essensys PLC Pre-Close Trading Update (5319J)
August 24 2021 - 2:00AM
UK Regulatory
TIDMESYS
RNS Number : 5319J
essensys PLC
24 August 2021
24 August 2021
essensys plc
("essensys" or the "Group")
Pre-Close Trading Update
Performance in line with expectations and strong recurring
revenues
- Continued growth in recurring revenues, up to 87%
- US recurring revenues continue to grow strongly, up 20%
- GBP32m placing to support long-term growth plans
essensys plc (AIM:ESYS), the leading global provider of mission
critical software-as-a-service (SaaS) platforms and on-demand cloud
services to the flexible workspace industry, is pleased to announce
an unaudited pre-close trading update for the financial year ended
31 July 2021.
Highlights
On a constant currency basis(1) Group revenue increased by 2% to
GBP22.9m and recurring revenue increased to GBP19.8m (FY20:
GBP19.4m).
Revenue (at actual currency) for the year was in line with
consensus market expectations at GBP22.0m (FY20, GBP22.5m).
Recurring revenue represented 87% of revenue in the year (FY20:
86%) and was GBP19.1m (FY20: GBP19.4m).
Adjusted EBITDA(2) is expected to be in line with consensus
market expectations.
The Group's US business continues to grow strongly with
year-on-year recurring revenue increasing 20% to US$12.15m from
US$10.17m in FY20.
Constant currency Annual Recurring Revenue (ARR) run-rate as at
31 July 2021 was GBP20.5m, an increase of 4% on July 2020
(GBP19.7m).
During the year the Group continued to deliver new customer
sites and closed the financial year with 474 live Connect sites, an
increase of 13% year-on-year (419 as at 31 July 2020). The Group
has an additional 28 new Connect sites contracted with the majority
of these to be delivered in H1 FY21.
In July 2021, the Group successfully raised net proceeds of
c.GBP32m via a significantly over-subscribed placing and open
offer. This will be used to pursue the Group's growth plan over the
next three years, accelerating its global go-to-market activities
and product development roadmap. As part of this accelerated growth
plan, the Group recently announced the appointment of Eric Schaffer
as CEO of its newly established Asia Pacific business. Eric's
appointment has already resulted in good early engagements with
target customers as well as market interest in our proposition and
technology building more widely across the region.
The Board is pleased with the Group's performance during the
year given the continued challenging environment relating to the
global pandemic, demonstrating the continued resilience of the
business and the relevance and value of its software and technology
to an expanding group of customers globally.
Net cash at year end was GBP36.9m following the completion of
the recent fundraising. Excluding the impact of the fundraising,
net cash was GBP5.0m. T he Group remains debt free.
Mark Furness, CEO commented:
"essensys has made great progress this year, delivering results
in line with expectations, continued growth in recurring revenues,
and the addition of a number of new strategic customers. This
reflects the long-term structural drivers for flexible real estate
offerings, which have been accelerated by Covid-19. We have a clear
plan to capture this market opportunity, reflected in our recent
placing to raise GBP32m and early progress with our expansion in
Asia Pacific."
The information contained within this announcement is deemed to
constitute inside information for the purposes of article 7 of the
market abuse regulation (EU) no. 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
For further information, please contact:
+44 (0)20 3102
essensys plc 5252
Mark Furness (Chief Executive Officer)
Alan Pepper (Chief Financial Officer)
Singer Capital Markets (nominated adviser and +44 (0)20 7496
joint broker) 3000
Peter Steel / Harry Gooden / George Tzimas
+44 (0)20 3207
Berenberg (joint broker) 7800
Ben Wright / Mark Whitmore / Tejas Padalkar
+44 (0)20 3727
FTI Consulting (public relations adviser) 1000
Jamie Ricketts / Eve Kirmatzis / Talia Jessener
/ Victoria Caton
About essensys plc
essensys is the leading global provider of mission-critical SaaS
platforms and on-demand cloud services to the high growth flexible
workspace industry. essensys' software is specifically designed and
developed to help solve the complex operational challenges faced by
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 complex
operational challenges, and reduces costs by simplifying the
day-to-day management of flexible workspaces and the provision of
on-demand IT, technology and infrastructure services to tenants.
essensys' platforms automate key tasks and processes and help
flexible workspace providers deliver highly efficient,
customer-centric workspace solutions and member experiences with
enterprise class services.
Notes
(1) FY21 revenue translated into GBP at the average currency
ruling in FY20
(2) Adjusted for share option charges
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