6th Jan 2026 11:28
(Alliance News) - essensys PLC on Tuesday reported a widened full-year loss amid lower revenue, as it said it expects a full-year performance "materially below management expectations".
The London-based software and cloud service provider reported a pretax loss of GBP5.7 million for the financial year that ended July 31, widened from GBP5.5 million a year earlier.
Driving this was a top line reduction as turnover fell 21% to GBP19.2 million from GBP24.1 million.
The company said the decline in revenue reflected the previously anticipated downsizing of a single large strategic customer.
Run rate annual recurring revenue fell 26% to GBP15.0 million from GBP20.3 million. At constant currency and excluding the large customer, essensys said ARR from strategic customers fell 2%.
It attributed this to portfolio rationalisation and the expected shift away from Cloud and into essensys platform.
Cash at year-end fell to GBP1.8 million from GBP3.1 million, with the company stating that it remains debt free. It noted that discussions are ongoing to secure a debt facility to "optimise capital structure and support strategic growth".
Looking ahead, essensys said revenue in the first quarter of financial 2026 is broadly in line with management expectations.
However, it expects performance in financial 2026 to be "materially below management expectations", owing to the "volatile macroeconomic environment leading to elongated sales cycles and slower than anticipated adoption rates for elumo".
Shares in the company rose 1.7% to 14.74 pence on Tuesday morning in London.
"While revenue reduced year on year, due to the downsizing of a customer, it also reflects a deliberate evolution of our customer portfolio and revenue mix, with a greater emphasis on scalable, higher-quality software revenues. This shift drove an improvement in gross margins and strengthens the long-term sustainability of the business. We continue to see strong structural tailwinds in flexible workspace, supported by a clear flight to quality,"said Chief Executive James Lowery.
"While we expect volatile macro-economic trading conditions to continue in the short term, we remain confident in our strategy, product suite and long-term growth opportunities, and that we are well positioned to benefit as market conditions improve."
By Christopher Ward, Alliance News reporter
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