Final Results

RNS Number : 9989J

Rosslyn Data Technologies PLC

16 September 2016

 

16 September 2016

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 2016

Rosslyn Data Technologies plc (AIM: RDT), the provider of a leading cloud-based enterprise data analytics platform today is pleased to announce its audited results for the year ended 30 April 2016.

Financial Summary

·    Group Revenues of £3.9M in line with projections and up 37% from 2015 (£2.8M)

·    Loss before tax of £2.4M (2015 £3.4M)

·    Cash used in Operations of £2.8M (2015 £4.0M)

·    Net Cash as at 30^th April 2016 stands at £1.9M (2015 £4.7M)

·    Tight financial and operational management delivered a lower cash burn than expected.

Operational Highlights

Encouraging growth in Revenues since April:

Results demonstrate the continued demand for data analytics in the market place;

·    The direct sales team has seen an improvement in key metrics and continues to win contracts in respected global companies;    

·    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;

·    Gross Margin remains strong at 87.5%% (2015 84.3%)

·    Client renewal rates remain strong with churn rate remaining below 5%.

·    The Partner Channel has continued to develop during the period, maintaining and building stronger relationships including the Joint Business Relationships with PWC, Xerox and Genpact. New partnerships were formed in the year with Microsoft and Deloittes USA. The Directors feel these partner relationships differentiate RDT's business model from competitors and provide Rosslyn 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 Directors also believe the RAPid platform provides 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 Directors continue to source new partners and are in advanced talks with a significant US based strategic partner and look forward to announcing this in due course.  

·    We have continued our focus on R&D during the period, as part of the Group's commitment to investing in the development of our product.  Our focus has been on scalability, automation and for our Partners a self-service approach. This enables our clients to rapidly gain insights into their data, identify opportunities and profit from these whilst minimising risks.  Our focus on developing an intuitive, user friendly, on-demand, workflow for data preparation, fast application development and an Apps platform, where insights are shared across the enterprise, 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.   

·    The high levels of contracted recurring revenues and low churn rates provide good visibility on Rosslyn's turnover.  During the period the majority of direct contracts signed were multi-year deals, and the revenue per contracted year has increased to circa £65K vs (2015 £54K).We are encouraged by the size of the pipeline we are seeing coming through our direct and indirect sales channels and the growth of the 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 and has recorded an encouraging set of results for the year ended 30 April 2016.

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 the partner channel is exciting and is seeing the RAPid platform being progressively embedded in a number of organisations and I expect this list to increase. These Partnerships play an important role in closing the gap between the firm and the market place enabling us to grab market share far easier than through the direct channels. 

We have a broad pipeline of new business and we are excited about the year ahead. "

Rosslyn Data Technologies plc	Roger Bullen, Chief Executive Officer	[phone] [phone]
	Lance Mercereau Marketing Director	[phone]
Cenkos Securities - Nominated Adviser, Broker	Stephen Keys	[phone]

Chairman's Statement

Results

The financial year to 30 April 2016 was the second full year as a public company for Rosslyn Data Technologies plc after the listing on AIM in April 2014. The progress we have made in the year, growing both our Partnerships and our Direct sales client base has been both challenging and rewarding. We deployed a significant element of the IPO funds into our Partnership, Sales and Marketing strategies, whilst ensuring we did not miss any developments in technology that would enable the business to transform to profitability and organic cash generation. We are now able to see a timeline when this event occurs and management's goal remains for this to occur during the current financial year. Group revenue increased by 37% to £3.9m (2015: £2.8m). There was a reduction in Group losses at the EBITDA level to £2.3m (2015: £3.4m). This was somewhat less than we anticipated at the start of the year. We ended the year with net cash balances of £1.9m (2015: £4.7m). The consumption of cash is accounted for by the losses in the period. 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 evolved since the time of our listing. Although our primary offering remains Spend Analytics, we have seen broader adoption of the RaPid platform as an all-encompassing enterprise data extraction and data enrichment platform which can be used in multiple application areas within an enterprise.

Additionally, we are committed to growing revenues through a dual-track strategy of working with partners and direct sales. Our relationships with our Partners continue to grow and we have been able to add many more partners to our portfolio. We have confidence that these relationships will continue to grow and flourish. We are particularly excited by the new opportunities we are discovering with our Partners in North America. We are hopeful that we can continue to expand our footprint in this region in the months ahead. Our direct sales operation has also had another successful year.

We have had a number of notable wins in all the regions in which we operate - the UK, Continental Europe and the US and have managed to grow our average annual contract value considerably. We are particularly excited by the new opportunities we are unearthing in the "highly sensitive" data market around the world. We will continue to market to this sector in the months ahead.

Board Changes

Jeff Sweetman left the Company in July 2016. Jeff has been with Rosslyn for nearly eight years and was instrumental in establishing our foothold in the USA. He has worked with the CEO to establish a smooth handover and provide a springboard for developing our Partner relationships in USA. The Board would like to express its thanks to Jeff for his contribution to the Group's development. Additionally, our founder and CEO Charles Clark decided to focus his energies on business development with a particular emphasis on the North American market and the partner model and so relinquished his position as CEO, to Roger Bullen, enabling Charles to continue as Founder and President, doing what he enjoys most - meeting customers and promoting Rosslyn to customers and partners.

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. 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

2016-17 financial year is going to be a year of change within the firm. Our Partnership strategy is coming to fruition and has the potential to deliver the majority of our revenue. This, alongside the strengthening traction within our Direct Sales, gives us confidence for the future, as our clients invest in the benefits that our innovative products are bringing to enhance their competitiveness. We believe that Rosslyn is held in high regard by the major players within the data and analytics industry. Converting these relationships into scalable revenue streams is key to 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.

CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME FOR THE YEAR ENDED 30^th APRIL 2016

				Year ended 30 April 2016		Year ended 30 April 2015
Revenue				3,869,050		2,826,034
Cost of Sales				(481,269)		(442,309)
Gross Profit				3,387,781		2,383,725
Other Operating Income				45,535		128,948
Administrative Expenses - Excluding Exceptional Items				(5,819,195)		(6,019,581)
Operating Loss				(2,385,879)		(3,506,908)
Finance Income				11,058		28,687
Loss before Income Tax				(2,374,821)		(3,478,221)
Income tax				256,878		222,216
Loss for the year				(2,117,943)		(3,256,005)
Other comprehensive income				(14,908)		(18,503)
Total Comprehensive Income				(2,132,851)		(3,274,508)

CONSOLIDATE STATEMENT OF FINANCIAL POSITION as at 30^th APRIL 2016

Assets
	Non- Current Assets
	Intangible Assets				0		0
	Property, Plant and Equipment				57,353		104,005
					57,353		104,005
Current Assets
	Trade and other receivables				1,907,521		1,203,747
	Corporation tax receivables				253,000		218,082
	Cash and cash equivalents				1,858,841		4,712,730
					4,019,362		6,134,559
Total Assets					4,076,715		6,238,564
Liabilities
	Non-current liabilities
	Deferred tax				0		0
Current Liabilities
	Trade and other payables				(1,635,015)		(1,704,224)
	Financial liabilities - borrowings				0		0
					(1,635,015)		(1,704,224)
Total Liabilities					(1,635,015)		(1,704,224)
Net Assets					2,441,700		4,534,340
Equity
	Called up Share Capital				378,829		377,229
	Share Premium				8,517,060		8,515,916
	Share based payment reserve				166,107		288,017
	Accumulated loss				(11,719,947)		(9,761,381)
	Translation reserve				(33,411)		(18,503)
	Merger reserve				5,133,062		5,133,062
Total Equity					2,441,700		4,534,340

CONSOLIDATED STATEMENT OF CASH FLOWS for the Year ended 30 April 2016

			Year ended 30 April 2015		Year ended 30 April 2015
Cash flows used in operating activities
	Cash used in operations		(3,055,063)		(4,082,046)
	Corporation tax received		221,960		150,880
	Other comprehensive income		(14,908)		(18,503)
Net Cash used in operating activities			(2,848,011)		(3,949,669)
Cash flows used in investing Activities
	Purchase of Intangible assets		0		(5,626)
	Purchase of property, plant and equipment		(8,622)		(151,776)
Net cash used in investing activities			(8,622)		(157,402)
Cash flows (used)/generated from financing activities
	Repayment of borrowings		0		(200,000)
	Proceeds from share issuance		2,744		343
Net cash (used)/generated from financing activities			2,744		(199,657)
Decrease in cash and cash equivalents			(2,853,889)		(4,306,728)
Cash and cash equivalents at beginning of year			4,712,730		9,019,458
Cash and Cash equivalents at end of year			1,858,841		4,712,730

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.   General Information

Rosslyn Data Technologies Ltd. was incorporated on 7 February 2014 and on 24 April 2014 converted from a private limited company to a Rosslyn data Technologies plc.

Rosslyn Data Technologies plc (the "Company") is a company domiciled in the UK. The address of the registered office is 25 Eccleston Place, London SW1W 9NF. The Company is the ultimate parent of Rosslyn Analytics Ltd. a company 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.

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 the International Financial Reporting Standards (as adopted by the EU) and IFRC interpretations and 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 believe that the Group has sufficient working capital to meet its present requirements for at least the next twelve months from the date of this consolidated financial information.

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 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 were admitted to trading on AIM.

Accordingly these financial statements are presented in the name of the legal parent, Rosslyn data Technologies plc,

The Annual report will be available on the Company's website for download by 30^th September 2015 and the Annual General Meeting will be held on 27^th October at 11am, Fox Court, 14 Gray's Inn Road London WC1X 8HN

 

END

 

 

FR UVUNRNVAKAAR