Rosslyn Data Technologies PLC Trading Statement (2786Y)
January 13 2022 - 1:00AM
UK Regulatory
TIDMRDT
RNS Number : 2786Y
Rosslyn Data Technologies PLC
13 January 2022
Rosslyn Data Technologies plc
("RDT", the "Group" or the "Company")
Trading update
RDT provides the following trading update.
2021 marked the start of a transformational period for Rosslyn.
Following the appointment of Paul Watts as CEO in April 2021, a new
leadership team has been put in place and a full operational review
has been conducted in order to ensure that the business is able to
provide solutions to the continually evolving needs of its customer
base.
With an increased corporate focus on supply chain resilience,
risk and sustainability, RDT's clients are placing more focus on
procurement savings and efficiencies and the Board believes that
the Group's core RAPiD product is becoming ever more relevant.
Accordingly, the Board has focused its efforts and invested
heavily on developing the next generation of the Group's core RAPiD
product, which it will launch before the end of March 2022. The
product is currently in beta testing and the Board is extremely
pleased that feedback, so far, has been overwhelmingly positive.
The next generation of the RAPiD product includes, amongst other
things:
-- a transformation of the UI/UX interface to expand user
adoption across a much broader range of procurement
professionals;
-- a move towards a pure best of breed cloud delivery;
-- a foundation architecture built to deliver advanced
intelligent automation and machine learning into the category
management functions; and
-- an enhancement to the product's data mining capability into a
specific product called Data Factory.
Delivering growth and profitability in RDT's core market is the
Board's key priority, and the operational review focused on how
best to achieve this. The review identified that the Integritie and
Langdon Systems acquisitions, whilst performing well since they
became part of the Group, have limited crossover in terms of
customer base or strategic rationale. As a result, the Board will
continue to consider how to best capitalize on the Group's core
business, which may include the divestment of these non-core
elements of the Group, in order to deliver the best value to
shareholders as a whole. The Board believes that following a
strategy to enable RDT to operate as a single market data company,
focused on procurement with a dynamic in-house operating model and
culture will best position the Group to drive growth and deliver
shareholder value in the medium to long term.
During the year, the Group has invested in its growth, with a
number of key hires being made, whilst also remaining disciplined
on costs and the Board will continue to explore ways to minimise
costs.
The Group has made good progress so far this financial year,
including winning deals for a top 10 global pharmaceutical
business, a top 3 global beverage company, and a top 5 UK Law firm.
At the same time, there has been a focus on exiting non-profitable
business lines, to enable the Company to focus on larger, more
profitable contracts. However, and as has been reported previously,
larger contracts have lengthy lead times and Covid restrictions
that have been experienced across the economy have lengthened these
further. Whilst the Company will continue to work hard to secure
further contracts before the end of the financial year, the
challenges being faced, mean that the Board is taking a more
conservative view on the outcome for the year ending 30 April 2022
and now expects revenue to be no less than GBP6.0m, with ARR to be
at least GBP5.1m and a corresponding impact on EBITDA.
Paul Watt, CEO, commenting, "Like many businesses we have not
been immune to the effects of the pandemic and this is reflected in
our anticipated financial performance for the current calendar
year. However, with a refreshed leadership team, a great core
product and a clear strategy now in place I believe that there are
significant opportunities available to the Group to drive growth
and deliver shareholder value and am excited to look to the
future."
This announcement contains inside information.
+44(0) 7555 144983
Rosslyn Data Technologies P aul Watts , Chief Executive +44(0)20 3285
plc Officer 8008
+44 (0) 7940
J ames Appleby , Cha irman 560624
Cenkos Securities,
Nominated Adviser, Stephen Keys/Camilla Hume/Giles +44(0)20 7397
Broker Balleny 8900
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTKLLFFLFLBBBK
(END) Dow Jones Newswires
January 13, 2022 02:00 ET (07:00 GMT)
Rosslyn Data Technologies (LSE:RDT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rosslyn Data Technologies (LSE:RDT)
Historical Stock Chart
From Apr 2023 to Apr 2024