Eleco delivered ‘in line’ results today, posting adjusted EBITDA & EPS of £7.2m & 4.0p respectively on record turnover up 8.4% to £27.3m (+7.7% vs FY19). This was further bolstered by 100% cash conversion (£4.75m, representing a 5.7% yield), whilst ending the period with a hefty £10m net cash balance (12p/share) – even after spending 12% of revenues on R&D.
Eleco’s award winning applications are being increasingly adopted by construction firms, asset/property managers, manufacturers and retailers everywhere.
Consequently given the strong industry tailwinds and positive start to 2022, we’ve held our FY22 forecasts (re adjusted PBT £2.9m & turnover £27.6m), and have a 150p/share valuation. Plus at 100p, Eleco trades on modest 2022 EV/sales & EV/EBITDA multiples of 2.7x and 11.8x respectively, equivalent to a wide discount vs BuildTech peers.
31 Mar 2022
‘Grow baby grow…’
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‘Grow baby grow…’
Eleco Plc (ELCO:LON) | 97.0 0 0.0% | Mkt Cap: 80.7m
- Published:
31 Mar 2022 -
Author:
Paul Hill -
Pages:
12
Eleco delivered ‘in line’ results today, posting adjusted EBITDA & EPS of £7.2m & 4.0p respectively on record turnover up 8.4% to £27.3m (+7.7% vs FY19). This was further bolstered by 100% cash conversion (£4.75m, representing a 5.7% yield), whilst ending the period with a hefty £10m net cash balance (12p/share) – even after spending 12% of revenues on R&D.
Eleco’s award winning applications are being increasingly adopted by construction firms, asset/property managers, manufacturers and retailers everywhere.
Consequently given the strong industry tailwinds and positive start to 2022, we’ve held our FY22 forecasts (re adjusted PBT £2.9m & turnover £27.6m), and have a 150p/share valuation. Plus at 100p, Eleco trades on modest 2022 EV/sales & EV/EBITDA multiples of 2.7x and 11.8x respectively, equivalent to a wide discount vs BuildTech peers.