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 EBITDA¹ 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.

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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