Proptech outfit Essensys has hailed a year of “progress and resilience” as revenue rose, but losses quadrupled.
The flex office tech provider has now scaled back its growth plans in the hope that it can return to profit.
Chief executive Mark Furness said: “While our long-term ambition is unchanged, we have moderated our growth targets and adapted our strategy and investment approach to focus on our return to profitability.”
Losses mounted over the year to £11.1m from last year’s £2.9m, with losses per share rising from 6.2p to 16.8p.
Annual recurring revenue rose by 11% to £21.9m, while group revenue rose by 6% to £23.3m. However, UK revenue was down 8% “reflecting churn of low-value customers and previously reported one-off customer insolvency”.
Furness said 2022 had been “a year of progress and resilience in challenging market conditions”.
He added: “Essensys has a clear strategy, proven model and strong platform to drive sustainable, profitable growth. The flexible workspace market has attractive long-term dynamics. Hybrid working is here to stay and plays to our strengths.”
Essensys is also eating through its cash reserves. Last year it had £36.9m in the bank. That is now down to £24.1m.
But Furness was upbeat: “Our momentum, allied to contracted new business and a healthy long-term pipeline, supports our confidence of further progress in FY23 and beyond.”
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