Elecosoft revenue and earnings rise in first half

The AIM-traded firm said 47% of revenue was from recurring maintenance and support revenue, improving marginally from 46% in 2015.

Operating profit before former director termination payments was up 25% to £710,000, with profit before tax up 14% to £557,000.

Elecosoft claimed EBITDA of £963,000, a 9% improvement over the first half of 2015, with cash generated from operations up 20% to £1.44m.

It also reported an improved financial position, with net cash at period end of £302,000, compared with net borrowings of £803,000 at the start of the period and net borrowings of £1.53m a year earlier.

Basic and diluted earnings per share were precisely in line with the first half of 2015 at 0.6p, with the board declaring an interim dividend of 0.15p per ordinary share, up from nil a year ago.

“I am pleased to announce an improved trading performance for the six months ended 30 June 2016 which leaves us in a strong position to meet market expectations,” said executive chairman John Ketteley.

“Elecosoft is now in a significantly strengthened financial position, evidenced by the declaration of an interim dividend, and I look forward to continuing to build on that position in the second half and beyond.”