Rosslyn Data Technologies PLC Trading Update (4290W)
December 11 2019 - 1:00AM
UK Regulatory
TIDMRDT
RNS Number : 4290W
Rosslyn Data Technologies PLC
11 December 2019
11 December 2019
Rosslyn Data Technologies plc
("Rosslyn" or the "Group")
Trading Update
Rosslyn Data Technologies plc (AIM: RDT), a leading global big
data technology company, is pleased to announce an update on
trading, ahead of interim results to be announced in
mid-January.
As reported in the 2019 full year results in September, the
Group had a slower start to sales in the first few months of the
financial year. Professional service revenues for the half have
also been impacted due to some clients opting to defer contracted
projects to a later period. In addition, we decided not to renew
client contracts with a high element of resale revenue which were
unsustainable due to low levels of gross margin.
However, we have signed a new spend analytics client in the
transport sector, which manufactures rolling stock and
infrastructure for the rail network. The contract is worth
GBP410,000 over a three-year term with the first revenues being
recognised in the second half of our financial year.
The Group is pleased to note the Langdon business acquired in
late September is proceeding satisfactorily, with the majority of
clients having been retained. A product development plan has now
been produced to manage client upgrades catering for Brexit in
January 2020, and for the new HMRC Customs Declaration Service
(CDS) due to go live in September 2020.
The Group expects the Langdon retained annual recurring revenue
(ARR) to be in excess of GBP400,000 and this could increase as
clients are renewed, new clients are won, and product prices are
revised upwards.
With further contract wins expected in the coming months and a
tight control on costs we expect the full year result to be in line
with market expectations.
Rosslyn Chief Executive Officer, Roger Bullen said;
"We continue to focus our attention on building out our client
base with sustainable ARR, ensuring that gross margins are in line
with our expectations. I am delighted that we continue to win
significant contracts with major industry leaders with the RAPid
platform demonstrating our domain expertise and knowledge.
The Langdon acquisition, although not delivering significant
profitability in the first 9 - 12 months, has an extremely loyal
customer base with low churn rates and provides a significant
cross-selling opportunity. We expect the ARR achieved from Langdon
to increase in the next half year as we face Brexit and the new
customs declaration system upgrade."
+44(0)77 7162
3345
Rosslyn Data Technologies Roger Bullen, Chief Executive +44(0)20 7138
plc Officer 3203
+44(0)79 3054
7441
Ash Mehta, Chief Financial +44(0)20 7138
Officer 3203
Cenkos Securities,
Nominated Adviser, +44(0)20 7397
Broker Giles Balleny/Max Gould 8924
Notes to Editors
Rosslyn Data Technologies plc, (AIM: RDT) is a leading provider
of a cloud-based big-data analytics platform. The company provides
analytical services by combining four key technologies: bulk data
extraction; cleansing; enrichment; and visualisation, through a
single cloud platform enabling users with detailed data to make
more informed decisions. Rosslyn's RAPid platform is the Group's
primary product available to its multinational customers.
Further information can also be found on the Company's website
at: www.rosslyndatatech.com
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END
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