Eleco’s interims show a strong start to FY25 with ARR ahead by +19% y/y (+12% organic) despite macro and political headwinds, with the company’s successful SaaS transition cushioning revenues (81% recurring) and offsetting weakness in the transactional CAD and visualisation categories. Pleasingly, the combination of PEMAC and Shiresystem is already delivering cost synergies, we expect both cost and growth synergies are still to come. We trim our FY25 revenue forecast downwards by £0.4m (-1%), but our profit estimate is unchanged. We upgrade our TP from 180p to 200p (23% TAR) and reiterate our BUY recommendation.
