Rosslyn Data Technologies PLC Trading Update (5239S)
26 June 2018 - 4:00PM
UK Regulatory
TIDMRDT
RNS Number : 5239S
Rosslyn Data Technologies PLC
26 June 2018
26 June 2018
This announcement contains inside information defined in Article
7 of the EU Market Abuse Regulation No 596/2014 and has been
announced in accordance with the Company's obligations under
Article 17 of that Regulation.
Rosslyn Data Technologies plc
("Rosslyn", "RDT", the "Group" or the "Company")
Trading Update
For the year ended 30 April 2018
Rosslyn Data Technologies plc (AIM: RDT), the provider of a
leading cloud-based enterprise data analytics platform today
announces a trading update for the year ended 30 April 2018.
The 2017-2018 financial year has been one of change within the
firm. The acquisition of Integrite Ltd ("Integritie") in May 2017
has significantly increased the size of our business and delivered
a number of new opportunities with Group revenues for FY18
increased by 94% compared to FY 17 at GBP7.0m (2017: GBP3.6m). We
are pleased with the business that we have signed during the year
although, strategically, we have accepted some lower margin
business in relation to a larger contract. We now expect our
adjusted loss before tax (excluding one off costs associated with
the Integritie acquisition) to be in the region of GBP1.3
million.
We are pleased to report that we have completed the integration
of Integritie and onboarded its products on to our RAPid Platform
and, during the year, have been able to achieve synergies in excess
of the circa GBP850,000, that we expected at the time of
acquisition through both cross selling and operational
efficiencies. Furthermore, we have reduced the Group's cost run
rate to approximately GBP7.2m and have identified means to reduce
this still further.
We ended the year with net cash balances of GBP0.3M (2017
GBP0.3M). We continue to manage our cost base and as at 22 June
2018 our net cash balance was GBP0.7m and are on track to achieve
cash flow break-even during the current fiscal year.
We have continued to invest in developing our product suite on
the RAPid platform, adding new tools and functionality whilst
ensuring that the RAPid platform is scalable, user friendly and
provides a satisfying user experience for our partners and
clients.
In addition, during the year, we have invested in the
development of an HR analytics product suite utilising the core
technologies from our other applications. The ability to implement
and operate this within the year demonstrates, we believe, the
versatility of the platform.
We have added several large clients during the year, including a
major FMCG company, a global Fintech company and major Multi-media
company, and have continued to expand our partner program, most
notably signing a strategic partnership with Dunn & Bradstreet
to provide self-service data and analytics to procurement
professionals.
Our careful execution has been reflected in the Group's key
metrics; our client acquisition rate continues at a steady pace and
the average cost of acquiring a new client continues to trend
lower. These metrics are underpinned by a client churn that remains
below 5% of revenues and our committed monthly run rate for FY 19
now stands at in excess of GBP4.5m, up from GBP2.5m in FY 18.
Commenting Roger Bullen, CEO of Rosslyn, said, "I am pleased to
present the trading update for the year ended 30 April 2018.
The acquisition of Integritie allowed us to increase our
offering to the market, whilst providing access to new
technologies, introduce automated processes and improve our
Artificial intelligence and our Natural Language Processing
capabilities across our data analytics suite.
We have continued to make our products a scalable, repeatable
and cost effective solution for our clients, and have made the
products easy to configure and to implement. We have introduced new
and simple methods for our clients to implement our products and
have made many of the functions, self-service, enabling us to
reduce our cost base and to improve the client interaction and
adoption. We continue to invest in the development of our talented
team, ensuring that our product offering remains market-leading and
that we provide the highest levels of service possible to our
clients.
I am delighted that our revenue base and our cost base are very
closely aligned at the year end. This enables us to look to the
future with huge optimism. Combining this with the broad pipeline
of new business we can see, and the feedback regarding the number
of opportunities being provided by our current client base we are
extremely excited about the year ahead."
+44(0)20 7138
3203
Rosslyn Data Technologies Roger Bullen, +44(0)77 7162
plc Chief Executive Officer 3345
Lance Mercereau
Marketing Director +44(0)7788 183273
Cenkos Securities
-
Nominated Adviser, Stephen Keys, Camilla +44(0)20 7397
Broker Hume 8900
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END
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