Eleco PLC on Tuesday reported declining interim revenue and profits as costs rose, but it maintained its interim dividend.
For the six months to June 30, the London-based construction software developer said pre-tax profit fell 26% to £1.7million from £2.3million it a year ago, when revenue fell 2.9% to £13.4m from £13.8m.
Cost of sales rose 23% to £1.6m from £1.3m a year earlier.
However, Eleco said recurring revenue was £8.2m, up 9.3% from £7.5m, accounting for around 61% of total revenue, up from 55% one year ago. This demonstrates the “positive progress we are making in implementing our strategy,” he said.
President Serena Lang said, “Eleco delivered a positive performance in the first half of 2022, with subscription revenue growth a key indicator of our transition to a [software as a service] Company. We operate in a very exciting market and are well positioned to meet the growing demands of the built environment with our best in class planning and productivity software.
It declared an interim dividend of 0.20 pence per share, unchanged from the previous year.
Looking ahead, Eleco said it remains confident in its ability to meet market expectations for the full year.
Eleco shares were down 0.7% at 70.00 pence apiece on Tuesday morning in London.
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