Business
Full year trading update
Full year trading update.
About this update from Essensys Plc
[{"type":"text","content":"\n\n \n \n31 August 2023\nessensys plc\n(\"essensys\" or the \"Group\")\n \nFull year trading update\nGood progress with accelerated strategy to drive profitability and cash generation\nAdjusted EBITDA loss and year-end cash expected to be in line with market expectations\nHigh single-digit revenue growth\n \nessensys plc (AIM:ESYS), the leading global provider of software and technology to the flexible workspace industry, announces a pre-close trading update for the financial year ended 31 July 2023 (\"FY23\"). All figures in this announcement relate to the FY23 period unless otherwise stated.\n \nRevenues are expected to grow by c.9% to £25.3m, driven by momentum in the US market, which remains our primary growth market. This is a resilient performance in the current macroeconomic climate. \n \nAt the end of the financial year, we accelerated our plans to return to sustainable growth, profitability and cash generation and the Adjusted EBITDA1 loss for FY23 and cash at the year-end are expected to be in line with market expectations. The restructuring of our global operations - to align our cost base and investments to our revenue base and the near-term market opportunity - is largely complete, with a reduction in headcount from 184 at its peak to 122, and the exceptional and non-recurring costs of achieving this will be reported below Adjusted EBITDA in FY23. essensys is now a leaner organisation and has an appropriate operational structure to support our customers and deliver our long-term strategy.\n \nOur focus on larger strategic clients continues to deliver operational efficiencies and an improvement in our customer mix, whilst also driving our product roadmap and sales pipeline.\n \nessensys ended FY23 with a cash balance of £7.9m, in line with market expectations after adjusting for the timing of final payments of approximately £1m to achieve the group reorganisation. The Group remains debt-free and on track to return to run rate positive Adjusted EBITDA in FY24. Net cash generation is expected in FY25, achieved within current cash resources.\n \nMark Furness, Chief Executive Officer of essensys, said:\n\"To accelerate our return to profitability and sustainable growth, we have taken action to manage our cost base. The reorganisa...