essensys raises £30m for expansion

The flexible office software provider has raised about £30m in net proceeds through a primary share placing – with an open offer for an additional £2m underway.

AIM-listed essensys said it will use the proceeds from its £31.3m issue to accelerate the company’s growth strategy and product development.

Offering shares at a 6.6% discount to the closing price of 305p on 7 July, essensys said the fundraising would “take advantage of the significant opportunities presented by the growing flexible workspace industry”.

The strategy will include:

• Targeting a “significant land grab opportunity” that has arisen from a growing demand for flex space
• Growing essensys’ market share in North America, the UK, Continental Europe and Asia Pacific – with a long-term plan to increase its market share by 10% across those regions
• Expanding its customer base by developing “key, high value, strategic accounts”
• Accelerating the company’s product development to strengthen its market position

Alongside the primary placing, CEO Mark Furness sold £6.3m of his shares in a secondary placing. essensys also has an open offer for an additional £2m underway, which it said will close “shortly” before its general meeting on 26 July.

Jon Lee, non-executive chairman of essensys, said: “We are delighted by the market’s reaction to our proposed placing of new shares, are grateful for the continued support of existing investors and look forward to welcome new shareholders onto the register.

“We are pleased to be launching the open offer, thereby providing an opportunity for our wider shareholder base to participate in the fundraise.

“We are excited by the long-term growth opportunities ahead for the company and look forward to updating the market on our progress as we deploy the proceeds of our significantly oversubscribed placing.”

Global expansion has been a key focus for essensys, and in March Furness told PlaceTech: “Our customers and the industry at large are looking to create global real estate platforms.”

In its half-year results in March, essensys reported that its recurring revenue in the US had nearly matched its UK recurring revenue at the start of the year. The company has previously said its US business will soon eclipse its UK activity.

The company has also been on a search for a CEO for Asia Pacific and is eyeing further opportunities across Europe.