Half-year Report

21 April 2022

 

essensys plc

("essensys" or the "Group")

 

Half year results for the six months ended 31 January 2022

 

Resilient performance and continued growth in challenging market; strong pipeline for FY23 and FY24

 

essensys plc (AIM:ESYS), the leading global provider of mission critical software-as-a-service (SaaS)  and technology platforms to the flexible workspace and commercial real estate industries, announces unaudited results for the six months ended 31 January 2022.  All information relates to this period, unless otherwise specified.

 

Financial summary:

 

£m unless otherwise stated	Six months to January 2022	Six months to January 2021	Change
Revenue	10.9	10.6	+2.8%
Recurring revenue1	9.9	9.6	+3.1%
Run Rate Annual Recurring Revenue (ARR)1, 2	20.3	19.9	+2.0%
Revenue at constant currency2	11.0	10.6	+3.8%
Recurring revenue at constant currency1,2	10.0	9.6	+4.2%
Statutory loss before tax	4.7	1.7
Adjusted EBITDA3	(2.9)	0.7
Loss before tax (prior to share based payment expenses)3	4.5	1.4
Loss per share (pence)	7.63p	3.27p
Net Cash	30.5	5.9

 

 

Strategic highlights:

 

·          Growing demand from existing and new customers underpins future growth

o    US recurring revenues grew strongly once again, up 20% in USD terms to $7.1m (H1 FY21 $5.9m)

o    Nine new customers added, including significant long term strategic opportunities

o    Connect/Flex Services Platform sites up 9% year on year to 470; US site numbers increased by 23%

·          Long term growth plan to capture expanding market opportunity

o    Senior executive team strengthened with new Regional CEOs appointed in Asia Pacific and UK/Europe; new CFO joining on 16 May 2022 and existing CFO moving to full time COO role

o    Asia Pacific operation now fully established with regional sales pipeline growing rapidly

o    Group personnel numbers increased 20% to 159 (H1 FY21: 133) to support expansion and growth plans

o    Strong balance sheet with £33m equity raise in July 2021 providing capital to fund expansion

 

·          Continued investment in our market leading products

o    Evolution of Flex Services Platform continues with new Hub & Halo smart access solution now in beta test with customers

o    Continued expansion of UK based development capability

 

Financial highlights:

 

·          Group revenues up 3% in challenging Covid-19 effected environment

·          Strong growth in the US, our largest market opportunity

·          UK performance impacted by a single customer insolvency

·          Continued high levels of recurring revenue - 91% of total (H1 FY21 91%)

·          Adjusted EBITDA loss slightly less than management expectations

·          Net cash of £30.5m and debt free

 

Current trading and outlook:

 

·          As outlined in March 2022, sales team expansion and sales cycles temporarily delayed by further Covid related uncertainty

·          Sales activity increasing since the start of second half of FY22:

o    The Group has a further 53 Flex Services Platform sites contracted for delivery (up from 28 at Feb 22)

o    Since January 2022 overall customer pipeline value has grown by 23% and existing customer pipeline grown by  31%, supporting confidence in longer term site and revenue growth

o    Larger flexible workspace operators and existing landlord customers starting to expand

·          Strategic inventory purchase made to ensure continuity of supply in FY23 and mitigate potential cost increases

·          Whilst the conflict in Ukraine has no direct impact on the Group's activities the Board remains cautious about its indirect impact together with the potential for general inflationary cost pressures

·          The Group continues to expect to meet FY22 consensus market expectations and remains confident in the longer-term structural growth opportunity

 

Mark Furness, CEO of essensys, said:

 

"essensys performed resiliently in the first half of our financial year with 3% revenue growth driven by continued strong growth in the US.  As outlined in March, whilst Covid-19 temporarily slowed our hiring plans, sales cycles and our accelerated growth plans we've made excellent progress in product and development and in the strengthening of the senior executive team.  We have seen customer activity begin to increase in the second half of the year and remain confident of meeting FY22 consensus market expectations.  I am also pleased to report excellent progress in APAC following the establishment of our regional operations at the start of FY22 with sales pipeline now building strongly.

 

As the impacts from Covid-19 begin to subside working patterns are starting to settle and our flexible workspace operator customers are reporting increased demand.  Consequently, larger flexible operators are starting to focus on expansion again, driven by positive long-term market dynamics.  Landlord business plans around the provision of flexible space are becoming more visible and corporate use of more flexible workspace is becoming increasingly evident.  These structural drivers underpin our strong pipeline for FY23 and FY24 and the Board's confidence in essensys' plan to capture its expanding market opportunity."

 

Notes

 

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 for share option charges

4. essensys believes that current consensus market expectations for the year ended 31 July 2022 are revenues of £23.7m

 

For further information, please contact:

 

essensys plc		+44 (0)20 3102 5252
Mark Furness, Chief Executive Officer
Alan Pepper, Chief Financial Officer & Chief Operating Officer
Singer Capital Markets (Nominated Adviser and Joint Broker)		+44 (0)20 7496 3000
Peter Steel / Harry Gooden / George Tzimas
Berenberg (Joint Broker)		+44 (0)20 3207 7800
Ben Wright / Mark Whitmore / Richard Andrews
FTI Consulting
Jamie Ricketts / Eve Kirmatzis / Talia Jessener / Victoria Caton		+44 (0)20 3727 1000

 

About essensys plc

 

essensys is the leading global provider of mission-critical SaaS platforms and technology platforms to the flexible workspace and commercial real estate industries.  essensys' software is specifically designed and developed to help solve the complex operational challenges faced by landlords and multi-site flexible workspace operators as they grow and scale their operations. The Group's technology allows operators to deliver a range of differentiated, flexible and customer-specific services to a broad base of tenants across multiple locations and helps operators to manage the cost, operational and technological challenges they typically encounter.

 

essensys' Flex Services Platform addresses these significant operational pain points head on and reduces costs by simplifying the day-to-day management of flexible workspaces and the provision of on-demand technology and infrastructure services to tenants. essensys technology delivers secure digital infrastructure, effective space setup, seamless operations, and mobile-first occupier interactions. It automates key tasks and processes and helps flexible workspace providers deliver highly efficient, customer-centric workspace solutions and in-building experiences with enterprise class services.

 

Chief Executive Officer's Report

 

Resilient performance

 

essensys grew recurring revenues by 3% in challenging conditions.  Continued strong performance in our primary growth market, the United States, where recurring revenues increased by 20%, was offset by the unexpected insolvency of a longstanding UK customer as a result of Covid-19's impact on the London office market.  Continued growth and the resilience of our performance despite these challenges, as evidenced by 99% net retention within our core Connect business, is testament to the quality of our team, high-quality customer base and our offering.

 

Market overview

 

Our confidence in the market opportunity for essensys is growing.  As the Covid-19 pandemic is subsiding we are seeing the key elements of the future way of working become more evident.  Hybrid working practices are becoming the norm and corporates are adjusting their approach to meet that requirement.  79% of occupiers now expect to be office based at least half of the time with a number of companies expecting flexible workspace solutions to account for the majority of their office portfolio in due course.

 

The larger flexible workspace operators are reporting increasing demand - at pre-pandemic levels in some cases.  Enterprise occupiers are accounting for a larger proportion of their revenue and demand and there have been a number of recent examples of major corporates moving to flexible workspace for their office requirements (e.g. Currys).

 

Colliers predicts that flexible workspaces and traditional offices will blend and we are already seeing that as traditional landlords look to us to solve their emerging technology requirements as they look to the future.  Landlords are also moving forward with establishing their own flexible workspace offerings (e.g. Canary Wharf Group).  At the same time, we are starting to see transactional activity in the broader sector with Blackstone backed TOG and Fora proposing a merger, IWG's recent investment in The Instant Group and the latter's recent merger with Davinci Virtual.

 

These recent developments  provide confidence that the growing market opportunity we saw prior to the Covid-19 pandemic is accelerating and that essensys is well placed to capitalise on the opportunities presented by the expansion of existing operators and landlords moving to support the hybrid working requirements of their occupiers.

 

Progressing our strategy to capture the expanding market opportunity

 

We continue to make strong progress in the execution of our growth plan and towards our longer-term strategic goals and revenue target of achieving £100m in Annual Recurring Revenue (ARR). 

 

As reported in March, the expansion of our go-to-market activities was delayed during the first half of our financial year, with further Covid-19 restrictions slowing sales cycles and the expansion of our sales teams whilst reducing office attendance and resulting in a number of geographically specific 'lockdowns'.  We are confident that this is a temporary restriction on the implementation of our plans to accelerate growth and is supported by the acceleration of our sales pipeline since the beginning of Q3 FY22.

 

We continue to see strong customer demand and added new customers across all regions, with nine new customer wins in the period and 18 in the last twelve months.  The most recent new customers include a number of strategically important landlord customers in Sweden and the USA with whom we expect to expand our business over the next year and beyond.  Our existing customer base, particularly in the US, is indicating significant growth plans over the next few years and we are increasingly engaged at senior levels with large property organisations in assisting them with their technology requirements.  These types of strategic customers continue to provide the Group with significant long term expansion opportunities.

 

Our active Connect/Flex Services Platform sites grew year on year - increasing 9% to 470 at January 2022 (January 2021: 431).  A number of our existing landlord customers are expanding their flexible offerings whilst a number of our operator customers are also growing.  While this was slightly lower than at July 2021, our last financial year end, we continued to add new locations in the period and now have contracted commitments for a further 53 sites (up from 28 at Feb 22).

 

Following our £33m fundraise in July 2021, we have made great progress towards capturing our expanding market opportunity.  We have strengthened our global leadership team, with new CEOs appointed in Asia Pacific and UK & Europe and our new CFO, Sarah Harvey, joins on 16 May 2022 when Alan Pepper, our current CFO, will move into a full time COO role.  Our APAC business is fully operational with customer locations live, in delivery and under negotiation.  Development of our product continues with enhancements to existing capability and new modules and functionality being released.  Whilst slower than anticipated, the expansion of our go to market capability continues and we expect to have caught up delayed investment by full year end.  If anything, we consider that our market opportunity is growing more rapidly than previously anticipated.  Whilst the first half of the year was more challenging than we expected the medium to long term outlook for the business remains very positive.  We believe Covid-19 has fundamentally changed the way in which people work and the Group's technology is perfectly positioned to assist this transition.

 

Continued growth in the US

 

The US market continues to be the most significant driver of Group growth with site numbers growing year on year by 23% over the prior period to 296 (H1 FY21 240) in turn leading to a 20% increase in US recurring revenue (in USD) compared to the prior period.  We are starting to see this growth in the US market accelerating with a number of customers setting out ambitious expansion plans for the rest of this calendar year and beyond.  Evidence of the structural shift to a more flexible way of working continues to grow with an increasing number of landlords engaging with us on technology solutions to support their repurposing of traditional office environments.  Those engagements involve a number of globally recognisable real estate operators which each individually provide the opportunity for significant long term account growth.

 

Our largest customer has set out significant plans for growth in 2022 and 2023.  We are already seeing evidence of this in our pipeline and expect this to support our growth in FY23, given the exclusive nature of our partnership.  Other well-established customers are also forecasting growth and our newer customers are also expected to expand their business with us.

 

APAC establishment

 

I am pleased with the progress we have made in establishing our APAC business despite the challenges that Covid-19 has presented (not least most recently in Hong Kong).  We now have personnel across the region in Hong Kong, Singapore and Australia with go to market capability now fully established in all three locations.  Business development activity and pipeline is increasing in all markets.

 

Australia in particular is expected to be a major opportunity for the Group.  Existing customer pull from the US led to the establishment of our first new location in Sydney during the period and has resulted in a further two locations in Australia.  We anticipate that this customer alone will add a further 6 to 8 locations in FY23.  We are also well engaged with a number of Australia's largest property companies.

 

UK & Europe

 

Having shown resilience through the more active periods of the Covid-19 pandemic the gradual unwinding of the pandemic restrictions and associated government support impacted us in the period with the unexpected insolvency of a long-standing flexible operator customer who could not renegotiate lease arrangements with its landlords.  This led to a reduction in both Connect and Operate sites which, ordinarily, we would have expected to replace with new business in a more normal trading environment.

 

The appointment of James Lowery as CEO of UK & Europe immediately following the half year end has completed the senior regional leadership appointments and will allow the implementation of tailored growth strategies around the Group's international operations.  James brings significant industry experience from his time at British Land where he led their flexible workspace operation and this knowledge will be instrumental in opening up opportunities for discussions with similar organisations across Europe.

 

In line with our experience in the US we are seeing signs of activity levels picking up in both the UK and mainland Europe.  Following the recent signing of a new strategic customer in Sweden which originally resulted in two initial locations we now have a further three in active engagement.  A number of other long-standing projects are nearing their conclusion.  Further strategic engagement with a number of large European property companies and managers continues and whilst these are taking longer to conclude than originally anticipated the opportunities with these customers are, in some cases, significantly greater than we might have originally anticipated.  As in the US we are now seeing our existing operator customers expand their business with our larger UK customers opening new locations and having expectations of growing their portfolios over the next few years.  Our largest European Operate only customer is actively engaged on a move to the Flex Services Platform.

 

Product development

 

We continue to make significant strides in product and software development following the launch of the Flex Services Platform last year.  A number of enhancements to the core platform have been released recently and following the fundraising in July 2021 that release schedule is accelerating.  Feedback from our customers influences our direction of travel and our continued focus on delivering best-in-class solutions that are both commercially and technically compelling is starting to pay dividends with new customers - particularly those landlords with significant existing portfolios.  The migration of our existing customers onto the new Platform continues with a target of having completed that by the end of the financial year.

 

The expansion of our Smart Access module with the addition of our first IoT (Internet of Things) product 'Hub & Halo' is progressing well with beta-trial versions now deployed in a number of customer locations.  We are well down the path of accreditation and integration of Hub and Halo and the wider Smart Access solution with a major mobile device provider to deliver the significant benefits of mobile access passes to our customers.  The expansion of our UK based development capability continues following the fundraise with our offshore facility now reduced to a supporting function only.

 

Current trading and outlook

 

We have seen customer activity begin to increase in the second half of the year.  Our sales pipeline continues to grow and we are seeing evidence that individual transactions are 'unsticking' following slower market conditions in the first half of our financial year.  Underlying customer occupancy appears to have stabilised and both our operator and landlord customers are reporting increased occupier demand.  In order to mitigate possible risks regarding equipment supply issues and mitigate potential cost increases we have made a strategic acquisition of equipment inventory to support our growth plans for FY23.  Whilst the conflict in Ukraine has no direct impact on the Group's activities we remain cautious about any indirect impact of that conflict.  We are also mindful of general inflationary cost pressures that may impact the business and are keeping the Group's financial investment plans under constant review.  We remain confident of meeting consensus market expectations for FY22.

 

Engagement with some significant potential customers continues and whilst these have longer sales lead times the likely scale of business is more significant.

 

The developments in our software platform are particularly exciting.  Recent enhancements and module launches have been well received by both existing and potential new customers.  We remain confident that the underlying structural shift in real estate that has been accelerated by the Covid-19 pandemic is here to stay.  This makes us increasingly optimistic for the long-term global opportunity for essensys.  We are already seeing increasing pipeline activity both with existing customers and new customers and expect to catch up with our delayed investment in go to market capability in the next few months which is expected to bring benefits in FY23 and beyond.

 

Mark Furness

Chief Executive Officer

21 April 2022

 

 

Chief Financial Officer's Report

 

This is the third interim report issued by essensys since its Admission to AIM on May 2019 and covers the six months to 31 January 2022. 

 

Financial Key Performance Indicators

 

£'m unless otherwise stated	Six months to January 2022	Six months to January 2021	Change
Group Total Revenue	10.9	10.6	+2.8%
UK	4.8	5.4	-11.1%
USA	5.9	5.2	+13.5%
ROW	0.2	-	-
Recurring Revenue1	9.9	9.6	+3.1%
UK	4.5	5.2	-13.5%
USA	5.2	4.4	+18.2%
ROW	0.2	-	-
Recurring Revenue %age of Total	90.8%	90.6%
Run Rate Annual Recurring Revenue1	20.3	19.9	+2.0%
Recurring Revenue at constant currency	10.0	9.6	+4.2%
UK	4.5	5.2	-13.5%
USA	5.3	4.4	+20.5%
ROW	0.2	-	-
Non-recurring revenue	1.0	1.0	0%
Product Revenue
Connect	10.0	9.6	+4.2%
Operate	0.9	1.0	-10%
Gross Profit	6.9	7.1	-2.8%
Gross Profit percentage	63.3%	66.9%
Recurring Revenue margin % age	65.2%	70.4%
Statutory loss before tax	4.7	1.7
Adjusted EBITDA2	(2.9)	0.7
Loss before tax (prior to share based payments)	4.5	1.4
Cash	30.5	5.9

 

Notes
1. See Revenue section for explanation

2. See Adjusted EBITDA explanation below

 

Revenue

 

Group total revenue grew to £10.9m in H1 FY22 (H1 FY21 £10.6m).  The implementation of our globalisation strategy has started to show positive signs with the first new customer site going live in Australia as well as new Connect contracts signed just before the end of the first half of the year with a Swedish customer.  The UK market contraction was mainly due to the loss of a multi-site customer that went into administration resulting in the loss of 27 sites using Operate and 18 using Connect; however, this was compounded in the period by the continuation of the Covid-19 pandemic leading to the occupancy driven marketplace services revenue not yet recovering to pre-pandemic levels.  US recurring revenue has grown by 20% in local currency.

 

Recurring revenue comprises income invoiced for services that are repeatable and 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 (January 2022); 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.

 

On a constant currency basis Run Rate ARR grew by 2% compared to the prior period as revenue per site increased as the new sites added were worth more revenue per site than those that were lost.

 

In constant currency terms recurring revenue increased slightly compared to H1 FY21.  Operate revenue fell slightly in the period due to the aforementioned loss of 27 sites from the single customer that went into administration.  US Connect recurring revenue grew 24% in US Dollar terms following an increase in site numbers to 296 (from 240 at 31 January 2021).  UK Connect recurring revenue was also negatively impacted by the aforementioned customer, with the loss of 18 sites.

 

 

Gross margins

 

Overall gross margins fell slightly in the period as a result of short term reclassification of right of use asset charges into costs of sales together with continued committed costs associated with the lost customer in the UK.  Both of these are expected to cease in the second half of the year.  Removing the impact of these, underlying gross margins are in line with previous years and management expectations.

 

Administrative expenses

 

Excluding depreciation charges, administrative expenses grew by £3.3m (51%) compared to the prior period, in line with the Group's expansion plans.  This growth was primarily driven by increases in staff costs both as a result of planned increases in personnel in the year and the full year effect of growth in FY21.  In particular the growth in staff numbers in the period was due to increases in software development personnel in the UK, go to market personnel in the APAC region and the appointment of key strategic group executive roles.  Marketing expenditure in the period was greater in H1 FY21 in support of the Group's expanding 'go to market' capability.  The Group incurred increased professional fees as it continues to grow, including establishing its Asia Pacific businesses and made additional provision for estimated credit losses following the Covid-19 pandemic.

 

Statutory loss for the half year

 

The Group incurred a £4.7m statutory loss for the half year to January 2021 (H1 FY21: loss of £1.7m), analysed as follows:

 

 

£'m	H1 FY22	H1 FY21
UK (including non-capitalised R&D)	(0.9)	0.0
US	(0.3)	0.4
Canada	-	(0.1)
Europe	(0.3)	(0.1)
Asia Pacific	(0.7)	-
Central costs	(2.3)	(1.6)
(Loss) before tax (before share based payment expenses)	(4.5)	(1.4)
Share based payment expense	(0.2)	(0.3)
(Loss) before tax for the period	(4.7)	(1.7)

 

The UK continues to bear the cost of the Group's product and software development teams to the extent that these are not capitalised.

 

Adjusted EBITDA

 

As previously reported, adjusted results are presented to provide a more comparable indication of the Group's core business performance by removing the impact of share-based payment expenses, exceptional costs (where material and non-recurring), and other, non-trading, items that are reported separately. Adjusted results exclude adjusting items as set out in the consolidated statement of comprehensive income and as below, with further details given in the notes to the unaudited interim financial information below, where applicable.  In addition, the Group also measures and presents performance in relation to various other non-GAAP measures, such as recurring revenue, run-rate annual recurring revenue and revenue growth as shown and defined above. 

 

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 on an ongoing basis.

 

Adjusted EBITDA (being EBITDA prior to share based payment expenses and exceptional items) is calculated as follows:

 

£'m	H1 FY22	H1 FY21
Operating (loss)	(4.7)	(1.3)
Add back:
Depreciation & Amortisation	1.6	1.7
EBITDA	(3.1)	0.4
Add back:
Share Option Charge	0.2	0.3
Adjusted EBITDA	(2.9)	0.7

 

Adjusted EBITDA for the half year was down from H1 FY21 by £3.6m due to continued investment in sales and marketing, product development and expansion of the Group's Asia Pacific operations as reported above.

 

Taxation

 

The tax charge incurred by the Group in the period is in relation to calculated income tax payable in the US and deferred tax in the UK.  Group expansion plans will lead to increased expenditure in the US that is expected to reverse the current payable situation before the end of the financial year.

 

Cash

 

Following our equity fundraise in July 2021, net cash at the half year end was £30.5m, slightly ahead of management expectations.  The Group continues to maintain sufficient cash reserves to fund its working capital requirements, planned product and software development together with any expected short-term geographic expansion.  The Group has no debt.

 

In light of the continued impacts of Covid-19 and other geopolitical matters, the Board has considered a number of different scenarios regarding trading and financial performance over the balance of this financial year and into FY23 and is confident that, in the event of a significant long term downturn, the Group maintains sufficient cash resources.

 

Capitalised Software Development Costs

 

As previously reported, the Group continues to invest heavily in product development.  Increasingly these costs are borne in the UK following a decision to increase the UK based development team and reduce the size of the Group's outsourced offshore development centre.  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 half year the Group capitalised £1.5m in respect of software development (H1 FY21: £1.0m).

 

Capital Expenditure

 

In addition to the capitalisation of software development costs noted above, the Group continues to invest in expanding the capacity and capability of its private network.  Capital investment in the period was £0.3m (H1 FY21 £0.5m).

 

 

Alan Pepper

Chief Financial Officer

21 April 2022

 

 

 

 

UNAUDITED INTERIM FINANCIAL INFORMATION OF ESSENSYS PLC GROUP

 

Consolidated statement of comprehensive income

	Note	Six months  ended 31 January  2022 £'000 (unaudited)	Six months  ended 31 January  2021 £'000 (unaudited)
Revenue	3	10,928	10,596
Cost of sales		(4,068)	(3,519)
Gross profit		6,860	7,077
Administrative expenses		(11,220)	(8,334)
Expected credit loss provision charge		(324)	(90)
Other operating income		4	34
Operating loss		(4,680)	(1,313)
Operating loss analysed by:
Operating loss before share based payments		(4,479)	(1,038)
Share based payment expenses		(201)	(275)
Finance income		9	-
Finance expense		(49)	(339)
Loss before taxation		(4,720)	(1,652)
Taxation		(195)	(70)
Loss for the period		(4,915)	(1,722)
Other comprehensive income/(loss)
Exchange differences arising on translation of foreign operations		197	(154)
Total comprehensive loss for the period		(4,718)	(1,876)

     

Loss per share

Basic and diluted loss per share	4	(7.63p)	(3.27p)

 

UNAUDITED INTERIM FINANCIAL INFORMATION OF ESSENSYS PLC GROUP

 

Consolidated statement of financial position

	Note	As at 31 January 2022 £'000 (unaudited)	As at 31 July 2021 £'000 (audited)
ASSETS
Non-current assets
Intangible assets	5	7,010	6,198
Property, plant and equipment	6	1,738	1,471
Right of use assets	7	3,160	2,160
		11,908	9,829
Current assets
Inventories		437	184
Trade and other receivables		6,068	5,279
Cash at bank and in hand	10	30,453	36,903
		36,958	42,366
TOTAL ASSETS		48,866	52,195
EQUITY AND LIABILITIES
Equity
Shareholders' equity
Called up share capital	8	161	161
Share premium		51,660	51,660
Share based payment reserve		2,252	2,045
Merger reserve		28	28
Retained earnings		(13,693)	(8,969)
Total equity		40,408	44,925
Non-current liabilities
Lease liabilities	9	2,540	992
Deferred tax		791	779
Total non- current liabilities		3,331	1,771
Current liabilities
Trade and other payables		3,419	4,229
Contract liabilities	3	807	323
Lease liabilities	9	803	943
Current taxes		98	4
		5,127	5,499
TOTAL LIABILITIES		8,458	7,270
TOTAL EQUITY AND LIABILITIES		48,866	52,195

 

UNAUDITED INTERIM FINANCIAL INFORMATION OF ESSENSYS PLC GROUP

 

Consolidated statement of changes in equity

	Share capital £'000	Share premium £'000	Share based payment reserve  £'000	Merger Reserve £'000	Retained  earnings £'000	Total £'000
Balance at 1 August 2021 (audited)	161	51,660	2,045	28	(8,969)	44,925
Comprehensive Income
Loss for the period	-	-	-	-	(4,915)	(4,915)
Currency translation differences	-	-	6	-	191	197
Total comprehensive loss	-	-	6	-	(4,724)	(4,718)
Transactions with owners
Currency translation differences	-	-	-	-	-	-
Share based payment expense	-	-	201	-	-	201
Balance at 31 January 2022 (unaudited)	161	51,660	2,252	28	(13,693)	40,408
Balance at 1 August 2020 (audited)	132	19,881	1,490	28	(5,435)	16,096
Comprehensive Income
Loss for the period	-	-	-	-	(1,722)	(1,722)
Currency translation differences	-	-	-	-	(154)	(154)
Total comprehensive loss	-	-		-	(1,876)	(1,876)
Transactions with owners
Currency translation differences	-	-	(2)	-	-	(2)
Share based payment expense	-	-	275	-	-	275
Balance at 31 January 2021 (unaudited)	132	19,881	1,763	28	(7,311)	14,493

 

UNAUDITED INTERIM FINANCIAL INFORMATION OF ESSENSYS PLC GROUP

 

Consolidated cash flow statements

		Six months ended 31 January 2022 £'000 (unaudited)	Six months ended 31 January 2021 £'000 (unaudited)
Cash flows from operating activities
Loss before taxation		(4,720)	(1,652)
Adjustments for non-cash/non-operating items:
Amortisation of intangible assets		701	588
Depreciation of property, plant and equipment		343	525
Amortisation of right-of-use assets		524	596
Share based payment expense		201	275
Finance income		(9)	-
Finance expense		49	339
Receipts from government grants treated as income		(4)	(34)
		(2,915)	637
Changes in working capital:
(Increase) /decrease in inventory		(253)	163
(Increase) /decrease in trade and other receivables		(789)	47
Decrease in trade and other payables		(326)	(681)
Cash (used by)/from operations		(4,283)	166
Taxation (paid)/received		(90)	8
Net cash (used)/from operating activities		(4,373)	174
Cash flows from investing activities
Purchase of intangible assets		(1,513)	(1,047)
Purchase of property, plant and equipment		(332)	(539)
Interest received		9	-
Net cash used in investing activities		(1,836)	(1,586)
Cash flows from financing activities
Receipts from government grants		4	34
Payment at termination of loan		-	(63)
Repayment of lease liabilities		(413)	(1,008)
Interest on lease liabilities		(49)	(86)
Net cash used in financing activities		(458)	(1,123)
Net decrease in cash and cash equivalents		(6,667)	(2,535)
Cash and cash equivalents beginning of period		36,903	8,496
Effects of foreign exchange rate changes		217	(24)
Cash and cash equivalents at end of period		30,453	5,937