REG - Rosslyn Data Tech. - Trading Update

Rosslyn Data TechnologiesAnnouncement

19/06/2025 07:00

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RNS Number : 4709N  Rosslyn Data Technologies PLC  19 June 2025

19 June 2025

 

Rosslyn Data Technologies plc

("Rosslyn" or the "Company")

 

Trading Update

Rosslyn to report strong growth for FY 2025 in line with market expectations

 

Rosslyn (AIM: RDT), the provider of a leading cloud-based spend intelligence
platform, is pleased to provide the following update on trading for the year
ended 30 April 2025 ("FY 2025") and the Company's outlook.

 

In line with market expectations and the Company's last trading update that
was announced on 5 March 2025, the Company expects to report revenue growth
for FY 2025 of c. 14% to £3.3m (FY 2024: £2.9m) and a significant
improvement in adjusted EBITDA loss to £1.7m (FY 2024: £2.5m loss).
Furthermore, the Company had cash and cash equivalents of c. £1.7m as at 30
April 2025 (30 April 2024: £0.6m), with cash burn rate significantly reduced
to £142k per month (FY 2024: £218k).

 

The increase in revenue in FY 2025 reflects the contribution from development
fees and also growth in professional services fees, the latter being for work
undertaken to tailor the Company's solution to align with customers'
infrastructure or meet specific additional solution requirements. Development
fees are for additional bespoke development performed for the Company's major
new client (the "Major New Client") that was won during the first half of FY
2025 and is a leading global technology company and household name.

 

The improvement in adjusted EBITDA reflects the increased contribution to
revenue from professional services and development fees as well as the
strategic decision to prioritise quality of revenues and not renew certain
low-value or low-margin contracts. It also reflects a reduction in operating
expenses due to lower employee-related costs following a restructuring in the
prior year and lower rent costs following the closure of the Company's
Portsmouth office.

 

The Company entered the current financial year to 30 April 2026 ("FY 2026")
experiencing increased momentum compared with the same time in the prior year,
and with a larger total and weighted pipeline. Rosslyn is in advanced
negotiations with a number of potential new and existing customers regarding
new contracts and is pleased to have already secured a three-year contract,
worth £200k of revenue over the term of the contract, with a British train
operating company, which is a new customer. With the expected conversion of
the Company's pipeline as well as further planned development work for the
Major New Client, the Company expects its monthly cash burn rate to be further
reduced significantly over the course of the first half of FY 2026 and for it
to become cash generative on a monthly basis by the end of FY 2026.

 

As previously announced, the Board has been prioritising sustainable growth,
and it continues to do so. One of the outcomes from prioritising quality of
revenues has been the Company's pipeline including customer profiles that are
moving up the size spectrum. Commensurate with this, the timeline for
conversion of some of these opportunities has taken longer than initially
anticipated, including the rollout to other departments of the Major New
Customer, and this is expected to continue into FY 2026.

 

Notwithstanding the impact on the Company's short-term growth rate, the Board
believes that this approach will enable Rosslyn to generate maximum value for
shareholders in the medium- to long-term. Accordingly, and with the Company
having a clear path to delivering positive and sustainable growth for FY 2026,
the Board looks to the future with confidence.

 

The Company will provide further detail in its full year results announcement.

 

 

Enquiries

 

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

 James Appleby, Chairman

 Cavendish Capital Markets Limited (Nominated adviser and Broker)
 Stephen Keys/George Lawson                                                              +44 (0)20 7220 0500

 Gracechurch Group (Financial PR)
 Claire Norbury/Anysia Virdi                                                             ++44 (0)20 4582 3500

 

 

About Rosslyn

 

Rosslyn (AIM: RDT) provides an award-winning spend intelligence 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) . Investors
wishing to contact the Company should email investors@rosslyn.ai.

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