REG - essensys PLC - Full Year trading update

essensysAnnouncement

29/08/2024 07:00

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RNS Number : 0706C  essensys PLC  29 August 2024

 

29 August 2024

essensys plc

 

("essensys" or the "Group")

 

Full Year trading update

 

Revenue, EBITDA and cash ahead of market expectations

On track to be EBITDA positive in FY25

 

essensys plc (AIM:ESYS), the leading global provider of software and
technology to the flexible workspace industry, is pleased to announce a
pre-close trading update for the financial year ended 31 July 2024 ("FY24").
All information relates to this period, unless otherwise specified.

 

FY24 performance is expected to be ahead of market expectations for revenue,
adjusted EBITDA and cash. This reflects the continued execution of essensys'
strategy to deliver near-term profitability and cash generation in FY25.

 

The Group expects to report revenue of £24.0m and an adjusted EBITDA(1) loss
of not more than £0.9m (£6.1m EBITDA loss in FY23), with losses narrowing
substantially in the period as the operational efficiencies expected following
our reorganisation in FY23 were fully realised.

 

Cash of £3.1m at year end was significantly ahead of expectations, reflecting
improved profitability and the receipt of an R&D tax credit of £0.8m (for
FY22).  The Group remains debt-free.

 

As announced at our H124 results in April 2024, essensys signed two major
expansion contracts with strategic customers in the year.  These roll-outs
remain on track with the contracts expected to deliver a minimum of £1.5m ARR
by September 2025, helping to underpin our confidence in FY25.

 

Our focussed investment in product continued in the year with all customers
now upgraded from our legacy product, Connect, to our pure-play SaaS product,
essensys Platform. This evolution of our proposition and the launch of new
functionality, such as essensys Platform Intelligence Engine, continues to
improve our revenue mix and is expected to improve gross margins going
forwards.

 

Mark Furness, Chief Executive Officer of essensys, said:

 

"I am pleased with the progress we have made in the year and to be reporting
revenue, adjusted EBITDA and cash ahead of market expectations. The successful
migration to our pure-play SaaS product, essensys Platform, is a pivotal
moment in our strategy.

 

"Whilst market conditions remain challenging, with continued pressure on capex
budgets, our evolved proposition and ability to deploy essensys Platform over
existing networks is helping to lower entry costs for our customers and the
recent release of our latest addition to essensys Platform, Intelligence
Engine, is helping to further differentiate our offer and meet growing
customer demand for data and insight.

 

"We remain focussed and committed to our strategy and are on track for
positive EBITDA and cash generation in FY25. We look forward to the future
with renewed confidence."

 

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)
 Singer Capital Markets (nominated adviser and broker)  +44 (0)20 7496 3000
 Peter Steel / James Fischer
 FTI Consulting (public relations adviser)              +44 (0)20 3727 1000
 Jamie Ricketts / Eve Kirmatzis / Talia Shirion

 

 

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.

Notes

(1 )Adjusted for share option charges and exceptional restructuring costs

 

 

 

 

 

 

 

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