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 £19.2 million for FY25, down 21% from £24.1m the previous year, largely reflecting the previously flagged downsizing of a single large strategic customer.
Despite the drop in sales, the London-based company returned to positive adjusted EBITDA of £1.3m, compared with a £900,000 loss in FY24, helped by cost reductions and an improved operating model.
Statutory losses before tax widened slightly to £5.7m, from £5.5m a year earlier, while net cash at year end stood at £1.8m, down from £3.1m.
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.
The company also completed a data centre decommissioning project during the year, delivering £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.
“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,” said James Lowery, CEO of essensys.
“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.”
The company’s share price is down by 10% to 13p so far today, while its market cap stands at £8.42m.