In a short and sweet AGM trading update this morning - specialist BuildTech software developer Eleco said that "Apr'26 YTD trading has been positive, and in line with FY'26 market expectations".
Here Cavendish is forecasting FY26 revenue of £40.5m, EBITDA of £10.7m and EPS of 6.7p with a price target of 250p/share. Meaning at 130p, the stock trades on multiples of 2.3x EV/sales, 8.7x EV/EBITDA and 19.4x PE.
A material discount to global Buildtech peers (>5x sales & 14x-18x EBITDA) that looks hard to justify, especially given Eleco’s 81% recurring revenues, 89.6% gross margins, strong cash generation and double-digit secular growth. Plus so far, there seems to have been little impact from the conflict in the Middle East.
Disclosure: I own shares in Eleco, who is also a Vox Markets client