TIDMRDT
RNS Number : 9989J
Rosslyn Data Technologies PLC
16 September 2016
16 September 2016
Rosslyn Data Technologies plc
("Rosslyn", the "Company" or the "Group")
Rosslyn Data Technologies plc
("Rosslyn", "RDT" or the "Company")
Audited Results
For the year ended 30 April 2016
Rosslyn Data Technologies plc (AIM: RDT), the provider of a
leading cloud-based enterprise data analytics platform today is
pleased to announce its audited results for the year ended 30 April
2016.
Financial Summary
-- Group Revenues of GBP3.9M in line with projections and up 37% from 2015 (GBP2.8M)
-- Loss before tax of GBP2.4M (2015 GBP3.4M)
-- Cash used in Operations of GBP2.8M (2015 GBP4.0M)
-- Net Cash as at 30(th) April 2016 stands at GBP1.9M (2015 GBP4.7M)
-- Tight financial and operational management delivered a lower cash burn than expected.
Operational Highlights
Encouraging growth in Revenues since April:
Results demonstrate the continued demand for data analytics in
the market place;
-- The direct sales team has seen an improvement in key metrics
and continues to win contracts in respected global companies;
-- Revenues generated from existing clients have accelerated as
the 'land and expand' strategy bears fruit, driven by broader
adoption of the platform and the release of new products;
-- Gross Margin remains strong at 87.5%% (2015 84.3%)
-- Client renewal rates remain strong with churn rate remaining below 5%.
-- The Partner Channel has continued to develop during the
period, maintaining and building stronger relationships including
the Joint Business Relationships with PWC, Xerox and Genpact. New
partnerships were formed in the year with Microsoft and Deloittes
USA. The Directors feel these partner relationships differentiate
RDT's business model from competitors and provide Rosslyn with a
powerful foundation from which to generate further business. The
Directors will leverage these existing relationships to expand
overseas and enter new verticals. The Directors also believe the
RAPid platform provides an integral service within the business
functions of RDT's partners, freeing up valuable resources,
enabling them to focus on building new, higher margin revenue
streams and giving them greater speed and agility to respond to
changing client needs.
-- The Directors continue to source new partners and are in
advanced talks with a significant US based strategic partner and
look forward to announcing this in due course.
-- We have continued our focus on R&D during the period, as
part of the Group's commitment to investing in the development of
our product. Our focus has been on scalability, automation and for
our Partners a self-service approach. This enables our clients to
rapidly gain insights into their data, identify opportunities and
profit from these whilst minimising risks. Our focus on developing
an intuitive, user friendly, on-demand, workflow for data
preparation, fast application development and an Apps platform,
where insights are shared across the enterprise, is becoming
increasingly pervasive. By building easy to use automated
technologies we are significantly shortening the time it takes for
our clients and partners to receive analytics ready data, driving
down the cost of investment and increasing their ROI.
-- The high levels of contracted recurring revenues and low
churn rates provide good visibility on Rosslyn's turnover. During
the period the majority of direct contracts signed were multi-year
deals, and the revenue per contracted year has increased to circa
GBP65K vs (2015 GBP54K).We are encouraged by the size of the
pipeline we are seeing coming through our direct and indirect sales
channels and the growth of the average contract value.
Commenting on today's results Roger Bullen, CEO of Rosslyn,
said, " I am pleased to report that the Group has made good
progress and has recorded an encouraging set of results for the
year ended 30 April 2016.
We have continued to invest in the development of our talented
team, making key hires in sales, customer service, and R&D. The
addition of these key people ensures that our product offering
remains market-leading and that we provide the highest levels of
service possible to our clients. Our continued development of the
partner channel is exciting and is seeing the RAPid platform being
progressively embedded in a number of organisations and I expect
this list to increase. These Partnerships play an important role in
closing the gap between the firm and the market place enabling us
to grab market share far easier than through the direct
channels.
We have a broad pipeline of new business and we are excited
about the year ahead. "
Roger Bullen, +44(0)20 7138 3203
Rosslyn Data Technologies plc Chief Executive Officer +44(0)77 7162 3345
Lance Mercereau
Marketing Director +44(0)7788 183273
Cenkos Securities -
Nominated Adviser, Broker Stephen Keys +44(0)20 7397 8924
Chairman's Statement
Results
The financial year to 30 April 2016 was the second full year as
a public company for Rosslyn Data Technologies plc after the
listing on AIM in April 2014. The progress we have made in the
year, growing both our Partnerships and our Direct sales client
base has been both challenging and rewarding. We deployed a
significant element of the IPO funds into our Partnership, Sales
and Marketing strategies, whilst ensuring we did not miss any
developments in technology that would enable the business to
transform to profitability and organic cash generation. We are now
able to see a timeline when this event occurs and management's goal
remains for this to occur during the current financial year. Group
revenue increased by 37% to GBP3.9m (2015: GBP2.8m). There was a
reduction in Group losses at the EBITDA level to GBP2.3m (2015:
GBP3.4m). This was somewhat less than we anticipated at the start
of the year. We ended the year with net cash balances of GBP1.9m
(2015: GBP4.7m). The consumption of cash is accounted for by the
losses in the period. The Board believes that we have adequate cash
resources to take the Group through to break-even and cash
generation.
Strategy
The Group's strategy has evolved since the time of our listing.
Although our primary offering remains Spend Analytics, we have seen
broader adoption of the RaPid platform as an all-encompassing
enterprise data extraction and data enrichment platform which can
be used in multiple application areas within an enterprise.
Additionally, we are committed to growing revenues through a
dual-track strategy of working with partners and direct sales. Our
relationships with our Partners continue to grow and we have been
able to add many more partners to our portfolio. We have confidence
that these relationships will continue to grow and flourish. We are
particularly excited by the new opportunities we are discovering
with our Partners in North America. We are hopeful that we can
continue to expand our footprint in this region in the months
ahead. Our direct sales operation has also had another successful
year.
We have had a number of notable wins in all the regions in which
we operate - the UK, Continental Europe and the US and have managed
to grow our average annual contract value considerably. We are
particularly excited by the new opportunities we are unearthing in
the "highly sensitive" data market around the world. We will
continue to market to this sector in the months ahead.
Board Changes
Jeff Sweetman left the Company in July 2016. Jeff has been with
Rosslyn for nearly eight years and was instrumental in establishing
our foothold in the USA. He has worked with the CEO to establish a
smooth handover and provide a springboard for developing our
Partner relationships in USA. The Board would like to express its
thanks to Jeff for his contribution to the Group's development.
Additionally, our founder and CEO Charles Clark decided to focus
his energies on business development with a particular emphasis on
the North American market and the partner model and so relinquished
his position as CEO, to Roger Bullen, enabling Charles to continue
as Founder and President, doing what he enjoys most - meeting
customers and promoting Rosslyn to customers and partners.
Our Staff
Our business would be nothing without our innovative and
hard-working staff. From the development team to the client support
staff, it is an end-to-end effort. Each role is critical to our
continued success. On behalf of the Board I would like to thank all
of them for their outstanding efforts in the last year and look
forward to working with them in the current year.
Outlook
2016-17 financial year is going to be a year of change within
the firm. Our Partnership strategy is coming to fruition and has
the potential to deliver the majority of our revenue. This,
alongside the strengthening traction within our Direct Sales, gives
us confidence for the future, as our clients invest in the benefits
that our innovative products are bringing to enhance their
competitiveness. We believe that Rosslyn is held in high regard by
the major players within the data and analytics industry.
Converting these relationships into scalable revenue streams is key
to our growth and our future. I am optimistic that recent product
launches and the innovation we continue to deliver, will drive the
results the Company and our Shareholders deserve.
CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME FOR THE YEAR ENDED
30(th) APRIL 2016
Year ended Year ended
30 April 30 April
2016 2015
Revenue 3,869,050 2,826,034
Cost of Sales (481,269) (442,309)
Gross Profit 3,387,781 2,383,725
Other Operating
Income 45,535 128,948
Administrative Expenses
- Excluding Exceptional
Items (5,819,195) (6,019,581)
Operating Loss (2,385,879) (3,506,908)
Finance Income 11,058 28,687
Loss before Income
Tax (2,374,821) (3,478,221)
Income tax 256,878 222,216
Loss for the year (2,117,943) (3,256,005)
Other comprehensive
income (14,908) (18,503)
Total Comprehensive
Income (2,132,851) (3,274,508)
============================= ============ ============
CONSOLIDATE STATEMENT OF FINANCIAL POSITION as at 30(th) APRIL
2016
Assets
Non- Current
Assets
Intangible
Assets 0 0
Property, Plant
and Equipment 57,353 104,005
57,353 104,005
Current Assets
Trade and other
receivables 1,907,521 1,203,747
Corporation tax
receivables 253,000 218,082
Cash and cash
equivalents 1,858,841 4,712,730
4,019,362 6,134,559
Total Assets 4,076,715 6,238,564
---------------------- ------------------------- ------------- ------------
Liabilities
Non-current liabilities
Deferred
tax 0 0
Current Liabilities
Trade and other
payables (1,635,015) (1,704,224)
Financial liabilities
- borrowings 0 0
(1,635,015) (1,704,224)
Total Liabilities (1,635,015) (1,704,224)
---------------------- ------------------------- ------------- ------------
Net Assets 2,441,700 4,534,340
---------------------- ------------------------- ------------- ------------
Equity
Called up Share
Capital 378,829 377,229
Share Premium 8,517,060 8,515,916
Share based payment
reserve 166,107 288,017
Accumulated
loss (11,719,947) (9,761,381)
Translation
reserve (33,411) (18,503)
Merger reserve 5,133,062 5,133,062
-------------------------- --------------------- ------------- ------------
Total Equity 2,441,700 4,534,340
---------------------- ------------------------- ------------- ------------
CONSOLIDATED STATEMENT OF CASH FLOWS for the Year ended 30 April
2016
Year ended Year ended
30 April 30 April
2015 2015
Cash flows used in operating activities
Cash used in operations (3,055,063) (4,082,046)
Corporation tax received 221,960 150,880
Other comprehensive income (14,908) (18,503)
Net Cash used in operating
activities (2,848,011) (3,949,669)
------------------------------------------ ------------ ------------
Cash flows used in investing
Activities
Purchase of Intangible
assets 0 (5,626)
Purchase of property,
plant and equipment (8,622) (151,776)
Net cash used in investing
activities (8,622) (157,402)
------------------------------------------ ------------ ------------
Cash flows (used)/generated
from financing activities
Repayment of borrowings 0 (200,000)
Proceeds from share issuance 2,744 343
Net cash (used)/generated from
financing activities 2,744 (199,657)
------------------------------------------ ------------ ------------
Decrease in cash and cash equivalents (2,853,889) (4,306,728)
------------------------------------------ ------------ ------------
Cash and cash equivalents at
beginning of year 4,712,730 9,019,458
Cash and Cash equivalents at
end of year 1,858,841 4,712,730
------------------------------------------ ------------ ------------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
Rosslyn Data Technologies Ltd. was incorporated on 7 February
2014 and on 24 April 2014 converted from a private limited company
to a Rosslyn data Technologies plc.
Rosslyn Data Technologies plc (the "Company") is a company
domiciled in the UK. The address of the registered office is 25
Eccleston Place, London SW1W 9NF. The Company is the ultimate
parent of Rosslyn Analytics Ltd. a company incorporated in the UK,
and the ultimate parent of Rosslyn Analytics Inc., a company
incorporated in the United States of America (collectively the
"Group"). The Group's principal activity is the provision of data
analytics using a proprietary form.
The principal accounting policies adopted in the preparation of
the consolidated financial information are set out below.
2. Accounting Policies
Basis of preparation
The Group's consolidated financial statements have been prepared
and approved by the Directors in accordance with the International
Financial Reporting Standards (as adopted by the EU) and IFRC
interpretations and those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The financial
statements have been prepared under the historical cost
convention
Going Concern
Notwithstanding that the Group has made losses in the current
year, these financial statements have been prepared on the going
concern basis, which assumes that the Group will continue to be
able to meet its liabilities as they fall due for the foreseeable
future . The Directors believe that the Group has sufficient
working capital to meet its present requirements for at least the
next twelve months from the date of this consolidated financial
information.
Basis of Consolidation
On 23 April 2014 the Company acquired the Group's previous
parent company, Rosslyn Analytics Ltd., via a share for share
exchange whereby every ordinary share and A preference share in
Rosslyn Analytics Ltd. Was exchanged for eight ordinary shares and
eight A preference shares respectively in Rosslyn Data Technologies
Ltd. (prior to conversion to a plc on 24 April 2014). On 24 April
2014 the A preference shares were converted into ordinary shares on
a one for one basis.
On 29 April 2014 Rosslyn data Technologies were admitted to
trading on AIM.
Accordingly these financial statements are presented in the name
of the legal parent, Rosslyn data Technologies plc,
The Annual report will be available on the Company's website for
download by 30(th) September 2015 and the Annual General Meeting
will be held on 27(th) October at 11am, Fox Court, 14 Gray's Inn
Road London WC1X 8HN
This information is provided by RNS
The company news service from the London Stock Exchange
END
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