going concern basis.   estimates application of the group's accounting policies in preparing condensed consolidated interim financial statements requires management to make judgements and estimates that affect the reported amount of assets and liabilities, revenues and expenses. actual results may ultimately differ from these estimates.   in preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 december 2024.  significant judgements include the fair valuation of the assets and liabilities for acquisitions which is based on judgements and estimates provided to an external valuation specialist in the areas of, but not limited to, forecast revenue, costs, discounted cash flows, weighted average cost of capital, royalty rates and capital expenditure.   risks and uncertainties a summary of the group's principal risks and uncertainties was set out on pages 28 to 33 of the 2024 annual report and accounts. the board considers these risks and uncertainties are still relevant to the current financial year and the impact of changes is reviewed in the chairman's and chief executive's statements contained in this report, where appropriate to do so.   the interim report was approved by the directors on 15 september 2025.   3.     revenue   revenue disclosed in the income statement is analysed as follows:   six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 perpetual licence revenue 232 724 1,013 recurring maintenance, support, saas and subscription revenue 14,816 11,995 24,933 services income 3,306 3,533 6,448  18,354 16,252 32,394 revenue is recognised for each category as follows: ·      perpetual licences - recognised at the point of transfer (delivery) of the licence to a customer. ·      recurring revenue: other licences: saas, maintenance, support and subscriptions - as these services are provided over the term of the contract, revenue is recognised over the life of the contract. ·      services - recognised on delivery of the service.   4.     segmental information   operating segments ifrs 8 requires operating segments to be identified on the basis of internal reports about components of the group that are regularly reviewed by the chief operating decision maker to allocate resources to the segments and to assess their performance.   the chief operating decision makers have been identified as the executive directors. the group revenue is derived entirely from the sale of perpetual software licences, subscription and saas software licences, software maintenance and support and related services. consequently, the executive directors review the management information on the basis of this one unified segment.   geographical, product and sales channel information revenue by geographical segment represents revenue from external customers based upon the geographical location of the customer.   six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 uk 8,736 7,634 15,891 scandinavia 3,316 2,893 5,830 germany 1,598 1,874 3,058 usa 693 752 1,642 rest of europe 3,507 2,637 5,217 rest of world 504 462 756  18,354 16,252 32,394   revenue by product group  six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 revenue from software and related services:                   building lifecycle 14,563 11,832 24,052 cad and visualisation 2,841 3,643 6,499 other - third-party software 950 777 1,843  18,354 16,252 32,394   the group utilises resellers to access certain markets. revenue by sales channel represents revenue from external customers.   six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 direct 17,730 15,640 31,075 reseller 624 612 1,319  18,354 16,252 32,394  5.     operating profit   operating profit for the period is after charging/(crediting) the following items:   six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 software product development expense 1,049 1,038 2,467 depreciation of property, plant and equipment 112 64 114 depreciation of right-of-use assets 278 259 577 amortisation of acquired intangible assets 315 277 626 amortisation of other intangible assets 1,230 849 1,866 share-based payments 323 103 60 (profit)/loss on disposal of property, plant and equipment (24) - 6 foreign exchange losses 34 7 67 acquisition-related expenses and stamp duties 106 225 432   6.     finance income and costs   finance income and costs disclosed in the income statement are set out below:   six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 finance income:    bank and other interest receivable 108 117 310 total finance income 108 117 310 finance costs:    bank overdraft and loan interest - - (7) interest expense for leasing arrangements (35) (31) (65) total finance costs (35) (31) (72) total net finance income 73 86 238   7.     basic and diluted earnings per share   the calculations of the earnings per share are based on profit after tax attributable to the ordinary equity shareholders of the company and the weighted average number of shares in issue for the reporting period.   six months to 30 june     2025 2024 year to 31 december 2024  profit attributable to shareholders (£'000) weighted average number of shares (millions) eps (p) profit attributable to shareholders (£'000) weighted average number of shares (millions) eps (p) profit attributable to shareholders (£'000) weighted average number of shares (millions) eps (p) basic earnings per share 1,646 82.5 2.0 1,275 82.4 1.5 3,334 82.3 4.0 diluted earnings per share 1,646 83.2 2.0 1,275 83.2 1.5 3,334 83.2 4.0 adjusted basic earnings per share 2,203 82.5 2.7 1,729 82.4 2.1 4,172 82.3 5.1 adjusted diluted earnings per share 2,203 83.2 2.6 1,729 83.2 2.1 4,172 83.2 5.0   shares held by the employee share ownership trust are excluded from the weighted average number of shares in the period. adjusted profit attributable to shareholders is reconciled to reported profit attributable to shareholders in note 12.     8.     dividends   interim dividend the directors have recommended an interim dividend of 0.35 pence per ordinary share (2024: interim dividend of 0.30 pence per ordinary share).   dividends paid in the period dividends paid in the six months to 30 june 2025 consisted of a final dividend of 0.70 pence per ordinary share (2024: 0.55 pence per ordinary share). cash dividends of £578,000 (2024: £453,000) were paid in the six months to 30 june 2025 as follows:   six months to 30 june  year to 31 december ordinary shares 2025 per share 2025 £'000 2024 per share 2024 £'000  2024 per share 2024 £'000 declared and paid during the period         interim - current year - - -- -  0.30 247 final - previous year 0.70 578 0.55 453  0.55 453  0.70 578 0.55 453  0.85 700     9.     cash and borrowings   the net cash position of the group as at 30 june 2025 is set out below:   at 30 june at 31 december  2025 £'000 2024 £'000 2024 £'000 cash and cash equivalents 12,234 12,002 13,975 lease liabilities (1,364) (1,345) (578)  10,870 10,657 13,397   the uk banking facilities are with barclays bank plc and the group facilities comprise a £1.0m overdraft facility, carrying an interest rate of 1.75 per cent over base rate (undrawn at 30 june 2025, 31 december 2024 and 30 june 2024).   10.   accruals and deferred income   at 30 june at 31 december 2024 £'000 2025 £'000 2024 £'000 accruals 3,386 3,128 3,140 deferred income 15,273 11,648 12,124  18,659 14,776 15,264   deferred income represents income from the sale of software subscription licences, saas licences and from software maintenance and support contracts and is credited to revenue in the income statement on a straight-line basis in line with the service and obligations over the term of the contract.   11.   related party disclosures   transactions between group undertakings, which are related parties, have been eliminated on consolidation.   the directors of the company had no material transactions with the company during the period, other than a result of service agreements.   12.   additional performance measures   the group uses adjusted figures, which are not defined by generally accepted accounting principles ("gaap") such as uk-ias. adjusted figures and underlying growth rates are presented as additional performance measures used by management, as they provide relevant information in assessing the group's performance, position and cash flows. we believe that these measures enable investors to track more clearly the core operational performance of the group, by separating out items of income or expenditure relating to acquisitions, disposals and capital items. our management uses these financial measures, along with uk-ias financial measures, in evaluating the operating performance of the group.     six months to 30 june year ended 31 december 2024 £'000  2025 £'000 2024 £'000 operating profit 1,914 1,547 4,056 amortisation of intangible assets 1,545 1,126 2,492 depreciation charge 390 323 691 ebitda 3,849 2,996 7,239     ebitda 3,849 2,996 7,239 acquisition-related expenses and stamp duties 106 225 432 share-based payments 323 103 60 adjusted ebitda 4,278 3,324 7,731   operating profit   1,914   1,547 4,056 acquisition-related expenses and stamp duties 106 225 432 amortisation of acquired intangible assets 315 277 626 share-based payments 323 103 60 adjusted operating profit 2,658 2,152 5,174   profit before taxation   1,987   1,633 4,294 acquisition-related expenses and stamp duties 106 225 432 amortisation of acquired intangible assets 315 277 626 share-based payments 323 103 60 adjusted profit before taxation 2,731 2,238 5,412   tax charge   (341)   (358) (960) acquisition-related expenses and stamp duties (27) (56) (108) amortisation of acquired intangible assets (79) (69) (157) share-based payments (81) (26) (15) adjusted taxation charge (528) (509) (1,240) profit after taxation   1,646   1,275 3,334 acquisition-related expenses and stamp duties 79 169 324 amortisation of acquired intangible assets 236 208 469 share-based payments 242 77 45 adjusted profit after taxation   2,203 1,729 4,172   adjusted profit after taxation   2,203   1,729 4,172 weighted average number of shares 82.5 82.4 82.3 adjusted earnings per share (pence) 2.7 2.1 5.1 cash generated from operations   5,532   5,829 10,676 purchase of intangible assets (1,868) (1,561) (3,229) purchase of property, plant and equipment (34) (11) (85) acquisition-related expenses and stamp duties 106 225 432 adjusted operating cash flow 3,736 4,482 7,794   adjusted operating cash flow   3,736   4,482 7,794 net interest received 73 86 238 tax paid (471) (1,053) (1,716) proceeds from disposal of property, plant and equipment 32 - 2 free cash flow 3,370 3,515 6,318       13.   exchange rates   the following exchange rates have been applied in preparing the condensed consolidated financial statements:     income statement six months to 30 june balance sheet as at 30 june year to 31 december 2024  2025 2024 2025 2024 income statement balance sheet swedish krona to sterling 13.18 13.34 13.02 13.40 13.51 13.86 euro to sterling 1.19 1.17 1.17 1.18 1.18 1.21 romanian lei to sterling 5.94 5.85 5.92 5.87 5.90 6.02 us dollar to sterling 1.30 1.27 1.37 1.26 1.28 1.25     14. acquisition of pemac   on 14 january 2025, the group, through its wholly owned subsidiary elecosoft limited, acquired 100 per cent of the share capital of pmi software limited ("pemac") (the 'acquisition') for a cash consideration of £5.5m. the acquisition's completion date was 14 january 2025. the group funded the acquisition exclusively by utilisation of its existing internal cash resources for this consideration. cash and cash equivalents within the acquisition entity at the acquisition date totaled £0.8m and the acquisition has no debt. the acquisition net cash outflow is included in investing activities in the consolidated cash flow statement.    pemac, located in cork and dublin, ireland, is a recognised leader in providing saas computerised maintenance and management software ("cmms") and specialist services in the market, used by over 100 blue-chip international manufacturing companies. pemac has developed a strong reputation for its ability to support clients in highly regulated sectors, including life sciences and healthcare, through its robust software capabilities tailored to meet industry-specific regulatory requirements.   the acquisition of pemac by eleco plc highlights eleco's shared commitment to delivering innovative, customer-focused solutions in manufacturing, regulated industries. pemac's expertise and proven capabilities will complement the group's existing shiresystem computerised maintenance management software ("cmms"), enhancing the overall offering to support customers' evolving needs. pemac and shiresystem are committed to maintaining the exceptional standards of service and support their customers rely on. over time, it is intended that both organisations will collaborate to deliver technological advancements, ensuring their customers benefit from enhanced solutions.    the transaction terms also provide for potential additional earn-out consideration of up to €2.4m payable in two tranches in 2026 and 2027, subject to the pemac business attaining specific performance targets agreed with eleco plc during the financial years ending 31 december 2025 and 31 december 2026.  these specific performance targets are linked to achievement of revenue targets over those two financial years, subject to minimum gross margin thresholds. there were no non-controlling interests in relation to the acquisition.   for the above explanatory reasons, including the ability to repurpose the acquisition towards our internal research and development roadmap, combined with the anticipated profitability of pemac in other group markets, synergies arising, plus the ability to hire the assembled workforce of pemac (including the founders and management team), the group understandably paid a premium over the acquisition net assets, giving rise, aside from the value of customer relationships, to goodwill. all intangible assets, in accordance with ifrs3 business combinations, were recognised at their provisional fair values on acquisition date, with the residual excess over net assets being recognised as customer relationships, brands, development expenditure and goodwill.   intangibles arising from the acquisition consist of customer relationships, brands, and development expenditure and have been independently valued by professional advisors.   the following table summarises the consideration and provisional fair values of assets acquired and liabilities assumed at the date of the acquisition (they will be subject to possible revision in the annual report and accounts for the year ended 31 december 2025):   £'000 intangible fixed assets:  customer relationships 1,520 brands 227 development expenditure 1,246 property, plant and equipment 57 trade receivables and prepayments 401 cash and cash equivalents 840 corporation tax 320 trade and other payables (476) deferred income (901) deferred tax (374) net assets acquired 2,860 goodwill 2,618 acquisition cost 5,478   there are no non-controlling interests in relation to the acquisition. receivables at the acquisition date are expected to be collected in accordance with the gross contractual amounts.   fair values in the above table have only been determined provisionally and may be subject to change in the light of any subsequent new information becoming available in time. the review of the fair value of assets and liabilities acquired will be completed within twelve months of the acquisition date.   the acquisition cost was satisfied by:   £'000 cash 5,478 share consideration - total consideration 5,478   the net cash outflow arising of acquisition was:     £'000 cash consideration paid 5,279 cash and cash equivalents within the pemac business on acquisition (840) total net cash outflow of acquisition 4,439     an additional completion accounts adjustment of £0.2m consideration due was paid in august 2025.   costs relating to the acquisition have not been included in the consideration. directly attributable acquisition costs include external legal and accounting costs incurred in compiling the acquisition legal contracts and the performance of due diligence activity and the fair value exercise, together with stamp duty, total £0.3m. these costs have been charged in selling and administrative expenses in the consolidated income statement in 2024 (£0.2m) and 2025 (£0.1m).   pemac, in common with other group companies, has a 31 december year end. in the year to 31 december 2024, before eleco plc group control, pemac delivered revenue of €2.6m (c.£2.2m) and a net profit before taxation of €0.0m (c.£0.0m) based on unaudited figures and pemac's accounting policies. had the acquisition taken place from the start of the group's financial year (from 1 january 2024) and based on figures and accounting policies prior to eleco plc group control, management estimate the contribution towards group revenues would be of a similar quanta.   had the acquisition taken place from the start of the group's financial year (from 1 january 2025) and based on figures and accounting policies prior to eleco plc group control, management estimate that pemac would have contributed revenue of €1.3m (£1.0m) and profit before taxation of €0.0m (£0.0m) to the group results in this first half year. for the five and a half months since the acquisition date, pemac contributed €1.3m (£1.1m) of revenue and net profit before taxation of €0.2m (£0.2m).      the above figures are provisional and the group will work through the fair value exercise under ifrs 3 and provisional disclosures will be reported in the group's annual report and accounts for the year ended 31 december 2025.      this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary 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