Strategy update - Product consolidation

Key highlights

• Envirosuite reaches key product development and commercial milestone within EVS Water portfolio. 

• EVS Water products will be consolidated into EVS Industrial portfolio, capitalising on go-to market and product synergies seen through successful cross-sell and B2B partnership wins and pipeline.

• Associated ‘start-up’ expenditures required to build and bring new technology to market will reduce. This restructure, along with additional identified savings, moves the Company closer to its financial performance targets with annualised expenditure improvements of circa $2.5m.

• Strategic decision simplifies organisational structure and allows the Company to focus on B2B partnerships and further cross-selling into EVS Industrial, which continues its growth across multiple regions and industries.

We are pleased to announce that our EVS Water products will join the EVS Industrial portfolio. This decision follows the maturity milestone that EVS Water has reached and the go-to-market and product synergies seen with the EVS Industrial portfolio, demonstrated through recent cross-sell wins and success in B2B partnerships.

The intellectual property (IP) underpinning the EVS Water technologies was originally purchased  to complement and leverage the market leadership that Envirosuite has achieved in EVS Aviation and EVS Industrial. The IP was subsequently developed into three modular software products, market-tested, and through further product and commercial development has attained customers  in the UK, Europe, Middle East, India, Singapore, Australia, and the USA.

In parallel with the technical development, the Company has evolved its go-to-market strategy,  taking insights around customer requirements and customer buying processes into consideration  as well as market opportunities and potential synergies across the broader business. The strategic decision to bring the EVS Water and EVS Industrial technologies together further strengthens  Envirosuite’s ability to focus on sustainable revenue growth in its key sectors, efficiently executing its ‘land, expand and scale’ strategy while supporting the customer base globally and transitioning the Company to profitability.

Continuing focus on sustainable and profitable growth

We are proud of Envirosuite’s achievements in EVS Water to date, having built compelling products that can now be sold and supported without further development, which have been validated by significant customers from around the world.

As the Company continues to focus on sustainable and profitable growth, we have made the strategic decision to bring these developed Water products into the EVS Industrial portfolio. This decision reflects the go-to-market and product synergies we have seen between the two portfolios through cross-sell opportunities and the more recent focus on B2B partnerships. It means we can consolidate maintenance and support resources for Water customers while leveraging the sales and marketing efforts of the EVS Industrial team. This restructure will deliver a net annualised expenditure improvement of circa $2.5m which is expected to be material to our forward earnings.

We move forward with two exciting product portfolios: EVS Aviation, which has over 30 years of leadership in aviation noise, operations, and community management, and EVS Industrial, which provides proven environmental intelligence technologies to solve complex operational challenges relating to air quality, noise, vibration, water management, weather, and community engagement.