U.K. software company Eleco has announced a decline in pretax profit for the first half of the year, citing higher costs. The company also provided an update on its revenue expectations, which remain in line with the board's plans.
Eleco reported a pretax profit of £1.3 million ($1.6 million) for the period, compared to £1.7 million the previous year.
Despite the decrease in pretax profit, Eleco experienced a slight increase in revenue. Figures show that revenue rose to £13.5 million from £13.4 million. Additionally, annualized recurring revenue saw a significant 18% growth to reach £19.7 million. Total recurring revenue, which represents 72% of the company's total revenue, also increased by 18% to £9.7 million.
The board of directors declared an interim dividend of 0.25 pence per share, marking an increase from the previous year's figure of 0.20 pence.
Outlook for 2023
Eleco remains optimistic about its full-year revenue projections for 2023. The company expects its revenues to align with its plan, and it anticipates sustainable growth and overall shareholder returns as a result of transitioning to a software-as-a-service model.
As of 0727 GMT, shares of Eleco showed a slight increase of 0.6%, or 0.50 pence, bringing the share price to 80 pence.
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