Eleco 2025 trading update: revenue up 20% and record recurring revenues
Eleco has served up a punchy year-end trading update for 2025, with growth coming in ahead of market forecasts and recurring revenues hitting fresh highs. Based on unaudited management accounts, the software group for the built environment delivered strong top-line momentum, improved cash, and a clean, debt-free balance sheet.
There’s plenty to like here if you favour predictable, subscription-led software models. Let’s unpack the detail, what it means, and why it matters.
Headline growth ahead of forecasts, with a larger recurring mix
Total revenue rose 20% to £38.8m (2024: £32.4m). On a constant currency basis – stripping out FX swings – revenue was up 19% to £38.4m, implying only a small tailwind from currency. Importantly, organic growth (excluding acquisitions) was 11%, so this isn’t just deal-driven expansion.
The standout is recurring revenue. Annualised Recurring Revenue (ARR) at year-end grew 29% to c.£34.3m (31 Dec 2024: £26.6m), while Total Recurring Revenue (TRR) for the year climbed 26% to c.£31.3m (2024: £24.9m). TRR represented 81% of total revenue, and 82% if you strip out the effect of the PEMAC acquisition (versus 77% in 2024).
Management also notes that revenue, cash and anticipated adjusted profit are all ahead of market forecasts. No numbers are provided for profit, but that’s still a positive signal on margins and execution.
Key numbers at a glance
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total revenue | £38.8m | £32.4m | +20% |
| Revenue (constant currency) | £38.4m | £32.4m | +19% |
| Organic growth | 11% | – | – |
| ARR at 31 Dec | c.£34.3m | £26.6m | +29% |
| TRR | c.£31.3m | £24.9m | +26% |
| TRR as % of revenue | 81% (82% ex-PEMAC) | 77% | +4–5ppts |
| Cash at 31 Dec | £16.3m | £14.0m | +£2.3m |
| Net debt | Nil (debt-free) | Nil | – |
ARR and TRR: why they matter for valuation and visibility
Quick definitions. ARR is the annualised value of recurring contracts at a point in time (subscriptions, support and maintenance, and SaaS). It’s a forward-looking indicator of the contracted revenue base. TRR is the recurring revenue actually recognised over the year.
With ARR at c.£34.3m and TRR at c.£31.3m, Eleco is leaning further into durable, high-visibility income. An 81% recurring mix is a big step up from 77% last year, and excluding PEMAC, the mix would have been 82%. That suggests the core portfolio is steadily shifting to subscription, with PEMAC likely a slight drag on mix for now.
PEMAC integration: strategic fit and the organic vs acquired split
PEMAC, acquired in early 2025, contributed roughly eleven and a half months of revenue. Management says integration is complete and the deal has “enhanced the Group’s capabilities in asset and maintenance management”.
The important point: even with M&A in the mix, organic growth was 11%. That’s healthy for a vertical software business serving construction, fit-out, asset and facilities management. The recurring proportion would have been 82% without PEMAC, implying PEMAC’s current revenue profile is a touch less subscription-heavy – something to watch as Eleco cross-sells and migrates customers onto its subscription stack.
Cash generation, dividends and a clean balance sheet
Year-end cash rose to £16.3m (2024: £14.0m), despite £4.8m of acquisition payments and related costs for PEMAC and higher interim and final dividends in 2025 (amounts not disclosed). The Group remains free of debt.
That combination – cash up, debt-free, dividends increased – points to solid cash conversion. It also gives Eleco flexibility to keep investing in product, selective M&A, and shareholder returns without stretching the balance sheet.
Product roadmap: Asta Vision Plus and API-led integrations (including AI)
Early 2026 brings Asta Vision Plus, an extension to Eleco’s Asta Vision platform. The first release adds API-led capabilities – essentially structured, programmatic access to project data – so customers can integrate Eleco’s tools with third-party systems, from specialist construction content platforms to general large language model-based AI systems.
Why this matters: open connectivity usually boosts adoption, reduces churn and unlocks higher-value workflows. In construction tech, where data lives in many silos, robust APIs can be the difference between “nice tool” and “core system”. The AI angle is pragmatic too – exposing clean data to AI systems is a sensible way to let customers experiment without Eleco having to own every AI use case.
CEO read-across: strategy execution and confidence
CEO Jonathan Hunter’s message is clear: growth across all key metrics, recurring revenues expanding, cost and cash management on track, and strategy delivering value across the building lifecycle. With structural demand drivers intact and a strong balance sheet, the Board “remains confident” in sustainable growth.
One caveat: adjusted profit is not disclosed, beyond being ahead of market forecasts. We’ll need the full audited numbers to gauge margins and investment levels.
What I like, and what I’m watching
Positives
- Broad-based growth: +20% reported revenue, +19% constant currency, +11% organic.
- High-quality mix: ARR up 29% to c.£34.3m; TRR up 26% to c.£31.3m; 81% recurring revenue.
- Balance sheet strength: £16.3m cash, no debt, cash up despite £4.8m acquisition outflows and higher dividends.
- PEMAC integration done, extending into asset and maintenance management – a logical adjacency.
- API-first product enhancements set up deeper integrations and stickier deployments.
Watch-outs
- Adjusted profit not disclosed – we know it’s ahead of forecasts, but not by how much.
- Recurring mix slightly lower including PEMAC (81% vs 82% excluding) – scope to lift that over time.
- No detailed margin or cash conversion metrics provided in this update.
What to watch next
- Full audited results timing: not disclosed in this RNS – look for margin, cash conversion and segment detail.
- Asta Vision Plus rollout in early 2026: customer uptake and integration case studies will be telling.
- PEMAC cross-sell and subscription mix: signs of recurring uplift as the integration beds in.
Bottom line: a high-visibility growth year with more to come
Eleco has delivered a strong 2025: double-digit organic growth, record recurring revenues, cash up, and no debt – all while investing in product and closing an acquisition. Being ahead of market forecasts on revenue, cash and anticipated adjusted profit should support sentiment.
There are still numbers we need to see in the full results, but on today’s read, the strategy is working. For investors who like steady, subscription-led software in the built environment, Eleco’s trajectory looks encouraging. You can read more about the business at eleco.com.
