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REG - Rosslyn Data Tech. - Interim Results

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RNS Number : 1748O  Rosslyn Data Technologies PLC  30 January 2023

30 January 2023

 

Rosslyn Data Technologies plc

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

 

Interim Results

 

Rosslyn (AIM: RDT), the provider of a leading cloud-based enterprise data
analytics platform, announces its interim results for the six months ended 31
October 2022.

 

Financial summary*

·      Revenue was £1.4m (H1 2022 restated: £1.5m)

·      Gross margin improved to 29.3% (H1 2022 restated: 22.3%)

·      Administrative expenses reduced to £2.2m (H1 2022 restated:
£2.4m)

·      Adj. EBITDA** loss reduced to £1.6m (H1 2022 restated: £2.1m
loss)

·      Adj. net loss*** reduced to £1.6m (H1 2022 restated: £1.9m
loss)

·      Cash burn rate reduced to £217k per month (H1 2022: £297k per
month), and on track to reach £100k per month by May 2023

·      Debt free with cash and cash equivalents of £763k as at 31
October 2022 (30 April 2022: £2.4m)

o  Cash and cash equivalents as at 31 December 2022 were £1m, following the
receipt of the initial sale proceeds from Integritie

* Integritie and Langdon Systems are classified as discontinued operations for
the purpose of the statutory accounts. See the Financial Review for detail on
the restatement of the H1 2022 accounts, which reflects the discontinued
operations, the adoption of a revised policy on development costs and a change
in cost allocation

** Adjustments made for exceptional items and share-based payments

*** Adjustments made for depreciation & amortisation, share-based payments
and profit on sale of discontinued operation

 

Operational and strategic highlights

·      Launch of the new and improved Rosslyn Platform, with customer
migration substantially complete by period-end

·      Rebranding to reflect Rosslyn's strategic focus on a single
product comprising a best-in-class SaaS solution

·      Value-accretive divestment of Langdon Systems ("Langdon"), which
generated profit of £160k, and, post period, agreed to sell Integritie for up
to £3.0m in cash

·      Won new long-term contracts for an international arm of a tier 1
Japanese bank, a multinational medtech corporation and, post period, a
multinational aerospace engineering company, global automotive car rental
company and engineering solutions provider for mission critical situations -
most of which were secured through Rosslyn's partner network

·      Delivery against operational KPIs (for continuing operations):

o  Annual recurring revenue ("ARR") growth of 11% (H1 2022: -1%; H2 2022:
-10%), with ARR of £2.5m (H1 2022: £2.4m; H2 2022: £2.2m)

o  Net revenue retention ("NRR") rate increased to 97% (H1 2022: 94%; H2
2022: 86%)

o  Weighted pipeline as at 31 October 2022 was £823k (30 April 2022: £872k)

o  Customer acquisition cost ("CAC") payback was 69 months (H1 2022: 68
months; H2 2022: 299 months)

·    Successful strategic execution and securing of long-term deals
resulted in contracted order book increasing by 57% over the six-month period

 

Outlook

·    Rosslyn entered H2 2023 with increasing revenue momentum, which has
been maintained through the period to date resulting in expected revenue
growth of 121% in H2 over H1 2023

·    Tight cost control, combined with the increased revenue, is expected
to reduce monthly cash burn to £100k by May 2023

·    The current uplift in revenue and stable cost base is having a
positive impact on gross margin

·    As a result, the Group expects to achieve strong growth for the full
year to 30 April 2023 and is on track to deliver trading in line with market
expectations

 

 

Paul Watts, CEO of Rosslyn, said: "This has been a pivotal period for Rosslyn.
We completed the final stages of our restructuring with the launch of our new
Rosslyn platform, the rebranding of our business and disposal of non-core
assets. We have been executing on our refocused go-to-market strategy while
maintaining tight cost control and improving operational efficiency. While it
is still relatively early days, we are pleased with our delivery against our
KPIs, the results of which can be seen in this set of results. We are
receiving growing demand for our best-in-class procurement analytics solution
- both from new and existing customers as they increasingly discover the value
that our platform offers. As a result, we are on track to deliver strong
growth for the full year, in line with market expectations, and we look to the
future with confidence."

 

Enquiries

 

 Rosslyn
 Paul Watts, Chief Executive Officer                                                     +44 (0)20 3285 8008

 James Appleby, Chairman

 Cenkos Securities (Nominated adviser and Broker)
 Stephen Keys/Camilla Hume                                                               +44 (0)20 7397 8900

 Gracechurch Group (Financial PR)
 Harry Chathli/Claire Norbury                                                            +44 (0)20 4582 3500

 

 

About Rosslyn

 

Rosslyn (AIM: RDT) provides an award-winning spend analytics and predictive
analytics platform. The Rosslyn Platform helps organizations with diverse
supply chains mitigate risk and make informed strategic decisions. It
leverages automated workflows, artificial intelligence and machine learning to
extract and consolidate procurement data providing visibility of complex
supplier data, enabling supplier spend savings and delivering rapid ROI. For
more information visit www.rosslyn.ai (http://www.rosslyn.ai/)

 

 

Operational Review

 

During the six months to 31 October 2022, the Group progressed the business
transformation programme that it had commenced in the previous year, with
several major initiatives coming to fruition. The Group launched the new
Rosslyn platform, completed its rebrand and divested its non-core businesses -
Langdon and, post period end, Integritie. The Group also advanced its renewed
go-to-market strategy that is focussed on partnerships, with a number of
notable results.

 

Delivery against operational KPIs (continuing operations)

 

While the Group is only in the early stages of executing its new strategy,
Rosslyn delivered significant sequential improvement in its operational KPIs
for continuing operations as well as some improvement on the comparative
period of the prior year. New customer wins resulted in ARR growth of 11% to
£2.5m as at 31 October 2022 compared with £2.2m at 30 April 2022. This also
represents a return to growth in ARR compared with reductions of 1% in H1 2022
and of 10% in H2 2022. Having experienced a period of customer churn in FY
2022 as the Group underwent its restructuring, that trend is now reversing
with net revenue retention of 97% for H1 2023 (H2 2022: 86%; H1 2022: 94%).
CAC payback was significantly reduced from 299 months in the second half of
2022 to 69 months for H1 2023 (H1 2022: 68 months). Since period end, this
metric has continued to improve, and the Group expects to report a further
significant reduction by year end. Weighted pipeline as at 31 October 2022 was
£821k compared with £872k at 30 April 2022, which includes the conversion of
opportunities into sales, such as the award of a three-year contract by a
blue-chip provider of sub-systems and systems for mission critical situations
in the defence, security, critical detection & control markets, as also
announced today. The total unweighted pipeline expanded over the six-month
period and has continued to do so since period end.

 

Strategic execution

 

Rosslyn delivered, and advanced, a number of core strategic initiatives during
the period.

 

Launch of new platform

 

A key development of the first half of 2023 was the launch of the new,
upgraded Rosslyn platform. By period-end, the migration of clients to the new
platform was substantially complete.

 

The new Rosslyn platform is designed to deliver a simplified, more intuitive
interface and streamlined navigation, making it easier for users to quickly
gather the insight they need. The collaboration functions have been improved
to facilitate the sharing of dashboards and reports with key stakeholders
across a business. There is also a closer integration between data and
visualisation, including features such as enabling specialist teams within
customer organisations to have their own tailored view of procurement data.

 

Rosslyn has received strong customer, partner and industry analyst endorsement
of the new platform. The Group's data suggests that users are spending more
time on the platform and that customers are growing the number of internal
users.

 

Rosslyn re-brand

 

Another major initiative during the period was the completion of Rosslyn's
rebrand. The project aimed to refresh Rosslyn's appearance, making it more
engaging for today's market and aligning it with the new direction of the
business. In particular, the Group is now branded simply as 'Rosslyn' to
reflect the strategic focus on a core SaaS platform.

 

The rebrand has brought great results both in terms of interaction with the
Rosslyn brand, as measured by metrics such as web traffic, and in terms of the
generation of new opportunities.

 

Partner go-to-market approach

 

Last year, the Group launched a renewed go-to-market approach centred on a
partner model, and it furthered the implementation of this strategy during the
first half of 2023. Rosslyn believes that this renewed commercial approach
will enhance the Group's competitive position by being able to leverage the
established relationships of its partners with end customers. The Group is
focussed on both increasing its business with existing partners as well as
establishing new partnerships.

 

The new model has already generated promising results, including a contract
for the international arm of a tier 1 Japanese bank through the Group's
partnership with Chain IQ, which represents the first full enterprise customer
created via this relationship. Rosslyn's pipeline currently includes a number
of deals at the proof-of-concept stage with ChainIQ customers, signifying a
healthy pipeline of commercial opportunities for the near term.

 

During the period, the Group also won a three-year contract for £500k with a
multinational medtech corporation with an option to extend for two years, via
a new partnership. Post-period, two deals were secured via existing
partnerships, worth approximately £1m in aggregate over five years, with a
multinational aerospace company and a global automotive rental company.

 

Divestments

 

As part of the strategic move to focus on its core product offering, the
Company decided to divest all non-core businesses - namely, Integritie, which
is a content management platform, and Langdon, which specialises in bulk
handling of supply chain data associated with import and export duty
management systems. These divestments allow Rosslyn greater strategic and
operational focus on the Rosslyn platform along with reducing cash burn.
Langdon was sold in October 2022 for £100k and, post period, Integritie was
sold for a total maximum consideration of £3.0m, comprising an initial cash
consideration of £1.6m and a £1.4m conditional deferred payment based on
achieving certain revenue and growth targets. Proceeds from these divestments
are being used to accelerate the execution of the Group's growth strategy.

 

Financial Review

 

The Group's results are in line with management's expectations and reflect the
initial successes of management's focus on controlling costs and improving
gross margin while seeking to drive revenue growth.

 

Discontinued operations

 

Integritie and Langdon have been classed as discontinued operations for the
period and historical comparisons restated on that basis. These financial
statements comprise the results for continuing operations only. See note 7 to
the financial statements for detail on the discontinued operations.

 

Change of accounting policy and costs allocation

 

As previously mentioned, the Group updated its accounting policy on
development costs under accounting standard IAS38 - Intangible Assets, which
means that, as of the Company's full year 2022 results, such costs are
capitalised as opposed to expensed. In addition, cost of sales had previously
only included platform & hosting, but, as of the Company's full year 2022
results, have been expanded to incorporate other elements that had been
classified as administrative expenses, such as support, customer success
management and professional services (which includes work undertaken to tailor
the Group's solution to the customers' infrastructure or requirements). For
further detail, see the Company's Annual Report 2022.

 

 

Profit and loss account

 

Revenue was £1.4m compared with £1.5m for the first half of 2022, which
reflects the churn of customers experienced in the second half of the prior
year as the Group underwent the final stages of its restructuring. Gross
margin improved significantly to 29.3% (H1 2022 restated: 22.3%) reflecting
reduced cost of sales as a result of increased efficiencies with a leaner
team. Consequently, gross profit increased to £399k compared with £336k for
the first half of 2022 and £453k for the full 12-month period of 2022.

 

Operating costs were reduced with administrative expenses of £2.2m (H1 2022
restated: £2.4m) and total operating expenses of £2.2m (H1 2022 restated:
£2.5m). This includes the capitalisation of £0.2m development costs during
the period (H1 2022 restated: £nil). The Group also received £0.2m during
the period from the sale of Langdon. As a result, operating loss was reduced
to £1.8m (H1 2022 restated: £2.2m loss) and adjusted EBITDA loss was reduced
to £1.6m (H1 2022 restated: £2.1m loss).

 

The loss before income tax for the period was reduced to £1.8m (H1 2022
restated: £2.2m loss). Net loss was £1.7m (H1 2022 restated: £2.1m loss)
and adjusted net loss, which excludes depreciation & amortisation,
share-based payments and profit on sale of discontinued operation, was reduced
to £1.6m (H1 2022 restated: £1.9m loss).

 

Cash flow and funds

 

Cash used in operating activities was £1.6m (H1 2022 restated: £1.7m), which
primarily reflects lower depreciation & amortisation costs due to the
disposal of Langdon and increases in receivables and payables compared with
the first half of the previous year. However, the Group generated net cash
from investing activities and financing activities of £0.1m from the sale of
Langdon compared with using net cash of £0.2m in H1 2022. As a result, the
net decrease in cash and cash equivalents was £1.7m compared with £1.8m for
H1 2022.

 

Monthly cash burn in the period was £217k, a significant reduction compared
with £297k for H1 2022 and £266k for H2 2022. This has continued to reduce
since period end - primarily based on increased revenue - and the Group is on
track to achieve a monthly cash burn rate of £100k by May 2023.

 

As at 31 October 2022, the Company had cash and cash equivalents of £763k (30
April 2022: £2.4m; 31 October 2021: £4.8m) and was debt free. As at 31
December 2022, cash and cash equivalents were £1m, which followed the Company
receiving the initial consideration for the sale of Integritie.

 

Balance sheet

 

The major movements in the balance sheet during the period were:

·      Trade and other receivables increasing to £1.2m (30 April 2022:
£0.8m)

·      The decrease in cash and cash equivalents, as described above

·      Disposal Group assets (representing assets held sale) reducing to
£0.3m (30 April 2022: £0.7m) following the sale of Langdon

·      Current trade and other payables increasing to £2.9m (30 April
2022: £2.3m)

·      A net asset position of £0.1m (30 April 2022: net assets of
£1.4m) reflecting a reduction in total assets to £3.9m (30 April 2022:
£5.4m) while total liabilities were £3.8m (30 April 2022: £4.0m), which
included disposal Group liabilities of £0.9m (30 April 2022: £1.5m)

 

Outlook

 

Rosslyn entered the second half of the 2023 financial year with increasing
revenue momentum, which has been maintained through the period to date
resulting in expected revenue growth of 121% in H2 over H1 2023. This growth
is being driven by new business won in the first and second half as well as an
increase in recurring revenue reflecting the strength of the new Rosslyn
platform and the introduction of a new customer success team. In addition, the
Group has increased its pricing for its professional services provision to
reflect appropriate market pricing for such services.

 

The Group is continuing to maintain its tight focus on cost control, enhance
efficiency and reduce cash burn. The current uplift in revenue run rate over
the first half, combined with the stable cost base along with the increased
pricing for professional services, is having a positive impact on gross
margin.

 

As a result, the Group expects to achieve strong growth for the full year to
30 April 2023 and is on track to deliver trading in line with market
expectations, with a year-on-year increase in revenue for continuing
operations of 14%.

 

Looking further ahead, there is growing interest in Rosslyn's services from
global blue-chip customers and via its partner network, which is resulting in
an expanding pipeline. The Group is increasingly signing long-term contracts,
with the contracted order book at 31 October 2022 being 57% higher than at the
start of the period.

 

As a result of all these factors, the Board looks to the future with
confidence.

Consolidated statement of comprehensive income

For the six months ended 31 October 2022

 

 

                                                                  Notes  Six months   Six months   Year

                                                                         ended        ended        ended

                                                                         31 October   31 October   30 April

                                                                         2022         2021         2022

                                                                         Unaudited    Unaudited    Audited

                                                                         £'000        £'000        £'000
 Revenue                                                          3      1,361        1,506        2,731
 Cost of sales                                                           (962)        (1,170)      (2,278)
 Gross profit                                                            399          336          453
 Other operating income                                           4                   -            -
 Administrative expenses                                                 (2,169)      (2,357)      (4,287)
 Depreciation and amortisation                                           (158)        (94)         (40)
 Profit on sale of discontinued operations                               166          -            -
 Share-based payment                                                     (39)         (61)         (137)
 Operating loss                                                          (1,801)      (2,176)      (4,011)
 Finance income                                                          2            3            5
 Finance costs                                                           -            (50)         (44)
 Loss before income tax                                                  (1,799)      (2,223)      (4,050)
 Income tax credit                                                       120          156          391
 Loss for the period                                                     (1,679)      (2,067)      (3,659)
 Profit for the year from discontinued operations                        334          173          297
 Other comprehensive loss                                                -            -            19
 Total comprehensive income                                              (1,345)      (1,894)      (3,343)

 Loss per share
 Basic and diluted loss per share: ordinary shareholders (pence)  5      0.40         0.56         0.98

 

 

 

Consolidated balance sheet

As at 31 October 2022

 

                                     31 October 2022  31 October  30 April

                                     Unaudited        2021        2022

                                     £'000            Unaudited   Audited

                                                      £'000       £'000
 ASSETS
 Non-current assets
 Intangible assets                   1,155            512         1,105
 Property, plant and equipment       4                52          16
 Right-of-use assets                 211              368         236
                                     1,370            932         1,357
 Current assets
 Trade and other receivables         1,244            1,817       820
 Corporation tax receivable          281              429         161
 Cash and cash equivalents           763              4,834       2,433
                                     2,288            7,080       3,414
 Total assets                        3,658            8,012       4,771
 Disposal Group assets               269              -           650
 Total Assets                        3,927            8,012       5,421
 LIABILITIES
 Current liabilities
 Trade and other payables            (2,874)          (4,281)     (2,284)
 Financial liabilities - borrowings  -                (726)       -
                                     (2,874)          (5,007)     (2,284)
 Non-current liabilities
 Trade and other payables            -                (173)       (168)
 Deferred tax                        -                (36)        -
                                     -                (209)       (168)
 Disposal Group liabilities          (938)            -           (1,547)
 Total liabilities                   (3,812)          (5,216)     (3,999)
 Net assets/(liabilities)            115              2,796       1,422

 Equity
 Called up share capital             1,699            1,699       1,699
 Share premium                       18,923           18,923      18,923
 Share-based payment reserve         293              580         255
 Accumulated loss                    (25,830)         (23,416)    (24,485)
 Translation reserve                 (103)            (123)       (103)
 Merger reserve                      5,133            5,133       5,133
 Total equity                        115              2,796       1,422

 

 

Consolidated cash flow statement

For the six months ended 31 October 2022

 

 

                                                   Six months   Six months   Year

                                                   ended        ended        ended

                                                   31 October   31 October   30 April

                                                   2022         2021         2022

                                                   Unaudited    Unaudited    Audited

                                                   £'000        £'000        £'000
 Cash flows from operating activities
 Loss before income tax                            (1,465)      (2,050)      (3,343)
 Adjustments for:
 - depreciation, amortisation                      158          566          40
 - share-based payments                            39           61           137
 - profit on sale of assets                        (166)        -            -
 - finance income                                  (2)          (3)          (5)
 - finance costs                                   -            50           44
                                                   (1,436)      (1,376)      (3,127)
 (Increase)/decrease in receivables                (434)        537          875
 Increase/(decrease) in payables                   247          (776)        (401)
 Cash used in operations                           (1,623)      (1,615)      (2,653)
 Finance income                                    2            3            5
 Finance costs                                     -            (50)         (44)
 Corporation tax received                          -            -            467
 Net cash used in operating activities             (1,621)      (1,662)      (2,225)
 Cash flows from investing activities
 Purchase of property, plant and equipment         (6)          (21)         (28)
 Sale of assets                                    100          -            -
 Acquisition of software                           (143)        -            (1,105)
 Net cash from/(used in) investing activities      (49)         (21)         (1,133)
 Cash flows from financing activities
 Proceeds from share capital issued (net)          -            -            -
 Costs of share issue                              -            -            -
 Repayment of bank and other borrowings            -            (164)        (890)
 Net cash used in financing activities             -            (164)        (890)
 Net decrease in cash and cash equivalents         (1,670)      (1,847)      (4,248)
 Cash and cash equivalents at beginning of period  2,433        6,681        6,681
 Cash and cash equivalents at end of period        763          4,834        2,433

 

 

Notes to the unaudited interim statements

For the six months ended 31 October 2022

 

1. Basis of preparation

 

This interim report has been prepared in accordance with the accounting
policies disclosed in the full statutory accounts for the year ended 30 April
2022.

These policies are in accordance with UK-adopted international accounting
standards that are expected to be applicable for the year ending 30 April
2023.

The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing the interim consolidated financial information.

The financial information in this statement relating to the six months ended
31 October 2022 and the six months ended 31 October 2021 has not been audited.

The financial information for the year ended 30 April 2022 does not constitute
the full statutory accounts for that period. The annual report and financial
statements for the year ended 30 April 2022 has been filed with the Registrar
of Companies.

The Independent Auditor's Report on the annual report and financial statements
for the year ended 30 April 2022 was unqualified, did not draw attention to
any matters by way of emphasis and did not contain a statement under Section
498(2) or 498(3) of the Companies Act 2006.

The interim report for the period ended 31 October 2022 was approved by the
Board of Directors on 27 January 2023.

2. Segmental reporting

 

Management has determined the operating segments based on the operating
reports reviewed by the Executive Director that are used to assess both
performance and strategic decisions. Management has identified that the
Executive Director is the Chief Operating Decision-Maker in accordance with
the requirements of IFRS 8 Operating segments.

The determination is that the Group operates as a single segment, as no
internal reporting is produced either by geography or division. The Group does
view performance on the basis of the type of revenue, and the end destination
of the client as shown below.

 

 Analysis of Revenue by Product  Six months   Six months   Year

                                 ended        ended        ended

                                 31 October   31 October   30 April

                                 2022         2021         2022

                                 Unaudited    Unaudited    Audited

                                 £'000        £'000        £'000
 Annual licence fees             1,137        1,283        2,414
 Professional services           224          223          317
 Total revenue                   1,361        1,506        2,731

 

 Analysis of Revenue by Country  Six months   Six months   Year

                                 ended        ended        ended

                                 31 October   31 October   30 April

                                 2022         2021         2022

                                 Unaudited    Unaudited    Audited

                                 £'000        £'000        £'000
 United Kingdom                  703          897          1,643
 Europe                          204          206          414
 North America                   454          403          674
 Total revenue                   1,361        1,506        2,731

 

 

 

 

 

 

 

 

 

 

 

 Analysis of Future Obligations                                 Six months   Six months   Year

                                                                ended        ended        ended

                                                                31 October   31 October   30 April

                                                                2022         2021         2022

                                                                Unaudited    Unaudited    Audited

                                                                £'000        £'000        £'000
 Performance obligations to be satisfied in the next year       2,140        1,931        1,763
 Performance obligations to be satisfied after 31 October 2023  2,506        1,524        1,244
 Total future performance obligations                           4,646        3,455        2,952

 

 

 Analysis of Largest Customer       Six months   Six months   Year

                                    ended        ended        ended

                                    31 October   31 October   30 April

                                    2022         2021         2022

                                    Unaudited    Unaudited    Audited

                                    £'000        £'000        £'000
 Annual Licence fees                91           57           199
 Professional Services              86           85           8
 Total revenue of largest customer  177          142          207

 

 

 

3. Operating EBITDA

 

Operating EBITDA is calculated from Operating loss as shown below.

 

                                            Six months   Six months   Year

                                            ended        ended        ended

                                            31 October   31 October   30 April

                                            2022         2021         2022

                                            Unaudited    Unaudited    Audited

                                            £'000        £'000        £'000
 Operating loss                             (1,801)      (2,223)      (4,011)
 Depreciation and amortisation              158          94           131
 Share-based payments                       39           61           137
 Profit on sale of discontinued operations  (166)        -            -
 Exceptional costs                          170          -            179
 Operating EBITDA                           (1,600)      (2,068)      (3,564)

 

4. Earnings per share

 

Basic earnings per share is calculated by dividing the net loss for the period
attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the period. Diluted earnings per share is
calculated by dividing net loss for the period attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding
during the period plus the weighted average number of ordinary shares that
would be issued on the conversion into ordinary shares of all potentially
dilutive instruments. In the periods ended 31 October 2022, 31 October 2021
and 30 April 2022 there were share options in issue which could potentially
have a dilutive impact, but as the Group was lossmaking, they were
anti-dilutive for each period and therefore the weighted average number of
ordinary shares for the purpose of the basic and dilutive loss per share were
the same.

                                                               Six months   Six months   Year

                                                               ended        ended        ended

                                                               31 October   31 October   30 April

                                                               2022         2021         2022

                                                               Unaudited    Unaudited    Audited
 Loss for the period attributable to the owners of the parent  £1,345,000   £1,894,000   £3,367,000
 Weighted average number of ordinary shares                    339,862,521  339,066,662  339,862,521
                                                                                         Pence

                                                               Pence        Pence
 Basic and diluted loss per share: ordinary shareholders       0.40         0.56         0.98

 

 

 

5. Dividends

No interim dividend (H1 2022: nil) will be paid to shareholders.

 

6. Principal risks and uncertainties

The principal risks and uncertainties for this six-month period remain broadly
consistent with those set out in the Financial Review section of the financial
statements of the Group for the year ended 30 April 2022.

7. Discontinued operations

As at 31 October 2022, the sale of the Langdon business had been completed,
with the sale of the Integritie business to be completed post period on 1
November 2022 and as such these are reported as discontinued operations.

                                                         Notes                      Six months       Six months   Year

                                                                                    ended            ended        ended

                                                                                    31 October       31 October   30 April

                                                                                    2022             2021         2022

                                                                                    Unaudited        Unaudited    Audited

                                                                                    £'000            £'000        £'000
 Revenue                                                                            1,510            1,588        3,140
 Cost of sales                                                                      (538)            (490)        (958)
 Gross profit                                                                       972              1,098        2,184
 Administrative expenses                                                            (638)            (453)        (943)
 Depreciation and amortisation                                                      -                (472)        (942)
 Operating profit                                                                   334              173          297
 Finance income                                                                     -                -            -
 Finance costs                                                                      -                -            -
 Profit before tax                                                                  334              173          297
 Income tax credit                                                                  -                -            -
 Total comprehensive income for discontinued operations                             334              173          297

                                                                                    31 October 2022  30 April

                                                                                    Unaudited        2022

                                                                                    £'000            Audited

                                                                                                     £'000
 ASSETS
 Non-current assets
 Intangible assets                                                                  -                62
 Property, plant and equipment                                                      3                17
 Right-of-use assets                                                                -                60
                                                                                    3                139
 Current assets
 Trade and other receivables                                                        266              511
 Disposals of Group assets                                                          269              650
 LIABILITIES
 Current liabilities
 Trade and other payables                                                           (822)            (1,352)
                                                                                    (822)            (1,352)
 Non-current liabilities
 Trade and other payables                                                           (116)            (195)
 Disposal of Group liabilities                                                      (938)            (1,547)

 Net liabilities directly associated with disposal                                  (669)            (897)

 

 

8. Interim report

Copies of the interim report are available to the public on the Group's
website at https://www.rosslyn.ai/ (https://www.rosslyn.ai/) , and from the
registered offices of Rosslyn Data Technologies plc at 1000 Lakeside North
Harbour, Western Road, Portsmouth, Hampshire, England, PO6 3EN or by email to
investors@rosslyn.ai (mailto:investors@rosslyndatatech.com)

 

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.   END  IR FLFEDLIIAFIV

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