essensys climbs after annual results

AIM-listed software-as-a-service provider essensys (LON:ESYS) rose by 3.67% to 142.55p (as of 11:20 BST) after posting a small pre-tax profit for the year ended 31st July. Revenues for the period were up by 9%, driven by continued growth in the company’s recurring revenue streams. The business has benefited from increased demand for flexible workplaces during the pandemic with clients looking to adjust to new working practices.

CEO Mark Furness commented: “essensys delivered a very strong performance in FY20, in line with expectations, with strong organic and recurring revenue growth. This is particularly impressive given the disruption caused by the Covid-19 pandemic and is a testament to the commitment of our people, and our strategic progress. To capture the long-term growth opportunity in the flexible workspace market, we have expanded the UK based development team and US sales team and launched new products in response to demand for flexible security.

“We remain committed to our growth strategy and believe the pandemic has accelerated the shift towards flexible workspace, particularly from traditional landlords and commercial real estate operators. This, combined with robust visibility and sales pipeline, and improving new business activity, give us confidence of further progress in the year ahead, notwithstanding uncertainty relating to Covid-19“.