Essensys revenues beat expectations in 'important and exciting year'

Software-as-a-service provider Essensys saw group revenues come in ahead of market expectations in its recently wrapped up trading year.

Essensys expected to report a 25% increase in revenues to £20.5m, with recurring sales rising to £15.8m or 77.0% of the group's income. The annual recurring revenue run-rate was £17.3m, for an increase of 27% year-on-year, while US recurring revenues expanded by 67.0% to £5.5m.

Adjusted underlying earnings for the year ended 31 July were expected to be "at least in line with market expectations" at around £3.8m.

Net cash was seen at £2.7m after Essensys became debt-free following its IPO in May.

The AIM-listed group closed the trading year with 358 live Connect sites, for an increase of 38% year-on-year, and had an additional 45 new sites contracted, with the majority to be delivered in the first-half of its current trading year.

Looking forward, the continued expansion of Essensys's services to its existing customers, as well as an increase in the number of new customer wins, gave the board confidence that it could continue to deliver "strong levels of future growth".

Chief executive Mark Furness said: "2019 has been an important and exciting year for Essensys.

"We are delighted to provide a strong first trading update and we look ahead with confidence based on excellent pipeline visibility and good early progress with our plans to broaden and deepen our customer base, extend our geographic reach and accelerate product development."

As of 0845 BST, Essensys shares had climbed 8.84% to 178.49p.