| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 79.96 | -46 |
| Intrinsic value (DCF) | 53.26 | -64 |
| Graham-Dodd Method | 0.22 | -100 |
| Graham Formula | 0.93 | -99 |
Eleco Plc is a UK-based software company specializing in architecture, construction, and project management solutions. Founded in 1895 and headquartered in London, Eleco provides a diverse portfolio of software products, including CAD design tools (Arcon Evo, Staircon), building information management (IconSystem), and project planning software (Powerproject, Tilos). The company serves clients across the UK, Scandinavia, Germany, Europe, and the US, offering not only software but also training, consultancy, and technical support. Operating in the competitive Software - Application sector, Eleco differentiates itself with niche solutions tailored for construction and engineering professionals. With a market cap of approximately £129 million, Eleco combines legacy industry expertise with modern cloud-based and collaborative tools, positioning itself as a key player in specialized construction technology.
Eleco Plc presents a niche investment opportunity in the construction and architectural software space. The company’s diversified product portfolio, recurring revenue from software services, and strong cash position (£13.98 million) with minimal debt (£1.46 million) suggest financial stability. Its low beta (0.419) indicates lower volatility relative to the market, appealing to risk-averse investors. However, modest revenue (£32.4 million) and net income (£3.3 million) reflect challenges in scaling against larger competitors. The dividend yield (~0.8% at current share price) adds modest income appeal. Investors should weigh Eleco’s specialized market focus against limited global penetration and competition from industry giants.
Eleco Plc competes in a fragmented market dominated by global construction software providers and niche specialists. Its competitive advantage lies in deep vertical expertise, particularly in timber framing (Framing), staircase design (Staircon), and time-location planning (Tilos), which are underserved by broader competitors. The company’s hybrid model (cloud and on-premise) caters to diverse client needs, while its long-standing relationships in Europe provide regional stability. However, Eleco lacks the R&D scale of larger peers, limiting its ability to innovate in emerging areas like AI-driven design or IoT integration. Its focus on SMEs and self-builders differentiates it from enterprise-focused rivals but also caps growth potential. Strategic partnerships or acquisitions could enhance its reach in North America and Asia, where it currently has minimal presence.