MIDAS SHARE TIPS UPDATE: How 3D software firm Elecosoft trebled your cash in FOUR years

By Joanne Hart, Financial Mail on Sunday

Updated:

Thriving: With buildings like The Shard, contractors want to minimise their mistakes

Thriving: With buildings like The Shard, contractors want to minimise their mistakes

The Shard, towering above its neighbours in the City of London, cost more than £1 billion to build. With bills like that, contractors want to minimise their mistakes.

Elecosoft sells software that helps architects, engineers, construction firms and property owners to build and maintain sites more effectively.

The shares were 21p, when Midas recommended them in 2015. Today, they are 77p and should continue to rise in price.

Elecosoft works with 90 of the UK's top 100 contractors and has a thriving overseas arm too, especially in Sweden but also in Germany, the US and Australia.

The company's technology is multi-faceted. Customers can create 3D models of projects to see exactly what buildings will look like.

They can work out budgets, develop planning schedules, even calculate when light bulbs need replacing.

In Sweden, the group has developed a climate change tool so property owners can see the effect of different materials on their carbon emissions, a service that has been snapped up by the government there.

In time, this is likely to become popular elsewhere, including in the UK. The group's 2018 results, delivered earlier this month, showed a 40 per cent increase in profits to £3.8 million and a 0.7p dividend.

Further strong growth is expected this year, with profits rising to £4.6 million and the dividend increasing to 0.8p.

Midas verdict 

Elecosoft has come a long way and investors may choose to sell half their stock and bank some profits. Keep the rest as the business is still making progress.

Traded on: Aim Ticker: ELCO Contact: elecosoft.com or 020 7422 8000 

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Most watched Money videos