Envirosuite (ASX: EVS) is forecasting a bright future ahead with revenue more than doubling over the past year as society commits to becoming more environmentally and socially responsible.
The environmental technology company has posted total revenue for the 2021 financial year of $48.6 million, of which 83% was recurring. This represents a 104% increase on the $23.8 million reported for the prior full fiscal year.
Gross margin also improved to 42.4% from 31% and despite COVID-19 impacting Envirosuite’s top line progress in the first six months of FY2021, the period between January and June 2021 became the company’s “strongest ever” half year with $4.4 million in annual recurring revenue (ARR) orders.
Envirosuite offers software-as-a-service (Saas) and technology solutions to help companies mitigate and manage environmental impacts such as noise, vibration, odour, dust, air and water quality. Its product suites support industries including aviation, mining, industrial, waste and water treatment.
In the last year, the company saw its total number of sites increase by 13.4% to 373 with strong growth particularly achieved for its Omnis product (up 24% in ARR).
The growing importance of ESG
Envirosuite chief executive officer Jason Cooper described FY2021 as a “remarkable year” that demonstrated the importance of the environment and its intersection with industry and community.
He said it was also a year of growth and transformation for Envirosuite to set the company up for long-term success.
“We play a vital role for our customers and society in providing environmental intelligence technology that produces real-time, predictive and optimisation value.”
“Globally, the growing importance of environmental and social governance (ESG), the advancement of the United Nation’s Sustainable Development Goals, and the recent US$1 trillion Biden infrastructure bill, all create strong tailwinds for Envirosuite in FY22 and beyond,” Mr Cooper added.
Strategic plan to grow the business globally
In its annual report released today, Envirosuite chairman David Johnstone said the company sits in the “sweet spot” of the most critical and mainstream themes in industry, government, community and capital markets: climate change, ESG and digital transformation.
“Envirosuite moves into the new financial year with a funded strategic plan to grow its global business and it continues to expand its technology platform that has launched into the water space to complement the strong position that it already holds in air and noise,” he said.
“We will be prioritising strategic investment in platform development and market offerings, new sectors and accelerating in key geographies to sustain our first-mover advantage.”
Mr Johnstone added that as the global challenges driven by the COVID-19 pandemic subside, climate change is resuming its priority place with “renewed intensity”.
“An awareness is setting in for government, industry and community that climate change issues must be practically addressed on the frontline. A critical element of this is that each industry participant must do their part to sustain their business and brand.”
“At the practical level, this speaks directly to the adoption of Envirosuite’s market offerings,” he said.
The company has four key strategic focus areas for the 2022 financial year: growth through strategic partnerships and customer expansion; product development; customer support and retention; and achieving scale through technological innovation.