Rosslyn Data Technologies PLC (LON:RDT) has confirmed revenue growth in the first half of 2020 and highlighted higher levels of client engagement since the onset of the coronavirus (COVID-19) pandemic.
The company said that although sales opportunities were temporarily delayed during lockdown, in recent weeks it had begun to see increased activity from prospective clients. Revenue and the pipeline remain strong, it added.
The group pointed to a focus among larger companies on supply chain resilience, supply chain risk, cost reduction – all of which can be enhanced by the use of ‘Big Data’.
A recent funding, raising £6.8mln, means the group is in a position to accelerate revenue growth, Rosslyn said. Proceeds are earmarked for investment in sales and marketing, plus there have been new hires including new chief customer officer Paul Watts.
"We are entering an exciting phase of investment for the group with a strong, growing product set and a reinvigorated sales and marketing team,” Roger Bullen, Rosslyn chief executive said in the results statement.
“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," he added.
In its first half to April 30, 2020, Rosslyn saw revenue increase by 2.1% to £7.1mln, and notably within that recurring revenue improved by £16.7% to £6.3mln. The company reported underlying earnings (operating EBITDA) in positive territory for the first time in the growing company’s history.
It posted a £1.9mln pre-tax loss amidst higher level of amortisation against intangible assets.
The company ended its first half with £800,000 of cash and had £500,000 undrawn under a £1.5mln loan facility from Clydesdale Bank. In May, the group raised £7.3mln via a heavily oversubscribed share placing which was priced at a small premium to the prevailing market price at that time.