Full Year trading update

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.

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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