Market's view on Essensys
Published on April 2024
- A stock watcher highlighted that the company successfully raised £33m in 2021 but struggled to spend it initially due to Covid, leading to a cautious approach later.
- Debt-free status of the company has been positively noted.
- Concerns were expressed about significant sales and rapid offloading of shares, impacting the stock price.
- The company is perceived as operating in a challenging market, especially in the US commercial real estate sector, which is affecting its performance.
- Expectations are set for the company to return to profitability and generate positive cash flow by the end of FY24.
- There are observations on the company’s reversal in strategy and inefficient use of funds.
- A lack of proactive questioning and challenge to the board from shareholders during the AGM was pointed out.
- Discussions on whether the company should return unused capital to shareholders, with opinions that cash might be better utilized outside the company.