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LONDON - essensys plc (AIM:ESYS), a leading provider of software to the flexible workspace industry, reported a return to profit in the first half of fiscal year 2025 and is on track for run-rate cash generation for the full year. The company released its unaudited results for the six months ending January 31, 2025, showcasing a positive adjusted EBITDA and the launch of its new product, elumo.
The company’s return to positive adjusted EBITDA reflects a simplified operational structure and an aligned cost base. Despite the downsizing of a large strategic customer, essensys achieved a 5% growth in Strategic customer Annual Recurring Revenue (ARR), excluding this customer. The adjusted Strategic customer Net Revenue Retention stood at 110%, up from 103% in the same period last year. essensys remains debt-free with net cash of £2.2 million as of January 31, 2025.
The launch of elumo, a dynamic bookings and access platform, is expected to drive growth over the next five years. The company reports momentum with strategic customers, including a new customer win for an intelligence-led portfolio deployment for 11 new sites in the key US market and a three-year renewal expected to generate £2.7 million of Total (EPA:TTEF) Contract Value (TCV).
In leadership news, Mark Furness, who founded essensys in 2006, will retire as CEO and transition to a non-executive director role effective May 1, 2025. James Lowery, the current Chief Operating Officer, will assume the CEO position on the same date.
Looking ahead, essensys remains confident of further progress in the second half of the year. This confidence is supported by strategic customer progress, the pure-play SaaS product essensys Platform, and the launch of elumo. The group is on track to meet revenue expectations and exit run-rate cash generation in FY25. The expected FY25 EBITDA has been adjusted due to an extended data centre decommissioning programme aimed at maximizing commercial returns, but the company anticipates a positive outcome for the year, with H2 25 EBITDA expected to be similar to H1 25.
The Group anticipates an improvement in revenue mix following a strategic shift away from network services, which will reduce overall revenues in FY26 but lead to cash generation and improved margins.
This article is based on a press release statement from essensys plc.
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