REG - essensys PLC - Full Year Trading Update

essensysAnnouncement

24/08/2022 07:00

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RNS Number : 9836W  essensys PLC  24 August 2022

 

24 August 2022

 

essensys plc

 

("essensys" or the "Group")

 

Full Year Trading Update

 

Trading in line with market expectations and good strategic progress against
long term plan

 

essensys plc (AIM:ESYS), a leading global software and technology provider
delivering digitally enabled buildings, spaces and services for landlords and
flex workspace operators, is pleased to announce a pre-close trading update
for the financial year ended 31 July 2022 ("FY22").

 

During the year essensys has made good progress against its strategic growth
plan and seen momentum returning. The Group has agreed the renewal of
multi-year contracts with its largest customers in both the UK and the US, who
are accelerating their own expansion plans, underpinning future revenue
growth. The Group has also won multiple new customers in the year and
strategic engagements continue with a number of large global landlords.

 

essensys' operations in APAC and Europe have been established with new
customer sites now live and the business has adopted a 'capital light' model
to support its continued growth in new geographies which will reduce the
capital required for that expansion.

 

Investment in product and people continues in line with business plan, both in
the essensys Platform which provides additional capability to customers, and
in its smart access product, which enables a secure touchless digital building
experience.

 

Revenue and adjusted EBITDA(1) in FY22 are expected to be in line with
consensus market expectations. As at year end the Group had contracted new
business which is expected to deliver £1.6m of annual recurring revenue (ARR)
once live. Looking ahead, the Group has a healthy new business pipeline of
opportunities.

 

The Group ended the year with a strong cash balance of £24 million, ahead of
management's expectations, which will support its strategic plans. The Group
remains debt free.

 

Mark Furness, Chief Executive Officer of essensys, said:

 

"I am pleased to report good strategic progress against our long term plan
despite continued challenging conditions. It is clear that hybrid working
arrangements are here to stay and that the structural drivers that are
changing the commercial real estate industry - flexibility, digitalisation and
sustainability are becoming ever more embedded; underpinning our long-term
growth plans as the impact of the Covid-19 pandemic recedes.

 

We continue to invest in our product pipeline and we are seeing evidence that
larger flexible workspace operators have resumed their expansion plans and
traditional real estate operators are making positive steps to implement
flexible workspace offerings following some rationalisation.

 

essensys plays a vital role in supporting real estate players to create
seamless in-building experiences in their flexible operations by removing
complexity and reducing costs through automation and simplification and we
remain confident in the market and opportunity for the Group in FY23 and
beyond."

 

Change of adviser

essensys also announces that from 26 August 2022, Singer Capital Markets, the
Group's nominated adviser, will act as sole broker to the Group.

 

 

The information contained within this announcement is deemed to constitute
inside information for the purposes of the UK Market Abuse Regulation. Upon
the publication of this announcement, this inside information is now
considered to be in the public domain.

 

For further information, please contact:

 

 essensys plc                                                      +44 (0)20 3102 5252
 Mark Furness (Chief Executive Officer)

Sarah Harvey (Chief Financial Officer)

Alan Pepper (Chief Operating Officer)
 Singer Capital Markets (nominated adviser and broker)             +44 (0)20 7496 3000
 Peter Steel / Harry Gooden / George Tzimas
 FTI Consulting (public relations adviser)                         +44 (0)20 3727 1000
 Jamie Ricketts / Eve Kirmatzis / Talia Jessener / Victoria Caton

 

About essensys plc

 

essensys is a leading global software and technology company designed to
deliver digitally enabled spaces, buildings and portfolios: the intelligent
digital backbone for commercial real estate.

 

The essensys Platform connects, controls, and automates digital services,
enabling landlords and flex workspace operators to create seamless in-building
experiences.

 

Through unique intelligent network automation the essensys Platform removes
operational complexity, automating the provisioning and management of
in-building networks, and reducing costs by simplifying the delivery and
management of flexible and digitally enabled space.

 

Founded in 2006 and listed on the AIM market of the London Stock Exchange
since 2019, essensys is active in the UK, Europe, North America and APAC.

Notes

(1 )Adjusted for share option charges

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