REG - Rosslyn Data Tech. - Trading Update

Rosslyn Data TechnologiesAnnouncement

06/04/2023 07:00

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RNS Number : 5746V  Rosslyn Data Technologies PLC  06 April 2023

6 April 2023

 

Rosslyn Data Technologies plc

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

 

Trading Update

 

Rosslyn (AIM: RDT), the provider of a leading cloud-based enterprise data
analytics platform, provides the following update on trading for the year
ending 30 April 2023.

 

As noted in Rosslyn's interim results announcement of 30 January 2023, the
Company entered the second half of the 2023 financial year with increasing
revenue momentum whilst maintaining a tight focus on cost control, enhancing
efficiency and reducing cash burn. The Board is pleased to report that this
has continued throughout the period and, accordingly, the Company expects to
report improvement in all of its recently introduced key performance
indicators for full year 2023 compared with the previous year and compared
with the interim position as at 31 October 2022.

 

Year to date, the Company has secured 6 new contracts with a total contract
value of £1.9m and is in the latter stages of negotiations with regards to
several other contracts. By virtue of the size and the nature of certain of
these clients, timeframes for concluding these contracts may be more
protracted and, notwithstanding that they may be signed before the financial
year end, revenue from these contracts will be recognised in FY24. As such the
Company expects to report revenues of £2.9m with an annual recurring revenue
("ARR") to be no less than £2.6m at year end (2022: £2.2m). This represents
an ARR growth of approximately 20% (2022: 9% reduction) with ARR expected to
constitute at least 79% of total Group revenue in FY23. Whilst this revenue
growth primarily reflects new customers won during the year, it also
represents increased revenue from existing customers as the Company expands
its service provision, where the strength of Rosslyn's new platform has
enabled it to meet their demands for more enriched data, such as providing
insight into diversity and sustainability within the supply chain.

 

The Company continues to receive strong demand for its new platform that was
launched during the year and has made good progress on its partner-led
go-to-market strategy. The Company has continued to maintain tight control
over costs and the Group's monthly cash burn has been reduced to approximately
£190k (2022: £270k) with cash at the year ended expected to be £0.8m*.
Controlling costs and reducing monthly cash burn further remains a key focus
for the Board. However, and in order to capitalise on customer demands for
increased data, the Company has made certain investments, including expanding
its professional services team and investing in technology. Accordingly, the
Company expects to report an EBITDA loss for FY 2023 of £2.4m (2022: £3.9m
loss) on an adjusted basis, and including the profit from the sale of the
Company's discontinued operations, share-based payments and exceptional items
the Company's EBITDA loss is expected to reduce to approximately £2.1m.

 

* This projected cash balance does not include an expected receipt of a £382k
R&D tax credit which should be received just after year end, for the
financial year ended 30 April 2022.

 

 

Paul Watts, CEO of Rosslyn, said: "This has been a milestone year for Rosslyn
as we completed a fundamental transformation and reintroduced ourselves with a
new strategy. The response from our clients and marketplace has been excellent
and 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. While we have made some
investment to be able to capitalise on this demand, we have been able to
deliver improvement against all our KPIs, including a substantial reduction in
cash burn. Accordingly, we are pleased with the progress to date and look
forward to continuing to execute on our strategy."

 

This announcement contains inside information.

 

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 Data Technologies plc

 

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/)

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