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Eleco (ELCO:AIM) is a progressive software specialist providing solutions to the built environment, from early planning through to maintenance as well as niche product areas including interior visualisation, timber engineering and staircase manufacturing.
From its 1895 origins as a manufacturer of lighting, the Company has been on a journey of continual evolution and innovation to where it sits today as a provider of software solutions and related services.
COLLABORATION AND VISION
With the increasing adoption of technology in the built environment and continuing focus on efficiencies, new building techniques and sustainability, having the technology to provide accurate and timely information with a collaborative approach has never been more important.
Eleco’s vision of ‘creating certainty for the built environment with world-class solutions’ aligns itself with these industry drivers and the core of its customers’ needs, driving better decision making, timely delivery and the reduction of cost in a safe, sustainable way.
Awarded ‘Project Management Software of the Year’ at the recent Construction Computing Awards, the company has built long-standing and trusted relationships with its customers. Working closely with them to prioritise new features and developments has made its solutions extremely difficult to replicate. In turn, the software enables customers to de-risk and drive efficient operations, enhanced by professional training, technical support and consultancy services.
By committing 13% of its revenue to product development, Eleco reported in its interim results that 55% of its revenue is recurring, demonstrating strong customer retention and predictability of its earnings. Its clients include a significant number of the UK, Swedish, German and Dutch main construction contractors as well as housebuilders, retailers and product manufacturers.
STRATEGY FOR GROWTH
Earlier this year, the board announced Eleco’s growth strategy, outlining its intention to transform the Company into a customer-centric market leader in the provision of software for the construction and built environment industry sectors, targeting expansion in key growth markets.
Eleco will also continue to create shareholder value through the expansion of its product portfolio into existing geographies, such as direct sales of ShireSystem into the German market.
Good progress on the strategic initiatives has already been made, and following a strong performance in the first half of 2021, the board announced its intention to commence its transition toward a SaaS business in Q4 of 2021.
SUPPORTING CUSTOMER SUCCESS
Eleco’s customer-centric focus can be seen in its work with new customer Wren Kitchens, the leading kitchen retailer and manufacturer in the UK. ShireSystem, the company’s maintenance management software, was integrated into Wren’s supervisory control data system through APIs to monitor manufacturing performance and to automate the process of maintenance and repairs.
This has provided immediate benefits, with precheck processes being reduced from one hour to only 10 minutes and an improvement in their work practices as they aim to achieve a 15% to 20% increase in output.
Eleco has also demonstrated its commitment to the success of existing customers such as VINCI Construction UK, who selected Powerproject Vision, Eleco’s SaaS portal for collaborating on construction schedules, to support the digital transformation of their planning process.
This is making life easier for their planners, who can use the same templates and methodology across all of their sites. The standardisation of workflows also improves governance and provides real-time visibility of project stages, gateways and authorisation, a real leap forward in collaborative planning.
FROM STRENGTH TO STRENGTH
The board has always been conscious of investing for return, and this mindset is engrained in Eleco’s culture and working practices.
Key and leading performance indicators have been refined to enhance the Company’s growth platform and strengthen its financial position and further emphasis will be placed on employee engagement through clearly outlined employee success initiatives. Continuing focus will be given to wellbeing, personal development, succession planning and aligned objective setting.
Despite the unique pressures of Brexit and Covid-19, Eleco has continued on its successful path of transformation and remains a company unafraid of change. It is proud to contribute its solutions to construction and the built environment and to be part of an exciting and attractive industry where technology continues to be a key enabler to success.
DISCLAIMER: This article was written by Eleco and published by Shares under a commercial agreement. It is not a recommendation to buy or sell the shares. The article originally appeared in Shares’ Spotlight report on 25 November 2021.
