Elecosoft (ELCO)

Elecosoft ELCO Logo

Provider software and related services to the architectural, engineering, construction and digital marketing industries.

23-Jan-2018 – 42.75p – £33.1m – PER 15.3

Trading Update For The 12 Months To End December 2017 – Revenue and PBT to be significantlyhigher than last year and in-line with market expectations.

Quite like the look of this, it’s going on my Watchlist, 40p.

27-Mar-2018 – 52.26p – £37.9m – PER 17.6

Results For The 12 Months To End December 2017 – Revenue up 12% (8% CC) to £20.0m (2016: £17.8m), Net borrowings eliminated, £1.0m net cash at year end (2016: £1.3m net borrowings), Adjusted EPS share* up 20% to 2.9p (2016: 2.4p) with the FY Dividend up 50% to 0.60p (2016: 0.40p) with final recommended dividend of 0.40p. Confident for the year ahead (and beyond).

This was on my Watchlist and probably missed out here (so will just leave it there at 40p for now). Rightly or wrongly, I just can’t justify the current valuation based on a 8% uplift in Revenue and a 20% uplift in EPS. That said the ROCE and Op. Margin are pretty good!

17-May-2018 – 71.5p – £56.1m – PER 26.9

Trading Update For The 4 Months To End April 2018 – Revenue up 7%, PBT significantly higher and in-line with market expectations – Net Cash of £2.4m.

Was on my Watchlist at 40p and probably missed out here, I will move this up to 60p to keep an eye on it.

Subsequent note: Meeting my Technical Screen and after checking and liking the fundamentals I bought in here at the beginning of June.

2-Aug-2018 – 80p – £62.3m – PER 20.1

Trading Update For The 6 Months To End June 2018 – Revenue ahead 7% (CC) and PBT ahead 45% (as expected). Cash improved to £2.6m (from £1.0m at the beginning of the year).

I am long here and finding this a tough read actually – Is Revenue up only 7% (CC) “as expected”, if so why not say so? Also, there’s no outlook. Will have to keep an eye out for the Market reaction here today and hopefully a broker note or two on Research Tree.

12-Sep-2018 – 85p – £66.2m – PER 21.0

Interim Results For The 6 Months To End June 2018 – Revenue up 5% to £10.5m from £10m (7% CC), Adjusted Operating Profit up 34% to £1.75m from £1.31m, Adjusted EPSup 38% to 1.8p from 1.3p. Net Cash stands at £2.66m up from £0.26m and the Interim Dividend is up 40% to 0.28p, from 0.2p. There’s also a change in FD which seems amicable.

I am long here but this update seems rather cautious.

Subsequent note: Sold out here in October for a small Loss.

19-Mar-2019 – 79p – £64.6m – PER 18

Results For The 12 Months To End December 2018 – Revenue up 11%, PBT up 8% with Adjusted EPS up just over 30%, the FY Dividend is up 13%.

Seems to be in-line, I remain on the sidelines having sold out in October last year.

9-May-2019 – 81p – £66m – PER 17.5

Trading Update For The Quarter To End March 2019 – Revenue up 20%, PBT higher than the same quarter last year (in-line with market expectations), Net Debt at £0.9m (£2.1m at 31-Dec-2018). No guidance on FY.

Sold out last October here and not yet tempted back in.

7-Aug-2019 – 77p – £63m – PER 16.4

Trading Update For The 6 Months To End June 2019 – Revenue up 22% (CC), Margins consistent with last year, FY remains in-line with market expectations.

Looks OK but not enough value here to tempt me. Based on the latest Broker note this morning, in my opinion, this looks fairly valued on a 1 Year view and well overvalued on a 2 Year view – 79p at the time of writing.

24-Sep-2019 – 79p – £65m – PER 18

Interim Results For The 6 Months To End June 2019 – Revenue up 20%, Adjusted Operating Profit up 20% and EPS up 11%, the Interim Dividend is up 7%. Cautiously optimistic for remainder of the year.

Still not enough value at this level to tempt me.

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