Building on technology: the Elecosoft story
Headquartered in London, with operations in the UK, Sweden, Germany, Benelux and the USA, Elecosoft’s (ELCO:AIM) software solutions cover the building lifecycle from planning and project management, to estimating and timber engineering on to 3D design, property maintenance management and digital marketing solutions.
Originally listed on the London Stock Exchange in 1939, the Company’s long history has seen the business pivot from being a construction materials manufacturer to being totally digital.
Elecosoft started acquiring software businesses in the 1990s and 2000s, providing software such as planning, computer aided design (CAD) and visualisation software.
When the global financial crisis hit in 2008 and there was an overnight fall in construction activity Eleco had to divest a large part of its core construction components manufacturing businesses and focus on its cash generative software businesses, a survival strategy planned and executed under the direction of long-time executive chairman John Ketteley.
Now Elecosoft has been transformed into a growing, highly cash generative and well financed international construction software specialist with 49 per cent of its revenues received from maintenance, support and software training.
The Elecosoft share price increased from 6p in 2013 to 72p at the time of writing and it would seem that the transitioning strategy has paid off.
Elecosoft counts amongst its customers 90% of the top 100 UK contractors, 40 of the top 50 construction companies in Sweden and seven of the UK’s top 10 retailers. Its software has been used on prestigious international projects such as The Shard in London, the Reichstag Dome in Berlin, Hong Kong International Airport and the third Bosphorus Bridge in Turkey.
Elecosoft continues to build on its success with strategically placed acquisitions that enhance its software offering and expand its prestigious customer base.
In July 2018, it strengthened its portfolio with the acquisition of Shire Systems Ltd, a wellestablished UK provider of Computer Maintenance Management Software, (CMMS) with a 30 plus year history and over 800 active customers. In 2016 Elecosoft also acquired ICON, a leading Software as a Service
INTRODUCING… ELECOSOFT An AIM-quoted specialist international provider of construction software and related services to the global architectural, engineering, construction and owner/operator industries.
(SaaS) provider of Building Information Management data to the UK retail sector, with customers including Asda, Next and Sainsbury’s.
The board of Elecosoft continues to see significant growth opportunities for its software to enhance the performance of businesses in construction but also in other sectors, by improving the timeliness, cost-efficiency and risk profiles of customers’ projects.
Elecosoft is also particularly well placed to maximise opportunities from Building Information Modelling (BIM). BIM is a digital framework that enables collaboration on a building project preconstruction, during the build and then post construction when operating the building. It creates a common data environment (CDE), which ensures that everyone working on a construction project knows what’s been done, when and by whom.
This allows for easier collaboration, record keeping and improved efficiencies. The UK government made use of BIM mandatory in 2016 and this has provided Elecosoft with a competitive advantage as BIM is increasingly being implemented in other countries. Accordingly, as Elecosoft has experienced the move to BIM alongside its UK customers, it is able to provide support, insight and guidance about the adoption of BIM in other markets.
ELECOSOFT ADDS VALUE
The flexibility of an in-house Product Development team means Elecosoft works closely with its customers and partners in developing its industry-tailored solutions. Elecosoft’s products and services are recognised for their alignment to the specific needs of AECO customers in its core markets. Since rebranding the group in 2015, its improved market presence has ensured it is delivering a cohesive message whilst expanding the integrated portfolio.
ELECOSOFT PROTECTS VALUE
Elecosoft is a truly ‘people’ business, with a geographical footprint in seven countries and a 200 plus strong employee team, of which 50 are software developers and 59 are client focused. Its strong customer relationships mean that it works closely with customers and partners in generating recurring business and meeting their strategic requirements. In 2017, Elecosoft invested 14% of revenue in innovative software solutions and in 2016 15%.
ELECOSOFT’S STRATEGIC OBJECTIVES
Elecosoft’s strategic objective is to continue to drive innovation and growth, by developing its current portfolio of integrated software solutions and making them available across multiple platforms and devices, whilst expanding Elecosoft’s sales and marketing capabilities, channel capacity and operational territories.