essensys shares rose 2.6% to 62.1p in early afternoon trading after the company announced trading in line with management expectations for FY 2022, including renewed multi-year contracts with its largest UK and US customers.
The company reported growth in client numbers, and expansion within its biggest customers which underpinned its revenues across the FY period.
essensys confirmed revenue and adjusted EBITDA in line with market expectations, with the group contracting business at year end expected to deliver £1.6 million in annual recurring revenue once live.
The firm also noted a robust pipeline of business opportunities going forward in FY 2023.
essensys closed FY 2022 with £24 million in cash, coming in ahead of management expectations. The company noted no debt, and confirmed it would use its strong cash balance to support its strategic plans.
“I am pleased to report good strategic progress against our long term plan despite continued challenging conditions,” said essensys CEO Mark Furness.
“It is clear that hybrid working arrangements are here to stay and that the structural drivers that are changing the commercial real estate industry – flexibility, digitalisation and sustainability are becoming ever more embedded; underpinning our long-term growth plans as the impact of the Covid-19 pandemic recedes.”
“We continue to invest in our product pipeline and we are seeing evidence that larger flexible workspace operators have resumed their expansion plans and traditional real estate operators are making positive steps to implement flexible workspace offerings following some rationalisation.”