Flexible workspace technology group essensys has reported a sharp fall in revenues for the year to 31st July 2025.
However, the AIM-listed firm returned to EBITDA profitability following cost-cutting measures and a strategic reshaping of the business.
It posted revenue of 拢19.2 million for FY25, down 21% from 拢24.1m the previous year, largely reflecting the previously flagged downsizing of a single large strategic customer.聽
Despite the drop in sales, the London-based company returned to positive adjusted EBITDA of 拢1.3m, compared with a 拢900,000 loss in FY24, helped by cost reductions and an improved operating model.
Statutory losses before tax widened slightly to 拢5.7m, from 拢5.5m a year earlier, while net cash at year end stood at 拢1.8m, down from 拢3.1m.聽
Operationally, essensys highlighted progress against its strategy, including the launch of its new product, elumo, which has already secured initial sales across its core markets.聽
The company also completed a data centre decommissioning project during the year, delivering 拢1.5m in annualised cost savings, and strengthened its board with new appointments.
It confirmed that trading in the first quarter of FY26 was broadly in line with management expectations, but cautioned that full-year performance is now expected to be materially below prior forecasts due to a volatile macroeconomic environment, elongated sales cycles and slower-than-expected adoption of elumo.
The update comes against the backdrop of a possible takeover. In November 2025, founder and non-executive director Mark Furness submitted a preliminary, non-binding proposal to acquire the company at 20p per share in cash, which is being considered by the independent directors.
鈥淔Y25 marked a year of significant operational progress for essensys, underpinned by the successful launch of elumo, the execution of substantial cost-saving initiatives and the restructuring of the business as announced in November to support our two core products with a sharpened focus on strategic customers,鈥� said James Lowery, CEO of essensys.
鈥淭his progress aided essensys in its return to EBITDA profitability, despite ongoing macroeconomic challenges, delivering 拢1.3m in adjusted EBITDA for the year.聽
鈥淲hile 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.聽
鈥淭his shift drove an improvement in gross margins and strengthens the long-term sustainability of the business.聽
鈥淲e continue to see strong structural tailwinds in flexible workspace, supported by a clear flight to quality.鈥�
The company鈥檚 share price is down by 10% to 13p so far today, while its market cap stands at 拢8.42m.