Eleco boosts recurring income and refines strategy with Pemac and Kivue acquisitions

Eleco (LSE:ELCO) delivered a strong performance in 2025, with total revenue climbing 20% to £38.8m and annualised recurring revenue increasing 29% to £34.3m. This growth underpinned a 32% rise in adjusted EBITDA and a 35% improvement in adjusted profit before tax. Although a non-cash impairment linked to the discontinued Veeuze visualisation business weighed on statutory profit, the group achieved record levels of recurring and software revenue. Free cash flow rose 30%, the dividend was increased by 20%, and the company closed the year debt-free with £16.3m in cash.

Portfolio reshaped around higher-growth software segments

During the year, Eleco strengthened its strategic focus through targeted acquisitions, including Irish CMMS provider Pemac and, shortly after the year-end, UK-based PPM specialist Kivue. At the same time, the disposal of the non-core Veeuze unit marked a clear step toward concentrating on higher-growth building lifecycle software solutions.

Innovation remains a key priority. Asta Powerproject once again received leading industry awards, while new offerings such as Asta Vision Plus and Asta Estimate were introduced to expand AI-driven capabilities in planning, cost management and carbon tracking. These developments enhance Eleco’s position in complex and regulated construction and asset management markets, supporting management’s positive outlook for 2026.

Strong fundamentals tempered by technical caution

While Eleco’s financial performance and strategic progress are robust, technical indicators point to a more cautious near-term view, suggesting potential downside pressure. The company’s solid revenue growth, profitability and disciplined execution reinforce its competitive standing, but its relatively high valuation may limit upside in the short term.

More about Eleco

Eleco plc is an AIM-listed international provider of software and services for the built environment. Operating through brands such as Elecosoft, BestOutcome, Pemac, Kivue and Eleco Technologies, the group delivers solutions across the entire building lifecycle—from design and planning to construction, fit-out and ongoing asset and facilities management. Its offerings include project management tools, estimation software, BIM solutions and property management systems used by customers worldwide.