essensys crosses Atlantic to drive growth

The AIM-listed flexible office software provider reported a 19.5% rise in US revenue in the year to July 2021.

In a trading update, essensys said its performance was “in line with expectations” with total revenue up 2% to £22.9m on a constant currency basis and recurring revenue rising to £19.8m (up from £19.4m).

The company credited continued growth in the business to the “long-term structural drivers” of flexible work, which have been accelerated by Covid-19.

Revenue in actual currency terms fell from £22.5m to £22m, although this was “in line with consensus market expectations”. Recurring revenue accounted for 87% of revenue, up one percentage point from last year.

Performance was underpinned by a 19.5% increase in revenue in its US business, which rose from $10.2m to $12.2m.

Growth in customers was also evident with a 13% rise in essensys’ Connect sites, totalling 474 at the end of the year.

Having recently raised £32m through a primary placing and open offer, essensys is pursuing an accelerated growth plan. The company recently appointed Eric Schaffer CEO of its new Asia Pacific business.

CEO Mark Furness said: “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, reflecting in our recent placing to raise £32m and early progress with our expansion in Asia Pacific.”