Essensys interim revenues grow thanks to 'strong' US growth
By Iain Gilbert
Date: Tuesday 18 Feb 2020
(Sharecast News) - Software-as-a-service provider Essensys said on Tuesday that first-half revenues had grown thanks to some "strong growth" in its US operations.
Essensys reported a 19% increase in revenues to ?11.4m for the six months ended 31 January, with recurring revenues also improving 29% to ?9.7m. Recurring revenues made up 85% of the total revenues.
The AIM-listed group said full-year adjusted earnings before interest, tax, depreciation and amortisation were also expected to meet expectations at ?1.8m. Despite being on track with guidance, that figure will will be a 10% year-on-year decline.
Essensys said the fall was a result of investments in sales and marketing, product development and the expansion of its US division.
Net cash at the end of the half was ?1.7m - slightly ahead of the board's expectations.
Chief executive Mark Furness said: "I am pleased to report continued good progress across our business, with strong sales momentum and a rapidly expanding US business underpinning our long-term growth ambitions.
"This strong first half performance, supported by the number of contracted new Connect sites currently in delivery and a healthy pipeline underpins the board's confidence that full-year results will be in line with market expectations."
As of 1010 GMT, Essensys shares were up 3.91% at 239p.
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