Admission to AIM and First Day of Dealings

RNS Number : 7019F

Rosslyn Data Technologies PLC

29 April 2014

 

29^th April 2014

Rosslyn Data Technologies Group plc

("Rosslyn", the "Rosslyn Data Technologies Group" or the "Company")

Admission to AIM and First Day of Dealings

Rosslyn Data Technologies Group, a leading provider of a cloud-based enterprise data analytics platform, is pleased to announce the admission of its ordinary shares ("Ordinary Shares") to trading on AIM ("Admission") and commencement of dealings in its Ordinary Shares.

Admission Details

·           The Company raised approximately £10 million (before expenses) via the placing of 30,303,030 ordinary  shares (the "Placing") at a placing price of 33 pence per share (the "Placing Price").

·           The total number of Ordinary Shares in issue at Admission is 75,405,814 giving Rosslyn a market  capitalisation of approximately £24.9 million at the Placing Price.

·           The net proceeds of the Placing will be and are primarily intended to drive growth in the business. Management intend to invest approximately £1.2 million to expand the Group's sales force. The Group will continue to invest in product development and management, using approximately £1.5 million. The remainder will be used for general working capital purposes.

·           The Ordinary Shares will trade under the ticker "RDT" and the ISIN number is: GB00BKX5CP01.

·           Cenkos Securities plc is acting as Nominated Adviser and broker to the Company.

Operational Highlights

·           Rosslyn provides analytical services to clients through a single Cloud platform with the key product being its RAPid platform. The RAPid analytics platform was developed in house and replicates, in the cloud, traditional analytics technologies by automating key data management tasks, reducing complexity and most importantly, the Company's directors (the "Directors") believe, reducing deployment times and saving substantial costs compared with on-premise solutions / point products.

·           The RAPid platform is a Company-wide big data platform that allows organisations to address big data business challenges. The Directors believe that the real benefit of the platform (versus point products) is the ability to start with one capability and easily add others over a big data journey, whether it's based upon transactions, social media or mobile computing. Furthermore, the platform enables organisations to integrate and prepare its data prior to analytics which, the Directors believe is then enhanced and made easier by machine learning technologies.  Rosslyn's clients can run a range of analytics, and use dashboards to observe and plan and employ predictive analytic capabilities. 

·           The Directors believe that there is growing demand for self-service analytics software products. As data analysis becomes more mainstream, the Directors believe that every business that wishes to pursue data-driven decisions, at scale, will need to develop cost-effective analytical capabilities and processes.

·           The overall cloud analytics market stands with a total revenue of $4.3 billion in 2012, and is expected to grow to $16.5 billion at a compound annual growth rate (''CAGR'') of 25.8 per cent. from 2013 to 2018. This growth is due to high adoption of cloud analytics solutions among small as well as large enterprises. Analytics solutions and cloud business intelligence tools are expected to grow with a high CAGR of 31.6 per cent. and 31.4 per cent. respectively.

·           The Company counts many high-profile customers amongst its client base including Xerox Business Services, Babcock Corporate Services, BG International Ltd, 3M United Kingdom Plc, Rexam plc and Coca-Cola Enterprises, Inc. The Company has dealt with approximately 14 per cent. of the companies within the FTSE 100 as at March 2014.

·           In the year ended 30 April 2013, Rosslyn's business generated revenue of approximately £1.84 million, and generated a gross profit of approximately £1.59m.

Charles Clark, Chief Executive Officer of Rosslyn Data Technologies commented:

"The strong level of support from institutional investors is testament to the strength of our business and our future prospects. Data is exploding at an increasing velocity and form; and Rosslyn, through its RAPid platform, is able to offer its customers a cloud-based service which takes any data and make it analytics-ready through the ICE method - integrate, cleanse and enrich. This is the Holy Grail for enterprises looking to understand and use their data; but in a cost-effective way that generates fast returns on investment versus the traditional, ineffectual methods in the market."

For further information regarding Rosslyn Data Technologies Group, please call: 

Rosslyn Data Technologies Group Charles Clark, Chief Executive Officer Francis Reid, Chief Financial Officer	c/o Redleaf Polhill [phone] [e-mail]
Redleaf Polhill - PR Adviser Rebecca Sanders Hewett / Dwight Burden / Jenny Bahr	[phone]
Cenkos Securities - Nominated Adviser, Broker Stephen Keys / Camilla Hume	[phone]

Notes to Editors

Rosslyn Data Technologies, (AIM: RDT), a leading provider of a Cloud-based enterprise data analytics platform, was founded in 2005 by Charles Clark and Hugh Cox. Business Intelligence was ranked first in the top ten technology priorities for Chief Information Officers in 2012 by Gartner. The Company provides analytical services by combining four key technologies: data extraction; cleansing; enrichment; and visualisation, through a single cloud platform enabling users with detailed data to make more informed decisions. Rosslyn's RAPid platform is the Group's primary product available to its multinational customers, including Aberdeen Asset Management plc, Babcock Corporate Services plc, Xerox Business Services and Coca-Cola Enterprises, Inc. Rosslyn Data Technologies plc is the ultimate holding company of the Group and owns 100 per cent. of Rosslyn Analytics Limited.

 Further information can also be found on the Company's website at: http://www.rosslynanalytics.com/ 

Introduction:

Rosslyn Data Technologies plc was incorporated on 7 February 2014 and has been established as a new holding company of Rosslyn Analytics Limited (Rosslyn and its subsidiaries referred to as the "Group"). Founded in 2005 by Charles Clark and Hugh Cox, with headquarters in London and offices in both New York and Colorado, USA, the Directors believe the Group to be one of the early entrants in cloud-based data analytics, focused on serving the business intelligence marketplace in relation to the big data challenge. Business intelligence aims to improve business insight to support better decision-making by increasing the quality, reliability and visibility of information available to management. In a worldwide study conducted by Gartner, business intelligence was ranked first in the top ten technology priorities for Chief Information Officers in 2012.

Rosslyn provides analytical services to its clients by combining four key technologies: data extraction; cleansing; enrichment; and visualisation, through a single cloud platform enabling users with detailed data to make more informed decisions. Rosslyn's proprietary RAPid platform delivers cloud technology to customers and is the Group's primary product available to its multinational customers, including Aberdeen Asset Management plc, Babcock Corporate Services plc, Xerox Business Services and Coca-Cola Enterprises, Inc.

The Group's founding management team have spent approximately five years developing the Group's data discovery platform, RAPid, which extracts, combines and synchronises data from hundreds of data sources (both internal and external sources), and then transforms and enriches this data providing the user with tools to build charts, tables and apps in order to visualise the information over a cloud internet connection.

Key strengths and opportunities

The Directors believe that the Group has the following key strengths and opportunities:

Differentiated product

Whilst there are several cloud-based data analytical tools in existence, the Company is not aware of a comparable solution that offers customers a similar ability to optimise analysis of their data through an end to end platform with an integrated solution akin to Rosslyn's. Rosslyn's platform is versatile and able to work with multiple operating systems and databases and has been designed with the principles of speed, ease of use and reliability in mind, whilst still being priced competitively.

Scalability of product

The RAPid platform has been designed to be customised and extended to suit the needs of a wide variety of industries making it scalable for multiple adjacent and vertical markets which, the Directors believe, gives the Company the potential to secure more customers and grow its business.

Significant growth and market opportunity

The Directors believe that the increasing importance of business intelligence to decision-makers in any business, the adoption of cloud computing and the search for big data solutions will help to drive significant demand for the Group's product as the addressable market grows.

Furthermore, the majority of projects that Rosslyn has in place, or in the pipeline, are for initial pilot projects at departmental or country level. The Directors therefore believe there is a significant opportunity for the Group to ''land and expand'' within the current customer base and pipeline.

High profile customers

The Company counts many high profile customers amongst its client base, including Xerox Business

Services, Babcock Corporate Services Limited, BG International Ltd, 3M United Kingdom Plc, Rexam plc and Coca-Cola Enterprises, Inc. The Company has dealt with approximately 14 per cent. of the companies within the FTSE 100 as at March 2014.

Ability to deliver a positive return on clients' investment quickly

The Group's technologies enable clients to extract and analyse their data quicker than the more traditional analytics platforms and are therefore able to deliver clients a rapid return on their investment.

Highly skilled and innovative talent base

The Group has 42 staff with significant experience and understanding of cloud-based data analytics.

Individuals have previously had experience at a variety of institutions such as IBM, Oracle, PeopleSoft, Google and Microsoft UK. The Group's R&D function includes three staff members with

PhDs in computer sciences.

Experienced board and strong management team

The Board has significant expertise and experience of operating in European and US technology companies and also of managing high growth companies.

Marketplace and opportunity

The Directors believe that there is growing demand for self-service analytics software products. As data analysis becomes more mainstream, the Directors believe that every business that wishes to pursue data-driven decisions, at scale, will need to develop cost-effective analytical capabilities and processes.

According to the MarketsandMarkets study 2013, more than 13 per cent. of companies have cloud analytics and business intelligence solutions and this is expected to reach 50 per cent. by 2018. The cloud BI market is growing rapidly as compared to traditional on-premise BI solutions driven by significant growth in the amount of internal and external data. Cloud analytics is offered through different delivery models, such as private, public, hybrid and community clouds. These solutions are more flexible than traditional IT systems; reducing deployment time, requiring less storage space and having a high processing capacities. Both small and large enterprises are major adopters of cloud analytics services and the Directors expect this trend to continue for the next few years.

The overall cloud analytics market stands with a total revenue of $4.3 billion in 2012, and is expected

to grow to $16.5 billion at a compound annual growth rate (''CAGR'') of 25.8 per cent. from 2013 to 2018. This growth is due to high adoption of cloud analytics solutions among small as well as large enterprises. Analytics solutions and cloud business intelligence tools are expected to grow with a high CAGR of 31.6 per cent. and 31.4 per cent. respectively.

The growth in data is well documented with the majority of industry analysts pointing towards exponential growth in consumer, M2M, mobile and enterprise data while industry players like Cisco (White Paper) and EMC (IDC backed research) are basing their business models on 5-10x growth in volume of data over the next five years. The Directors believe that the enterprise user base is increasingly recognising the return on investment from analysing their data.

IDC estimates that around a third of data by 2020 will be ''useful data if tagged and analysed.'' This equates to approximately 13,000 exabytes compared with total big data today of approximately 5,000

exabytes.

The Directors further believe that the Group has an additional opportunity for growth as a result of the fact that, although most large enterprises have become better at storing and managing their data, few have made the investment to utilise and analyse the data they own. IDC estimates that currently only 3 per cent. of all data is tagged (identified and classified) and only around 0.5 per cent. is analysed. As the ''go-to-market'' strategies (both B2B and B2C) of organisations move increasingly to the web/cloud, the Directors believe that the analysis of data will have major paybacks for businesses; not only in terms of identifying cost savings, but developing sales and marketing plans.

The Directors believe that the Data Analytics market could be substantially greater than current forecasts, as cloud delivery enables enterprises to increase the number of data intelligence projects they undertake. The Directors believe that versus traditional on-premise, slow and expensive analytics solutions. Rosslyn has developed a cost-effective, scalable cloud-based, networked solution.

Strategy

The Directors believe that the Group is well positioned to pursue its growth strategy through the following avenues:

New customer acquisitions in existing markets

Building on its reputation with existing customers, following Admission, the Group plans to follow a more aggressive sales and marketing strategy through an increased sales force and enhanced branding within the geographies and industries in which it currently operates.

Growth within the existing client base

Typical customer engagements for the Group start in one division of a client organisation thereby enabling the Group to leverage this reference point into other departments and work streams in large multinationals. The Group has a ''land and expand'' strategy to win initial projects and grow the numbers of contracts within each customer as it has already done in clients such as Xerox Business Services where the Group now works in multiple areas across the business.

Product development

The Directors intend to develop the Group's existing technologies by focussing on self-service, integration, cleansing and data enrichment. Furthermore the Directors intend to take advantage of creating additional IP by expanding its patent portfolio, which they believe will further the Group's leadership in the analytics marketplace.

Geographic expansion

The Group intends to expand into further geographies by adding further customers and partners in different territories.

Accretive Acquisitions

The Board intends to pursue a strategy primarily driven by organic growth. However, in a dynamic and fast-growing marketplace, the Directors expect to be presented with acquisition opportunities which they will consider as appropriate.

Board

John O'Hara, aged 55, Non-Executive Chairman

John has over 28 years of experience in the high tech industry, having held senior positions with globally significant technology businesses including IBM and Microsoft UK. As President of Pitney Bowes Software, John led global expansion initiatives and was responsible for a number of strategic acquisitions across the UK, Europe and Australia. He has previously worked for Microsoft UK as General Manager, Enterprise and Partner Group where he was responsible for more than $1 billion in revenue, as well as senior roles at IBM and Lotus Development Group. John has a Bachelor of Science (Hons) degree in Chemistry from the University of Wales Institute of Science and Technology and a Master of Science degree from the University of Manchester.

Charles Clark, aged 45, Chief Executive Officer and Co-Founder

Charles co-founded Rosslyn Analytics Limited and Ockham Capital Limited and, prior to this was a Director of Panmure Gordon. He has extensive experience of working with fast growing companies and capital markets. Charles served with the British Army during Desert Storm and holds an MBA from City University Business School, is a Fellow of the Securities Institute and is an Accredited Associate of the Institute for Independent Business.

Hugh Cox, aged 49, Chief Data Officer and Co-Founder

Hugh Cox co-founded Rosslyn Analytics Limited with Charles Clark. Hugh has helped many public and private sector organisations tackle business issues through technologies including cloud computing, data management and spend analytics. Hugh has authored and spoken extensively on the subject of data analysis with particular focus on fraud prevention and detection, through the deployment of cloud computing, software as a service (SaaS) spend analysis platforms. Prior to establishing Rosslyn, Hugh was COO Investments (EMEA) with Citigroup Private Bank. He also worked for Perot Systems, JP Morgan and Logica. After leaving the British Army, Hugh took a BSc in Computer Science and an MBA from City University Business School.

Jeff Sweetman, aged 47, Chief Operating Officer

Jeff has extensive experience in building and deploying enterprise solutions for global organisations. Jeff has spent more than 15 years within the technology market, holding senior positions with J.D.Edwards, PeopleSoft, Oracle, FileNet, IBM as well as helping to grow a start-up within the Microsoft Dynamics channel. Jeff's technology solution experience spans ERP, e-Procurement, Content Management, Document Management, Business Process, Management, Business Intelligence, Data Warehousing and the SaaS marketplace. Having lived and worked in Africa, Asia Pacific, Europe and the United States, Jeff has a deep understanding of the complex multi-national environments within which global organisations need to deploy solutions to their business requirements. Jeff has a degree from Loughborough University and a MBA from London Business School.

Francis Reid, aged 55, Chief Financial Officer

Francis joined Rosslyn Analytics in 2013 and has more than 25 years of financial, executive leadership and operational management experience in emerging growth companies and financial institutions including investment banking and pension fund management. Francis has previously held senior roles with UBS Investment Bank, in London and New York, and Gartmore Investment Management and, more recently, held senior financial posts with a number of early stage ventures. A qualified Chartered Accountant, Francis holds a degree in Economics and Public Administration from London University, Bedford College.

Barney Quinn, aged 61, Independent Non-Executive Director

Barney has significant experience in the global application software and cloud markets. He was the CEO of then AIM listed Workplace Systems where today he is also a non-executive director. For 13 years Barney was an executive board director of Sherwood International and has also been a non-executive director on two other listed software companies, SSP Holdings and Raft International. At Becrypt, the privately held encryption software specialist, he was non-executive chairman for 7 years.

Ed Stacey, aged 49, Non-Executive Director

Ed has been active in technology venture capital for over 15 years. He was one of the first investors into Autonomy, in 1996, and has been instrumental in a number of UK technology companies to achieve success. His current venture fund, IQ Capital, has made three successful cash exits to date, to Google, Apple and Becton Dickinson. IQ Capital is a shareholder of the Company and will own approximately 14.67 per cent. of the Enlarged Share Capital.

 

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