Full Year Results

essensys PLC

06 January 2026

 

6 January 2026

essensys plc

("essensys", the "Company" or the "Group")

Full year results

essensys plc (AIM:ESYS), the leading global provider of software and technology to the flexible workspace industry, announces its audited results for the twelve months ended 31 July 2025 ("FY25"). All information relates to this period, unless otherwise specified. 

Financial summary:

£m unless otherwise stated	FY25	FY24	Change
Revenue	19.2	24.1	-21%
Recurring revenue1	16.9	20.2	-17%
Run Rate Annual Recurring Revenue (ARR)1	15.0	20.3	-26%
Revenue at constant currency2	19.6	24.1	-19%
Recurring revenue at constant currency	17.5	20.2	-13%
Run rate ARR at constant currency	15.6	20.3	-23%
Adjusted EBITDA3	1.3	(0.9)	244%
Statutory loss before tax	(5.7)	(5.5)	-4%
Loss per share (pence)	(8.6)p	(5.1)p
Net Cash	1.8	3.1

1 See CFO review below for description and breakdown

2 Current period revenue and/or costs translated into GBP using the average exchange rate for the comparative prior period

3 Adjusted EBITDA is earnings before tax, depreciation, amortisation, exceptional items and other non-trading items, such as share option charges

Operational highlights - significant progress and strategic execution

·	Launch of new product, elumo, with initial sales across all core markets
·	Completion of data centre decommissioning project realising £1.5m in annualised cost savings
·	Board appointments bring significant strength and experience to essensys
·	Strategy centred on three pillars: Land, Expand, Grow
	o  Land: Adoption through essensys Platform and elumo o  Expand: Product innovation combined with site growth across core geographies o  Grow: Deepening customer relationships and positioning as a strategic partner
·	Post year end restructure around core products expected to generate cost savings and scalable operations
	o  Dedicated, agile elumo team to drive new customer acquisition and accelerate adoption o  Focused essensys Platform team to deepen customer relationships, improve service, and proactively manage retention

Financial highlights - return to EBITDA profitability and improved margin quality

·	Return to positive Adjusted EBITDA of £1.3m (FY24: £0.9m loss)
·	Revenue at £19.2m (FY24: £24.1m), reflecting previously anticipated downsizing of a single large strategic customer
·	ARR at £15.0m (FY24: £20.3m). Excluding the single large customer above and at constant currency, ARR from strategic customers decreased by 2%, driven by portfolio rationalisation and the previously expected shift away from Cloud and into essensys Platform
·	Gross margin improved to 59% (FY24: 57%) due to a higher proportion of recurring revenue and a more focused operating model
·	Cash at year-end: £1.8m (FY24: £3.1m)
·	essensys remains debt free; discussions ongoing to secure a debt facility to optimise capital structure and support strategic growth

Current Trading and Outlook

·	Q1 FY26 revenue broadly in line with management expectations
·	FY26 performance anticipated to be materially below management expectations due to the volatile macroeconomic environment leading to elongated sales cycles and slower than anticipated adoption rates for elumo
·	Management remains focused on:
	o  Maintaining strong customer engagement, o  Operational resilience, efficiency and cash management, and o  A targeted go-to-market approach and enhanced product suite.

Possible Offer

·

As announced on 28 November 2025, Mark Furness, founder and a Non-Executive Director, has submitted a preliminary, indicative, non-binding proposal to the independent directors of the Company relating to a possible all-cash offer for the entire issued and to be issued share capital of the Company at 20 pence per share

 James Lowery, Chief Executive Officer of essensys, said: "FY25 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. This progress aided essensys in its return to EBITDA profitability, despite ongoing macroeconomic challenges, delivering £1.3m in Adjusted EBITDA for the year.

"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.

"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."

For further information, please contact:  

essensys plc		[phone]
James Lowery, Chief Executive Officer
Greg Price, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser and Broker)		[phone]
Simon Bridges / Harry Gooden / Andrew Potts / Elizabeth Halley-Stott
Gracechurch Group
Heather Armstrong / Alexis Gore / Rebecca Scott		[phone]

About essensys plc 

essensys is the leading provider of software and technology to landlords and flexible workspace operators. Founded in 2006 and listed on the AIM market since 2019, essensys' mission is to power the world's largest community of flexible, technology-driven spaces. Under new leadership, the Company has simplified its go-to-market strategy around two core offerings: essensys Platform and elumo.  

essensys Platform is a SaaS platform that delivers enterprise-grade Wi-Fi seamlessly across portfolios of multi-tenant workspaces, while providing data insights to optimise performance. The Group's latest offering, elumo, provides customers with a new way to manage and monetise bookable spaces. The integrated bookings and access solution transforms meeting rooms and shared spaces from operational headaches into revenue-generating assets.

With customers in the UK, Europe, North America and APAC, essensys is deploying a newly launched and simplified go-to-market strategy, positioning the business long-term growth in the flexible workspace and commercial real estate market.

Chairman's statement

FY25 has been a year of transition for essensys, marked by meaningful progress towards long-term, sustainable growth in the flexible and hybrid workspace sector. A key priority was returning the Group to profitability, achieved with Adjusted EBITDA of £1.3m (FY24: £0.9m loss). This represents an important milestone, demonstrating the effectiveness of our actions to better align costs with earnings, and focus on high-quality recurring revenues.

Group revenue was £19.2m, reflecting the deliberate move away from lower non-recurring hardware and network sales and the down-sizing of a single customer. While this has reduced reported revenues in the short term, we believe our renewed focus on strategic customers will enhance the quality and resilience of our customer base, strengthening the business for future growth.

Operational discipline has been another focus. The completion of the data centre decommissioning project in July 2025 delivered £1.5m of annualised cost savings, streamlining our infrastructure and strengthening financial performance. These actions, alongside tighter cost control, have simplified operations and improved our ability to scale. In addition, we have restructured the essensys team to better support our product and services offering post year end, and these changes are also expected to generate significant annualised cost savings.

Innovation continues to sit at the heart of our strategy, with over 25% of our team dedicated to R&D. This year we launched elumo, our new dynamic meeting room bookings and access platform, enabling our customers to quickly monetise their assets. Though slower than anticipated, the product has gained early traction across key markets, securing its first sales to customers post year end, including a multi-site portfolio in the US. While the macro trading environment remains volatile, this positive response reinforces our confidence in elumo as a significant future growth driver.

FY25 also saw important changes to the Board to support our next phase of development. Greg Price joined as CFO in October 2024, bringing over two decades of senior finance experience. In May 2025, James Lowery succeeded founder Mark Furness as CEO, having previously served as COO. James brings a strong background in scaling flexible workspace propositions and real estate strategy. The Board also welcomed Sian Herbert as an Independent Non-Executive Director and Audit Committee Chair in July 2025, adding significant expertise in audit, risk, and governance. Mark Furness remains on the Board as a Non-Independent Non-Executive Director and continues as our largest shareholder.

In summary, FY25 has been an important year towards reshaping essensys for long-term success. With simplified operations, a sharper customer focus, and the launch of new products, we have returned to profitability, enhanced our SaaS-centric model, and built a stronger foundation for scalable long-term growth. The Group remains debt free and to strengthen the Group's financial resilience, we are exploring debt facility options with potential banking partners. While the current macroeconomic environment continues to influence customer decision-making, our new structure will enable increased focus on our long-term priorities, which remain expanding recurring revenues, improving margins, and generating cash.

On behalf of the Board, I would like to thank our team for their resilience and shareholders for their continued support.

Jon Lee

Non-Executive Chairman

5 January 2026

Chief Executive Officer's Report

FY25 has been a year of significant operational progress for essensys, during which the Group has achieved a number of important milestones supporting its evolution. Focus has centred on the launch of elumo, the successful execution of cost-saving initiatives, sustained customer engagement, and most recently, the restructuring of the business to better support its two core products, elumo and essensys Platform.

Financial Performance

Despite ongoing macroeconomic challenges, the Group achieved its stated goal of returning to Adjusted EBITDA profitability, reporting £1.3m for the year. This underscores the effectiveness of cost management initiatives, simplification of operations, and a sharpened focus on strategic customers.

While revenue was broadly in line with market expectations, it was lower than FY24 at £19.2m, reflecting the anticipated downsizing of a single large strategic customer. Importantly, these results represent an evolution in the Group's revenue mix: although earnings are lower in the short term, they are of higher quality, with a greater proportion driven by software revenues. This shift contributed to an improvement in gross margins to 59% (FY24: 57%).

Cash at year end was £1.8m (FY24: £3.1m). To further strengthen the Group's financial resilience and support its long-term growth ambitions, essensys is in active discussions to secure a debt facility. This process is designed to optimise the Group's capital structure and ensure its ability to pursue key growth opportunities. The Group remains debt free.

The Evolving Market Landscape

The real estate sector has faced significant volatility in recent years, but the past 12 months have seen a notable shift in activity. Data shows that 48% of UK businesses expect a full return to in-person working within the next year, a trend mirrored internationally¹ and at the same time, the flexible workspace sector is forecast to grow at a CAGR of 18% between 2025 and 2032². Coupled with the ongoing "flight to quality" in office space, these dynamics create strong tailwinds for the Group across its core markets in the UK, US and Australia.

While forecasts in the real estate sector continue to signal underlying strength, macroeconomic instability across global markets is creating a more cautious operating environment for essensys' customers. Inflation, interest rate uncertainty, and wider geopolitical factors are affecting confidence and investment planning, particularly in sectors sensitive to capital allocation and long-term commitments. Against this backdrop, the Group has seen some portfolio rationalisation as customers focus on their more profitable sites, reflecting the bifurcation in the market. The Group is mindful of the potential for extended sales cycles and a temporary moderation in sales activity as customers adopt a more cautious approach to capital expenditure, particularly for elumo.

1 British Chamber of Commerce: Office Return Varies Across Sectors. August 2025

2 Fortune Business Insights, Flexible Office Market Size, Share & COVID-19 Impact, 2025

Customers and Go to Market

Strategic customers continue to be a key priority for essensys, supported by new product launches and a more flexible way of deploying connectivity.

As reported in the Group's Trading Update in November 2025, one of its customers will not be renewing its essensys Platform contract, which represents total annual recurring revenues of £0.9m. The current contract concluded at the end of December 2025 and is already factored into management forecasts and overall customer churn remains broadly in line with management expectations.

essensys' growth strategy remains focused around three key pillars: Land, Expand and Grow. New customer adoption is driven by two scalable entry points, essensys Platform and the newly launched elumo, both of which provide operators with digitally-enabled, flexible workspace solutions that help to improve customer experience and support revenue generation. Expansion will come from combining product innovation with site growth across core geographies, while long-term growth will be achieved by deepening customer relationships and positioning essensys as a strategic partner offering a suite of products that underpin operational success.

elumo is an important driver of scalability within the Group's business model. Since launch, it has secured initial sales across all of the Group's key markets, the UK, US and Australia, most notably a portfolio deal with an existing US customer spanning 20 sites. While macroeconomic conditions have resulted in elongated sales cycles and slower-than-anticipated adoption, the Group continues to expect strong medium-term demand.

To strengthen new customer acquisition, reduce customer churn and recognise the different maturity levels of the Group's two core products, management has restructured the business around their specific needs. A dedicated, agile team has been formed to prioritise new business generation and accelerate the adoption of elumo. In parallel, a focused essensys Platform team is responsible for enhancing customer relationships, improving service delivery, and proactively managing retention.

Product Development

By maintaining its focus on product development, the Group continues its mission to help operational landlords and flexible workspace providers manage the complexity of operating large multi-tenant portfolios. In the second half of FY25, elumo was launched, providing a unique solution to transform how bookable spaces are managed and monetised. It enables customers to unlock and maximise revenue from under-utilised rooms while improving the user experience and providing real-time utilisation and booking intelligence.

Benefits for operators:

·      Shared spaces are transformed into revenue-generating assets.

·      Instant, rule-based access ensures that only authorised users can enter their digital environment.

·      Real-time intelligence on utilisation and bookings enables every square foot of space to be optimised.

·      Charges are seamlessly passed into the customer's invoicing platform of choice for onward billing to tenants.

elumo's intelligent IoT gateway also enables the collection of real-time sensor data, providing the potential for the platform to evolve further, unlocking additional opportunities to enhance how users interact with customer spaces.

As previously stated, the Group has adapted the deployment of its network services (essensys Cloud), providing customers with the ability to deploy essensys Platform over existing connectivity and existing enterprise grade hardware. This reduces barriers to adoption for essensys Platform customers and aligns with market demand for pure-play SaaS solutions that address the operational needs of multi-tenant real estate.

Taken together, the progress achieved over the past year reflects a stronger revenue mix, a streamlined operating model with a reduced cost base, and an ongoing focus on strategic customers, leaving the Group well positioned for sustainable growth in the medium and long term.

Cost savings

A key milestone in the year was the completion of the data centre decommissioning project, closing 10 data centres globally and delivering annualised cost savings of £1.5m. This marks an important step in the transition to a SaaS-first model and supports the Group in cash flow generation and improved margins.

The post year end restructure around the Group's core products is expected to generate additional annualised cost savings, further protect cash flow, and support scalable operations.

Current Trading and Outlook

Revenue for the first quarter of FY26 amounted to £4.1m, which was broadly in line with management expectations, and primarily driven by essensys Platform. While customer interest in the Group's new product, elumo, remains strong, the current macroeconomic environment has led to elongated sales cycles and slower than anticipated adoption rates, which is expected to impact FY26 sales. The Company does however continue to expect good adoption over the medium term. essensys continues to see a clear "flight to quality" in the flexible workspace market, as occupiers favour premium, well-specified spaces. This reinforces the Group's strategic focus and positions the Company well for evolving market preferences.

As noted above, recognising the distinct characteristics and different maturity levels of the Group's two core products, management has restructured the business around the specific needs of each. A focused agile team has been established to drive the sales and adoption of elumo, whilst a dedicated essensys Platform team will deliver an improved customer experience.

As a result of the above, management anticipates FY26 results to be materially below their expectations. However, the Group remains committed to its strategic objectives, supported by a focused go-to-market strategy and an enhanced product suite aligned with customer needs.

essensys continues to monitor the volatile macroeconomic dynamics closely and is focused on maintaining strong customer engagement, ensuring operational resilience, and positioning the business to benefit as market confidence and investment appetite improve. The Group is confident in its ability to capitalise on the long-term structural tailwinds in the real estate market, where demand for high quality flexible, technology-enabled solutions continues to grow as companies return to office working.

Possible Offer

As announced on 28 November 2025, the Independent Directors of the Company, (being the full Board except for Mark Furness) confirm that Mark Furness, founder and a Non-Executive Director, has submitted a preliminary, indicative, non-binding proposal to the Independent Directors relating to a possible all-cash offer for the entire issued and to be issued share capital of the Company at 20 pence per share (the "Possible Offer"). Any Possible Offer would be made by a to-be-incorporated company.

The Independent Directors are in preliminary discussions with Mark Furness in relation to the Possible Offer. These discussions are at an early stage, and there can be no certainty that an offer will be made. A further update will be provided in due course.

James Lowery

Chief Executive Officer

5 January 2026

Chief Financial Officer's Report

The financial results included in this announcement cover the Group's consolidated activities for the twelve months ended 31 July 2025. The comparatives for the previous twelve months were for the Group's consolidated activities for the twelve months ended 31 July 2024.

Financial Key Performance Indicators

£'m unless otherwise stated	Twelve months to July 2025	Twelve months to July 2024	Change
Group Total Revenue	19.2	24.1	-21%
North America	10.5	14.2	-26%
UK & Europe	7.2	8.5	-16%
APAC	1.5	1.4	6%
Recurring Revenue1	16.9	20.2	-17%
North America	9.4	12.3	-24%
UK & Europe	6.4	6.6	-3%
APAC	1.1	1.3	-15%
Recurring Revenue %age of Total	88%	84%
Run Rate Annual Recurring Revenue1	15.0	20.3	-26%
Recurring Revenue at constant currency	17.5	20.2	-13%
North America	9.8	12.3	-20%
UK & Europe	6.5	6.6	-2%
APAC	1.2	1.3	-8%
Run rate ARR	15.6	20.3	-23%
Non-recurring revenue	2.3	3.9	-41%
Gross Profit	11.3	13.7	-18%
Gross Profit percentage	59%	57%
Recurring Revenue margin %age	63%	62%
Operating Expenses	(10.0)	(14.6)	32%
Adjusted EBITDA2	1.3	(0.9)	244%
Statutory loss before tax	(5.7)	(5.5)	-4%
Cash	1.8	3.1

1.

Recurring revenue comprises income invoiced for services that are repeatable and are consumed and delivered on a monthly basis over the term of a customer contract. Run Rate Annual Recurring Revenue (Run Rate ARR) is an annualisation of the recurring revenue for the month identified (July 2025); this is used by management as an indication of the annual value of the recurring revenue for that month and to monitor long term revenue growth of the business.

2.

Adjusted EBITDA is the earnings on operating activities before depreciation and amortisation, share based payment charges, credit loss provisions and restructuring expenses.

Revenue

Group total revenue decreased by 21% to £19.2m in FY25 (FY24: £24.1m), primarily due to the downsizing of a single large strategic customer, as previously guided. Excluding this customer, Group total revenue decreased by 11% and recurring revenue decreased by 5%, reflecting the anticipated impact of customer churn from smaller non-strategic customers and from our Cloud business. At constant currency, stripping out the negative impact of movements in the US Dollar, recurring revenue declined by 1%.

Run Rate ARR decreased by 26% year on year, again driven by the downsizing of the customer above. Excluding this customer and at constant currency, Run Rate ARR decreased by 5%. This again reflects the anticipated impact of customer churn from smaller non-strategic customers and from our Cloud business.

ARR from strategic customers decreased by 2%. This was driven by some property portfolio rationalisation as customers focus on their more profitable sites, as well as the continuing shift in product mix away from our lower margin Cloud product and into essensys Platform software products. essensys Platform now accounts for 72% of ARR (FY24: 67%). ARR from strategic customers continues to account for 79% (FY24: 82%). Excluding the single large customer above, the proportion of ARR from strategic customers increased by 2 percentage points to 72% (FY24: 70%).

From a regional perspective, North America remains our largest revenue contributor. While North America declined by 31% in terms of site numbers, this mainly related to the single customer above downsizing. Excluding this customer and at constant currency, Run Rate ARR for North America decreased by 1% and still accounts for 51% of total ARR (FY24: 49%). While UK and Europe ARR declined by 15%, this was driven by losses of non-strategic customers and reduced demand for our Operate solution. We have seen net site growth in this region with closing site numbers up 7 on FY24 year end. APAC growth continued with 15 new sites live in the year, an increase of 58%.

Non-recurring revenue comprises set up and installation costs and is recognised when a site is live. Non-recurring revenue reduced by 41% compared to FY24, reflecting challenging market conditions, with customers continuing to show hesitancy in capital investment. With initiatives to simplify installation completed in the year, as well as the launch of elumo, we expect a reduced requirement for customers to need upfront investment, reducing barriers to adoption and supporting future recurring revenue growth.

Gross profit

Gross profit decreased by 18% in the year, reflecting the reductions seen in revenue. Gross margins improved to 59% (FY24: 57%), driven by the changes seen in product mix, with an increasing amount of higher margin software from essensys Platform relative to declines in its Cloud product. As a result, recurring revenue margins increased by 1 percentage point to 63%. The emphasis on recurring revenue has also driven an increase in margins, with a lower proportion of non-recurring revenue.

Margins also benefitted from the Company's strategy to transition to a pure play SaaS model, which no longer requires essensys Cloud to deliver and which allowed essensys to successfully complete its FY25 data centre decommissioning project, closing 10 centres in the year as planned, with a further final two planned for closure in FY26. The annualised cost savings realised by the completion of this project total £1.5m, positioning the business to deliver stronger cash generation, higher margins and greater scalability, whilst better aligning with customer requirements.

Operating expenses

Operating expenses represent all administrative expenses, excluding restructuring costs and non-cash items of depreciation, amortisation, impairment and share option charges.

Operating expenses decreased by £4.6m (32%) compared to the prior year. This reflects the continuing emphasis on cost management and operational simplification in the business, as we control costs in the face of the challenging economic environment and builds on the savings achieved in FY24 through the Group reorganisation.

Adjusted EBITDA

Adjusted results are prepared to provide a more comparable indication of the Group's core business performance by removing the impact of certain items including exceptional items (material and non-recurring), and other, non-trading, items that are reported separately. Adjusted results exclude adjusting items as set out in the statement of consolidated loss and below, with further details given in Notes 7 and 8 of the financial statements. In addition, the Group also measures and presents performance in relation to various other non-IFRS measures, such as recurring revenue, run-rate annual recurring revenue and revenue growth. 

Adjusted results are not intended to replace statutory results. These have been presented to provide users with additional information and analysis of the Group's performance, consistent with how the Board monitors results.

Adjusted EBITDA (being EBITDA prior to exceptional restructuring costs and non-cash impairment and share based payment) is calculated as follows:

£'m	2025	2024
Operating loss	(5.6)	(5.4)
Add back:
Depreciation & amortisation	4.3	4.7
Impairment of goodwill	0.9	-
Exceptional restructuring costs	1.4	0.2
Share based payment expense	0.3	(0.4)
Adjusted EBITDA	1.3	(0.9)

Despite the challenging sales environment and lower revenues in the year, the Group achieved a return to profitability, as seen in Adjusted EBITDA of £1.3m. This was an improvement of £2.2m vs. FY24, reflecting the Group's continued focus on profitability and cash, which more than offset the reduction in revenue and gross profit.

The Group continues to invest in product development in the UK. Where such work is expected to result in future revenue, costs incurred that meet the definition of software development in accordance with IAS38, Intangible Assets, are capitalised in the statement of financial position. During the year, the Group capitalised £2.0m in respect of software development (FY24: £2.1m). This level of investment is reflected in the progress made in developing our products, with elumo launched in H2 FY25, and allows us to introduce innovation in our products, which is expected to drive the next phase of our growth.

Taxation

The Group recognised a £0.3m tax credit in the year in respect of R&D activities for the current financial year. This follows tax credits of £2.2m recognised in FY24 for R&D activities from FY21 to FY24. 

Excluding this, the Group incurred a tax charge in the year of £0.1m (FY24: £0.1m), which represents taxes paid on foreign income in the year. There remains over £8.5m in Group carried forward taxable losses and therefore there is no expectation of tax payments in the short term.

Cash

Cash at the year end was £1.8m (FY24: £3.1m). Cash at the half year was £2.2m, with cash outflows in H2 reduced to £0.4m. This was supported by tax credits in respect of R&D activities received in H2 of £0.3m, with an underlying cash outflow of £0.7m, compared to £0.9m in H1.

Following the year end, the Group has undertaken a restructure of the business around the specific needs of its two core products, essensys Platform and elumo, recognising the distinct characteristics and different maturity levels of each. This will generate further cost savings and in addition to the cost savings already realised from the completion of the data centre decommissioning project, protects the Group's cash position going forward.  

To further strengthen the Group's financial resilience and support its strategic growth objectives, essensys is in active discussions to secure a debt facility. This process is designed to optimise the Group's capital structure and ensure that essensys has the capacity to pursue key growth opportunities. Excluding leases, the Group is currently debt free.

In light of the continued impacts of global macroeconomic uncertainty, the Board has considered a number of different scenarios regarding trading and financial performance into FY26 and beyond and is confident that, in the event of a significant long-term downturn, the Group will have sufficient cash resources for the foreseeable future.

Greg Price

Chief Financial Officer

5 January 2026

essensys plc

Consolidated Statement of Comprehensive Loss

for the year ended 31 July 2025

	Notes	2025	2024
		£000	£000
Turnover	2	19,182	24,131
Cost of sales		(7,947)	(10,393)
		_________	_________
Gross profit		11,235	13,738
Administrative expenses	3	(16,545)	(19,566)
Share based payment expense		(325)	448
		_________	_________
Operating loss	4	(5,635)	(5,380)
Interest receivable and similar income		-	21
Interest payable and similar charges		(82)	(133)
		_________	_________
Loss before taxation		(5,717)	(5,492)
Taxation	5	148	2,183
		_________	_________
Loss for the year from continuing operations		(5,569)	(3,309)
		_________	_________
Other comprehensive loss
Items that may be reclassified to profit or loss:
Currency translation differences		(18)	(59)
		_________	_________
Other comprehensive loss for the year		(18)	(59)
		_________	_________
Total comprehensive loss for the year		(5,587)	(3,368)
		_________	_________
Basic and Diluted loss per share	6	(8.6p)	(5.1p)
		_________	_________

essensys plc

Consolidated Statement of Financial Position

as at 31 July 2025

	Notes	2025	2024
		£000	£000
ASSETS
Non-current assets
Intangible assets	7	7,949	9,426
Property, plant and equipment		622	847
Right of use assets		572	1,319
		_________	_________
		9,143	11,592
Current assets
Inventories		732	888
Trade and other receivables		4,524	7,143
Cash at bank and in hand		1,781	3,101
		_________	_________
		7,037	11,132
		_________	_________
TOTAL ASSETS		16,180	22,724
		_________	_________
EQUITY AND LIABILITIES
EQUITY
Shareholders' equity
Called up share capital		162	162
Share premium		51,660	51,660
Merger reserve		28	28
Retained earnings		(40,348)	(35,086)
		_________	_________
TOTAL EQUITY		11,502	16,764
LIABILITIES
Non-current liabilities
Lease liabilities		-	432
		_________	_________
		-	432
Current liabilities
Trade and other payables		3,120	3,844
Contract liabilities		761	648
Lease liabilities		673	1,008
Current taxes		124	28
		_________	_________
		4,678	5,528
		_________	_________
TOTAL LIABILITIES		4,678	5,960
		_________	_________
TOTAL EQUITY AND LIABILITIES		16,180	22,724
		_________	_________

essensys plc

Consolidated Statement of Changes in Equity

for the Year Ended 31 July 2025

	Share	Share	Merger	Retained	Total
	capital	premium	Reserve	earnings	equity
	£000	£000	£000	£000	£000
1 August 2024	162	51,660	28	(35,086)	16,764
Comprehensive loss for the year
Loss for the year	-	-	-	(5,569)	(5,569)
Currency translation differences	-	-	-	(18)	(18)
	_______	_______	_______	_______	_______
Total comprehensive loss for the year	-	-	-	(5,587)	(5,587)
	_______	_______	_______	_______	_______
Transactions with shareholders
Share based payment charge	-	-	-	325	325
	_______	_______	_______	_______	_______
31 July 2025	162	51,660	28	(40,348)	11,502
	_______	_______	_______	_______	_______

Consolidated Statement of Changes in Equity

For the Year Ended 31 July 2024

	Share	Share	Merger	Retained	Total
	capital	premium	Reserve	earnings	equity
	£000	£000	£000	£000	£000
1 August 2023	161	51,660	28	(31,270)	20,580
Comprehensive loss for the year
Loss for the year	-	-	-	(3,309)	(3,309)
Currency translation differences	-	-	-	(59)	(59)
	_______	_______	_______	_______	_______
Total comprehensive loss for the year	-	-	-	(3,368)	(3,368)
	_______	_______	_______	_______	_______
Transactions with shareholders
Share based payment charge	-	-	-	(448)	(448)
	_______	_______	_______	_______	_______
31 July 2024	162	51,660	28	(35,086)	16,764
	_______	_______	_______	_______	_______

essensys plc

Consolidated Statement of Cash Flows

for the Year Ended 31 July 2025

	Notes	2025	2024
		£000	£000
Cash generated from / (used by) operations	9 A	1,019	(2,010)
Corporation tax received		1,231	860
Foreign exchange differences		-	82
		_________	_________
Net cash generated from / (used by) operating activities		2,250	(1,068)
		_________	_________
Cash flows from investing activities
Purchases of intangible assets	7	(2,105)	(2,077)
Purchases of property plant and equipment		(448)	(34)
Interest received		-	21
		_________	_________
Net cash used in investing activities		(2,553)	(2,090)
		_________	_________
Cash flows from financing activities
Repayment of lease principal		(917)	(1,408)
Interest paid on lease liabilities		(82)	(133)
		_________	_________
Net cash used in financing activities		(999)	(1,541)
		_________	_________
Net decrease in cash and cash equivalents		(1,302)	(4,699)
Cash and cash equivalents at beginning of year		3,101	7,862
Effects of foreign exchange rate changes on cash and cash equivalents		(18)	(62)
		_________	_________
Cash and cash equivalents at end of year		1,781	3,101
		_________	_________
Cash and cash equivalents comprise:
Cash at bank and in hand		1,781	3,101
		_________	_________

1	Basis of Preparation

The consolidated statement of comprehensive loss, the consolidated statement of financial position, the consolidated statement of changes in equity, the consolidated statement of cash flows and the associated notes for the year ended 31 July 2025 have been extracted from the Group's financial statements upon which the auditor's opinion is unqualified and does not include any statement under section 498 of the Companies Act 2006.

There were no new standards or amendments or interpretations to existing standards that became effective during the year that were material to the Group.

No new standards, amendments or interpretations to existing standards having an impact on the financial statements that have been published and that are mandatory for the Group's accounting periods beginning on or before 1 August 2025, or later periods, have been adopted early.

Whilst the financial information included in this announcement has been computed in accordance with international accounting standards, this announcement does not itself contain sufficient information to comply with all IFRS disclosure requirements. The Company's 2025 Annual Report and Accounts will be prepared in compliance with UK-adopted International Accounting Standards (IFRS).

This announcement does not constitute a dissemination of the annual financial report and does not therefore need to meet the dissemination requirements for annual financial reports. A separate dissemination announcement in accordance with the Disclosure Guidance and Transparency Rules (DTR) 6.3 will be made when the annual report and audited financial statements are available on the Company's website.

Statutory Information

The financial information included in this announcement does not constitute statutory accounts and is consistent with the accounting policies of the Group, which were set out on pages 56 to 63 of the 2024 Annual Report and Accounts.

The statutory accounts for the year ended 31 July 2025 will be finalised on the basis of the financial information presented by the directors in this announcement and will be delivered to the Registrar of Companies following the Group's Annual General Meeting. The announcement of the results was approved on behalf of the Board of directors on 6 January 2026. 

2

Segmental Reporting

The Group generates revenue largely in the UK and the US. The majority of the Group's customers provide flexible office facilities together with ancillary services (e.g. meeting rooms and virtual services) including technology connectivity.

The Group generates revenue from the following activities:

·          Establishing services at customer sites (e.g. providing and managing installations, equipment and training on software);

·          Recurring monthly fees for using the Group's software platforms and technology;

·          Revenue from usage of on demand services such as internet and telephone usage and other, on demand, variable services; and

·          Other ad-hoc service.

The Group has one single business segment which is the provision of software and technology platforms that manage the critical infrastructure and business processes, primarily to the flexible workspace segment of the real estate industry. The Group has two revenue streams and three geographical segments, as detailed in the tables below.

2A	Revenue analysis by geographic area
	The Group operates in two main geographic areas, the United Kingdom and North America. The whole of the turnover is attributed to the principal activity. The Group's revenue per geographical segment is as follows:
			2025	2024
			£000	£000
	Analysis of turnover by country of destination:
	North America		10,474	14,158
	United Kingdom and Europe		7,170	8,519
	Asia Pacific region		1,538	1,454
	Total Income		19,182	24,131
2B		Revenue analysis by revenue streams
		The Group has two main revenue streams, essensys Platform and Operate. The Group's revenue per revenue stream is as follows:
			2025	2024
			£000	£000
		essensys Platform	18,005	22,671
		Operate	1,177	1,460
		Total Income	19,182	24,131

essensys Platform revenue includes all revenue generated in relation to the essensys Platform product. It includes revenue recognised at a point in time as well as recognised over a period of time.

Operate revenue includes all revenue generated in relation to the Group's Operate product. The revenue is recognised over a period of time.

2C	Revenue disaggregated by 'point in time' and 'over time'
	The Group revenue disaggregated between revenue recognised 'at a point in time' and 'over time' is as follows:
		2025	2024
		£000	£000
	Revenue recognised at a point in time	2,297	3,874
	Revenue recognised over time	16,885	20,257
	Total Income	19,182	24,131

2D	Revenue from customers greater than 10% of total revenue
	Revenue from customers greater than 10% in each reporting period is as follows:
		2025	2024
		£000	£000
	Customer 1	2,857	5,917

2E

Contract assets and liabilities

	Contract asset movements were as follows:
		2025	2024
		£000	£000
	At 1 August	854	468
	Transfers in the period from contract assets to trade receivables	(256)	(176)
	Excess of revenue recognised over cash (or rights to cash) being recognised during the period	159	242
	Capital asset contract contributions capitalised	-	(21)
	Capital asset contract contributions released as contract obligations are fulfilled	-	-
	Capitalised commission cost released as contract obligations fulfilled	(349)	(356)
	Commission costs capitalised on contracts	275	697
	At 31 July	683	854
	Contract liability movements were as follows:
		2025	2024
		£000	£000
	At 1 August	648	420
	Amounts included in contract liabilities that were recognised as revenue during the period	(648)	(420)
	Cash received and receivables in advance of performance and not recognised as revenue during the period	761	648
	At 31 July	761	648

Contract assets are included within 'trade and other receivables' and contract liabilities is shown separately on the face of the statement of financial position. Contract assets arise from the Group's revenue contracts, where work is performed in advance of invoicing customers, and contract liabilities arise where revenue is received in advance of work performed. Cumulatively, payments received from customers at each balance sheet date do not necessarily equal the amount of revenue recognised on the contracts. Capital asset contract contributions represent costs incurred by the Group in the form of customer incentives spread over the life of the customer contract. Commission costs capitalised on contracts represents internal sales commission costs incurred on signing of customer contracts and, in line with the requirements of IFRS15, spread over the life of the customer contract.

3	Restructuring costs
	Restructuring costs were as follows:
		2025	2024
		£000	£000
	Restructuring costs	1,360	207

Included within administrative expenditure are costs associated with a restructuring programme undertaken by the Group during the year. These costs represent an adjusting item to derive the Group's Adjusted EBITDA for the year ended 31 July 2025, an alternative performance measure not defined in UK-adopted International Accounting Standards.

During the year, the Group incurred restructuring costs, as it completed its data centre decommissioning project, closing 10 data centres in the year as planned, with a final further two planned for closure in FY26. In completing this project, the Group incurred one-off costs of c.£0.6m. This includes early termination costs and short term lease extensions of £0.3m, with the balance being the apportionment of cost for the time incurred by the team in delivering the project.

In addition, the Group also undertook headcount restructuring during the year, as it looked to reduce cost in the face of the challenging economic environment. As such, these costs reflect the impact of redundancies from this restructuring, which are non-recurring in nature.

4	Operating loss
		2024	2024
		£000	£000
	This is arrived at after charging/(crediting):
	Amortisation of intangible assets	2,716	2,710
	Depreciation of tangible fixed assets	569	765
	Depreciation of right of use assets	1,046	1,247
	Impairment of goodwill	866	-
	Fees payable to the Group's auditor (see below)	159	150
	Exchange differences	32	(5)
	Research & Development expense	1,977	1,988
	Staff costs	10,265	13,517
	Share based payments	325	(448)
	Analysis of fees paid to the Group's auditor:
	Annual financial statements - group and parent company	158	150
	Audit Fee	158	150
	Assurance services	-	-
	Other services	1	-
	Non audit services	1	-
	Total fee	159	150

5	Taxation on loss on ordinary activities
		2025	2024
		£000	£000
	Current tax
	UK corporation tax	(282)	(300)
	Adjustment in respect of previous periods	27	(1,937)
	Foreign tax on income for the year	107	54
	Total current tax	(148)	(2,183)
	Deferred tax
	Origination and reversal of timing differences	-	-
	Adjustments in respect of prior periods	-	-
	Total deferred tax	-	-
	Taxation on loss on ordinary activities	(148)	(2,183)

The tax assessed for the year is higher than the standard rate of corporation tax in the UK applied to profit before tax. The differences are explained below:

		2025	2024
		£000	£000
	Loss on ordinary activities before tax	(5,717)	(5,492)
	Tax using the Group's domestic tax rates (25% (2024:25%))	(1,429)	(1,373)
	Effects of:
	Fixed asset differences	177	70
	Expenses not deductible for tax purposes	291	(70)
	Deductions for R&D expenditure relating to the current year	(282)	(300)
	Deductions for R&D expenditure relating to prior years	-	(1,937)
	Difference in current tax and deferred tax rates	-	-
	Other permanent differences	(349)	(506)
	Deferred tax not recognised	1,444	1,933
	Total tax (credit) / charge for period	(148)	(2,183)

The Group received two payments in the year in relation to claims made in the prior year for UK research and development tax relief that resulted in receipts totalling £1,243,000. As a result of the successful claims made, management believe that a claim for this accounting period will mean a receipt for the sum of £250,000 is probable in the next accounting period and as such have recognised a receivable of the same amount.

6	Earnings per share
		2025	2024
	Basic weighted average number of shares	64,712,974	64,677,667
	Fully diluted weighted average number of shares	64,712,974	64,677,667

		2025	2024
		£000	£000
	Loss for the year attributable to owners of the Group	(5,569)	(3,309)
	Basic and diluted loss per share (pence)	(8.6p)	(5.1p)

The loss per share has been calculated using the loss for the year and the weighted average number of ordinary shares outstanding during the period.

Share options held at the year-ended 31 July 2025 are anti-dilutive and so have not been included in the diluted earnings per share calculation.

7	Intangible assets
		Assets in the course	Customer	Internal software
	Group	of construction	relationships	development	Software	Goodwill	Total
		£000	£000	£000	£000	£000	£000
	Cost
	At 1 August 2024	1,032	335	18,219	280	1,263	21,129
	Additions	40	-	2,065	-	-	2,105
	Transfers	(1,072)	-	1,072	-	-	-
	Disposals	-	-	(5,728)	-	-	(5,728)
	At 31 July 2025	-	335	15,628	280	1,263	17,506
	Amortisation
	At 1 August 2024	-	335	10,691	280	397	11,703
	Charge for year	-	-	2,716	-	-	2,716
	Impairment	-	-	-	-	866	866
	Disposals	-	-	(5,728)	-	-	(5,728)
	At 31 July 2025	-	335	7,679	280	1,263	9,557
	Net book value
	At 31 July 2025	-	-	7,949	-	-	7,949
	At 31 July 2024	1,032	-	7,528	-	866	9,426

Goodwill relates to the acquisition of Hubcreate Limited on 18 February 2016. The goodwill all relates to the Operate cash generating unit (CGU).

Capitalised internal software development costs relates to both the essensys CGUs, the first CGU being essensys Platform and the second CGU being Operate. The amounts specific to each CGU can be separately determined. Management do not consider elumo to be a separate CGU. 

The Group estimates the recoverable amount of the Operate CGU using a value in use model by projecting pre-tax cash flows for the next 5 years. The key assumptions underpinning the recoverable amount of the CGU are forecast revenue and forecast EBITDA. The forecast revenues in the model are based on management's past experience and future expectations of performance. The post-tax discount rate used in all periods is 14% derived from a WACC calculation and benchmarked against similar organisations within the sector. Management do not anticipate this CGU providing long term future cash flows for the group. As such the latest projection shows an average 15% decline in revenue year on year, which is consistent with the average decline in revenue over the last three financial years. Using a discount rate of 14% (2023: 14%) has resulted in an additional impairment, and as such the remaining goodwill has been fully impaired, with an additional impairment charge recognised in the year of £866,000 (2024: £nil).

The Directors consider that, based on their projections which incorporate an estimated rate of revenue decline, no impairment charge should be recognised against the carrying value of capitalised development costs of £678,000 (2024: £818,000) allocated to the Operate CGU and which represents its carrying value, which is considered its recoverable amount.

The Group estimates the recoverable amount of the essensys Platform CGU using a value in use model by projecting pre-tax cash flows for the next 5 years including a terminal value calculation after the fifth year. The key assumptions underpinning the recoverable amount of the CGU are forecast revenue and forecast EBITDA. The forecast revenues in the model are based on management's past experience and future expectations of performance. The long-term growth rate used in the value in use calculation was 7.5%, with sensitivity analysis also performed to consider the impact of lower rates of growth. When taking into account current and projected near-term performance of the Platform CGU, the short and long-term growth rate would need to fall below 0% to remove any headroom between value in use and current carrying value. The post-tax discount rate used in all periods is 14% derived from a WACC calculation and benchmarked against similar organisations within the sector. Using a discount rate of 14% resulted in no impairment of the essensys Platform CGU.

The asset in course of construction capitalised this year is the cost for development of the software for the Group's dynamic access control solution, elumo. The asset has now been launched and so costs have been transferred to Internal software development from Assets in the course of construction. 

		Assets in the course	Customer	Internal software
	Group	of construction	relationships	development	Software	Goodwill	Total
		£000	£000	£000	£000	£000	£000
	Cost
	At 1 August 2023	622	335	16,552	280	1,263	19,052
	Additions	410	-	1,667	-	-	2,077
	Transfers	-	-	-	-	-	-
	At 31 July 2024	1,032	335	18,219	280	1,263	21,129
	Amortisation
	At 1 August 2023	-	335	7,981	280	397	8,993
	Charge for year	-	-	2,710	-	-	2,710
	Impairment	-	-	-	-	-	-
	At 31 July 2024	-	335	10,691	280	397	11,703
	Net book value
	At 31 July 2024	1,032	-	7,522	-	866	9,426
	At 31 July 2023	622	-	8,571	-	866	10,059

8	Events after the reporting date

As announced on 28 November 2025, Mark Furness, founder and a Non-Executive Director, submitted a preliminary, indicative, non-binding proposal relating to a possible all-cash offer for the entire issued and to be issued share capital of the Company at 20 pence per share. Preliminary discussions regarding the possible offer are at an early stage, and there can be no certainty that an offer will be made.

9	Notes supporting statement of cash flows

9 A    Cash from operations
		2025	2024
		£000	£000
Cash flows from operating activities
Loss for the financial year before taxation		(5,717)	(5,492)
Adjustments for non-cash/non-operating items:
Amortisation of intangible assets		2,716	2,710
Depreciation of property, plant and equipment		569	765
Depreciation of right of use assets		1,046	1,247
Impairment of goodwill		866	-
Movement in expected credit loss provision		283	153
Inventory obsolescence provision		180	290
Share based payment expense		325	(448)
Losses on foreign exchange transactions		32	(5)
Finance income		-	(21)
Finance expense		82	133
Other		94	(160)
		476	(828)
Changes in working capital:
(Increase)/decrease in inventories		(24)	1,082
Decrease/(increase) in trade and other receivables		1,177	(1,497)
Decrease in trade and other payables		(610)	(767)
Cash generated from/ (used by) operations		1,019	(2,010)

9 B	Movement in net debt
					Cash and cash equivalents	Leases	Total
					£000	£000	£000
			As at 31 July 2023		7,862	(1,571)	6,291
			Lease additions		-	(1,074)	(1,074)
			Effect of modifying lease term		-	(293)	(293)
			Cashflow		(4,699)	1,592	(3,107)
			Interest charge		-	(86)	(86)
			Exchange movements		(62)	(8)	(70)
			As at 31 July 2024		3,101	(1,440)	1,661
			Lease additions		-	(211)	(211)
			Effect of modifying lease term		-	31	31
			Cashflow		(1,302)	999	(303)
			Interest charge		-	(60)	(60)
			Exchange movements		(18)	8	(10)
			As at 31 July 2025		1,781	(673)	1,108
					Cash and cash equivalents	Leases	Total
					£000	£000	£000
			Balances as at 31 July 2025
			Current assets		1,781	-	1,781
			Current liabilities		-	(673)	(673)
			Non-current liabilities		-	-	-
					1,781	(673)	1,108
					Cash and cash equivalents	Leases	Total
					£000	£000	£000
			Balances as at 31 July 2024
			Current assets		3,101	-	3,101
			Current liabilities		-	(1,008)	(1,008)
			Non-current liabilities		-	(432)	(432)
					3,101	(1,440)	1,661

 

END