Essensys Share Discussion Threads

[mrsimmons] 05/3/2022 21:41

Interesting business. They have invested to scale and hence the placing to support all those extra heads. I guess the question is whether they can now deliver that growth. Is their product compelling enough in the market. They talked in the placing circular of hitting 70m of revenues in 2025 from memory. At 65% gm that’s 40m GP less op costs which will be c.25m (?) is 15m of ebitda. Looks cheap but market clearly doesn’t think that 70m is achievable now. Fundamentally it comes down to the sales team and whether they can hit their targets. That’s the punt here.

You really are investing in the management team.

[hedgehog 100] 03/3/2022 17:50

01/03/2022 07:00 UK Regulatory (RNS & others) essensys PLC Trading Update LSE:ESYS Essensys Plc

"... The Group's expansion and acceleration of its go-to-market activities has been delayed by continued COVID related uncertainty. This has also resulted in extended sales cycles leading to lower than anticipated sales bookings year to date. As a result, the Group's trading for FY22 is expected to be below current consensus market expectations.

For the half year period, Annual Recurring Revenue (ARR) run rate at GBP20.3m was slightly ahead of H1 FY21 (GBP19.9m) and adjusted EBITDA(1) losses are expected to be slightly better than management expectations.

Net cash at half year end at GBP30.5m was significantly better than management expectations due to delayed deployment of funds and supports our continued ability to capture the long-term structural drivers in the flexible real estate market.

essensys continues to progress its plan to capture the global market opportunity in flexible workspaces, supported by the successful GBP33m fundraising in July 2021. Since the start of our financial year, we have appointed CEOs for Asia Pacific and UK & Europe, to support our long-term expansion. The APAC business is now fully operational with personnel in place in Singapore, Hong Kong and Australia. Investment in product development is progressing as planned.

Outlook

The Board remains confident in the Group's future growth which is underpinned by long-term structural drivers. Despite a delay in accelerated bookings growth due to the prolonged challenges caused by COVID, the pipeline for FY23 and FY24 is strong. The Group has seen pipeline opportunities continue to grow, particularly amongst large multi-site property organisations. Larger flexible operator customers are starting to expand once again. The Board now expects revenues for FY22 will not be less than GBP23.5m (FY21: GBP22m), with an adjusted EBITDA(1) loss of not more than GBP7m.

Mark Furness, CEO commented:

"essensys has a resilient business model and we are well placed to deliver our long-term expansion plans. Our US business continues to grow strongly. Whilst COVID has undoubtedly had an impact on our recent sales performance, our pipeline for FY23 and FY24 remains strong, supported by positive market dynamics, existing customers returning to growth and exciting opportunities that are already underway. Our new product development activities are starting to deliver further new capabilities and we look forward to sharing more details in due course." ..."




From 245p at the end of February to 92p today, ESYS has fallen 62.45% in 3 days, to a market cap. of just £59.23M. - about half of which is covered by cash.

That seems very severe for what looks like a temporary hiccup due to pandemic uncertainty, with the pandemic now rapidly passing.

The enterprise value of the business is about half the market cap., which looks very cheap for an exciting software business with £22M. of annual revenue, £19.1M. of which is recurring.

Bear markets can throw up opportunities to buy great growth companies at a knock-down price, and this looks like it could well be one.

The company is very well-funded to exploit its major growth opportunity in flexible working, which ironically is being driven by structural changes supported by the pandemic, but look like they are here to stay.

[shinnas] 02/3/2022 10:03

anyone any idea what is going on with this share?

[pugugly] 01/3/2022 08:59

Research Tree Not sure if this is on the free side or behind the subscribers pay wall.

[theprovosts] 01/3/2022 08:52

how did you get hold of the note if you dont mind me asking thanks

[pugugly] 01/3/2022 08:45

Was thinking of bottom fishing but after reading Singer's morning note decided to watch. Does not make happy reading and (imo) the road ahead is foggy.

[capt bligh] 17/8/2021 11:32

Bought some this morning

[saltaire111] 06/4/2021 13:09

Looking very strong now. Great to see.

Salty

[shieldbug] 24/3/2021 11:44

Looks like they have a good size market, competition is not too strong, great client list, good reliable revenues, clearly observable structural change in the industry accelerated by pandemic, founder CEO owning 40% of shares. I can't tell how good their product is but from the retention rate their customers must like it.

[wjccghcc] 23/3/2021 18:53

Yes, it's one of my top 5 holdings. They're in the right place at the right time although it won't show up in the numbers for a couple of years so you need to be patient.

[saltaire111] 22/3/2021 17:51

Gosh it’s quiet here.

Nobody else invested here?

I think this one’s a winner...

Salty

[saltaire111] 12/2/2021 21:32

Bought in here at £1.80 a share back in May and was disappointed to see the share price drift down to £1.40. Like the look of the company and its potential to help companies adopt flexible and remote working. I figured that their services will be in demand in the post-Covid environment.

Delighted that the stock has been recognised in the last few days.

Salty

[mysteronz] 08/11/2020 10:34

I think there is a great opportunity here. Shunned on ADVFN is no bad thing. CV19 should accelerate the trend to flexible working, granted it, in the short term defers some growth and elongates sales process but it is in the right space at the right time.

Cheap and cashed up with a platform expanding and ready to go.

Just look at North American appointment.

If you use twitter there is a post on @jameslaity on the subject of ESYS

[shieldbug] 06/11/2020 16:19

Any reason why this share is shunned on ADVFN? Is it a Covid thing?

[rimau1] 04/1/2020 18:23

That was a nice rerate from £1.60 quiet board so i only check in once in a while but i think there is plenty more to come here, the US will provide the growth engine for this under the radar stock.

[davr0s] 22/11/2019 10:51

Have you seen it then?

[rimau1] 22/11/2019 10:44

I am expecting a strong update at the AGM next week

[allonblack] 11/11/2019 09:37

Bought in here recently. The best companies can produce enough cash themselves to grow quickly. If nothing else the market growth should make them a multi bag over the mid term.

[rimau1] 06/11/2019 13:32

Just a well deserved rerate on a strong outlook, expect an update at the AGM. Strong buy for me under £2 and i topped up heavily during the recent falls. Exciting future and still under the radar.

[saltaire111] 06/11/2019 13:00

Bid coming?

Salty

[rimau1] 22/10/2019 09:39

Agreed, excellent results and confident outlook. Recent price weakness presented a great top up or entry level and i can only think this was a read across from the problems at WeWork which makes no sense. Massive structural growth market, this is a long term no brainer. No debt, fast growing markets and operational gearing kicking in.

[saltaire111] 22/10/2019 09:12

Cracking results

Salty

[leedslad001] 03/10/2019 15:34

Bought a few today

[leedslad001] 07/8/2019 13:20

Glad they didn't won't my money yesterday bought ba. Instead

[leedslad001] 06/8/2019 19:58

What's the nms of stock please