Software and building solutions supplier Eleco has recorded strong results during the six months to December 31, 2007, with the company’s timber building systems helping to stimulate growth.
Eleco recorded a year-on-year increase in turnover of 36.2% to £39.4m, with profit before tax up 47.9% from £2.5m to £3.7m.
Within this, the company’s building systems operations recorded a 33% jump in revenue to £33.2m. Its timber frame, roofing and cladding business, which includes Eleco Timber Frame and Downer Cladding Systems, contributed “higher profits in the period despite significant pressure on margins”.
However, Eleco’s nail plate operations, including Gang-Nail Systems, saw profts fall by 20% year-on-year, with a slowdown in housing markets cited as the cause. This included its South African International Truss Systems business, but excluded Eleco Bauprodukte in Germany, which made higher profits during the six months.
Consultec, from Eleco’s software operations, recorded results “broadly in line with the corresponding period last year”.
“Improved performances from our building components operations and software interests, more than compensated for the lower out-turn of our connector plate businesses,” said executive chairman John Ketteley.
Mr Ketteley added the company was in a strong position to overcome the current turmoil on the financial markets as it had entered the second half of the year with an improved order book.
