Elecosoft’s strong FY19 results sends shares 12% higher
(ELCO ) has confirmed unaudited FY19 results to Dec delivered both turnover and profit before tax significantly higher than FY18. Strong cash generation during the year, has eliminated £1.8m of bank debt to close the year with a net cash position of £1.1m as at 31 Dec 2019 post payment of the interim dividend.
Whilst Elecosoft's excellent trading performance and cash generation in the second half of 2019 would normally have warranted the declaration of final dividend, in view of the uncertainties currently posed by the Covid-19 pandemic, the Board has decided not to recommend the payment of a final dividend or to declare a second interim dividend, in respect of the year ended 31 December 2019.
FY20 Outlook
Despite the macroeconomic uncertainty caused by the Covid-19 pandemic, Elecosoft has traded well in the first quarter of 2020. However, feedback from some of the Company’s customers and channel partners suggests that it will experience some degree of disruption to operations in general with some interruption to the delivery of face-to-face services, which currently account for circa 19 per cent of total revenue, in particular.
The Company has therefore confirmed it is implementing careful management of cash resources and in present ‘vigilant in the control of operational costs and our general overheads’ and already taken steps to mitigate the impact of any disruption with all face-to-face training and consultancy offerings now being offered and delivered online.
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