essensys PLC (AIM:ESYS) shares rose 3% to 16p on Friday after the flexible workspace software provider issued a trading update and disclosed a possible takeover approach from its founder.
The company reported first-quarter revenue of £4.1 million for the financial year ending July 2026, a result it said was “broadly in line with management expectations” and supported mainly by its essensys Platform.
Interest in its new product, elumo, “remains strong”, but “the current macroeconomic environment has led to elongated sales cycles and slower than anticipated adoption rates”, which is expected to weigh on full-year sales.
Essensys said one customer intends not to renew a contract worth £0.9 million in annual recurring revenue when it ends in December 2025. This has already been included in management forecasts.
The group has restructured its operations around its two product lines and expects “significant annualised cost savings” alongside those achieved from decommissioning its data centres. The debt-free company is also in talks to secure a debt facility “to strengthen the Group’s financial resilience”.
The board said founder and non-executive director Mark Furness has made a “preliminary, indicative, non-binding proposal” for a possible all-cash offer at 20p a share via a new vehicle.
Discussions are at an early stage and “there can be no certainty that an offer will be made”. Under the Takeover Code, Furness must declare his intention by 26 December 2025 unless the deadline is extended by the Panel.