Trading Update

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 £7.0m (2017: £3.6m).  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 £1.3 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 £850,000, 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 £7.2m and have identified means to reduce this still further.

We ended the year with net cash balances of £0.3M (2017 £0.3M).  We continue to manage our cost base and as at 22 June 2018 our net cash balance was £0.7m 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 £4.5m, up from £2.5m 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."

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

 

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