Elecosoft pre-tax profits on the rise despite revenue drop

Software and services provider Elecosoft said on Thursday that pre-tax profits had grown in the four months ended 30 April despite reporting a decline in overall revenues.

Elecosoft said pre-tax profits were up 25% in the period, while revenues decreased 3% year-on-year - slightly tempered by a 6% increase in recurring maintenance, support and subscription revenues.

The AIM-listed firm said it was also cash generative in the period and stated it had a net cash position of £3.1m as of 30 April, compared with its net cash position of £1.1m at the end of 2019.

Chairman John Ketteley said: "The thorough planning, initiative and rapid response of our employees in dealing with the coronavirus disruption meant that within less than two weeks all our business units had begun home working and had switched to the online delivery of training, consultancy and support services to our customers.

The initiatives taken by all my colleagues in every business unit of the Elecosoft Group made a vital contribution to our dealing successfully with the unprecedented disruption to our operations threatened by the Covid-19 outbreak and we thank them all."

As of 1025 BST, Elecosoft shares were up 2.75% at 78.60p.