- Essensys swung to an annual loss as the cost of going public offset a jump in revenue.

For the year ended 31 July 2019, the company reported a pre-tax loss of £1.4m compared with a profit of £0.4m a year earlier.

While revenue rose 26% to £20.6m, with the run rate annual recurring revenue growing 27% to £17.3m, driven primarily by the overall increase in Connect sites by 38% to 358 at year end from a year earlier, the company said.

The loss was driven by costs of its initial public offering and the share based payment expense incurred as a result of the vesting of employee share options prior to the IPO, the company said.

Gross margins in the year were in line with last year, with an increase in the recurring revenue margins to 70% offset by reductions in non-recurring revenue, the company added.

The company said fiscal 2020 had ‘started well.’

At 8:00am: [LON:ESYS] share price was +7p at 165p

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