02:00 Tue 22 Sep 2020
Rosslyn Data Tech. - Audited Results for the year ended 30 April 2020

Rosslyn Data Technologies plc
("Rosslyn", the "Group" or the "Company")
Audited Results
For the year ended
Rosslyn Data Technologies plc (AIM: RDT), the provider of a leading cloud-based enterprise data analytics platform, is pleased to announce its audited results for the year ended
Financial Summary
· Annual Recurring Revenue increased 16.7% to
· Revenue growth of 2.1% to
· Administrative operating expenses controlled tightly at
· Operating EBITDA (excluding share-based payment costs) profit of
· Loss before tax of
· Cash balance at the year-end of
· The undrawn
Operational Highlights
· Significant new client wins including a global manufacturer and distributor of superior building materials and products, a multinational general insurance company with operations in more than 140 countries, and a science-led sustainable technologies business employing 15,000 people.
· Product development has continued; integrating supplier onboarding functionality and creating master data management functionality for use by large enterprises.
· Acquisition of Langdon Systems, adding duty and import/export data capabilities and a strong client base to the business.
Outlook
· Since the start of lockdown, COVID-19 has resulted in a higher level of engagement by our clients, but sales opportunities were temporarily delayed during lockdown. In recent weeks we have started to see increased activity in the form on RFPs and RFIs from prospective clients, and our revenues and pipeline remain strong.
· The focus by large companies on supply chain resilience, supply chain risk, cost reduction, extracting value from "Big Data", and the imminent end of the Brexit transition period are positive factors for Rosslyn.
· With the placing proceeds the Group is now in a position to accelerate revenue growth, by investing further into Sales and Marketing, and post period end numerous appointments have been made including
Rosslyn Chief Executive Officer,
"We are entering an exciting phase of investment for the Group with a strong, growing product set and a reinvigorated Sales and Marketing team. This will allow us to develop stronger partnerships with new and existing clients, adding greater value to their Procurement functions, and ultimately driving the Group to sustainable profitability."
Rosslyn Data Technologies plc | | +44(0)77 7162 3345 |
| | +44 (0)20 3051 7798 |
Cenkos Securities, |
| +44(0)20 7397 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
Chairman's statement
I am pleased to say that this has been a year of solid progress.
The Company strategy is to deliver strong organic growth in our core capabilities, to expand our product capability along the supply chain, and to build our capabilities further via acquisition. During the year we have considerably evolved the board to help deliver on this strategy.
Since year end
We have also seen some board departures and I would like to thank again co-founder
There have been two important events this year. Firstly, the acquisition of the assets of Langdon Systems which provides duty management systems, has added both revenue and ARR, but also showed again the capability of the Company to acquire and rapidly integrate businesses. Secondly, the fundraising via a placement in
Financially, we were pleased to report a significant increase in Annual Recurring Revenue, and a positive operating EBITDA (excluding share-based payments) for the first time in the Company's history. We have continued to win new blue-chip clients and to evolve our core RAPid product line into a complete Supplier Master Data Management Solution, and have seen the first sale of our Supplier Information Management module.
The one cloud of uncertainty is COVID-19, and whilst some clients continue unaffected, there has understandably been a slow-down in new clients signing up to our services.
Nevertheless, we are well positioned for growth. A strong leadership team, high quality and highly relevant product set, and strong financial position enable us to take advantage of market opportunities.
Chief Executive's statement
I'm delighted to provide a review of our progress during 2019/20; a year of considerable change.
Whilst planning for the year it had become increasingly clear to me that the data analytics sector whilst remaining attractive, was entering a period of significant change, bringing both challenges and opportunities for Rosslyn. In addition, despite improved delivery in recent years, it was also clear that there were several areas where the Company needed to be strengthened, which is why, in April last year we looked at what we needed to do in order to get us into a position of growth.
Three priorities became very clear, technical and product innovation, sales performance and employee engagement. Identifying these three priorities enabled us to focus on particular areas we could address and improve. These priorities provided us with the ability to respond more effectively to our operational challenges. These priorities do not stop, they continue and over time will change the culture of the firm. Ultimately, they will lead to us delivering widespread improvements and better returns for customers, shareholders and stakeholders over both the short and longer term.
Firstly, we took steps to improve the constitution of the sales and marketing teams as well as adding a full time CFO,
2019 Performance
Group revenues grew slightly to
By making the most of our own technologies to deliver efficiencies in servicing our clients and by ensuring that our cash resources were used efficiently and wisely we were able to deliver a positive operating EBITDA (excluding share based payments) for the first time in the Company's history.
Our other core KPIs of ARR and Backlog (new for 2019/20) have also been increasing with ARR growing by more than 16% to
Cashflow, as always, was a critical area of focus for us, becoming more demanding when the global pandemic hit us in March this year. Fortunately, we were able to address this head on and through our clients and relationships we were able to assist our clients in managing their supply chain, ensuring that they could meet the needs and objectives of their respective organisations. At the year end our cash position was
Pipeline
Technical innovation has been a driver for us over the last three years and this year we delivered on our promises, having released two new products to our suite. The new products we have introduced, Supplier Information Management and Supplier Master Data Management have been designed to meet the changes we are seeing in the market place, addressing the issues our clients have been facing and struggling to overcome. These products both utilise our RAPid platform and integrate many of the tools acquired from the Integritie acquisition in 2017.
With data analytics becoming a high priority in many firms, the ability to create that high quality, accurate, single version of the truth, a "
Our solution brings together the skills built over the last two decades of handling both structured and unstructured data, and in developing algorithms and technologies that maximise the benefits that can be derived from a SaaS platform. Reducing the total cost of ownership, providing operational gearing and providing real time analytical capabilities as well as ensuring that "
In addition, the Duty Management System solution (DMS) that we now operate following the acquisition of Langdon Systems in September last year, will undoubtedly have an impact on the supply chain function. Even if duty rates are minimal or zero across the European region the amount of bureaucracy and record keeping required will increase significantly. With the end of the transition period of Brexit now only a few months away we are seeing a considerable uptick in the number of clients requiring solutions capable of managing their import and export requirements. Again, the DMS solution is now sitting on the RAPid platform and can be delivered quickly and efficiently, with new products being planned over the next quarters as changes in Customs procedures develop.
Outlook
Having achieved a positive EBITDA, and now looking forward to the next twelve months and beyond, we are keen to drive forward utilising our skills and strategy to deliver sustainable organic growth, backed up and supported by further strategic acquisitions that will either enhance our technology or add to our revenues.
Following a successful fundraising of
Despite COVID-19 the demand for our core products continues to grow and our healthy pipeline demonstrates that we are on the right path. Innovation and improvements in the product will continue to generate interest and I believe will enable us to have a successful 2020/21. If anything the impact of COVID-19 on the business has been to highlight the importance of data quality and accessibility and its relevance in determining the risk in and the resilience of the supply chain. This coupled with multinationals' needs to cut costs during this period puts us in a strong position.
More clients are now discussing the criticality of improving the underlying data that is used by our Spend Analytics solution. Extracting value from the "Big Data" spread around their systems is becoming more important for large companies and we see this as extremely positive as it will enable us to interact with the heart of most organisations' ERP and finance systems. With our capability to read and write to and from these ERP systems to the RAPid platform we would expect our average client lifecycle to increase and our already low churn rate to decrease further.
On a separate note, having acquired Langdon Systems we are keen to seek out opportunities for small bolt-on acquisitions that form part of our strategic road-map and that can be enhancing to our financial performance in a relatively short timeframe. Our ability to integrate acquisitions whilst retaining key clients, revenues and staff demonstrates our capabilities and we would expect this to lead to improved gross margins and reduced overheads.
People
Our ambition is to drive a high-performance culture, putting innovation at the heart, remaining true to our values and our purpose: to help organisations do more, achieve more and deliver long term sustainable benefits from using our technology. Our commitment to our customers, our economic and social environment and our people will continue.
We understand that our people and their commitment are fundamental parts of Rosslyn's success, future and culture. Having a clear strategy and direction of travel alongside having and hiring the right people, hungry for success, enthused, energetic and capable of delivering that commitment means we are on the right path.
Without the dedication of this great Rosslyn team we would not be able to deliver the levels of skill, expertise and technology demanded by our clients. Ensuring this team is fully engaged understands the goals of the firm and what we are setting out to do is essential to our future success.
During the year, to ensure we were on the correct path, we conducted a new employee survey and during the COVID-19 pandemic we have been taking regular "pulse" surveys, ensuring that we are staying aligned to our commitments and priorities, continuing along the path of openness and integrity. As such I was pleased to see a meaningful improvement in employee engagement scores, which are an important driver of performance. Communication and sharing of the objectives and goals of the firm have been instrumental in developing our culture. A heart felt thank you to the team for all their efforts and commitments to the development and growth of Rosslyn.
Chief Financial Officer's Report
This last year has been a pivotal one for the Group. The EBITDA losses which we have been reducing over the least two years were finally stemmed, and the Group is reporting a positive EBITDA for the first time in its history.
We regard this as a significant turning point and with the fundraising which completed in late May, after the year end, we have the balance sheet to proceed into our next stage of growth to increasing revenues and EBITDA over the long run. This means investment into sales and marketing, and we have already increased our headcount in this department. There is always a lead time between salespeople being added and starting to deliver sales, and during the period of COVID-19 there remains a high degree of uncertainty on new client wins, so the payback from new salespeople may take longer than ordinarily expected but we know this is crucial for the growth of the Company.
Profit and loss account
Revenue for the year grew 2.1% to
The gross margin percentage increased to 84.7% (2019: 79.7%). This was partly due to removal of the low margin contracts mentioned above. It was also due to our ongoing work to reduce our cloud storage and processing costs through more efficient utilisation of this resource.
Administrative costs were held stable at
The increase in gross margin percentage coupled with Administrative expenses being held stable has resulted in an EBITDA (excluding share-based costs) profit of
We continue to invest significantly into research and development for our product range. During the year the Group spent
The loss before income tax for the year was
Cash flow and funds
Excluding bank debt, the cash balance at the year-end was
Cash flow from operating activities was a use of
Net debt at the year-end stood at
· Increase sales and marketing effort to accelerate growth, including building the pipeline in Supplier Master Data Management (SMDM)
· Maintain investment into product development
· Strengthen the balance sheet to protect against possible coronavirus impact
· Invest in small, opportunistic bolt-on acquisitions.
Balance sheet
The major movements in the balance sheet during the year were;
· the intangible assets reducing to
· the repayment of debt, as described above.
· the reduction in cash due to working capital movements and debt repayments as described above.
Key metrics
The Group regards Revenue and Operating EBITDA to be key financial metrics for the business along with ARR and Backlog.
Annual Recurring Revenue grew by 17% to
The Backlog grew 26% to
Acquisition of Langdon Systems
During the year we acquired the IP, software, assets, client list and associated contracts of Langdon Systems Ltd, for a consideration of
IFRS16
This new standard addresses the accounting for leases and requires lessees to recognise all leases on their balance sheet with limited exemptions. This results in the recognition of a right-of-use asset and corresponding liability on the balance sheet, with the associated depreciation and interest expense being recorded in the income statement over the lease period. The impact on the Group's results was minimal.
Financial results
Consolidated statement of comprehensive income
| Note | Year ended 30 April 2020 £'000 | Year ended 30 April 2019 £'000 |
Revenue | 3 | 7,109 | 6,965 |
Cost of sales |
| (1,086) | (1,416) |
Gross profit | | 6,023 | 5,549 |
Administrative expenses | | (5,987) | (5,993) |
Depreciation and amortisation | | (1,703) | (1,041) |
Share-based payments |
| (69) | (125) |
Operating loss | | (1,736) | (1,610) |
Finance income | | - | 1 |
Finance costs |
| (160) | (87) |
Loss before income tax | | (1,896) | (1,696) |
Income tax |
| 316 | 595 |
Loss for the year | | (1,580) | (1,101) |
Other comprehensive income |
| (4) | (27) |
Total comprehensive income |
| (1,584) | (1,128) |
Loss per share Basic and diluted loss per share: ordinary shareholders | | Pence 0.82 | Pence 0.59 |
| | | |
| | | |
Consolidated statement of financial position
|
| 30 April 2020 £'000 | 30 April 2019 £'000 |
Assets | | | |
Non-current assets | | | |
Intangible assets | | 2,029 | 2,946 |
Property, plant and equipment | | 13 | 14 |
Right-of-use assets |
| 52 | - |
|
| 2,094 | 2,960 |
Current assets | | | |
Trade and other receivables | | 2,039 | 1,697 |
Corporation tax receivable | | 196 | 363 |
Cash and cash equivalents |
| 794 | 1,960 |
|
| 3,029 | 4,020 |
Total assets |
| 5,123 | 6,980 |
Liabilities | | | |
Non-current liabilities | | | |
Trade and other payables | | (135) | (126) |
Deferred tax | | (145) | (218) |
Financial liabilities - borrowings |
| (828) | (653) |
|
| (1,108) | (997) |
Current liabilities | | | |
Trade and other payables | | (4,109) | (4,018) |
Financial liabilities - borrowings |
| (388) | (934) |
|
| (4,497) | (4,952) |
Total liabilities |
| (5,605) | (5,949) |
Net assets |
| (482) | 1,031 |
Equity | | | |
Called up share capital | | 965 | 963 |
Share premium | | 12,777 | 12,777 |
Share-based payment reserve | | 470 | 515 |
Accumulated loss | | (19,707) | (18,241) |
Translation reserve | | (120) | (116) |
Merger reserve |
| 5,133 | 5,133 |
Total equity |
| (482) | 1,031 |
Consolidated statement of changes in equity
| Called up share capital £'000 | Accumulated loss £'000 | Translation reserve £'000 | Share-based payment reserve £'000 | Share premium £'000 | Merger reserve £'000 | Total equity £'000 |
Balance at | 941 | (17,140) | (90) | 390 | 12,555 | 5,133 | 1,789 |
Issue of share capital | 22 | - | - | - | 222 | - | 244 |
Share-based payment transaction | - | - | - | 125 | - | - | 125 |
Loss for the year | - | (1,101) | - | - | - | - | (1,101) |
Other comprehensive income | - | - | (26) | - | - | - | (26) |
Balance at | 963 | (18,241) | (116) | 515 | 12,777 | 5,133 | 1,031 |
| | | | | | | |
Balance at | 963 | (18,241) | (116) | 515 | 12,777 | 5,133 | 1,031 |
Issue of share capital | 2 | - | - | - | - | - | 2 |
Share-based payment transaction | - | 114 | - | (45) | - | - | 69 |
Loss for the year | - | (1,580) | - | - | - | - | (1,580) |
Other comprehensive income | - | - | (4) | - | - | - | (4) |
Balance at | 965 | (19,707) | (120) | 470 | 12,777 | 5,133 | (482) |
Consolidated statement of cash flows
|
| Year ended 30 April 2020 £'000 | Year ended 30 April 2019 £'000 |
Cash flows used in operating activities | | | |
Cash generated/(used) in operations | | (856) | 220 |
Finance income | | - | 1 |
Finance costs | | (160) | (87) |
Corporation tax received |
| 310 | 716 |
Net cash (used in)/ generated from operating activities |
| (706) | 850 |
Cash flows used in investing activities | | | |
Purchase of property, plant and equipment | | (8) | (10) |
Acquisition of business |
| (49) | - |
Net cash used in investing activities |
| (57) | (10) |
Cash flows generated from financing activities | | | |
New loans in year | | 500 | 1,000 |
Repayment of borrowings | | (905) | (441) |
Proceeds from share issuance | | 2 | 250 |
Costs of share issuance |
| - | (6) |
Net cash (used in) / generated from financing activities |
| (403) | 803 |
Net (decrease) / increase in cash and cash equivalents | | (1,166) | 1,643 |
Cash and cash equivalents at beginning of year |
| 1,960 | 317 |
Cash and cash equivalents at end of year |
| 794 | 1,960 |
Reconciliation of loss before income tax to cash used in operations
| Year ended 30 April 2020 £'000 | Year ended 30 April 2019 £'000 |
Loss before income tax | (1,896) | (1,696) |
Depreciation, amortisation and impairment charges | 1,703 | 1,041 |
Share-based payment transactions | 69 | 125 |
Finance income | - | (1) |
Finance costs | 160 | 87 |
| 36 | (444) |
(Increase) / decrease in trade and other receivables | (342) | 453 |
(Decrease) / increase in trade and other payables | (550) | 211 |
Cash (used in) / generated from operations | (856) | 220 |
Notes to the consolidated financial statements
1. General information
Rosslyn Data Technologies plc (the "Company") is a company domiciled in the
2. Accounting policies
Basis of preparation
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.
Whilst the financial information included in this announcement has been prepared in accordance with EU adopted IFRS, this announcement itself does not contain sufficient information to comply with EU adopted IFRS. Statutory accounts for the year ended
The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRIC) as adopted by the European Union and in accordance with the Companies Act 2006 as applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.
Going concern
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. Although the Group has made losses in the current year, much of this loss was due to non-cash items such as depreciation and amortisation. The Directors have prepared cash flow statements for the periods to
Since the year end, the Company has raised
Having considered the forecasts and downturn scenarios, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing these financial statements.
3. Segmental reporting
Management has determined the operating segments based on the operating reports reviewed by the Executive Directors that are used to assess both performance and strategic decisions. Management has identified that the Executive Directors are the Chief Operating Decision-Maker in accordance with the requirements of IFRS 8 Operating segments.
The determination is that the Group operates as a single segment, as no internal reporting is produced either by geography or division. The Group does view performance on the basis of the type of revenue, and the end destination of the client as shown below.
| Year ended 30 April 2020 £'000 | Year ended 30 April 2019 £'000 |
Annual licence fees | 5,105 | 5,437 |
Professional services | 1,121 | 1,528 |
Continuing operations | 6,226 | 6,965 |
| | |
Annual licence fees | 520 | - |
Professional services | 363 | - |
Acquisitions | 883 | - |
Total revenue | 7,109 | 6,965 |
| Year ended 30 April 2020 £'000 | Year ended 30 April 2019 £'000 |
| 5,638 | 5,329 |
| 1,471 | 1,636 |
Total revenue | 7,109 | 6,965 |
4. Operating EBITDA
Operating EBITDA is calculated from Operating loss as shown below.
| Year ended 30 April 2020 £'000 | Year ended 30 April 2019 £'000 |
Operating loss | (1,736) | (1,610) |
Depreciation and amortisation | 1,703 | 1,041 |
Share-based payments | 69 | 125 |
Acquisition costs | - | 12 |
Operating EBITDA profit / (loss) | 36 | (432) |
5. Loss per share
Basic earnings per share is calculated by dividing the net loss for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated by dividing the net loss for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares into ordinary shares.
| Year ended 30 April 2020 | Year ended 30 April 2019 |
Loss for the year attributable to the owners of the parent | | |
Weighted average number of ordinary shares | 192,884,046 | 192,675,521 |
|
Pence |
Pence |
Basic and diluted loss per share: ordinary shareholders | 0.82 | 0.59 |
As the Group recorded a loss for the year, the basic and diluted loss per share are the same amount.
Annual report and accounts
The annual report and accounts will be posted to shareholders shortly and will be available for members of the public at the Company's registered office
Annual General Meeting
In light of the current
The AGM will be broadcast live on https://www.rosslyndatatech.com/investors/2020agm on
Shareholders are encouraged to submit proxy voting in accordance with the Notice of Annual General Meeting. Shareholders are also invited to submit questions beforehand to [email protected] and a representative selection of these questions will be addressed in the meeting.
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Quick facts: Rosslyn Data Technologies PLC
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