Eleco PLC on Tuesday said it delivered a ‘record’ revenue surge in 2023, thanks to its progressing growth strategy.

Eleco is an AIM-listed London-based specialist provider of software and related services to the built environment through its operating brands Elecosoft and Veeuze.

Annualised recurring revenue climbed 24% to £22.6 million as at December 31 from £18.2 million a year ago.

Meanwhile, total recurring revenue jumped 22% to around £20.7 million from £16.9 million in 2022.

This represents 74% of total revenue for 2023, and an increase from 64% of total revenue in 2022, Eleco said.

The firm said it expects annual revenue of £28.0 million, and £28.3 million in constant currency, compared to revenue of £26.6 million reported the previous year.

Cash as at December 31 was £10.9 million.

Eleco Chief Executive Officer Jonathan Hunter said: ‘Despite challenging macroeconomic climates and geopolitical uncertainties, Eleco has continued to deliver a robust performance with its underlying revenue growth, and profitability is expected to be ahead of consensus. This reflects our strategic switch to a software as a service business model and our focus on higher margin core products, and the discontinuation of products that were not contributing to the future of the group.’

Eleco shares rose 9.0% to 94.80 pence each on Tuesday morning in London.

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