A strong, stable and progressive year, our wider software portfolio delivered revenue and profit growth beyond market expectations.
With a new management team and renewed focus on our core strengths and strategy to grow Elecosoft as a leading provider of innovative integrated solutions, we stepped out of the blocks and led from the start amongst growing competition. Although we experienced some challenges and timing delays in our use of resellers this year, we continue to have our sights set on expanding through them going forward. The performance of our leading applications of Asta Powerproject® and Bidcon® within project management and estimating was outstanding, with double digit growth achieved both in the UK and Sweden which contributed to a successful year and surpassed a number of key milestones.
Revenue grew to £17.8m up from £15.3m
Profit before tax of £1.5m up from £1.0m
Our Focus on Sales Growth With an underlining growth performance across our core revenue lines of licences, maintenance and services, the Group delivered results significantly ahead of industry sector benchmarks. With a prominent influence through our direct model approach, we have proved that amongst a number of major global competitors Elecosoft is highly regarded as a provider of quality software and services. Revenue growth is pivotal to our long-term strategy and with an improved performance in all graphical areas, Elecosoft is in a strong position
to maintain our current momentum.
A summary on revenue growth in 2016 is as follows:
- UK revenue increased by 13 per cent
- Scandinavia revenue increased by 13 per cent
- Germany revenue increased by 29 per cent
- Rest of Europe increased by 22 per cent
- Rest of World increased by 17 per cen
Historically, our software portfolio has centred on the PC market but with ever increasing competition and expansion into other verticals we have a growing number of SaaS product offerings that sit alongside and complement our existing applications. Through continued investment
in our direct approach and through channel expansion, Elecosoft is in a strong position to maintain progressive growth over and above the broader market.
With a wide portfolio of products that cover project management, construction site management, estimating, timber engineering, 3D design and visualisation, cloud-based digital marketing and data storage solutions, we have some great opportunities in reaching out to a wider audience with our integrated offering. With a continuing trend across the globe to standardise processes through common data exchanges and a collaborative approach to sharing of data, Elecosoft is strongly placed to deliver international awareness and growth.
In recent years, we have established the cross-selling of our products to help deliver on local government legislations which in turn has positioned Elecosoft as a major player in the provision of 4D and 5D BIM. Our marketing teams have successfully developed and implemented promotional plans for market sector and territory growth to help drive the increased awareness out to the end client through
increased use of webinars, exhibition attendance, event speaking and corporate sponsorship. With the acquisition in January of one of Asta Powerproject® Dutch resellers, we have also delivered on the plans to improve the performance of the business and also commenced
the transition approach to selling more products to existing and new customers.
Our colleagues in Sweden delivered a sterling performance with the new management team that was orchestrated the previous year, and also expanded their international reach by establishing new resellers in New Zealand, Canada, Finland and Denmark for Bidcon®, Statcon® and Staircon®. We have seen successful expansion within the interior market with key business wins in China and the US through our modular
marketing solution for simplifying and automating data-based marketing activities throughout the marketing chain.
Offering the best possible proposition to our customers has remained our core focus and is central to driving the growth of our software offering, in both our direct markets and reseller channel. Our customers have continued to recognise the quality of our products, service and extending range of products, evidenced by the continued success of our award-winning software. Asta Powerproject® achieved for the third year in succession the Project Management/Planning Software of the Year Award at the Construction Computing Awards 2016. Recognition was also made for our cost estimating application, Bidcon®, as this was voted runner-up in the Estimation & Valuation Software category.
We believe this reflects the strengthening recognition of our consumer brand.
The retention rate of our customers is important to support our growth and this has remained in line with historical trends. We have introduced to our markets product releases across the whole software portfolio that reflect the requirements of our customers. We have seen progression in our eCommerce product offering with our CAD and visualisation applications and have continuous plans to expand the reach into new territories using effective web platforms.
2016 delivered a milestone year in revenue and profit growth and the teams within Elecosoft are excited about the future and look forward to contributing to another fruitful year, both in our direct markets and growing international reach through the reseller channel network.
24 March 2017
Download the 2016 annual report
The Elecosoft annual accounts for the period ended 31st December 2016 are now available to download.
Shareholders can elect to receive hard copy shareholder documents at any time by informing Capita Asset Services at The Registry, 34 Beckenham, Kent BR3 4TU.