Rosslyn Data Technologies PLC – Trading Update

Rosslyn Data Technologies PLC – Trading Update

Rosslyn Data Technologies plc (AIM: RDT), a leading global big data technology company, is pleased to issue the following trading statement in advance of its results announcement for the year ended 30 April 2019, which is scheduled to be released in September.

Following the integration of Integritie, which was completed early last year, this year has been one of consolidation, resulting in investment into product development, further reducing costs, and pursuing larger value contracts with a broader product offering.

It is expected that results for the Group will show Revenue growth of 8.3% to £7.0 million (2018: £6.4 million). Underlying Annual Licence Fee revenue is expected to show growth of 9.2% to £5.4 million (2018: £5.0 million) and Operating EBITDA (excluding share-based costs) improving by 75% to a loss of £432,000 (2018: loss of £1.8 million). The Group was pleased to have achieved a key milestone, having generated cash from operations of £329,000 (2018: Cash used in operations of £3.45 million).

Investment into research and development amounted to £0.9 million (2018: £1.1 million). The Group’s policy is to fully expense these costs as they are incurred and excluding this investment the Operating EBITDA would have been a profit of £0.5 million (2018: loss of £0.7 million).

Excluding bank debt, the cash balance at the year-end was £2.0 million (2018: £0.3 million). During the year we secured a £1.5 million term loan from Clydesdale Bank of which £1.0 million had been drawn down at the year end. Part of this drawdown was used in April and May 2019 to repay loan notes taken on in the acquisition of Integritie totalling £134,000 and £626,000 respectively.

Our cost base reduced during the year, with Operating expenditure of £6.0 million (2018: £6.7 million) and the Group will continue to focus on costs. We have a product suite that we believe makes a material difference to our clients’ operations and, in order to achieve greater penetration and accelerate our growth, we intend to invest into Sales and Marketing this year.

We have invested in product development to broaden out the RAPid product offering, adding new tools and functionality and also fully integrating functionality from the Integritie product suite. This will allow us to provide greater value to clients by being more embedded into their systems and processes.

During the year, we secured numerous high value contracts in various sectors including International Logistics, Civil Defence, Healthcare and Pharma. This illustrates the broad appeal of our offering across the Supply Chain to Chief Procurement Officers and Chief Financial Officers in a wide range of sectors.  The Group is in discussions regarding contracts with additional high value blue chip targets in the current year which, while they take longer to negotiate, and their timing is harder to predict, would provide upside to the Group.

We believe that this year of consolidation is important in allowing us to accelerate growth in the coming years from a sound base. With an enhanced board, a focussed team and an advanced suite of products to address a market that is much more aware of the opportunities presented by data analytics, the Group is well positioned as it enters the current financial year.

Rosslyn Chief Executive Officer, Roger Bullen said;

“This year we have been able to grow our top line revenues, particularly licence fees, reduce our cost base and, most importantly, generate cash during the year, all whilst maintaining excellent service delivery to our clients. The growth in the RAPid platform, which now fully utilises the suite of products purchased in May 2017, enables us to offer our clients a broader solution to benefit from their difficult to reach supply chain data.”

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