essensys’ H1(Jan)’21E update highlights continued execution on the Group’s deployment pipeline. essensys has again delivered growth in Connect sites through lockdown (H1’21: +12 sites to 431), whilst US recurring revenues were £4.4m, up +23% on a constant currency (‘c/c’) basis. Group recurring revenue rose +1% y/y to £9.8m (c/c). Total Group sales were £10.6m, in-line with expectations. Whilst deployments and Marketplace sales have been impacted by lockdown, this has been offset by a high rate of continued demand for flex workspace software, and we are particularly encouraged by the signing of 18 new customers inclusive of a number of high value strategic accounts. We see the initial CV19 impact of site deployment elongation as secondary to the longer-term effect of accelerated flex workspace demand as landlords seek to sustain occupancy rates with remote working becoming more pervasive. essensys, as an enabler of rapidly scalable, secure and efficient flex workspace is excellently positioned in a theme which could materially outperform current expectations once CV19 headwinds clear. Leading SaaS peers addressing TAMs of similar scale trade between 5x-8x EV/Cal’21 sales (ESYS: 4.0x).
