essensys PLC essensys Trading Update - 18.02.2021 (5016P)
February 18 2021 - 1:00AM
UK Regulatory
TIDMESYS
RNS Number : 5016P
essensys PLC
18 February 2021
18 February 2021
essensys plc
("essensys" or the "Group")
Trading Update for the six months ended 31 January 2021
Strong US growth continues and UK performance resilient
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 trading update for the half year ended 31 January
2021.
The Group has delivered a robust performance in the first half
of the year with revenue in line with management expectations at
GBP10.6m. Despite the continued impact of Covid-19 the Group's US
business continues to grow strongly with half year recurring
revenue increasing 18% to GBP4.42m from GBP3.76m whilst the UK
business continues to prove its resilience.
Connect site churn remains very low at 3% year to date. The
Group closed the half year with 431 live Connect sites, a net
increase of 8% year-on-year (400 as at 31 January 2020), and has an
additional 38 new Connect sites contracted for delivery.
On a constant currency basis(1) , Group revenue was GBP10.8m (H1
FY20: GBP11.4m) with recurring revenue slightly ahead of the prior
year at GBP9.8m (H1 FY20 GBP9.7m). New site openings continue to be
impacted by the pandemic which resulted in an expected reduction in
non-recurring revenues during the period. Marketplace revenues were
also moderated as significantly reduced occupancy in customer sites
led to reduced service utilisation.
Annual Recurring Revenue (ARR) run rate at GBP19.9m was slightly
ahead of H1 FY20 (GBP19.7m) (on a constant currency basis).
Adjusted EBITDA(2) for the half year is expected to be in line with
management expectations.
Net cash at half year end was in line with management
expectations at GBP5.9m.
Throughout the period the Group has continued to increase its
investment in go to market activities and product development to
reflect the growing market opportunity. This is resulting in an
increase in pipeline opportunities, particularly amongst more
traditional property owners and operators who are increasingly
providing flexible workspace solutions. During H1 FY21 the Group
signed contracts with 18 new customers including a number of high
value strategic accounts which are expected to provide significant
long-term expansion opportunities. The Group's new integrated
software platform is expected to be launched in March 2021, as
planned.
Notwithstanding continued uncertainty around the short-term
impact of Covid-19, the Group continues to expect current year
financial performance to be in line with market estimates.
Mark Furness, CEO commented:
"In what has been a challenging year for the flexible workspace
sector we are pleased to continue to deliver results in line with
expectations. The strength of our US business, high levels of
recurring revenue and very strong retention rates have underpinned
our performance.
Despite the short-term effect of Covid-19, the longer-term
impact will be increased adoption of flexible workspace solutions
by companies of all sizes. We continue to see traditional landlords
and commercial real estate companies accelerate the development of
their own flexible workspace products and services, which we
believe will be a key driver of our future growth.
The strength of our performance during the ongoing pandemic and
the increasing market opportunity, allied to contracted new Connect
sites, a healthy pipeline and new product development, provide us
with confidence in the long-term opportunity for essensys."
Notes
(1) Revenue translated into GBP using the average exchange rate
for the comparative prior period
(2) Adjusted for share option charges and exceptional costs
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 & Chief
Operating Officer
N+1 Singer (Nominated Adviser and Joint +44 (0)20 7496
Broker) 3000
Peter Steel / Harry Gooden / George Tzimas
+44 (0)20 3207
Berenberg (Joint Broker) 7800
Richard Kauffer / Tejas Padalkar / Alix
Mecklenburg-Solodkoff
FTI Consulting
Jamie Ricketts / Eve Kirmatzis / 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTGPUBUPUPGPPM
(END) Dow Jones Newswires
February 18, 2021 02:00 ET (07:00 GMT)
Essensys (LSE:ESYS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Essensys (LSE:ESYS)
Historical Stock Chart
From Apr 2023 to Apr 2024