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 EBITDA1 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:
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essensys plc
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+44 (0)20 3102 5252
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Mark Furness (Chief Executive Officer)
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Singer Capital Markets (nominated adviser and
broker)
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+44 (0)20 7496 3000
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Peter Steel / James
Fischer
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FTI
Consulting (public relations adviser)
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+44 (0)20 3727 1000
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Jamie Ricketts / Eve Kirmatzis /
Talia Shirion
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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