Trading Statement

RNS Number : 2715D

essensys PLC

18 February 2020

 

18 February 2020

essensys plc

("essensys" or the "Group")

Trading Update for the six months ended 31 January 2020

Strong sales momentum and continued US expansion

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 2020.

Highlights

Group revenue for the half year was in line with management expectations at £11.4m, an increase of 19% (H1 FY19: £9.6m).  Recurring revenue was £9.7m, a 29% increase year on year (H1 FY19: £7.5m), representing 85% of Group revenue.

Annual Recurring Revenue (ARR) run rate as at 31 January 2020 was £19.7m, an increase of 28% on January 2019 (£15.4m). Strong growth in the Group's US business continues with half year recurring revenue increasing 52% to £3.8m from £2.5m in H1 FY19.

The Group closed the half year with 400 live Connect sites, an increase of 32% year-on-year (303 as at 31 January 2019). The Group currently has an additional 40 new Connect sites contracted for delivery.

Adjusted EBITDA¹ is anticipated to be in line with management expectations at approximately £1.8m (H1 FY19: £2.0m). Adjusted EBITDA for H1 FY20 was, as expected, lower than H1 FY19 (which was pre-IPO) due to the full year effect of the additional investment in sales and marketing, product development and the expansion of the Group's US operations in the run up to the IPO and in the early part of H1 FY20.

Net cash at half year end was slightly ahead of management expectations at £1.7m.

Mark Furness, CEO commented:

"I am pleased to report continued good progress across our business, with strong sales momentum and a rapidly expanding US business underpinning our long-term growth ambitions.

"This strong H1 performance, supported by the number of contracted new Connect sites currently in delivery and a healthy pipeline underpins the Board's confidence that full-year results will be in line with market expectations."

Notice of Results

The Group intends to announce its interim results for the half year ended 31 January 2020 on 24 March 2020.

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]
Peter Steel / Harry Gooden / George Tzimas / Harry Mills
FTI Consulting
Jamie Ricketts / Ellie Sweeney / Debbie Oluwaseyi Sonaike / Talia Jessener		[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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