Shares in essensys PLC (AIM:ESYS) jumped over 13% after the flexible workspace software company said it expects revenue, losses and cash to be ahead of market expectations.
In a pre-close update for the financial year to 31 July, the AIM-listed company said the performance reflects its strategy to focus on "near-term profitability and cash generation in FY25".
Revenues for the 2024 financial year came in around £24 million, with underlying losses on an EBITDA basis of "not more than £0.9 million", down from a £6.1 million EBITDA loss the year before.
Losses narrowed thanks to operational efficiencies expected following a reorganisation the previous year.
Cash ended at a net £3.1 million, significantly ahead of expectations thanks to improved profitability and the receipt of an R&D tax credit of £0.8 million.
CEO Mark Furness said he was pleased with progress made in the year and the losses and cash ahead of market expectations, adding that the successful migration to a pure-play software as a service product, essensys Platform, "is a pivotal moment in our strategy".
"Whilst market conditions remain challenging, with continued pressure on capex budgets, our evolved proposition and ability to deploy essensys Platform over existing networks is helping to lower entry costs for our customers and the recent release of our latest addition to essensys Platform, Intelligence Engine, is helping to further differentiate our offer and meet growing customer demand for data and insight," he said.
He said the company is "on track" for positive EBITDA and cash generation in the new financial year.