Essensys Share Discussion Threads

[davidbennett] 13/11/2022 14:32

Excellent commentary on Essensys. 25m in

[p1nkfish] 06/11/2022 13:45

Cash return makes sense to me having looked at the numbers.
It's shareholder money.

[p1nkfish] 01/11/2022 07:49

Anyone else think ESYS is sitting on too much cash and some should be returned to shareholders to do with as 5hey see fit?

[scepticalinvestor] 18/10/2022 07:09

Ouch. Bargepole

[forrest1987] 24/8/2022 15:37

Essensys: update tells us very little
A trading update from essensys (AIM:ESYS), a provider of software to the serviced office sector, was long on words but short on numbers.

We were told that for the financial year ended 31 July 2022 essensys made “good progress against its strategic growth plan and seen momentum returning” with “the renewal of multi-year contracts with its largest customers in both the UK and the US, who are accelerating their own expansion plans, underpinning future revenue growth”.

Revenue and adjusted EBITDA for the year are expected to be in line with consensus market expectations, although the company failed to tell us what these expectations are.

The house broker’s forecasts for the year are for revenue of £23.4m, an adjusted EBITDA loss of £6.6m and an adjusted pre-tax loss of an eye-popping £12.6m.

For the following year ending July 2023, things aren’t forecast to improve much. While revenue is forecast to climb to £30.7m, they are still guiding to losses of £11.9m, with the Group forecast to remain loss-making in 2024 as well.

With £24m of cash in the bank there is plenty to support their growth plans, although that is £6.5m down on the position at the end of January.

With over £50m of equity having been injected into this business to date and profits now not forecast to materialise until 2025, or later, shareholders will require a large degree of patience. It’s certainly a very different offering to the one we covered here on its admission to AIM in 2019, which had already generated positive EBITDA of £2.4m. Furthermore, we remain puzzled as to the level of sophistication required in software for serviced offices!

The shares are down 59% on the AIM admission price of 151p.


Sell and sell now mate

[p1nkfish] 24/8/2022 15:33

Wouldn't you be an idiot to keep posting here unless you intended to buy?

[forrest1987] 24/8/2022 15:16

Youd have to be mental linton to buy here falling like it is

[forrest1987] 24/8/2022 15:09

Looks to be in freefall here

Obviously something causing the background selling

[linton5] 24/8/2022 15:09

Wow are you what they call a deramper

[forrest1987] 24/8/2022 14:53

dropping back now poor results imho

[forrest1987] 24/8/2022 13:54

Market expects 30% growth in revenue to 30m next year

growth is non existent

There's no way this can increase revenue by 7 million in 2023

The market valuation was and still is crazy. the expansion has been a failure imho

[p1nkfish] 24/8/2022 13:39

one day it will be the bottom, we only know in hndsight.

[forrest1987] 24/8/2022 13:06

Where are the director buys

[forrest1987] 24/8/2022 12:48

Plenty selling out now here, note its locked up on the sell side so likely to be in the 50s before long

[p1nkfish] 24/8/2022 12:45

They are more open field areas but Europe would hardly be high growth for much for a while.
APAC possibly.
Valuation was mad, yes.

[forrest1987] 24/8/2022 12:19

But they are the big growth areas

How this was able to achieve such a high valuation on so little in a crowded market place with non existent growth is beyond me

[p1nkfish] 24/8/2022 12:16

Only in APAC and Europe as new areas.

[forrest1987] 24/8/2022 11:20

No he said in the q and a back in March that if they were struggling profitability/growth wise theyd change to a less capital intensive model. Which they have done.

Todays news isnt great, burning huge amounts of cash still.

How this was almost a 200 million company is beyond me

[p1nkfish] 24/8/2022 11:10

or aware it will take longer or someone asking for money back.

[forrest1987] 24/8/2022 10:24

I'm baffled by the cash

They burnt more or less the same as they did in H1 6 million, not great as its not slowing, but not increasing i guess

A change to a less capital intensive model suggest they are struggling to find high growth customers imnho

[forrest1987] 24/8/2022 08:52

Too many sellers here imhoEven today with good news

[david gruen] 24/8/2022 07:56

essensys PLC

24 August 2022

24 August 2022

essensys plc

("essensys" or the "Group")

Full Year Trading Update

Trading in line with market expectations and good strategic progress against long term plan

essensys plc (AIM:ESYS), a leading global software and technology provider delivering digitally enabled buildings, spaces and services for landlords and flex workspace operators, is pleased to announce a pre-close trading update for the financial year ended 31 July 2022 ("FY22").

During the year essensys has made good progress against its strategic growth plan and seen momentum returning. The Group has agreed the renewal of multi-year contracts with its largest customers in both the UK and the US, who are accelerating their own expansion plans, underpinning future revenue growth. The Group has also won multiple new customers in the year and strategic engagements continue with a number of large global landlords.

essensys' operations in APAC and Europe have been established with new customer sites now live and the business has adopted a 'capital light' model to support its continued growth in new geographies which will reduce the capital required for that expansion.

Investment in product and people continues in line with business plan, both in the essensys Platform which provides additional capability to customers, and in its smart access product, which enables a secure touchless digital building experience.

Revenue and adjusted EBITDA (1) in FY22 are expected to be in line with consensus market expectations. As at year end the Group had contracted new business which is expected to deliver GBP1.6m of annual recurring revenue (ARR) once live. Looking ahead, the Group has a healthy new business pipeline of opportunities.

The Group ended the year with a strong cash balance of GBP24 million, ahead of management's expectations, which will support its strategic plans. The Group remains debt free.

Mark Furness, Chief Executive Officer of essensys, said:

"I am pleased to report good strategic progress against our long term plan despite continued challenging conditions. It is clear that hybrid working arrangements are here to stay and that the structural drivers that are changing the commercial real estate industry - flexibility, digitalisation and sustainability are becoming ever more embedded; underpinning our long-term growth plans as the impact of the Covid-19 pandemic recedes.

We continue to invest in our product pipeline and we are seeing evidence that larger flexible workspace operators have resumed their expansion plans and traditional real estate operators are making positive steps to implement flexible workspace offerings following some rationalisation.

essensys plays a vital role in supporting real estate players to create seamless in-building experiences in their flexible operations by removing complexity and reducing costs through automation and simplification and we remain confident in the market and opportunity for the Group in FY23 and beyond."

[p1nkfish] 24/8/2022 07:49

They ended with higher cash levels than planned.

How about returning some to the shareholders given the new capital light model for expansion in emerging?

Excess cash can act as a comfort blanket to management.
It will only erode in their hands anyway.

[babbler] 24/8/2022 07:31

Update doesn't give much away but nice cash levels.

[kubera369] 12/8/2022 09:38

Is that a 447k buy I see ?