By Joe Hoppe
Eleco PLC said on Tuesday it expects 2022 revenue and earnings to fall slightly but broadly meet market views as it moves away from initial perpetual licenses.
The UK software company said it expects total revenue of 26.6 million pounds ($32.9 million), compared with 2021 total revenue of 27.3 million GBP and a market consensus of 27.3 million GBP.
Eleco said annual recurring revenue rose to GBP 18.2 million from GBP 16.0 million, while total recurring revenue rose 8% to around GBP 16.9 million.
The company did not give a figure for earnings before interest, tax, depreciation and amortization, but said it expects to meet the market consensus, which it gave as GBP5.1 million. In 2021, it posted an Ebitda of GBP 7.2 million.
The company had previously said it expects a temporary reduction in profit and revenue as it transitions to a software-as-a-service model, and the first half of 2023 will mark the midpoint of the transition. It expects total revenue growth in 2023 as a whole.
“This solid financial footing gives the board confidence in the coming year and we will continue to look for opportunities to accelerate our growth, both organically and through acquisitions,” said chief executive Jonathan Hunter.
Write Joe Hoppe at joseph.hoppe@wsj.com
