Essensys is hoping to ride the wave as flex space operators accelerate expansion.
The listed tech company, which makes software for serviced office operators, issued a full-year trading update this morning. It said revenue and adjusted EBITDA would be “in line with consensus market expectations”.
Chief executive Mark Furness said the firm had made “good strategic progress against our long-term plan despite continued challenging conditions”.
Larger flex operators had resumed their expansion plans, he said, while traditional real estate operators were making “positive steps” to move further into flex.
He added: “It is clear that hybrid working arrangements are here to stay and that the structural drivers that are changing the commercial real estate industry – flexibility, digitalisation and sustainability – are becoming ever more embedded. We remain confident in the market and opportunity for the group in FY23 and beyond.”
Essensys said multi-year contracts with its largest customers in both the UK and the US had been renewed. As they are accelerating expansion plans, that promised further growth for Essensys. It has also contracted new business worth £1.6m pa once live, and has a “healthy” new business pipeline of opportunities.
Essensys ended the year with a cash balance of £24m, ahead of management’s expectations. The group also remains debt-free.
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