Flexible workspace technology provider essensys posed mixed results for the 12 months to 31 July 2022 (FY22). Annual recurring revenues grew 11%, group revenue was up 6% to £23.3m and in the US the company enjoyed growth of 17%. However, in the UK its revenues were down 8%, which essensys attributes to the churn of low-value customers and a previously reported one-off customer insolvency.
The company said the outlook looked healthy with its largest customers re-accelerating expansion plans following a period of portfolio rebalancing. It also reported strong demand, reflected in a healthy pipeline of new business.
Mark Furness, CEO of essensys, said: “FY22 was a year of progress and resilience in challenging market conditions. Revenues increased by 6%, in line with expectations, with our US business continuing to perform strongly. Momentum with strategic customers remains and underpins a significant pipeline of opportunities. The quality of our customer base has helped us to manage near-term headwinds such as delays to sales cycles and capital deployment, some portfolio rebalancing among our larger flexible workspace operators and the expected churn at the tail-end of our customer base.”
He added the company had a clear strategy, proven model and strong platform to drive sustainable, profitable growth. “The flexible workspace market has attractive, long-term dynamics,” said Furness. “Hybrid working is here to stay and plays to our strengths. Whilst our long-term ambition is unchanged, we have moderated our growth targets and adapted our strategy and investment approach to focus on our return to profitability. Our momentum, allied to contracted new business and a healthy long-term pipeline, supports our confidence of further progress in FY23 and beyond.”
