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Home Tech

essensys Posts Strong Annual Growth Despite COVID-19

by Jo Meunier
August 18, 2020
in Tech
Reading Time: 3 mins read
A A
Future of Work Template Articles

Despite the global lockdown and ongoing uncertainty of the current situation, which currently has no end in sight, these results come as a positive sign both for essensys and the flexible space industry.

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  • essensys, a technology provider for the flexible workspace industry, reported that it experienced a 9% increase in revenue from last year (2019). 
  • Despite the global lockdown and ongoing uncertainty of the current situation, which currently has no end in sight, these results come as a positive sign both for essensys and the flexible space industry.
  • The technology company recently launched Smart Access, a touchless control solution for access to buildings and workspaces.

essensys has announced the results of its unaudited pre-close trading update for the financial year ended 31 July 2020, and it makes positive reading.

The software-as-as-service company revealed that its revenue for the year reached £22.4m, an increase of 9% on 2019. Recurring revenue also increased by a substantial 18% to £19.3m and represented 86% of revenue, which was 7% higher than last year.

According to essensys, its US business also “continued to grow strongly” with year-on-year recurring revenue, which increased 43% to £8.0m from £5.6m last year.

According to the statement:

The Board remains confident in the Group’s future growth which is underpinned by long-term structural drivers, its high proportion of contracted recurring revenue and good pipeline visibility, notwithstanding the continued uncertainty resulting from the Covid-19 pandemic.

Global Expansion

Given the timeframe, at least four months of the past financial year coincided with the coronavirus impact.

Despite the global lockdown and ongoing uncertainty of the current situation, which currently has no end in sight, these results come as a positive sign both for essensys and the flexible space industry.

Buoyed by its positive results, essensys has made its future intentions clear.

Mark Furness, CEO commented: “Following our fundraise in April 2020 we have made good progress with delivery of the first phase of our international growth plan. This has resulted in the expansion of our US sales team to increase our reach into the traditional landlord and commercial real estate markets which has been further accelerated by the launch of STEP. 

“Our growth trajectory remains clear and we expect to initiate the second phase of our plan, comprising the establishment of European and APAC operations, during the first half of FY21.”

Accelerating Trends

Despite the challenges posed by the pandemic, notable highlights include the launch of STEP, a new product which is designed to help traditional office landlords provide more flexible tenant solutions.

essensys also launched Smart Access, a touchless control solution for access to buildings and workspaces.

essensys stated that both products “have both been very well received” and are indicative of accelerating trends within the flexible space sector. Commercial property landlords continue to incorporate flexible space into their portfolios, which is now becoming mission critical during the pandemic as companies — particularly corporates and traditional clients — look to minimise risk by opting for greater flexibility.

Smart Access has also been launched at a time when workspaces and commercial buildings are working to reduce physical touchpoints in order to create safer environments that limit the risk of transmission.

All things considered, essensys’ year end trading update provides positive indications for the flexible space industry and its future.

“Our performance in FY20 underlines the resilience of our business model and the long-term nature of our underlying growth drivers,” commented Mark Furness.

This, he stated, reflects “the continuation of supportive long-term industry trends” and the accelerated pace at which these trends — including traditional real estate operators adopting flexible workspace — are driving demand for flexible space and in turn, the technology that supports it.

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Tags: Technology
Jo Meunier

Jo Meunier

Jo is Allwork.Space's Senior Editor for the UK and Europe. Jo has worked within business centre and coworking circles since 2009, researching and contributing written features for numerous industry publications. She reports on the latest market news and delves into local issues with one main objective: to champion the flexible workspace industry and its members.

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