The founder of essensys plc is pondering an all-cash offer for the firm as it issues a profit warning.
The London-based software and cloud service provider for the flexible workspace industry said its FY26 results were expected to fall short of expectations.
essensys expects £19.2m in revenue for the year ending 31st July, reduced from £24.1m a year before. However it expects a profit of £1.3m, swinging from a £900,000 loss in FY24.
Mark Furness, who handed the CEO reins to COO James Lowery in May, is considering a bid of 20p per share – valuing the company at around £13 million.
Furness founded the firm in 2006 and it floated in 2019 at a valuation of £72.6m, raising £28m from investors. Its share price peaked above 300p in 2021. Furness is currently a non-executive director.
It has a market cap of £10m today after its share price dropped more than 50% this year. It stands at around 16p at the time of writing (8.30am).
essensys says that despite the loss of a contract worth almost £1m a year, restructuring and cost savings from its data centre decommissioning project should protect its cash position going forward.
“The current macroeconomic environment has led to elongated sales cycles and slower than anticipated adoption rates, which is expected to impact FY26 sales,” it stated.
“The group has restructured around its two core products, with dedicated teams for elumo and essensys Platform. This, together with data-centre savings, is expected to deliver significant cost reductions.”
Revenue for the first quarter of FY26 amounted to £4.1m, it added this morning.