Essensys delivers 'robust' H1 performance

(Sharecast News) - Software-as-a-service provider Essensys said on Thursday that it had delivered a "robust performance" in the first half of the year, with revenue in line with management expectations at £10.6m.
Essensys said that despite the continued impact of Covid-19, its US business had grown "strongly", with interim recurring revenues increasing 18% to £4.42m, and stated that its UK business had also continued to "prove its resilience".

On a constant currency basis, group revenue was £10.8m, with recurring revenue slightly ahead of the prior year at £9.8m.

Essensys did note that new site openings were still being impacted by the pandemic, which resulted in an expected reduction in non-recurring revenues during the period, while marketplace revenues were also moderated as significantly reduced occupancy in customer sites led to reduced service utilisation.

Adjusted underlying earnings and net cash for the first half were both projected to be in line with management expectations.

Chief executive Mark Furness said: "In what has been a challenging year for the flexible workspace sector we are pleased to continue to deliver results in line with expectations. The strength of our US business, high levels of recurring revenue and very strong retention rates have underpinned our performance.

"The strength of our performance during the ongoing pandemic and the increasing market opportunity, allied to contracted new Connect sites, a healthy pipeline and new product development, provide us with confidence in the long-term opportunity for Essensys."

As of 1130 GMT, Essensys shares were down 2.31% at 205.15p. Essensys