Essensys Share Discussion Threads

[divmad] 24/4/2022 07:35

Too many traders in this stock.

[yasx] 23/4/2022 17:53

The presentation suggest this business has substantial potential. I sold my position from the 70's at around 120p but will scale back in - hope it falls further.

[peanut100] 22/4/2022 19:05

Left bid in 250k no offer, expect over £1 very quickly Monday morning.

[jamesbunch1999] 22/4/2022 16:36

So I was wrong hey I said sub 100Guess no one will thank me then

[devonlad] 22/4/2022 16:28

If they deliver on the pipeline, the news flow should be really good. I wonder how many actually bothered to watch the presentation, very few I suspect. You can really leanr a lot from these presentations, especially after you have watched a few as you get a feel for the people that run a company, how aggressive they are and how slimey they are, there are a few of them around as well. I really liked todays presentation, ceo really stood out for me as a man that is very hungry to get rich the right way!

[p1nkfish] 22/4/2022 16:23

Another interesting day. All down to execution and looks very promising to me.

[donald pond] 22/4/2022 15:01

No, had been watching for a while though and think here is around the bottom given recent news, cash balance and director buys

[devonlad] 22/4/2022 14:37

Did you see the presentation DP, would like your views if you did?

[donald pond] 22/4/2022 14:28

I've bought a few, L2 all blue

[pre] 22/4/2022 14:17

Very upbeat presentation and now impatient have left, the patient can get their stock - who would have thought you could get them at this price

[davidro77] 22/4/2022 14:01

£1 has gone :(

[davidro77] 22/4/2022 13:32

Sitting right at 1 on the bid. Will it hold as the floor or are we heading down under...

[mrsimmons] 22/4/2022 13:06

There was a lot of talk about the pipeline - the one thing he said repeatedly was the need to execute. From what he was saying there is no one else in this space. They have the competitive advantage and they need to make that pay. If they can convert the pipeline and opportunity then this will be a fantastic investment.

Really it comes down to the management team and the sales team (doesn't it always one might say). Do they have that drive to win. I will stay invested and look forward to the next update. I think it is important to note though that this is not an overnighter - it will take time for them to convert that pipeline. I am hopeful they can accelerate and beat these projections which gives us some fantastic upside. I think they have some more up their sleeve but don't want to over promise and under deliver. They have been burnt once already which is a good lesson.

[daveparker18] 22/4/2022 13:06

HEADS. UP GET INTO EUA RNS ON SALE IMMINENT

[devonlad] 22/4/2022 12:37

David, years of experience, try doing that with biotechs, they use very complicated words!!!!

[devonlad] 22/4/2022 12:34

David, fair point but he said in answer to his question that the funds raised meeet the break even point in their plan. The funds will target the growth and the more aggressively they grow, the faster and stronger they position themselves in the market as the market leader, it is all about growth here. He also said that if the risk profile changed, they could switch their plan from growth to profit at any point quickly, they just do fewer installs really.

I thought it was great, nice to see a small British company with huge ambitions and funded to achieve some or possibly all of them. The pipeline slide was the key for me, absolutely huge potential to get this moving really fast and hard!

[p1nkfish] 22/4/2022 12:34

davidro77, Esys can benefit from new working pattens bought about by CV19.
The impact on ESYS was to do with getting the message out, not on the utility of their offerings.

[davidro77] 22/4/2022 12:31

Wow great job. How on earth did you capture all of that during the call do you have a PA lol

[davidro77] 22/4/2022 12:28

I did think the presentation came over pretty well overall. It's reassuring to know tue founder has less this from the get go 16 years ago. But the risk for me is trying to expand too far too fast and burn through that cash. Plenty of other cos have misread covid implications and are having to seriously reign in expectations as we return to a more normal environment. Just got to take on trust that they have read this right

[devonlad] 22/4/2022 12:26

My notes on the presentation, must say in comparison with David, I was hugely impressed. He seems like a highly energetic and k nowledgable ceo who has a plan in place and a good one to structure a really high growth business. The growth opportunity slide towards the end was really impressive. My notes are blwo, there are bound to be errors as I was writing these on the fly:

Setting themselves at the heart of structural shift in the industry by building a strong team and product. One customer lost in the UK went bust. 9 new high value customers added in the period, strong growth since the turn of the year in strategic customers. They are looking at the global expansion in the industry and are expanding globally. A lot of emphasis on growing with the right team.

£10.9m H1 revenue, USA up 20% which is 53% of revenues. Ebitda loss slightly better than forecast, expecting recurring revenue to drop as the business grows. 63% gross margin down due to how they treat assets. Personnel up 20%, currently up to 172 so they are still growing strongly. More than half revenue from USA and expecting strong ROW growth. Strong customer and site growth. Focussing on core customers. £3.5 to £4m capital expenditure for the year. Made strategic inventory investment in the USA to have secure supply for the next 12 months. Ensure they can deliver growth in the USA.

2023 growth with 53 new customers coming on board, broader reach of customers. Expecting growth from new sales and marketing personnel.

Market Opportunity: 3 structural drivers to their technology. Growth in flex workspace operators. Digitalisation to transform journeys in buildings, touchless access etc seen to make real estate more commercially viable. Decarbonisation, cloud, saas etc to decarbonise portfolios. Building spaces have changed to include co-working, conferences, shared spaces that can be more commercially successful. World of flex and traditional formats combining to create new workspaces and solutions that require their platforms.

8 out of 10 companies don't hve the systems in place that they offer so there is a huge growth oportunity. They provide secure networks etc, digital infrastucture, solving digital complexity and opperational complexity. Digitally enabled spaces are critical to their customers success. Biggest customer posted largest increase in sales as they could deliver digital security etc. Companies will pay a premium for these spaces and they get a better roi.

They have a strong strategy to capture the market, fundraise helps to capture the structural growth and change. Expand geographic reach, accelerate go to market activities, accelerate the value of the product so that the product becomes a more embedded technology. A lot of recruitment going on. Investment in full stack, iot hardware and essensys lab. They have their own private network to deliver capability, security and experience. Delivering 25 data centres and can cope with over 3000 buildings. Have smart access providing an inbuilding journey for access and even payments. Converging these all into one solution which is powerful for customers, now deployed in beta phase in the uk through mobiles allows you to move through buildings, book a space and pay for it via a mobile.

Talking about hyper efficient growth, industrialisation of the process, digital first processes and getting the right headcount. Expecting to recover to 80% of the plan in the USA by eoy. Really strong opportunities in California, Texas and West Coast landlord.

APAC is a huge growth market, Hong Kong, Singapore etc, making great progress with a quality team. Since the turn of the year, pipeline growth of 11% week on week!!!!!! Looks like APAC could be huge! Very excited about that opportunity. Appointed new ceo for Europe looking for very strong growth, big France opportunity coming. Since January, pipeline growth has increased, medium term pipeline has increased 40% since January.

Long term pipeline growth is huge! 1700 locations longterm in the pipeline. That growth slide is immense! Targetting global, large high value strategic accounts including Heinz.

In growth mode right now and they need to grow rapidly to become embedded in the industry, break even expected in 2024. Investment is all about growth ansd they see huge growth opportunities and if they feel that there is an issue, they can stop growth and move to lower growth and profit rapidly. Sees this as the strongest ime for the business, quality of product, team and customers and pipeline is very high. All about execution, they are focussed on execution and quality of the opportunity. Business is funded through to break even point. Cash helps because the size of the opportunity is multi billion pounds, self funded through to ipo. Window of opportunity to own a big part of the market right now. Really ambitious team and they are looking to accelerate their position as the market leader. First target is £100m ARR. Key usp about automation, how the platform is configured in the buildings, they need to make more potential customers more aware.

[p1nkfish] 22/4/2022 12:26

Agreed Devonlad.
The market will decide & its not his job.

Give it a while and some will kick themselves for not having taken a punt around this price.