REG - essensys PLC - Full Year Results
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RNS Number : 7245N essensys PLC 06 January 2026
6 January 2026
essensys plc
("essensys", the "Company" or the "Group")
Full year results
essensys plc (AIM:ESYS), the leading global provider of software and
technology to the flexible workspace industry, announces its audited results
for the twelve months ended 31 July 2025 ("FY25"). All information relates to
this period, unless otherwise specified.
Financial summary:
£m unless otherwise stated FY25 FY24 Change
Revenue 19.2 24.1 -21%
Recurring revenue(1) 16.9 20.2 -17%
Run Rate Annual Recurring Revenue (ARR)(1) 15.0 20.3 -26%
Revenue at constant currency(2) 19.6 24.1 -19%
Recurring revenue at constant currency 17.5 20.2 -13%
Run rate ARR at constant currency 15.6 20.3 -23%
Adjusted EBITDA(3) 1.3 (0.9) 244%
Statutory loss before tax (5.7) (5.5) -4%
Loss per share (pence) (8.6)p (5.1)p
Net Cash 1.8 3.1
(1) (See CFO review below for description and breakdown)
(2 Current period revenue and/or costs translated into GBP using the average
exchange rate for the comparative prior period)
(3 Adjusted EBITDA is earnings before tax, depreciation, amortisation,
exceptional items and other non-trading items, such as share option charges)
Operational highlights - significant progress and strategic execution
· Launch of new product, elumo, with initial sales across all core markets
· Completion of data centre decommissioning project realising £1.5m in
annualised cost savings
· Board appointments bring significant strength and experience to essensys
· Strategy centred on three pillars: Land, Expand, Grow
o Land: Adoption through essensys Platform and elumo
o Expand: Product innovation combined with site growth across core
geographies
o Grow: Deepening customer relationships and positioning as a strategic
partner
· Post year end restructure around core products expected to generate cost
savings and scalable operations
o Dedicated, agile elumo team to drive new customer acquisition and
accelerate adoption
o Focused essensys Platform team to deepen customer relationships, improve
service, and proactively manage retention
Financial highlights - return to EBITDA profitability and improved margin
quality
· Return to positive Adjusted EBITDA of £1.3m (FY24: £0.9m loss)
· Revenue at £19.2m (FY24: £24.1m), reflecting previously anticipated
downsizing of a single large strategic customer
· ARR at £15.0m (FY24: £20.3m). Excluding the single large customer above and
at constant currency, ARR from strategic customers decreased by 2%, driven by
portfolio rationalisation and the previously expected shift away from Cloud
and into essensys Platform
· Gross margin improved to 59% (FY24: 57%) due to a higher proportion of
recurring revenue and a more focused operating model
· Cash at year-end: £1.8m (FY24: £3.1m)
· essensys remains debt free; discussions ongoing to secure a debt facility to
optimise capital structure and support strategic growth
Current Trading and Outlook
· Q1 FY26 revenue broadly in line with management expectations
· FY26 performance anticipated to be materially below management expectations
due to the volatile macroeconomic environment leading to elongated sales
cycles and slower than anticipated adoption rates for elumo
· Management remains focused on:
o Maintaining strong customer engagement,
o Operational resilience, efficiency and cash management, and
o A targeted go-to-market approach and enhanced product suite.
Possible Offer
· As announced on 28 November 2025, Mark Furness, founder and a Non-Executive
Director, has submitted a preliminary, indicative, non-binding proposal to the
independent directors of the Company relating to a possible all-cash offer for
the entire issued and to be issued share capital of the Company at 20 pence
per share
James Lowery, Chief Executive Officer of essensys, said: "FY25 marked a year
of significant operational progress for essensys, underpinned by the
successful launch of elumo, the execution of substantial cost-saving
initiatives and the restructuring of the business as announced in November to
support our two core products with a sharpened focus on strategic customers.
This progress aided essensys in its return to EBITDA profitability, despite
ongoing macroeconomic challenges, delivering £1.3m in Adjusted EBITDA for the
year.
"While revenue reduced year on year, due to the downsizing of a customer, it
also reflects a deliberate evolution of our customer portfolio and revenue
mix, with a greater emphasis on scalable, higher-quality software revenues.
This shift drove an improvement in gross margins and strengthens the long-term
sustainability of the business. We continue to see strong structural tailwinds
in flexible workspace, supported by a clear flight to quality.
"While we expect volatile macro-economic trading conditions to continue in the
short term, we remain confident in our strategy, product suite and long-term
growth opportunities, and that we are well positioned to benefit as market
conditions improve."
For further information, please contact:
essensys plc +44 (0)20 3102 5252
James Lowery, Chief Executive Officer
Greg Price, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser and Broker) +44 (0)20 7523 8000
Simon Bridges / Harry Gooden / Andrew Potts / Elizabeth Halley-Stott
Gracechurch Group
Heather Armstrong / Alexis Gore / Rebecca Scott +44 (0)20 4582 3500
About essensys plc
essensys is the leading provider of software and technology to landlords and
flexible workspace operators. Founded in 2006 and listed on the AIM market
since 2019, essensys' mission is to power the world's largest community of
flexible, technology-driven spaces. Under new leadership, the Company has
simplified its go-to-market strategy around two core offerings: essensys
Platform and elumo.
essensys Platform is a SaaS platform that delivers enterprise-grade Wi-Fi
seamlessly across portfolios of multi-tenant workspaces, while providing data
insights to optimise performance. The Group's latest offering, elumo, provides
customers with a new way to manage and monetise bookable spaces. The
integrated bookings and access solution transforms meeting rooms and shared
spaces from operational headaches into revenue-generating assets.
With customers in the UK, Europe, North America and APAC, essensys is
deploying a newly launched and simplified go-to-market strategy, positioning
the business long-term growth in the flexible workspace and commercial real
estate market.
Chairman's statement
FY25 has been a year of transition for essensys, marked by meaningful progress
towards long-term, sustainable growth in the flexible and hybrid workspace
sector. A key priority was returning the Group to profitability, achieved with
Adjusted EBITDA of £1.3m (FY24: £0.9m loss). This represents an important
milestone, demonstrating the effectiveness of our actions to better align
costs with earnings, and focus on high-quality recurring revenues.
Group revenue was £19.2m, reflecting the deliberate move away from lower
non-recurring hardware and network sales and the down-sizing of a single
customer. While this has reduced reported revenues in the short term, we
believe our renewed focus on strategic customers will enhance the quality and
resilience of our customer base, strengthening the business for future growth.
Operational discipline has been another focus. The completion of the data
centre decommissioning project in July 2025 delivered £1.5m of annualised
cost savings, streamlining our infrastructure and strengthening financial
performance. These actions, alongside tighter cost control, have simplified
operations and improved our ability to scale. In addition, we have
restructured the essensys team to better support our product and services
offering post year end, and these changes are also expected to generate
significant annualised cost savings.
Innovation continues to sit at the heart of our strategy, with over 25% of our
team dedicated to R&D. This year we launched elumo, our new dynamic
meeting room bookings and access platform, enabling our customers to quickly
monetise their assets. Though slower than anticipated, the product has gained
early traction across key markets, securing its first sales to customers post
year end, including a multi-site portfolio in the US. While the macro trading
environment remains volatile, this positive response reinforces our confidence
in elumo as a significant future growth driver.
FY25 also saw important changes to the Board to support our next phase of
development. Greg Price joined as CFO in October 2024, bringing over two
decades of senior finance experience. In May 2025, James Lowery succeeded
founder Mark Furness as CEO, having previously served as COO. James brings a
strong background in scaling flexible workspace propositions and real estate
strategy. The Board also welcomed Sian Herbert as an Independent Non-Executive
Director and Audit Committee Chair in July 2025, adding significant expertise
in audit, risk, and governance. Mark Furness remains on the Board as a
Non-Independent Non-Executive Director and continues as our largest
shareholder.
In summary, FY25 has been an important year towards reshaping essensys for
long-term success. With simplified operations, a sharper customer focus, and
the launch of new products, we have returned to profitability, enhanced our
SaaS-centric model, and built a stronger foundation for scalable long-term
growth. The Group remains debt free and to strengthen the Group's financial
resilience, we are exploring debt facility options with potential banking
partners. While the current macroeconomic environment continues to influence
customer decision-making, our new structure will enable increased focus on our
long-term priorities, which remain expanding recurring revenues, improving
margins, and generating cash.
On behalf of the Board, I would like to thank our team for their resilience
and shareholders for their continued support.
Jon Lee
Non-Executive Chairman
5 January 2026
Chief Executive Officer's Report
FY25 has been a year of significant operational progress for essensys, during
which the Group has achieved a number of important milestones supporting its
evolution. Focus has centred on the launch of elumo, the successful execution
of cost-saving initiatives, sustained customer engagement, and most recently,
the restructuring of the business to better support its two core products,
elumo and essensys Platform.
Financial Performance
Despite ongoing macroeconomic challenges, the Group achieved its stated goal
of returning to Adjusted EBITDA profitability, reporting £1.3m for the year.
This underscores the effectiveness of cost management initiatives,
simplification of operations, and a sharpened focus on strategic customers.
While revenue was broadly in line with market expectations, it was lower than
FY24 at £19.2m, reflecting the anticipated downsizing of a single large
strategic customer. Importantly, these results represent an evolution in the
Group's revenue mix: although earnings are lower in the short term, they are
of higher quality, with a greater proportion driven by software revenues. This
shift contributed to an improvement in gross margins to 59% (FY24: 57%).
Cash at year end was £1.8m (FY24: £3.1m). To further strengthen the Group's
financial resilience and support its long-term growth ambitions, essensys is
in active discussions to secure a debt facility. This process is designed to
optimise the Group's capital structure and ensure its ability to pursue key
growth opportunities. The Group remains debt free.
The Evolving Market Landscape
The real estate sector has faced significant volatility in recent years, but
the past 12 months have seen a notable shift in activity. Data shows that 48%
of UK businesses expect a full return to in-person working within the next
year, a trend mirrored internationally(1) and at the same time, the flexible
workspace sector is forecast to grow at a CAGR of 18% between 2025 and
2032(2). Coupled with the ongoing "flight to quality" in office space, these
dynamics create strong tailwinds for the Group across its core markets in the
UK, US and Australia.
While forecasts in the real estate sector continue to signal underlying
strength, macroeconomic instability across global markets is creating a more
cautious operating environment for essensys' customers. Inflation, interest
rate uncertainty, and wider geopolitical factors are affecting confidence and
investment planning, particularly in sectors sensitive to capital allocation
and long-term commitments. Against this backdrop, the Group has seen some
portfolio rationalisation as customers focus on their more profitable sites,
reflecting the bifurcation in the market. The Group is mindful of the
potential for extended sales cycles and a temporary moderation in sales
activity as customers adopt a more cautious approach to capital expenditure,
particularly for elumo.
1 British Chamber of Commerce: Office Return Varies Across Sectors. August
2025
2 Fortune Business Insights, Flexible Office Market Size, Share & COVID-19
Impact, 2025
Customers and Go to Market
Strategic customers continue to be a key priority for essensys, supported by
new product launches and a more flexible way of deploying connectivity.
As reported in the Group's Trading Update in November 2025, one of its
customers will not be renewing its essensys Platform contract, which
represents total annual recurring revenues of £0.9m. The current contract
concluded at the end of December 2025 and is already factored into management
forecasts and overall customer churn remains broadly in line with management
expectations.
essensys' growth strategy remains focused around three key pillars: Land,
Expand and Grow. New customer adoption is driven by two scalable entry points,
essensys Platform and the newly launched elumo, both of which provide
operators with digitally-enabled, flexible workspace solutions that help to
improve customer experience and support revenue generation. Expansion will
come from combining product innovation with site growth across core
geographies, while long-term growth will be achieved by deepening customer
relationships and positioning essensys as a strategic partner offering a suite
of products that underpin operational success.
elumo is an important driver of scalability within the Group's business model.
Since launch, it has secured initial sales across all of the Group's key
markets, the UK, US and Australia, most notably a portfolio deal with an
existing US customer spanning 20 sites. While macroeconomic conditions have
resulted in elongated sales cycles and slower-than-anticipated adoption, the
Group continues to expect strong medium-term demand.
To strengthen new customer acquisition, reduce customer churn and recognise
the different maturity levels of the Group's two core products, management has
restructured the business around their specific needs. A dedicated, agile team
has been formed to prioritise new business generation and accelerate the
adoption of elumo. In parallel, a focused essensys Platform team is
responsible for enhancing customer relationships, improving service delivery,
and proactively managing retention.
Product Development
By maintaining its focus on product development, the Group continues its
mission to help operational landlords and flexible workspace providers manage
the complexity of operating large multi-tenant portfolios. In the second half
of FY25, elumo was launched, providing a unique solution to transform how
bookable spaces are managed and monetised. It enables customers to unlock and
maximise revenue from under-utilised rooms while improving the user experience
and providing real-time utilisation and booking intelligence.
Benefits for operators:
· Shared spaces are transformed into revenue-generating assets.
· Instant, rule-based access ensures that only authorised users can
enter their digital environment.
· Real-time intelligence on utilisation and bookings enables every
square foot of space to be optimised.
· Charges are seamlessly passed into the customer's invoicing
platform of choice for onward billing to tenants.
elumo's intelligent IoT gateway also enables the collection of real-time
sensor data, providing the potential for the platform to evolve further,
unlocking additional opportunities to enhance how users interact with customer
spaces.
As previously stated, the Group has adapted the deployment of its network
services (essensys Cloud), providing customers with the ability to deploy
essensys Platform over existing connectivity and existing enterprise grade
hardware. This reduces barriers to adoption for essensys Platform customers
and aligns with market demand for pure-play SaaS solutions that address the
operational needs of multi-tenant real estate.
Taken together, the progress achieved over the past year reflects a stronger
revenue mix, a streamlined operating model with a reduced cost base, and an
ongoing focus on strategic customers, leaving the Group well positioned for
sustainable growth in the medium and long term.
Cost savings
A key milestone in the year was the completion of the data centre
decommissioning project, closing 10 data centres globally and delivering
annualised cost savings of £1.5m. This marks an important step in the
transition to a SaaS-first model and supports the Group in cash flow
generation and improved margins.
The post year end restructure around the Group's core products is expected to
generate additional annualised cost savings, further protect cash flow, and
support scalable operations.
Current Trading and Outlook
Revenue for the first quarter of FY26 amounted to £4.1m, which was broadly in
line with management expectations, and primarily driven by essensys Platform.
While customer interest in the Group's new product, elumo, remains strong, the
current macroeconomic environment has led to elongated sales cycles and slower
than anticipated adoption rates, which is expected to impact FY26 sales. The
Company does however continue to expect good adoption over the medium term.
essensys continues to see a clear "flight to quality" in the flexible
workspace market, as occupiers favour premium, well-specified spaces. This
reinforces the Group's strategic focus and positions the Company well for
evolving market preferences.
As noted above, recognising the distinct characteristics and different
maturity levels of the Group's two core products, management has restructured
the business around the specific needs of each. A focused agile team has been
established to drive the sales and adoption of elumo, whilst a dedicated
essensys Platform team will deliver an improved customer experience.
As a result of the above, management anticipates FY26 results to be materially
below their expectations. However, the Group remains committed to its
strategic objectives, supported by a focused go-to-market strategy and an
enhanced product suite aligned with customer needs.
essensys continues to monitor the volatile macroeconomic dynamics closely and
is focused on maintaining strong customer engagement, ensuring operational
resilience, and positioning the business to benefit as market confidence and
investment appetite improve. The Group is confident in its ability to
capitalise on the long-term structural tailwinds in the real estate market,
where demand for high quality flexible, technology-enabled solutions continues
to grow as companies return to office working.
Possible Offer
As announced on 28 November 2025, the Independent Directors of the Company,
(being the full Board except for Mark Furness) confirm that Mark Furness,
founder and a Non-Executive Director, has submitted a preliminary, indicative,
non-binding proposal to the Independent Directors relating to a possible
all-cash offer for the entire issued and to be issued share capital of the
Company at 20 pence per share (the "Possible Offer"). Any Possible Offer would
be made by a to-be-incorporated company.
The Independent Directors are in preliminary discussions with Mark Furness in
relation to the Possible Offer. These discussions are at an early stage, and
there can be no certainty that an offer will be made. A further update will be
provided in due course.
James Lowery
Chief Executive Officer
5 January 2026
Chief Financial Officer's Report
The financial results included in this announcement cover the Group's
consolidated activities for the twelve months ended 31 July 2025. The
comparatives for the previous twelve months were for the Group's consolidated
activities for the twelve months ended 31 July 2024.
Financial Key Performance Indicators
£'m unless otherwise stated Twelve months to July Twelve months to July Change
2025 2024
Group Total Revenue 19.2 24.1 -21%
North America 10.5 14.2 -26%
UK & Europe 7.2 8.5 -16%
APAC 1.5 1.4 6%
Recurring Revenue(1) 16.9 20.2 -17%
North America 9.4 12.3 -24%
UK & Europe 6.4 6.6 -3%
APAC 1.1 1.3 -15%
Recurring Revenue %age of Total 88% 84%
Run Rate Annual Recurring Revenue(1) 15.0 20.3 -26%
Recurring Revenue at constant currency 17.5 20.2 -13%
North America 9.8 12.3 -20%
UK & Europe 6.5 6.6 -2%
APAC 1.2 1.3 -8%
Run rate ARR 15.6 20.3 -23%
Non-recurring revenue 2.3 3.9 -41%
Gross Profit 11.3 13.7 -18%
Gross Profit percentage 59% 57%
Recurring Revenue margin %age 63% 62%
Operating Expenses (10.0) (14.6) 32%
Adjusted EBITDA(2) 1.3 (0.9) 244%
Statutory loss before tax (5.7) (5.5) -4%
Cash 1.8 3.1
1. Recurring revenue comprises income invoiced for services that are repeatable
and are consumed and delivered on a monthly basis over the term of a customer
contract. Run Rate Annual Recurring Revenue (Run Rate ARR) is an annualisation
of the recurring revenue for the month identified (July 2025); this is used by
management as an indication of the annual value of the recurring revenue for
that month and to monitor long term revenue growth of the business.
2. Adjusted EBITDA is the earnings on operating activities before depreciation
and amortisation, share based payment charges, credit loss provisions and
restructuring expenses.
Revenue
Group total revenue decreased by 21% to £19.2m in FY25 (FY24: £24.1m),
primarily due to the downsizing of a single large strategic customer, as
previously guided. Excluding this customer, Group total revenue decreased by
11% and recurring revenue decreased by 5%, reflecting the anticipated impact
of customer churn from smaller non-strategic customers and from our Cloud
business. At constant currency, stripping out the negative impact of movements
in the US Dollar, recurring revenue declined by 1%.
Run Rate ARR decreased by 26% year on year, again driven by the downsizing of
the customer above. Excluding this customer and at constant currency, Run Rate
ARR decreased by 5%. This again reflects the anticipated impact of customer
churn from smaller non-strategic customers and from our Cloud business.
ARR from strategic customers decreased by 2%. This was driven by some property
portfolio rationalisation as customers focus on their more profitable sites,
as well as the continuing shift in product mix away from our lower margin
Cloud product and into essensys Platform software products. essensys Platform
now accounts for 72% of ARR (FY24: 67%). ARR from strategic customers
continues to account for 79% (FY24: 82%). Excluding the single large customer
above, the proportion of ARR from strategic customers increased by 2
percentage points to 72% (FY24: 70%).
From a regional perspective, North America remains our largest revenue
contributor. While North America declined by 31% in terms of site numbers,
this mainly related to the single customer above downsizing. Excluding this
customer and at constant currency, Run Rate ARR for North America decreased by
1% and still accounts for 51% of total ARR (FY24: 49%). While UK and Europe
ARR declined by 15%, this was driven by losses of non-strategic customers and
reduced demand for our Operate solution. We have seen net site growth in this
region with closing site numbers up 7 on FY24 year end. APAC growth continued
with 15 new sites live in the year, an increase of 58%.
Non-recurring revenue comprises set up and installation costs and is
recognised when a site is live. Non-recurring revenue reduced by 41% compared
to FY24, reflecting challenging market conditions, with customers continuing
to show hesitancy in capital investment. With initiatives to simplify
installation completed in the year, as well as the launch of elumo, we expect
a reduced requirement for customers to need upfront investment, reducing
barriers to adoption and supporting future recurring revenue growth.
Gross profit
Gross profit decreased by 18% in the year, reflecting the reductions seen in
revenue. Gross margins improved to 59% (FY24: 57%), driven by the changes seen
in product mix, with an increasing amount of higher margin software from
essensys Platform relative to declines in its Cloud product. As a result,
recurring revenue margins increased by 1 percentage point to 63%. The emphasis
on recurring revenue has also driven an increase in margins, with a lower
proportion of non-recurring revenue.
Margins also benefitted from the Company's strategy to transition to a pure
play SaaS model, which no longer requires essensys Cloud to deliver and which
allowed essensys to successfully complete its FY25 data centre decommissioning
project, closing 10 centres in the year as planned, with a further final two
planned for closure in FY26. The annualised cost savings realised by the
completion of this project total £1.5m, positioning the business to deliver
stronger cash generation, higher margins and greater scalability, whilst
better aligning with customer requirements.
Operating expenses
Operating expenses represent all administrative expenses, excluding
restructuring costs and non-cash items of depreciation, amortisation,
impairment and share option charges.
Operating expenses decreased by £4.6m (32%) compared to the prior year. This
reflects the continuing emphasis on cost management and operational
simplification in the business, as we control costs in the face of the
challenging economic environment and builds on the savings achieved in FY24
through the Group reorganisation.
Adjusted EBITDA
Adjusted results are prepared to provide a more comparable indication of the
Group's core business performance by removing the impact of certain items
including exceptional items (material and non-recurring), and other,
non-trading, items that are reported separately. Adjusted results exclude
adjusting items as set out in the statement of consolidated loss and below,
with further details given in Notes 7 and 8 of the financial statements. In
addition, the Group also measures and presents performance in relation to
various other non-IFRS measures, such as recurring revenue, run-rate annual
recurring revenue and revenue growth.
Adjusted results are not intended to replace statutory results. These have
been presented to provide users with additional information and analysis of
the Group's performance, consistent with how the Board monitors results.
Adjusted EBITDA (being EBITDA prior to exceptional restructuring costs and
non-cash impairment and share based payment) is calculated as follows:
£'m 2025 2024
Operating loss (5.6) (5.4)
Add back:
Depreciation & amortisation 4.3 4.7
Impairment of goodwill 0.9 -
Exceptional restructuring costs 1.4 0.2
Share based payment expense 0.3 (0.4)
Adjusted EBITDA 1.3 (0.9)
Despite the challenging sales environment and lower revenues in the year, the
Group achieved a return to profitability, as seen in Adjusted EBITDA of
£1.3m. This was an improvement of £2.2m vs. FY24, reflecting the Group's
continued focus on profitability and cash, which more than offset the
reduction in revenue and gross profit.
The Group continues to invest in product development in the UK. Where such
work is expected to result in future revenue, costs incurred that meet the
definition of software development in accordance with IAS38, Intangible
Assets, are capitalised in the statement of financial position. During the
year, the Group capitalised £2.0m in respect of software development (FY24:
£2.1m). This level of investment is reflected in the progress made in
developing our products, with elumo launched in H2 FY25, and allows us to
introduce innovation in our products, which is expected to drive the next
phase of our growth.
Taxation
The Group recognised a £0.3m tax credit in the year in respect of R&D
activities for the current financial year. This follows tax credits of £2.2m
recognised in FY24 for R&D activities from FY21 to FY24.
Excluding this, the Group incurred a tax charge in the year of £0.1m (FY24:
£0.1m), which represents taxes paid on foreign income in the year. There
remains over £8.5m in Group carried forward taxable losses and therefore
there is no expectation of tax payments in the short term.
Cash
Cash at the year end was £1.8m (FY24: £3.1m). Cash at the half year was
£2.2m, with cash outflows in H2 reduced to £0.4m. This was supported by tax
credits in respect of R&D activities received in H2 of £0.3m, with an
underlying cash outflow of £0.7m, compared to £0.9m in H1.
Following the year end, the Group has undertaken a restructure of the business
around the specific needs of its two core products, essensys Platform and
elumo, recognising the distinct characteristics and different maturity levels
of each. This will generate further cost savings and in addition to the cost
savings already realised from the completion of the data centre
decommissioning project, protects the Group's cash position going forward.
To further strengthen the Group's financial resilience and support its
strategic growth objectives, essensys is in active discussions to secure a
debt facility. This process is designed to optimise the Group's capital
structure and ensure that essensys has the capacity to pursue key growth
opportunities. Excluding leases, the Group is currently debt free.
In light of the continued impacts of global macroeconomic uncertainty, the
Board has considered a number of different scenarios regarding trading and
financial performance into FY26 and beyond and is confident that, in the event
of a significant long-term downturn, the Group will have sufficient cash
resources for the foreseeable future.
Greg Price
Chief Financial Officer
5 January 2026
essensys plc
Consolidated Statement of Comprehensive Loss
for the year ended 31 July 2025
Notes 2025 2024
£000 £000
Turnover 2 19,182 24,131
Cost of sales (7,947) (10,393)
_________ _________
Gross profit 11,235 13,738
Administrative expenses 3 (16,545) (19,566)
Share based payment expense (325) 448
_________ _________
Operating loss 4 (5,635) (5,380)
Interest receivable and similar income - 21
Interest payable and similar charges (82) (133)
_________ _________
Loss before taxation (5,717) (5,492)
Taxation 5 148 2,183
_________ _________
Loss for the year from continuing operations (5,569) (3,309)
_________ _________
Other comprehensive loss
Items that may be reclassified to profit or loss:
Currency translation differences (18) (59)
_________ _________
Other comprehensive loss for the year (18) (59)
_________ _________
Total comprehensive loss for the year (5,587) (3,368)
_________ _________
Basic and Diluted loss per share 6 (8.6p) (5.1p)
_________ _________
essensys plc
Consolidated Statement of Financial Position
as at 31 July 2025
Notes 2025 2024
£000 £000
ASSETS
Non-current assets
Intangible assets 7 7,949 9,426
Property, plant and equipment 622 847
Right of use assets 572 1,319
_________ _________
9,143 11,592
Current assets
Inventories 732 888
Trade and other receivables 4,524 7,143
Cash at bank and in hand 1,781 3,101
_________ _________
7,037 11,132
_________ _________
TOTAL ASSETS 16,180 22,724
_________ _________
EQUITY AND LIABILITIES
EQUITY
Shareholders' equity
Called up share capital 162 162
Share premium 51,660 51,660
Merger reserve 28 28
Retained earnings (40,348) (35,086)
_________ _________
TOTAL EQUITY 11,502 16,764
LIABILITIES
Non-current liabilities
Lease liabilities - 432
_________ _________
- 432
Current liabilities
Trade and other payables 3,120 3,844
Contract liabilities 761 648
Lease liabilities 673 1,008
Current taxes 124 28
_________ _________
4,678 5,528
_________ _________
TOTAL LIABILITIES 4,678 5,960
_________ _________
TOTAL EQUITY AND LIABILITIES 16,180 22,724
_________ _________
essensys plc
Consolidated Statement of Changes in Equity
for the Year Ended 31 July 2025
Share Share Merger Retained Total
capital premium Reserve earnings equity
£000 £000 £000 £000 £000
1 August 2024 162 51,660 28 (35,086) 16,764
Comprehensive loss for the year
Loss for the year - - - (5,569) (5,569)
Currency translation differences - - - (18) (18)
_______ _______ _______ _______ _______
Total comprehensive loss for the year - - - (5,587) (5,587)
_______ _______ _______ _______ _______
Transactions with shareholders
Share based payment charge - - - 325 325
_______ _______ _______ _______ _______
31 July 2025 162 51,660 28 (40,348) 11,502
_______ _______ _______ _______ _______
Consolidated Statement of Changes in Equity
For the Year Ended 31 July 2024
Share Share Merger Retained Total
capital premium Reserve earnings equity
£000 £000 £000 £000 £000
1 August 2023 161 51,660 28 (31,270) 20,580
Comprehensive loss for the year
Loss for the year - - - (3,309) (3,309)
Currency translation differences - - - (59) (59)
_______ _______ _______ _______ _______
Total comprehensive loss for the year - - - (3,368) (3,368)
_______ _______ _______ _______ _______
Transactions with shareholders
Share based payment charge - - - (448) (448)
_______ _______ _______ _______ _______
31 July 2024 162 51,660 28 (35,086) 16,764
_______ _______ _______ _______ _______
essensys plc
Consolidated Statement of Cash Flows
for the Year Ended 31 July 2025
Notes 2025 2024
£000 £000
Cash generated from / (used by) operations 9 A 1,019 (2,010)
Corporation tax received 1,231 860
Foreign exchange differences - 82
_________ _________
Net cash generated from / (used by) operating activities 2,250 (1,068)
_________ _________
Cash flows from investing activities
Purchases of intangible assets 7 (2,105) (2,077)
Purchases of property plant and equipment (448) (34)
Interest received - 21
_________ _________
Net cash used in investing activities (2,553) (2,090)
_________ _________
Cash flows from financing activities
Repayment of lease principal (917) (1,408)
Interest paid on lease liabilities (82) (133)
_________ _________
Net cash used in financing activities (999) (1,541)
_________ _________
Net decrease in cash and cash equivalents (1,302) (4,699)
Cash and cash equivalents at beginning of year 3,101 7,862
Effects of foreign exchange rate changes on cash and cash equivalents (18) (62)
_________ _________
Cash and cash equivalents at end of year 1,781 3,101
_________ _________
Cash and cash equivalents comprise:
Cash at bank and in hand 1,781 3,101
_________ _________
1 Basis of Preparation
The consolidated statement of comprehensive loss, the consolidated statement
of financial position, the consolidated statement of changes in equity, the
consolidated statement of cash flows and the associated notes for the year
ended 31 July 2025 have been extracted from the Group's financial statements
upon which the auditor's opinion is unqualified and does not include any
statement under section 498 of the Companies Act 2006.
There were no new standards or amendments or interpretations to existing
standards that became effective during the year that were material to the
Group.
No new standards, amendments or interpretations to existing standards having
an impact on the financial statements that have been published and that are
mandatory for the Group's accounting periods beginning on or before 1 August
2025, or later periods, have been adopted early.
Whilst the financial information included in this announcement has been
computed in accordance with international accounting standards, this
announcement does not itself contain sufficient information to comply with all
IFRS disclosure requirements. The Company's 2025 Annual Report and Accounts
will be prepared in compliance with UK-adopted International Accounting
Standards (IFRS).
This announcement does not constitute a dissemination of the annual financial
report and does not therefore need to meet the dissemination requirements for
annual financial reports. A separate dissemination announcement in accordance
with the Disclosure Guidance and Transparency Rules (DTR) 6.3 will be made
when the annual report and audited financial statements are available on the
Company's website.
Statutory Information
The financial information included in this announcement does not constitute
statutory accounts and is consistent with the accounting policies of the
Group, which were set out on pages 56 to 63 of the 2024 Annual Report and
Accounts.
The statutory accounts for the year ended 31 July 2025 will be finalised on
the basis of the financial information presented by the directors in this
announcement and will be delivered to the Registrar of Companies following the
Group's Annual General Meeting. The announcement of the results was approved
on behalf of the Board of directors on 6 January 2026.
2 Segmental Reporting
The Group generates revenue largely in the UK and the US. The majority of the
Group's customers provide flexible office facilities together with ancillary
services (e.g. meeting rooms and virtual services) including technology
connectivity.
The Group generates revenue from the following activities:
· Establishing services at customer sites (e.g. providing and
managing installations, equipment and training on software);
· Recurring monthly fees for using the Group's software
platforms and technology;
· Revenue from usage of on demand services such as internet and
telephone usage and other, on demand, variable services; and
· Other ad-hoc service.
The Group has one single business segment which is the provision of software
and technology platforms that manage the critical infrastructure and business
processes, primarily to the flexible workspace segment of the real estate
industry. The Group has two revenue streams and three geographical segments,
as detailed in the tables below.
2A Revenue analysis by geographic area
The Group operates in two main geographic areas, the United Kingdom and North
America. The whole of the turnover is attributed to the principal activity.
The Group's revenue per geographical segment is as follows:
2025 2024
£000 £000
Analysis of turnover by country of destination:
North America 10,474 14,158
United Kingdom and Europe 7,170 8,519
Asia Pacific region 1,538 1,454
Total Income 19,182 24,131
2B Revenue analysis by revenue streams
The Group has two main revenue streams, essensys Platform and Operate. The
Group's revenue per revenue stream is as follows:
2025 2024
£000 £000
essensys Platform 18,005 22,671
Operate 1,177 1,460
Total Income 19,182 24,131
essensys Platform revenue includes all revenue generated in relation to the
essensys Platform product. It includes revenue recognised at a point in time
as well as recognised over a period of time.
Operate revenue includes all revenue generated in relation to the Group's
Operate product. The revenue is recognised over a period of time.
2C Revenue disaggregated by 'point in time' and 'over time'
The Group revenue disaggregated between revenue recognised 'at a point in
time' and 'over time' is as follows:
2025 2024
£000 £000
Revenue recognised at a point in time 2,297 3,874
Revenue recognised over time 16,885 20,257
Total Income 19,182 24,131
2D Revenue from customers greater than 10% of total revenue
Revenue from customers greater than 10% in each reporting period is as
follows:
2025 2024
£000 £000
Customer 1 2,857 5,917
2E Contract assets and liabilities
Contract asset movements were as follows:
2025 2024
£000 £000
At 1 August 854 468
Transfers in the period from contract assets to trade receivables (256) (176)
Excess of revenue recognised over cash (or rights to cash) being recognised 159 242
during the period
Capital asset contract contributions capitalised - (21)
Capital asset contract contributions released as contract obligations are - -
fulfilled
Capitalised commission cost released as contract obligations fulfilled (349) (356)
Commission costs capitalised on contracts 275 697
At 31 July 683 854
Contract liability movements were as follows:
2025 2024
£000 £000
At 1 August 648 420
Amounts included in contract liabilities that were recognised as revenue (648) (420)
during the period
Cash received and receivables in advance of performance and not recognised as 761 648
revenue during the period
At 31 July 761 648
Contract assets are included within 'trade and other receivables' and contract
liabilities is shown separately on the face of the statement of financial
position. Contract assets arise from the Group's revenue contracts, where work
is performed in advance of invoicing customers, and contract liabilities arise
where revenue is received in advance of work performed. Cumulatively, payments
received from customers at each balance sheet date do not necessarily equal
the amount of revenue recognised on the contracts. Capital asset contract
contributions represent costs incurred by the Group in the form of customer
incentives spread over the life of the customer contract. Commission costs
capitalised on contracts represents internal sales commission costs incurred
on signing of customer contracts and, in line with the requirements of IFRS15,
spread over the life of the customer contract.
3 Restructuring costs
Restructuring costs were as follows:
2025 2024
£000 £000
Restructuring costs 1,360 207
Included within administrative expenditure are costs associated with a
restructuring programme undertaken by the Group during the year. These costs
represent an adjusting item to derive the Group's Adjusted EBITDA for the year
ended 31 July 2025, an alternative performance measure not defined in
UK-adopted International Accounting Standards.
During the year, the Group incurred restructuring costs, as it completed its
data centre decommissioning project, closing 10 data centres in the year as
planned, with a final further two planned for closure in FY26. In completing
this project, the Group incurred one-off costs of c.£0.6m. This includes
early termination costs and short term lease extensions of £0.3m, with the
balance being the apportionment of cost for the time incurred by the team in
delivering the project.
In addition, the Group also undertook headcount restructuring during the year,
as it looked to reduce cost in the face of the challenging economic
environment. As such, these costs reflect the impact of redundancies from this
restructuring, which are non-recurring in nature.
4 Operating loss
2024 2024
£000 £000
This is arrived at after charging/(crediting):
Amortisation of intangible assets 2,716 2,710
Depreciation of tangible fixed assets 569 765
Depreciation of right of use assets 1,046 1,247
Impairment of goodwill 866 -
Fees payable to the Group's auditor (see below) 159 150
Exchange differences 32 (5)
Research & Development expense 1,977 1,988
Staff costs 10,265 13,517
Share based payments 325 (448)
Analysis of fees paid to the Group's auditor:
Annual financial statements - group and parent company 158 150
Audit Fee 158 150
Assurance services - -
Other services 1 -
Non audit services 1 -
Total fee 159 150
5 Taxation on loss on ordinary activities
2025 2024
£000 £000
Current tax
UK corporation tax (282) (300)
Adjustment in respect of previous periods 27 (1,937)
Foreign tax on income for the year 107 54
Total current tax (148) (2,183)
Deferred tax
Origination and reversal of timing differences - -
Adjustments in respect of prior periods - -
Total deferred tax - -
Taxation on loss on ordinary activities (148) (2,183)
The tax assessed for the year is higher than the standard rate of corporation
tax in the UK applied to profit before tax. The differences are explained
below:
2025 2024
£000 £000
Loss on ordinary activities before tax (5,717) (5,492)
Tax using the Group's domestic tax rates (25% (2024:25%)) (1,429) (1,373)
Effects of:
Fixed asset differences 177 70
Expenses not deductible for tax purposes 291 (70)
Deductions for R&D expenditure relating to the current year (282) (300)
Deductions for R&D expenditure relating to prior years - (1,937)
Difference in current tax and deferred tax rates - -
Other permanent differences (349) (506)
Deferred tax not recognised 1,444 1,933
Total tax (credit) / charge for period (148) (2,183)
The Group received two payments in the year in relation to claims made in the
prior year for UK research and development tax relief that resulted in
receipts totalling £1,243,000. As a result of the successful claims made,
management believe that a claim for this accounting period will mean a receipt
for the sum of £250,000 is probable in the next accounting period and as such
have recognised a receivable of the same amount.
6 Earnings per share
2025 2024
Basic weighted average number of shares 64,712,974 64,677,667
Fully diluted weighted average number of shares 64,712,974 64,677,667
2025 2024
£000 £000
Loss for the year attributable to owners of the Group (5,569) (3,309)
Basic and diluted loss per share (pence) (8.6p) (5.1p)
The loss per share has been calculated using the loss for the year and the
weighted average number of ordinary shares outstanding during the period.
Share options held at the year-ended 31 July 2025 are anti-dilutive and so
have not been included in the diluted earnings per share calculation.
7 Intangible assets
Assets in the course Customer Internal software
Group of construction relationships development Software Goodwill Total
£000 £000 £000 £000 £000 £000
Cost
At 1 August 2024 1,032 335 18,219 280 1,263 21,129
Additions 40 - 2,065 - - 2,105
Transfers (1,072) - 1,072 - - -
Disposals - - (5,728) - - (5,728)
At 31 July 2025 - 335 15,628 280 1,263 17,506
Amortisation
At 1 August 2024 - 335 10,691 280 397 11,703
Charge for year - - 2,716 - - 2,716
Impairment - - - - 866 866
Disposals - - (5,728) - - (5,728)
At 31 July 2025 - 335 7,679 280 1,263 9,557
Net book value
At 31 July 2025 - - 7,949 - - 7,949
At 31 July 2024 1,032 - 7,528 - 866 9,426
Goodwill relates to the acquisition of Hubcreate Limited on 18 February 2016.
The goodwill all relates to the Operate cash generating unit (CGU).
Capitalised internal software development costs relates to both the essensys
CGUs, the first CGU being essensys Platform and the second CGU being Operate.
The amounts specific to each CGU can be separately determined. Management do
not consider elumo to be a separate CGU.
The Group estimates the recoverable amount of the Operate CGU using a value in
use model by projecting pre-tax cash flows for the next 5 years. The key
assumptions underpinning the recoverable amount of the CGU are forecast
revenue and forecast EBITDA. The forecast revenues in the model are based on
management's past experience and future expectations of performance. The
post-tax discount rate used in all periods is 14% derived from a WACC
calculation and benchmarked against similar organisations within the sector.
Management do not anticipate this CGU providing long term future cash flows
for the group. As such the latest projection shows an average 15% decline in
revenue year on year, which is consistent with the average decline in revenue
over the last three financial years. Using a discount rate of 14% (2023: 14%)
has resulted in an additional impairment, and as such the remaining goodwill
has been fully impaired, with an additional impairment charge recognised in
the year of £866,000 (2024: £nil).
The Directors consider that, based on their projections which incorporate an
estimated rate of revenue decline, no impairment charge should be recognised
against the carrying value of capitalised development costs of £678,000
(2024: £818,000) allocated to the Operate CGU and which represents its
carrying value, which is considered its recoverable amount.
The Group estimates the recoverable amount of the essensys Platform CGU using
a value in use model by projecting pre-tax cash flows for the next 5 years
including a terminal value calculation after the fifth year. The key
assumptions underpinning the recoverable amount of the CGU are forecast
revenue and forecast EBITDA. The forecast revenues in the model are based on
management's past experience and future expectations of performance. The
long-term growth rate used in the value in use calculation was 7.5%, with
sensitivity analysis also performed to consider the impact of lower rates of
growth. When taking into account current and projected near-term performance
of the Platform CGU, the short and long-term growth rate would need to fall
below 0% to remove any headroom between value in use and current carrying
value. The post-tax discount rate used in all periods is 14% derived from a
WACC calculation and benchmarked against similar organisations within the
sector. Using a discount rate of 14% resulted in no impairment of the essensys
Platform CGU.
The asset in course of construction capitalised this year is the cost for
development of the software for the Group's dynamic access control solution,
elumo. The asset has now been launched and so costs have been transferred to
Internal software development from Assets in the course of construction.
Assets in the course Customer Internal software
Group of construction relationships development Software Goodwill Total
£000 £000 £000 £000 £000 £000
Cost
At 1 August 2023 622 335 16,552 280 1,263 19,052
Additions 410 - 1,667 - - 2,077
Transfers - - - - - -
At 31 July 2024 1,032 335 18,219 280 1,263 21,129
Amortisation
At 1 August 2023 - 335 7,981 280 397 8,993
Charge for year - - 2,710 - - 2,710
Impairment - - - - - -
At 31 July 2024 - 335 10,691 280 397 11,703
Net book value
At 31 July 2024 1,032 - 7,522 - 866 9,426
At 31 July 2023 622 - 8,571 - 866 10,059
8 Events after the reporting date
As announced on 28 November 2025, Mark Furness, founder and a Non-Executive
Director, submitted a preliminary, indicative, non-binding proposal relating
to a possible all-cash offer for the entire issued and to be issued share
capital of the Company at 20 pence per share. Preliminary discussions
regarding the possible offer are at an early stage, and there can be no
certainty that an offer will be made.
9 Notes supporting statement of cash flows
9 A Cash from operations
2025 2024
£000 £000
Cash flows from operating activities
Loss for the financial year before taxation (5,717) (5,492)
Adjustments for non-cash/non-operating items:
Amortisation of intangible assets 2,716 2,710
Depreciation of property, plant and equipment 569 765
Depreciation of right of use assets 1,046 1,247
Impairment of goodwill 866 -
Movement in expected credit loss provision 283 153
Inventory obsolescence provision 180 290
Share based payment expense 325 (448)
Losses on foreign exchange transactions 32 (5)
Finance income - (21)
Finance expense 82 133
Other 94 (160)
476 (828)
Changes in working capital:
(Increase)/decrease in inventories (24) 1,082
Decrease/(increase) in trade and other receivables 1,177 (1,497)
Decrease in trade and other payables (610) (767)
Cash generated from/ (used by) operations 1,019 (2,010)
9 B Movement in net debt
Cash and cash equivalents Leases Total
£000 £000 £000
As at 31 July 2023 7,862 (1,571) 6,291
Lease additions - (1,074) (1,074)
Effect of modifying lease term - (293) (293)
Cashflow (4,699) 1,592 (3,107)
Interest charge - (86) (86)
Exchange movements (62) (8) (70)
As at 31 July 2024 3,101 (1,440) 1,661
Lease additions - (211) (211)
Effect of modifying lease term - 31 31
Cashflow (1,302) 999 (303)
Interest charge - (60) (60)
Exchange movements (18) 8 (10)
As at 31 July 2025 1,781 (673) 1,108
Cash and cash equivalents Total
Leases
£000 £000 £000
Balances as at 31 July 2025
Current assets 1,781 - 1,781
Current liabilities - (673) (673)
Non-current liabilities - - -
1,781 (673) 1,108
Cash and cash equivalents Total
Leases
£000 £000 £000
Balances as at 31 July 2024
Current assets 3,101 - 3,101
Current liabilities - (1,008) (1,008)
Non-current liabilities - (432) (432)
3,101 (1,440) 1,661
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