Business
Half Year Trading Update
Half Year Trading Update.
About this update from Essensys Plc
[{"type":"text","content":"\n \n \n 28 February 2023\n \n \n \n \n \n \n essensys plc\n \n \n \n (\"essensys\" or the \"Group\")\n \n \n \n \n \n \n \n \n Half Year Trading Update\n \n \n \n \n \n \n \n \n \n Revenue growth of 18%, accelerated implementation of plan for profit and cash generation\n \n \n \n \n \n \n essensys plc (AIM:ESYS), the leading global provider of flexible workspace technology, announces an unaudited trading update for the half year ended 31 January 2023 (\"H1 FY23\").\n \n \n \n \n \n \n Financial Highlights\n \n \n \n \n \n \n · \n Trading during H1 FY23 was in line with management's expectations\n \n \n · Total revenue grew by 18% to £12.9m (H1 FY22: £10.9m), driven primarily by the Group's North American business, which generated growth of 36% to £8.1m (H1 FY22: 5.9m)\n \n · \n New site deliveries increased by 31% year on year resulting in non-recurring revenue of £2.3m in H1 FY23, twice that of H1 FY22 (£1.1m), reflecting higher volume and value of sites, with average non-recurring revenue per site up 69%\n \n \n · \n New sites are generating 17% higher contracted recurring revenue per site than closed sites on average, mitigating impact of lower value churn\n \n \n · \n 76% of new sites live in H1 FY23 with strategic customers1\n \n \n · \n 89% of new deals signed in H1 FY23 with strategic customers1\n \n \n ·\n £1.5m ARR from contracted sites not yet live at 31 January 2023\n \n \n · \n Net cash at the period end was £12.6m (31 July 2022: £24.1m) due to the timing of working capital movements, expected to normalise post-period end; the Group remains debt free\n \n \n · \n Accelerated strategy to drive profit and cash generation\n \n \n \n \n \n \n Accelerated strategy to drive profit and cash generation\n \n \n \n \n \n \n \n \n In line with previous guidance, the Group has commenced a reorganisation of its global operations to position it for sustainable growth, profitability and a return to cash generation whilst remaining within its existing cash reserves. This reorganisation is expected to deliver a total of £7.5m annualised cost savings and will result in the Group being run-rate Adjusted EBITDA positive during the first quarter of FY24 and run-rate cash flow...