essensys Pre-Close Trading Update

RNS Number : 7887I

essensys PLC

13 August 2019

 

13 August 2019

essensys plc

("essensys" or the "Group")

Pre-Close Trading Update

Trading ahead of market expectations. US business growing strongly.

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 2019.

Highlights

Group revenue for the year was ahead of market expectations at £20.5m, an increase of 25% (FY18: £16.4m).  Recurring revenue was £15.8m, representing 77% of Group revenue.

Adjusted EBITDA¹ is anticipated to be at least in line with market expectations at not less than £3.8m (2018: £3.2m).

Annual Recurring Revenue (ARR) run-rate as at 31 July 2019 was £17.3m, an increase of 27% on July 2018 (£13.6m).  

The Group closed the financial year with 358 live Connect sites, an increase of 38% year-on-year (260 as at 31 July 2018), and has an additional 45 new Connect sites contracted with the majority of these to be delivered in H1 FY20.

The Group's US business continues to grow strongly with year-on-year recurring revenue increasing 67% to £5.5m from £3.3m in FY18.

Net cash at year end was £2.7m with the Group now being debt free following its IPO.

Outlook

The continued expansion of our services to existing customers as well as an increase in the number of new customer wins further supports the Board's high degree of confidence that the Group will continue to deliver strong levels of future growth.

Mark Furness, CEO commented:

"2019 has been an important and exciting year for essensys.  We have a simple vision - to power the world's largest community of tech driven flexible workspaces. This is supported by a clear strategy to land, expand and grow, and we see exciting opportunities ahead in the high growth flexible workspace industry. Our successful IPO in May gives us a strong platform to accelerate the execution of our plans and deliver on our vision.

We are delighted to provide a strong first trading update and we look ahead with confidence based on excellent pipeline visibility and good early progress with our plans to broaden and deepen our customer base, extend our geographic reach and accelerate product development."

Notice of Results

The Group intends to announce its final results for the year ended 31 July 2019 on 22 October 2019.

Notes

¹ Adjusted for IPO costs and share option charges

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:

essensys plc		[phone]
Mark Furness, Chief Executive Officer
Alan Pepper, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)		[phone]
Richard Lindley / Harry Gooden / George Tzimas / Harry Mills
FTI Consulting
Jamie Ricketts / Ellie Sweeney / Shamma Kelly / Debbie Oluwaseyi Sonaike		[phone]

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.

 

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