Essensys Share Discussion Threads

[hedgehog 100] 17/3/2022 15:09

DOTD hit an intra-day low of just 52.5p on Monday (7th. March), so at its current 90.6p DOTD's rise since then is actually 72.6%.

A similar recovery for ESYS could take it to about 128p.

[hedgehog 100] 17/3/2022 14:29

"What does Putin want and will Russia end its war?
By Paul Kirby
BBC News

Published 6 hours ago

... Ukrainian presidential adviser Mykhailo Podolyak believes a ceasefire could start in the coming days because Russian forces are stuck in their current positions.

Both sides have spoken positively of progress in negotiations, and Mr Podolyak says Russia's president has softened his demands. ..."




Progress towards a peaceful end to the Ukraine-Russia war appears to be happening, and let us hope that this does indeed happen soon, to end the appalling loss of life and destruction.

From an investment perspective, this would also provide a boost to markets and economies around the world.

And shares like ESYS, which seem to have been disproportionately and unfairly hit more, should receive the biggest boost.

[hedgehog 100] 17/3/2022 14:18

Doesn't look like it, as the ESYS share price has gone up since you posted.

About ten Million ESYS shares have been traded this month, out of 64 million ESYS shares in issue.

Which obviously would have been about half buys and half sells.

So yes, some big selling, but big buyers who are happy to mop them up at this price.

The ESYS share price looks to have levelled off, with volume now picked up again this week, which sets a strong basis for a significant move up.

[stockhunters] 17/3/2022 12:40

a lot of stock available still on the ask

[carmarthenshire] 17/3/2022 08:19

https://twitter.com/mathewthomas484/status/1504371623717179394?s=21

[hedgehog 100] 15/3/2022 15:51

I've just noticed that ESYS's largest customer, Industrious, raised US$200M. just three weeks ago, which bodes well for its expansion plans ... in partnership with ESYS of course.

Might Industrious even been tempted to take over ESYS at ESYS's current lowly price?

The success of Industrious during the pandemic is testament to its high levels of customer satisfaction, which in turn is a strong validation of ESYS's technology.

Technology that can help to give its customers a competitive advantage, and succeed even in challenging times.


14/10/2021 06:00 UK Regulatory (RNS & others) essensys PLC Customer Renewal LSE:ESYS Essensys Plc

"Major renewal and expansion with largest customer, Industrious

Framework to support Industrious' global expansion plans

essensys plc, the leading global provider of mission-critical software and technology to the flexible workspace industry, has renewed its strategic partnership with Industrious, the Group's largest and fastest growing customer.

The new global framework agreement consolidates all existing business between essensys and Industrious and establishes the framework for essensys to support Industrious's global expansion plans.

essensys currently serves 111 Industrious locations, comprising in excess of 3 million sq ft predominantly in the USA. The Group has recently supported Industrious's establishment in the UK.

Mark Furness, CEO of essensys, said:

"We are delighted to renew and expand our existing partnership with Industrious. Industrious is an example of our strategy to grow with our leading customers, by supporting their expansion plans. Industrious was one of our early partners when we established our US operation and we have worked together for over four years. This contract renewal reaffirms our joint commitment to provide great customer experiences using our technology. Our recent fundraising to expand the business globally will allow us to continue to support Industrious as they expand their operations both in North America and internationally.""




"2.22.21 — 3 minute read
Industrious Announces Milestone Investment From CBRE
BY INDUSTRIOUS PR TEAM

We’re thrilled to announce that CBRE has invested more than $200 million in Industrious.

This investment represents a significant minority stake in the company and is our largest fundraise to date. It’s also the clearest indication yet that Industrious is the leading platform for sustainable and strategic growth in the workplace-as-a-service industry.

Putting Industrious and CBRE’s complementary capabilities behind a shared vision will create the world’s leading flexible workplace offering. And while Industrious already has the highest customer satisfaction in the industry, this partnership will extend the scope and scale of Industrious’ offerings, making it the workplace provider of choice for the Global Fortune 1000 and beyond.

Here’s what Bloomberg had to say about this milestone investment:

Dallas-based CBRE paid about $200 million in cash for primary and secondary shares, and is transferring its own flexible workspace brand Hana — which operates 10 locations in the U.S. and U.K. — to Industrious as part of the transaction, the companies said .…

Industrious, which entered Singapore last year, will take a “judicious” approach to global expansion and expects ample opportunities as tenants seek to deploy employees across multiple spaces instead of one location in a post-pandemic world. The company will use fresh funds to fuel growth by hiring and for capital pledges linked to new management agreements.

CBRE’s investment in Industrious values the company at more than it was worth in 2019, when it raised capital from Brookfield Properties and Canada Pension Plan Investment Board, among others."

[hedgehog 100] 15/3/2022 11:29

Mrsimmons 10 Mar '22 - 14:01 - 49 of 56 0 2 0
"I agree the cash pile is all earmarked for investment in heads and product so it wont' last more than 23-30 months. The investment question here is whether this will generate enough new business to turn the Group profitable in the medium/long term and generate steady cash flows. Obviously first 6 months they are slightly behind. They must have done some market research which suggests that their offering is going to win in the marketplace. They now need to execute. From memory they are targetting 70m revenues in 4/5 years at 65% GM is £45m less Op ex of c,£20m generates a steady cash flow of £25m. No real working capital here as well which is good."


MrSimmons,

A belated thank you for that useful info.

£70M. of revenues, and £25M. of net operating cash inflow, could give a market cap. of about £1 billion.

Which indeed DOTD was valued at recently on numbers lower than that.

And as at last summer, DOTD had 30-bagged in ten years.

That's the level of ESYS's long-term mutibagging potential.

With ESYS's downside looking very limited, then the risk-reward ratio is looking compelling.

As always, some positive news from the company would help the s.p., though from the current oversold position it could rise well anyway, especially if there is more institutional buying.

Dotdigital (DOTD):

[mrsimmons] 15/3/2022 08:58

This won’t take off until they update the market on performance ie status of new wins with all of this investment. It’s very binary here, either they will win new business and take off or the offering isn’t compelling enough and it will just meander along. As with many investments it’s all about the sales team and whether they can win.

[hedgehog 100] 13/3/2022 12:12

In fact, DOTD actually hit an intra-day low of just 52.5p on Monday (7th. March), so at its current 80.4p DOTD's rise since then is actually 53%.

A similar recovery for ESYS could take it to about 110p.

Dotdigital (DOTD):

[hedgehog 100] 13/3/2022 11:39

Thanks to Riddler for these ESYS posts on Twitter:

"riddler@riddler_smitb· 9 Mar
Alot of NON Russian companies got hammered for slight rev/profit warning in the 1st 3 days of the invasions
#DOTD risen well since
Been buying #ESYS .....fell from £2.60 to 80p on a minor slippage 7 days ago
£50mln cap
£31mln cash (fund raise mid 2021 £2.00+)
£20mln annual RR"

"riddler@riddler_smitb
IC covered it the day after the initial crash (96p)
At current 75p imho it's a bargain after complete over reaction caused primarily by the geo political situation at time of ESYS up date
1:16 pm · 12 Mar 2022·Twitter for Android"




So the IC describes it as: "A mildly disappointing trading update ..."

Normally you might think that would warrant a fall of about 20%: so say to about 200p.

E.g. Berenberg has cut its target price for ESYS from 345p to 270p, i.e. a 21.7% reduction.

Instead of which ESYS has fallen 70%, to 73.5p!


A rise of a about a third from this level, similar to Dotdigital (DOTD) in the last few days, could see ESYS back up to about 100p.

Dotdigital (DOTD):

[hedgehog 100] 11/3/2022 12:01

11-Mar-22 10:12:59 75.00 1 Buy* 72.00 75.00 0.75 O


"Journal of Banking & Finance
Volume 75, February 2017, Pages 109-117
1-share orders and trades

... Abstract
1-share trades are the most common odd lot trade size, accounting for 9.62% of all odd lot transactions and 3.65% of all trades on NASDAQ in 2012. While 50.41% of 1-share trades result from broken orders, 34.89% of 1-share trades are intentional. We provide substantial evidence that traders use 1-share trades to “ping” for hidden liquidity. In particular, our results indicate that 1-share trades are disproportionately aggressive and also execute against hidden liquidity more than any other odd lot trade size. We also find a relative increase in trading immediately following a 1-share trade. Our results are in line with Clark-Joseph (2014), who suggests that traders may use small, unprofitable trades to detect information from other traders. Specifically, 1-share trades represent the minimum cash outlay necessary to trade, while simultaneously producing the smallest possible effects on a market maker's inventory, and in turn, a security's price."




From the Financial Spread Betting website:

"Q. When you see a trade go through for say 12 shares or even 1 share, what is that all about?

ShareSurely it can't be a personal investor, is it some sort of balancing act?
A: Say there are 1,100 shares available to buy on the order book. Someone buys 1,080 leaving 20 shares there on the book. The next buyer may buy 2,000 shares but the 20 shares left on the book go through as a separate buy even though the buy was for much more. In the US you actually see these separate buys on your contract note so a purchase of 200 DELL might show as 2 80s and a 40 making up the 200 that you have bought.

Also, not a lot of people know this and there is a reason why, its pretty useless information but...Crest, Bloomberg, UBS, RBS, etc. anyway, most brokers, clearers, settlement banks, data people, all buy 1 share in almost every listed company so that they automatically receive and are entitled to any corporate information. It may not be the reason for any specific purchase or sale but its one of the reasons a buy/sell of 1 share."

[lima666] 11/3/2022 11:06

How desperate is that idiot Riddler getting that he now shouts ‘1 code’ on twitter ..what a clown 🤡😆

[hedgehog 100] 11/3/2022 10:18

11/03/2022 10:08 UK Regulatory (RNS & others) essensys PLC Notice of Results LSE:ESYS Essensys Plc

essensys plc (AIM:ESYS), the leading global provider of mission critical software-as-a-service (SaaS) platforms and on-demand cloud services to the flexible workspace industry, announces it will publish its results for the half year ended 31 January 2022 on Thursday 21 April 2022.

A meeting for analysts will be held at 09.30 on the morning of results. For more information, or to register attendance, please contact FTI Consulting at [e-mail].

[w1lbur01] 11/3/2022 08:06

Hopefully yesterday was the bottom noticed a few biggish trades maybe the end of a seller

[mrsimmons] 10/3/2022 14:01

I agree the cash pile is all earmarked for investment in heads and product so it wont' last more than 23-30 months. The investment question here is whether this will generate enough new business to turn the Group profitable in the medium/long term and generate steady cash flows. Obviously first 6 months they are slightly behind. They must have done some market research which suggests that their offering is going to win in the marketplace. They now need to execute. From memory they are targetting 70m revenues in 4/5 years at 65% GM is £45m less Op ex of c,£20m generates a steady cash flow of £25m. No real working capital here as well which is good.

[w1lbur01] 10/3/2022 13:47

I made an initial small purchase today. I see this very much as a slow burner but todays price look to me to have value. But what do I really know!!

[74tom] 10/3/2022 12:49

Blackrock selling down...not sure why it took the company a week to release the RNS.

No director buying says it all, £30m of cash is helpful but with significant losses forecast for the foreseeable it won't last forever. I.e. the forecast is for -£15m pre tax profit in 2023, so this time next year the cash runway will be around 12 months. One to avoid IMO.

[hedgehog 100] 07/3/2022 18:42

Recent Share Trades for Essensys (ESYS)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
07-Mar-22 16:39:44 83.75 50,000 Unknown* 80.00 85.00 41.88k O
07-Mar-22 15:07:52 80.00 300,000 Unknown* 80.00 85.00 240.00k O
07-Mar-22 15:07:52 80.00 300,000 Unknown* 80.00 85.00 240.00k O
07-Mar-22 12:00:40 80.00 200,000 Unknown* 80.00 85.00 160.00k O
07-Mar-22 12:00:40 80.00 200,000 Unknown* 80.00 85.00 160.00k O
07-Mar-22 15:07:45 80.00 175,000 Unknown* 80.00 85.00 140.00k O
07-Mar-22 15:07:40 80.00 175,000 Unknown* 80.00 85.00 140.00k O
07-Mar-22 15:07:40 80.00 175,000 Unknown* 80.00 85.00 140.00k O
07-Mar-22 16:37:34 81.00 2,500 Sell* 80.00 85.00 2,025 O
07-Mar-22 14:27:37 82.00 3,281 Sell* 80.00 85.00 2,690 O


Nearly 1.6M. in ESYS shares reported late today, which is about 3% of the shares in issue.

It looks like more institutional buying, & a big institutional 'share exchange' - all positive.

If whoever wanted out is now out then this could move back up quickly.

[hedgehog 100] 07/3/2022 13:09

"The £31m they placed has all been thrown at resource and product development"


ESYS's net cash at the year end was still £30.5M., so the company still has the vast majority of the sum raised, which is now looking very well-timed from the company's point of view.

The company's pre-tax loss last year was only £2.9M., and in 2019-2020 it actually made a pre-tax profit.

With the cash, the enterprise value of the business is now only about £23M. (current market cap. £53.1M. at 82.5p).
That is an EV sales multiple of barely one, which looks extraordinarily cheap for growing software revenue, 87% recurring, with high-growth potential, and from the leading global provider.

And the cash certainly increases its attractions as a takeover candidate.


"But the share price you pay can be a crucial determinant of your overall return."

E.g. Investing say £10K. at 85p, v. 170p, followed by a takeover next year at say 340p.

The investment at 85p would have quadrupled to £40K., a £30K profit.

Whereas the investment at 170p would have doubled to 170p, a £10K. profit.

[mrsimmons] 07/3/2022 11:40

The £31m they placed has all been thrown at resource and product development - so this is very binary - either it will take off or it will flounder. The question is whether the offering is compelling enough. The update wasn't overly positive but it did mention strong pipeline - hopefully that starts to translate into orders. It will take time to develop these new relationships (in some new territories) so i think one needs to be patient with this one. It is not an overnighter.

Fair point on the £22m to date. The EBITDA loss this year will be 7m which is presumably all the investment in heads/product to drive that future growth. They are set up for growth and now they need to execute. If you believe they can execute successfully then it is a no brainer as the margins are great. I am trying to get hold of the analysts reports and will make a decision on this one. I think it is worth a punt though but it all comes down to the offering.

[hedgehog 100] 07/3/2022 10:48

MrSimmons,

I would agree that the long term business results of ESYS will ultimately determine its long term share price.

But the share price you pay can be a crucial determinant of your overall return.

For example, if you pay double, then your profit on the same sum invested would be more than halved.

And I see the company's 15 year history in more positive terms, as it suggests a more established company, with more substance, and greater barriers to entry.

In addition, not many companies grow from start-up status to £22M. of annual revenues in just decade an a half, so that for me is impressive.

Equally, not many companies have a 100% customer retention rate, especially during the pandemic, but ESYS's 87% recurring revenue rate gives it more certainty than most, and it won nine new customers in the first half.

The pipeline is still strong. We are talking about delays due to the pandemic, which has hit companies like this, and others, across the board.

Indeed many companies have seen their revenues slump during the pandemic, whereas ESYS's are at least increasing.

If they can do that during the pandemic, then it bodes well for the post-pandemic performane.


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

" ... 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. ..."

[mrsimmons] 06/3/2022 19:26

Maybe but I want to invest for the long term. Forget about the price for now. The question for me is whether we think they will get the market share gains/new business in order to drive the revenue growth to that 70m figure. They have invested in a lot of sales resource and product development. I can give them the benefit of the doubt for the first 6 months but by year end that investment needs to start seeing some green shoots either in sales orders or a very strong pipeline of sales.

That is the Punt here - if they win in the market place and the opportunity is there (hence why they did the placement) the share price will look after itself. So do we have faith in the product/service offering is the best in class and can the sales team deliver. My only question mark on that would be this group has been around a while (15 years) so presumably the offering can’t be that ground breaking as 22m revenues in 15 years isn’t exactly stellar.

That’s my take on it anyway. I’m undecided on whether to invest. Would be good to get more on the half year. Also would be good to understand why they lost that uk customer. That is important.

[hedgehog 100] 06/3/2022 14:30

Based on its very oversold technicals, and undervalued fundamentals, a significant ESYS bounce in the short term looks very plausible.

Certainly into the 100 - 125p range, and perhaps even as high as 150p.

[hedgehog 100] 06/3/2022 13:10

"Berenberg Bank set a target price of 270 GBX for the company

Posted by ABMN Staff on Mar 1st, 2022

essensys (LON:ESYS – Get Rating) had its price objective dropped by investment analysts at Berenberg Bank from GBX 345 ($4.63) to GBX 270 ($3.62) in a research note issued to investors on Tuesday, Digital Look reports. The firm presently has a “buy” rating on the stock. Berenberg Bank’s price target suggests a potential upside of 114.40% from the stock’s current price. ..."




So Berenberg has cut its target price for ESYS from 345p to 270p, i.e. a 21.7% reduction.

Whereas in comparison, ESYS has fallen from 245p at the end of February to 82.5p this weekend, a 66.3% fall.

And the upside from 245p to the old target price of 345p was 40.8%.

Whereas the upside from 82.5p to the new target price of 245p is 197%!


An interesting after hours trade on Friday, by far the biggest of the day:

Recent Share Trades for Essensys (ESYS)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
04-Mar-22 17:05:54 99.04 88,333 Unknown* 80.00 85.00 87.49k O

If it was dealt on Friday then surely it has to be a buy, probably from an institution bargain-hunting.

After all, institutions were backing ESYS in a placing in July at 285p.