TIDMRDT
RNS Number : 4829C
Rosslyn Data Technologies PLC
01 October 2018
Rosslyn Data Technologies plc
("Rosslyn", the "Company" or the "Group")
Rosslyn Data Technologies plc
("Rosslyn", "RDT" or the "Company")
Audited Results
For the year ended 30 April 2018
Rosslyn Data Technologies plc (AIM: RDT), the provider of a
leading cloud-based enterprise data analytics platform, is pleased
to announce its audited results for the year ended 30 April
2018.
Financial Summary
For the Financial year ending 30(th) April 2018 the Group has
amended its accounting policy to introduce IFRS 15 reporting
standards covering the recognition of revenue from contracts with
customers a year ahead of the statutory requirement. This has
impacted the results and comparatives compared to the previously
applied policy in place last year and announced in the Interim
statement. We made this decision as we would need to restate both
this year's and next year's accounts if we did not adopt the policy
in this financial year. In the Financial summary below, both sets
of numbers are provided for comparison.
-- Group Revenues of GBP6.4m (GBP7.0m under prior policy) up 83% (2017 - GBP3.5m)
-- Loss before tax of GBP3.7m (GBP3.0M under prior policy) (2017 - GBP2.0m)
-- Cash as at 30(th) April 2018 stands at GBP0.3m (2017 - GBP0.3m)
-- Gross Margin remains strong at 76.1% (2017 - 81.4%)
-- Continued prudent financial and operational management
delivered expected group synergies of more than GBP0.8m
Operational Highlights
-- Continued demand for data analytics demonstrated by encouraging growth in revenues;
-- Sales team has seen an improvement in key metrics and
continues to win contracts in respected global companies;
-- Successful integration of the Integritie acquisition has
provided greater opportunities reflected in our growing contract
values;
-- Revenues generated from existing clients have accelerated as
the 'land and expand' strategy bears fruit, driven by broader
adoption of the platform and the release of new products;
-- New client onboarding and higher levels of contracted
recurring revenues during the period, with the majority of new
direct contracts being multi-year deals. Revenue per contracted
year has increased to circa GBP82,000 (2017 - GBP72,000).
-- Client renewal rates remain strong with churn rate remaining below 5%;
-- Our business model provides the Group with a powerful
foundation from which to generate further business. The Directors
will leverage these existing relationships to expand overseas and
enter new verticals;
-- The RAPid and KC applications provide an integral service
within the business functions of RDT's partners, freeing up
valuable resources, enabling them to focus on building new, higher
margin revenue streams and giving them greater speed and agility to
respond to changing client needs;
-- The Group has continued to focus on R&D during the
period, as part of our commitment to investing in the development
of our product. Focus has been on scalability and automation, and
providing customers with self-service tools to manage their data.
This enables our clients to rapidly gain data insights, identify
opportunities and profit from these whilst minimising costs and
risks;
-- Our focus on developing intuitive, user friendly, and
automated workflows for data preparation combined with fast
application development and an app platform, is becoming
increasingly pervasive. By building easy to use automated
technologies we are significantly shortening the time it takes for
our clients and partners to receive analytics ready data, driving
down the cost of investment and increasing their ROI, whilst
reducing the Group's costs;
-- Encouraging pipeline of work coming through direct and
indirect sales channels and increasing average contract value.
Commenting on today's results Roger Bullen, CEO of Rosslyn,
said, "I am pleased to report that the Group has made good progress
during the financial year and has successfully integrated the
Integritie acquisition. We have been able to expand our solutions
into one platform with multiple solutions - all focused on bringing
together structured data, unstructured information, automated
workflows for business process improvement, and analytics.
Furthermore, our growing partnership with Microsoft and IBM extend
our reach, enabling us to develop, introduce and incorporate
cutting-edge technologies. Since the year end, we have been able to
secure significant client wins and aim to continue to do so for the
remainder of the year.
We have continued to invest in the development of our talented
team, making key hires in sales, customer service and R&D. The
addition of these key people ensures that our product offering
remains market-leading and that we provide the highest levels of
service possible to our clients. Our continued development of our
product set is exciting, and seeing the RAPid platform being
enhanced with the Knowledge Capture tool set (KC) and being
progressively embedded in a number of organisations is
encouraging.
We have a broad pipeline of new business and we are excited
about the year ahead."
Chairman's Statement
Results
The financial year to 30 April 2018 was our fourth full year as
a public company for Rosslyn Data Technologies plc after the
listing on AIM in April 2014. The platform we have built over the
period has again received significant accolades this year,
maintaining our belief that the ongoing development and
improvements we have made in developing and maintaining a
state-of-the-art cloud-based solution are significant.
This year, we have acquired 100% of the share capital of
Integritie (UK) Limited, increasing our revenues significantly
whilst also growing both our partnerships and our direct sales
client base. Cost savings were realised by combining back-office
and some front-office functions.
We have continued to deploy our resources into our partnership,
direct sales and marketing strategies, whilst ensuring we did not
miss any developments that would enable the business to transform
to profitability and organic cash generation. As reported, the
progress this year was not as rapid as we would have liked; the
uncertainty with Brexit, the economic turmoil within Europe and the
strength of the US$ have presented difficult trading times for some
of our partners and clients, which has led to a slowdown in the
execution of some larger contracts.
This year we have also implemented, earlier than required, IFRS
15 accounting standards. This has led to a change in revenue
recognition policy, which has moved license fee revenues from the
current year to next. We will be adopting this accounting treatment
going forward. We made this decision as we would need to restate
both this year's and next year's accounts if we did not adopt the
policy in this financial year. Group revenue was GBP6.4m (2017:
GBP3.5m). Based on our revenue recognition policy from prior years
our revenues were GBP7.0m (2017: GBP3.6m), showing >90% growth
over last year.
In addition to this growth we have been able to manage our cost
base down and we are now able to see a timeline when cash flow
break-even and profitability occur; although we are not yet
complete, we believe there is a strong chance of this occurring by
the second half of this new financial year.
We ended the year with net cash balances of GBP0.3m (2017:
GBP0.3m). The Board believes that we have adequate cash resources
to take the Group through to break-even and cash generation.
Strategy
The Group's strategy has continued from last year with the
appointment of Roger Bullen as CEO. The platform is established as
a significant player in cloud-based analytics, delivering far more
than the "spend" environment we have focused on for the last three
years. The introduction of Integritie has added new technologies
and business opportunities, and we have been able to exploit these
alongside the RAPid platform to offer services outside of our
traditional spend environment. We are committed to growing revenues
and profitability through a dual track strategy of acquisition and
organic growth. The acquisition of Integritie, in May 2017,
demonstrates our determination to add new products and revenue
streams to our platform and introduce new customers to the
cloud.
Whilst we look at acquisition opportunities, to increase our
scale and offering, we will also focus on developing the current
relationships with our partners. We have been able to add more
partners to our portfolio and have significantly expanded our
relationship with Dun & Bradstreet, the world's largest data
provider. We have confidence that these partnerships and
relationships will continue to grow and flourish. We are
particularly excited by the new opportunities we are discovering
with partners in North America and we are hopeful that we can
continue to expand our footprint in this region in the months
ahead.
Our staff
Our business would be nothing without our innovative and
hard-working staff. From the development team to the client support
staff, it is an end-to-end effort. Each role is critical to our
continued success, and everyone has positively contributed to our
successful integration of the Integritie acquisition. On behalf of
the Board I would like to thank all of them for their outstanding
efforts in the last year and look forward to working with them in
the current year.
Outlook
The 2018-19 financial year is going to be a breakthrough year.
We anticipate a cash flow positive year and profitability being
achieved. We also see new clients and new products being
introduced, whilst also re-establishing some of the key
relationships from the past. Our partnership strategy continues to
develop and is coming to fruition in the US; these partnerships
have the potential to deliver the majority of our revenue over the
coming years. This, alongside the strengthening traction within our
direct sales, makes this an exciting year for us.
Recent announcements demonstrate the high regard which major
players within the
data and analytics industry hold Rosslyn, the RAPid platform and
the Knowledge Capture environment. Converting these relationships
into scalable revenue streams is key for our growth and our future.
I am optimistic that recent product launches and the innovation we
continue to deliver will drive the results the Company and our
shareholders deserve.
Results
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30(th) April 2018
Year ended Year ended
30 April 30 April
2018 2017 restated
Revenue 6,432,733 3,506,470
Cost of Sales (1,537,402) (651,605)
Gross Profit 4,895,331 2,854,865
Other Operating Income - -
Administrative (8,483,685) (4,915,222)
Operating Loss (3,588,354) (2,060,357)
Finance Income 223 15,029
Finance costs (101,372) -
Loss before Income Tax (3,689,503) (2,045,328)
Income tax 478,480 222,308
Loss for the year (3,211,023) (1,823,020)
Other comprehensive income (22,520) (33,764)
Total Comprehensive Income (3,233,543) (1,856,784)
=============================== ============ ===============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30(th) APRIL 2018
30 April 30 April 2017
2018 restated
Assets
Non-current assets
Intangible Assets 3,969,189 -
Property, Plant and
Equipment 22,844 29,003
3,992,033 29,003
Current Assets
Trade and other receivables 2,149,993 1,879,635
Corporation tax receivables 555,673 220,000
Cash and cash equivalents 317,466 284,833
3,024,132 2,384,468
Total Assets 7,016,165 2,413,471
-------------------------- ----------------------------- ------------- --------------
Liabilities
Non-current liabilities
Trade and other (91,420) -
payables
Deferred tax (290,904) -
Financial liabilities - (743,809) -
borrowings
-------------------------------- ------------- --------------
(1,126,133) -
Current Liabilities
Trade and other payables (3,771,229) (2,185,524)
Financial liabilities (330,243) -
- borrowings
(4,101,472) (2,185,524)
Total Liabilities (5,227,605) (2,185,524)
-------------------------- ----------------------------- ------------- --------------
Net Assets 1,788,560 227,947
-------------------------- ----------------------------- ------------- --------------
Equity
Called up Share Capital 940,650 378,829
Share Premium 12,554,894 8,517,060
Share based payment
reserve 390,009 218,276
Accumulated
loss (17,140,360) (13,952,105)
Translation
reserve (89,695) (67,175)
Merger reserve 5,133,062 5,133,062
------------------------------ ------------------------- ------------- --------------
Total Equity 1,788,560 227,947
-------------------------- ----------------------------- ------------- --------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the Year ended 30 April 2018
Year ended Year ended
30 April 30 April
2018 2017 restated
Cash flows used in operating activities
Cash used in operations (3,450,562) (1,775,216)
Finance costs paid (94,875) -
Corporation tax received 473,956 255,308
Other comprehensive income (22,520) (33,764)
Net Cash used in operating activities (3,094,001) (1,553,672)
----------------------------------------------- ------------ ---------------
Cash flows used in investing activities
Proceeds from sale of property,
plant and equipment 475 317
Purchase of property, plant and
equipment (19,223) (20,653)
Acquisition of subsidiaries (1,187,923) -
Net cash used in investing activities (1,206,671) (20,336)
----------------------------------------------- ------------ ---------------
Cash flows (used)/generated from financing activities
New loans in year 278,266 -
Repayment of borrowings (544,616) -
Proceeds from share issuance 5,056,391 -
Cost of share issuance (456,736) -
Net cash generated from financing activities 4,333,305 -
----------------------------------------------- ------------ ---------------
Net increase / (decrease) in cash and cash
equivalents 32,633 (1,574,008)
------------------------------------------------ ------------ ---------------
Cash and cash equivalents at beginning
of year 284,833 1,858,841
Cash and Cash equivalents at end of
year 317,466 284,833
----------------------------------------------- ------------ ---------------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
Rosslyn Data Technologies plc (the "Company") is a company
domiciled in the UK. The address of the registered office is 60 St
Martin's Lane, London, WC2N 4JS. The Company is the ultimate parent
of Rosslyn Analytics Ltd and Integritie (UK) Ltd. companies
incorporated in the UK, and the ultimate parent of Rosslyn
Analytics Inc., a company incorporated in the United States of
America (collectively the "Group"). The Group's principal activity
is the provision of data analytics using a proprietary form, data
capture, data mining and workflow management.
The principal accounting policies adopted in the preparation of
the consolidated financial information are set out below.
2. Accounting Policies
Basis of preparation
The Group's consolidated financial statements have been prepared
and approved by the Directors in accordance with International
Financial Reporting Standards (as adopted by the EU) and IFRIC
interpretations and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The financial
statements have been prepared under the historical cost
convention.
Going Concern
Notwithstanding that the Group has made losses in the current
year, these financial statements have been prepared on the going
concern basis, which assumes that the Group will continue to be
able to meet its liabilities as they fall due for the foreseeable
future. The Directors have prepared cash flow statements for the
periods to 30 April 2025 to ensure going concern criteria are met.
Provided the Group achieves its forecasts for the forthcoming year,
the Group will be able to repay all outstanding loan notes and be
in a cash positive position. Should the Group fall short of its
revenue forecast it will need to refinance the outstanding loan
notes, discussions are already taking place to ensure that
financing, should it be required, is available.
The directors have concluded that the combination of these
circumstances represents a material creates uncertainty that casts
significant doubt upon the Group's ability to continue as a going
concern. Nevertheless, after making enquiries and considering the
uncertainties described above, the directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For these
reasons, they continue to adopt the going concern basis of
accounting in preparing these financial statements.
Basis of Consolidation
On 23 April 2014 the Company acquired the Group's previous
parent company, Rosslyn Analytics Ltd, via a share for share
exchange whereby every ordinary share and A preference share in
Rosslyn Analytics Ltd was exchanged for eight ordinary shares and
eight A preference shares respectively in Rosslyn Data Technologies
Ltd (prior to the conversion to a plc on 24 April 2014). On 24
April 2014 the A preference shares were converted into ordinary
shares on a one-for-one basis.
On 29 April 2014, Rosslyn Data Technologies plc's shares were
admitted to trading on AIM. Accordingly these financial statements
are presented in the name of the new legal parent, Rosslyn Data
Technologies plc, but are a continuation
of the financial statements of Rosslyn Analytics Ltd.
The Annual report will be available on the Company's website for
download by 7(th) October 2018 and the Annual General Meeting will
be held on 30(th) October at 11am, 154 - 160 Fleet Street,
Blackfriars, London, EC4A 2DQ
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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