REG - essensys PLC - Full year trading update

essensysAnnouncement

31/08/2023 07:00

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RNS Number : 8604K  essensys PLC  31 August 2023

 

 

31 August 2023

essensys plc

("essensys" or the "Group")

 

Full year trading update

Good progress with accelerated strategy to drive profitability and cash
generation

Adjusted EBITDA loss and year-end cash expected to be in line with market
expectations

High single-digit revenue growth

 

essensys plc (AIM:ESYS), the leading global provider of software and
technology to the flexible workspace industry, announces a pre-close trading
update for the financial year ended 31 July 2023 ("FY23").  All figures in
this announcement relate to the FY23 period unless otherwise stated.

 

Revenues are expected to grow by c.9% to £25.3m, driven by momentum in the US
market, which remains our primary growth market.  This is a resilient
performance in the current macroeconomic climate.

 

At the end of the financial year, we accelerated our plans to return to
sustainable growth, profitability and cash generation and the Adjusted
EBITDA(1) loss for FY23 and cash at the year-end are expected to be in line
with market expectations.  The restructuring of our global operations - to
align our cost base and investments to our revenue base and the near-term
market opportunity - is largely complete, with a reduction in headcount from
184 at its peak to 122, and the exceptional and non-recurring costs of
achieving this will be reported below Adjusted EBITDA in FY23. essensys is now
a leaner organisation and has an appropriate operational structure to support
our customers and deliver our long-term strategy.

 

Our focus on larger strategic clients continues to deliver operational
efficiencies and an improvement in our customer mix, whilst also driving our
product roadmap and sales pipeline.

 

essensys ended FY23 with a cash balance of £7.9m, in line with market
expectations after adjusting for the timing of final payments of approximately
£1m to achieve the group reorganisation.  The Group remains debt-free and on
track to return to run rate  positive Adjusted EBITDA in FY24.  Net cash
generation is expected in FY25, achieved within current cash resources.

 

Mark Furness, Chief Executive Officer of essensys, said:

"To accelerate our return to profitability and sustainable growth, we have
taken action to manage our cost base.  The reorganisation is now complete and
gives us a strong base from which to support our customers' expansion plans.
We remain on track to meet our target of run-rate positive Adjusted EBITDA in
FY24. We continue to support larger, tier one customers as they look to expand
their premium flexible workspace offering.

 

"essensys creates seamless in-building experiences for flexible operations by
removing complexity and reducing costs through automation and
simplification.  We remain confident of the long-term structural growth
opportunity in the flexible office space - and well-placed to meet ongoing
demand from larger flexible workspace operators for premium flexible workspace
products."

 

For further information, please contact:

 

 essensys plc                                                         +44 (0)20 3102 5252
 Mark Furness, Chief Executive Officer
 Sarah Harvey, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser and Broker)                +44 (0)20 7496 3000
 Peter Steel / Harry Gooden / James Fischer

 FTI Consulting
 Jamie Ricketts / Eve Kirmatzis / Talia Shirion / Victoria Caton      +44 (0)20 3727 1000

 

Notes

1.     Adjusted EBITDA is earnings before interest, tax, depreciation,
amortisation, exceptional restructuring costs and other non-trading items such
as impairment, share option charges and exchange differences.

 

About essensys plc

essensys is the leading global provider of software and technology for
flexible, digitally-enabled spaces, buildings and portfolios. The essensys
Platform simplifies and automates the delivery and management of next
generation, flexible, multi-tenant real estate.

 

The real estate industry is transforming - it must be flexible to changing
market demands, accommodate hybrid working styles, provide move-in ready
spaces and deliver frictionless experiences and on-demand services. The office
sector is becoming an increasingly digital-first landscape - driven by
end-user demand and delivering digitally enabled spaces is key to success. Our
software and technology is designed and developed to help solve the complex
operational challenges faced by landlords and flexible workspace operators as
they grow and scale their operations. We help our customers to deliver a
simple, secure and scalable proposition, respond to changing occupier demands
in a hybrid world, provide seamless occupier experiences, and realise smart
building and ESG ambitions.

 

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.

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