essensys has made solid progress in H1, albeit this is not fully apparent in the numbers (given the spend reduction by a large customer) and for this reason, ‘u/l strategic customer ARR growth’ of +5% and improved EBITDA (from £-0.5m to £0.8m) better reflect broader progress. Looking ahead, while we trim FY25 EBITDA, this is due to a change of timing around anticipated cost saving and in this context, stress that ESYS should still be FCF positive onwards of Q4. Echoing this sentiment FY26 EBITDA and FCF are unch. (or slightly better) and provides a solid foundation from to grow high-margin recurring revenue. The story has certainly progressed, and yet the valuation still implies balance sheet risk we think this is an outdated view.