essensys PLC Trading Statement (3838W)
August 18 2020 - 1:00AM
UK Regulatory
TIDMESYS
RNS Number : 3838W
essensys PLC
18 August 2020
18 August 2020
essensys plc
("essensys" or the "Group")
Pre-Close Trading Update
Performance and growth in line with expectations
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 2020.
Highlights
Revenue for the year was in line with market expectations at
GBP22.4m, an increase of 9% (FY19: GBP20.6m). Recurring revenue
increased by 18% to GBP19.3m (FY19: GBP16.3m) and represented 86%
of revenue in the year (FY19: 79%).
Adjusted EBITDA(1) is expected to be in line with market
expectations.
The Group's US business continued to grow strongly with
year-on-year recurring revenue increasing 43% to GBP8.0m from
GBP5.6m in FY19.
Annual Recurring Revenue (ARR) run-rate as at 31 July 2020 was
GBP19.7m, an increase of 14% on July 2019 (GBP17.3m).
Despite the challenges posed by the Covid-19 pandemic, the Group
delivered 15 new Connect sites in the final quarter and closed the
financial year with 419 live Connect sites, an increase of 17%
year-on-year (358 as at 31 July 2019). The Group has an additional
26 new Connect sites contracted with the majority of these to be
delivered in H1 FY21.
New product releases in the second half of the year have already
started to generate new customer enquiries and contracted business.
STEP, our proposition designed to help traditional office landlords
provide more flexible tenant solutions and Smart Access, the
Group's touchless access control solution, have both been very well
received by our target audience with sales pipeline building
strongly since their respective launches.
The Board is pleased with the continued progress made by the
Group in FY20, demonstrating the resilience of its business model
by delivering another year of profitable growth and expanding its
customer base despite the significant challenges presented by the
Covid-19 pandemic.
Net cash at year end was GBP8.4m and the Group remains debt
free.
Outlook
The Board remains confident in the Group's future growth which
is underpinned by long-term structural drivers, its high proportion
of contracted recurring revenue and good pipeline visibility,
notwithstanding the continued uncertainty resulting from the
Covid-19 pandemic.
Mark Furness, CEO commented:
"Our performance in FY20 underlines the resilience of our
business model and the long-term nature of our underlying growth
drivers. This reflects two key factors; the continuation of
supportive long-term industry trends, with the expansion of our
customer base and new customer sites, and the accelerated migration
of traditional real estate operators into the flexible workspace
market.
Following our fundraise in April 2020 we have made good progress
with delivery of the first phase of our international growth plan.
This has resulted in the expansion of our US sales team to increase
our reach into the traditional landlord and commercial real estate
markets which has been further accelerated by the launch of STEP.
Our growth trajectory remains clear and we expect to initiate the
second phase of our plan, comprising the establishment of European
and APAC operations, during the first half of FY21."
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
+44 (0)20 7496
N+1 Singer (Nominated Adviser and Broker) 3000
Peter Steel / Harry Gooden / George Tzimas
/ Kailey Aliyar
FTI Consulting
Jamie Ricketts / Ellie Sweeney / Debbie +44 (0)20 3727
Oluwaseyi Sonaike / Talia Jessener 1000
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 was 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' two SaaS platforms, Connect and Operate, address these
complex operational challenges, and reduce 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) Adjusted for share option charges
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END
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