Eleco Plc · LSE:ELCO
Eleco — FY2022 Earnings Presentation
24 slides from Eleco's earnings presentation, Mar 28, 2023
Slide 1: 2022 Annual Results
2022 Annual Results for year ended 31 December 2022 Creating certainty for the Built Environment 28 March 2023 ® Building on Technology
Slide 2: Presentation team
Presentation team Jonathan Hunter – CEO Having worked in senior positions in the Group for 14 years, Jonathan was appointed Chief Executive Officer in 2020, following three years as Chief Operating Officer, and is responsible for implementing the Group’s strategy. He has played a major role in Eleco
Slide 3: 2022: Financial and Operational Highlights
2022: Financial and Operational Highlights A progressive year… in line with expectations Financial Highlights Operational Highlights •ARR* ARR* up (2021: £18.2m 14% to£16.0m) £18.2m (2021: £16.0m) +14% • Successfully commenced phase two of SaaS Transition •TRR* TRR* £16.9m up(2021: 10% £15.4m) +10%
Slide 4: 2022: Strategic progress in the year
2022: Strategic in the progressive year… Grow • Recurring Revenue growth Strengthen • Re-energised the US reseller channel. • Transformed the business Innovate • Introduced new products • Focused on cash into the US Product strategies generation • Invested in customer • Customer platform • Key leade
Slide 5: Who we are
Who we are Founded in 1895; Listed (LSE:ELCO) in 1939 Leading developer of innovative, award-winning, digital software solutions for the built environment 64% SaaS and Subscriptions 255 employees in the Direct sales model in core markets 14% Perpetual software licensing UK, Europe and US Resellers i
Slide 6: Our portfolio of products and services
Our portfolio of products and services Planning & Project Scheduling Building Lifecycle Portfolio Visualisation & CAD Omnichannel marketing and data solutions for the Interior/exterior floor/wall surface segment. Construction Cost Design Standards & Asset Estimating Management Structural Staircase e
Slide 7: Our Building Lifecycle portfolio of products and services
Our Building Lifecycle portfolio of products and services Specifications & property data Estimations Bid/Tendering Planning/Scheduling Project Management & Delivery Building and Asset Maintenance Portfolio of Planning & Project delivery Design Standards & Asset Management Construction Cost Estimatin
Slide 8: Our Visualisation & CAD portfolio of products and services
Our Visualisation & CAD portfolio of products and services Modular marketing platform for the interior industry Staircase design/manufacture Structural calculations Timber frame design/manufacture Configurable for specific CAD engineered design and Eurocode compliant design AutoCAD module for design
Slide 9: Financial report for 2022
Financial report for 2022 Neil Pritchard – CFO 9
Slide 10: 2022: Financial Highlights
2022: Financial Highlights ARR* £18.2m (2021: £16.0m) +14% EBITDA* £5.2m (2021: 7.2m) -28% TRR* £16.9m (2021: £15.4m) +10% Profit Before Tax £2.9m (2021: 3.9m) -26% TRR as a % of total revenue 64% +12% (2021:56%) Net cash £12.5m** (2021: 10.0m) +25% Total Revenues £26.6m (£27.0m at -2.5% constant cu
Slide 11: Review of Group Income Statement
Review of Group Income Statement Overall effect of SaaS transition £m Audited Audited Movement Year to 31 Dec 22 Year to 31 Dec 21 Total recurring revenues 18.2 16.0 +2.2 TRR 10% growth. ARR 14% growth: £18.2m, or 68% of Revenue 26.6 27.3 -0.7 revenues (2021: £16.0m, or 59%) Cost of sales (3.1) (2.8
Slide 12: Revenue analysis
Revenue analysis Revenue by type Revenue by product group Revenue by geography 64% 64% 56% 56% 22% 22% 22% 23% 14% 14% 22% 23% • USA and Rest of World showing gains • Recurring revenues up 10% now 64% (2021: 56%) • Building Lifecycle remains largest component • UK and Scandinavia largest components
Slide 13: Group Cash and Cash Flow
Group Cash and Cash Flow Even with the SaaS transition, the Group remains strongly cash generative £m 2022 2021 Free Cash 3.8 4.8 Flow1 Free cash 127% 117% flow as a % of operating profits 1 Free cash flow represents cash generated in operations less purchase of intangible assets and property, plant
Slide 14: Review of Group Balance Sheet
Review of Group Balance Sheet Growth in Balance Sheet strength £m Audited Audited Movement Year to 31 Dec 22 Year to 31 Dec 21 Goodwill 15.3 15.6 -0.3 £0.2m reclassified as held for sale, remainder FX Capitalised devplt and other intangibles 6.6 6.6 - Property, plant and equipment1 (incl IFRS16) 0.5
Slide 15: Solving the challenges of the built environment
Solving the challenges of the built environment Jonathan Hunter – CEO 15
Slide 16: Strategic Priorities
Strategic Priorities Grow • Customer Strengthen diversification to gain coverage • ESG Credentials across built environment Innovate • Talent attraction and retention • Go-to-Market • Strengthen our initiatives (Sales established portfolio • Profitable financial enablement, with new billable platfor
Slide 17: Strong demand driven by digitalisation, data standards and ESG adoption
Strong demand driven by digitalisation, data standards and ESG adoption 1 Increased lead times 2 Development of 3 ESG 4 Ongoing and volatile costs New Construction and Technological pressure margins Techniques Development and Sustainable Adoption Supporting industry Supporting industry Supporting ES
Slide 18: How customers are using our solutions
How customers are using our solutions
Slide 19: Powerproject used to deliver award-winning South Wales Police learning centre
INNOVATION Powerproject used to deliver award-winning £49m learning centre for South Wales Police • Five separate phases of work integrated into a single, cohesive programme • IFC models(3D) transposed into Powerproject 4D BIM for the programming of the Learning Centre’s concrete frame • Overall pro
Slide 20: Pilot programme rollout to ENR #4 US Contractor, STO Building Group
GROWTH Pilot programme rollout to ENR #4 US Contractor, STO Building Group • Structure Tone London, the UK division of STOBG, has been a long-standing Powerproject customer and advocate of the software • On-site education programmes for Powerproject and Powerproject Vision solutions rolling out in S
Slide 21: Chester Zoo streamlines maintenance using ShireSystem
INNOVATION Chester Zoo streamlines maintenance using ShireSystem • Chester Zoo is England’s most visited attraction outside London, with 20,000 animals and a 128-acre site including animal habitats, plant rooms, retail outlets, restaurants and residential properties, as well as a fleet of site vehic
Slide 22: Summary and Outlook
Summary and Outlook 2022 – growing subscription revenue and enhancing CLV Further progress Proven and Successfully on strategic strengthening transitioning to journey product SaaS portfolio An expanding Strong recurring Confident in the and loyal revenue and outlook for 2023 customer base customer r
Slide 23: Thank you
Thank you For more information please contact: [email protected] www.eleco.com/contact-us/ 23
Slide 24: Disclaimer
Disclaimer Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of Eleco’s operations, performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, uncerta