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Wednesday 15 September 2021

Construction specialist Eleco rising?

Eleco logoAIM-listed Eleco plc is not a company we have followed to date but with structural changes within the business it could become more visible within the software sector. 

It is a construction sector specialist providing software and services to the Architectural, Engineering, Construction and Owner/Operator (AECO) industries and interior furnishing sector from locations in the UK, Sweden, Germany, Netherlands and the US. Its solutions cover project management, estimating, timber engineering, CAD and visualisation, asset and facility management and cloud-based digital marketing solutions, which places it in several key digital transformation areas. 

The construction sector was badly impacted by the effects of the pandemic but according to its H1 results (to the end of June 2021) Eleco delivered a very creditable 13% revenue lift to £13.8m, with PBT up 17% to £2.2m. It made progress despite the challenges and some major operational restructuring, describing H1 as a transformational half year during which it reshaped and repositioned the company and launched its refined growth strategy.

The transition includes moving from a product-led company to a customer-centric business, organising around customer segments for priority geographic markets, and removing product silos. To help deliver it has undertaken significant structural changes including merging two of its German visualisation businesses, rebranded as Veeuze; merging three UK Building Lifecycle businesses; created the Northern Europe Building Lifecycle operation; expanded the focus of its Swedish Building Lifecycle operation; and identified stand-alone niche business areas. We’ll keep eyes on the company to see what effect the changes have on performance and visibility, especially given the broad market trend for specialist capabilities and suppliers over generalists. 

Posted by: Angela Eager at 10:02

Tags: results   software   construction  

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