08:00 Tue 17 Sep 2019
Rosslyn Data Tech. - Final Results
("Rosslyn", "RDT" or the "Company")
Audited Results
For the year ended
Financial Summary
· Revenue growth of 8.3% to
· Annual licence fee revenue growth of 9.2% to
· Operating EBITDA (excluding share-based costs) improved by 75% to a loss of
· Cash generated from operations of
· Cash balance at the year-end of
· Administrative expenses reduced by over 10% to
Operational Highlights
· Year of consolidation allowing us to accelerate growth in the coming years from a sound base.
· Significant investment into product development to broaden out the RAPid product offering, adding new tools and functionality.
· Integrating functionality from the
· Secured high value contracts in various sectors including international logistics, civil defence, healthcare and pharmaceuticals, illustrating the broad appeal of our offering across the supply chain to chief procurement officers and chief financial officers in a wide range of sectors.
· Reduced cost base during the year through implementation of efficiencies in product development.
Rosslyn Chief Executive Officer,
"Our work in 2019 has laid a solid foundation from which to grow the business further. We are confident of continued growth as we engage in numerous large client opportunities that we hope to be able to announce later this year."
Chairman's statement
Strategy and operations
Following the integration of
The
Our cost base reduced during the year as we made technological efficiencies in our product development and client delivery processes which allowed us to use resources more effectively. We will continue to manage our costs tightly in line with our revenue growth. Our direct competitors are often larger and better funded than us and so we need to ensure that the message of the strength of our product is conveyed forcefully.
Despite stiff competition, during the year we secured numerous high value contracts in various sectors including international logistics, civil defence, healthcare and pharma. This illustrates the broad appeal of our offering across the supply chain to chief procurement officers and chief financial officers in a wide range of sectors.
We were pleased to have achieved a key milestone, with the Group having generated cash from operations for the first time since IPO. In March we secured bank debt with
We have strengthened the Board through the addition of
Outlook
We expect this year to be one in which we generate positive operating cash flow allowing us to fund further investment into products and sales channels. To this end, we will continue to manage costs tightly and appropriately in line with the level of new sales wins.
The Group is in discussions regarding contracts with additional high value blue-chip targets which would provide upside to the Group. These larger deals take longer to negotiate due to more decision makers being involved in our client organisations. This coupled with the current global economic uncertainty and political uncertainty in the
The strategy continues as before, namely to grow the product offering and client base in the supplier analytics space whilst seeking acquisition opportunities to increase our scale and offering.
With a strengthened Board, cash resources, a focused team and an advanced suite of products to address a market in need of data analytics, the Group is well positioned for growth. I look forward to updating you on progress further later this year.
Chief Executive's statement
Strategy
This year, we continued with our strategic plan, which is to focus on ensuring the success of our customers and partners by providing them with world-class data-led solutions and business insights that deliver significant and sustainable business value. The demand for our software solutions has been high from enterprise organisations, both end-user customers and partners around the world.
Operations
During the year, we have made new investments to integrate and further develop our suite of solutions and products on the RAPid platform, adding new tools and capabilities, whilst ensuring the platform and solutions are more efficient, scalable and user friendly. For example, we have capitalised on market demand and focused our software development on the supply chain market, introducing a complete supplier management solution including supplier onboarding, supplier performance management, and contract and document handling.
Moreover, we have introduced new technologies based on robotic process automation (RPA), alongside our integrated Neuro Linguistics Programming (NLP) and artificial intelligence. These technologies have enabled us to fully automate processes covering scheduling, extraction, transformation, load, enrichment, classification, and visualisation of spend data, as well as generate error reporting without any human intervention. We believe this to be a first in the market and a true differentiator against our competitors.
As well as contributing to better client servicing, these efficiencies have also allowed us to reduce internal costs to bring us closer to a positive EBITDA.
These developments demonstrate the versatility of our platform, which gives the user the ability to move from one view of a supplier to the next seamlessly. The improved platform enables our clients to achieve a holistic view of their enterprise data, as they are now able to manage documents, supplier performance, onboarding and other solutions from one easy to access place.
The improvements also allow Rosslyn to use the underlying features to enter adjacent markets which could use similar functionality.
Through our strong relationship with Microsoft and as a heavy user of their Azure cloud services we ensure that our flagship RAPid product remains at the cutting edge of technological development, enabling scale and efficiencies to be achieved at the lowest possible cost. Microsoft continues to recognise RAPid as one of the top cloud-based platforms in the market and also recognises Rosslyn as a preferred partner, issuing us with its "Co-Sell Recommended Partner" status, a significant achievement for us.
Data security remains at the forefront of our deliverables, and we are seeing our clients interested in migrating to their own cloud solutions, requesting our service be included in their cloud "stack" for reasons of data security. This has provided us with new opportunities; we have developed our system to be capable of being containerised and portable from one cloud solution to another. This allows security teams to comply with their company policies and puts us ahead of our competition in terms of flexibility.
Through our direct sales team, we have signed a number of new contracts during the year, notably with major global businesses headquartered in
Whilst the majority of revenues still come from our Direct Sales team, we continue to seek traction through our partnership strategy. We have signed a number of new partnership agreements and continue to roll this programme out around the world.
We are now also seeing developments in the market that enable us to expand our offerings to include services covering compliance, logistics, complaints, workflow management, risk, corporate social responsibility and workforce management, all adjacent to the supply chain. We are excited about these new opportunities and our growing capabilities to help clients improve revenue generation, profitability and business efficiencies with us. In the year ahead it is our intention to add to the sales and business development teams as necessary to fulfil the Company's growth ambitions. We have been able to streamline development processes, which has led to an overall decrease in the number of employees compared to previous years. This ensures we are more balanced as a Company with more sales resource to achieve our growth objectives.
Our staff have positively contributed to our growth. The two teams of
Outlook
In summary, we are seeing the benefits from the investments that we have made. Our solutions and products are becoming extremely well known and recognised for innovation, and we have a strong unified team of people driving our growth. I would like to join
Financial performance
Revenue
We adopted IFRS 15 a year early last year and so the results shown for the current and prior year are both shown on that basis, without restatement. Revenue for the year grew 8.3% to
Gross margin
The gross margin percentage increased to 79.7% (2018: 76.1%) as we worked hard to reduce our cloud storage and processing costs through more efficient utilisation of this resource.
EBITDA
The increase in revenues and gross margin percentage, coupled with administrative expenses being reduced by 12.6% to
Research and development
We continue to invest significantly into research and development for our product range. During the year the Group spent
Loss before income tax
The loss before income tax for the year was
Cash flow and funds
The cash balance at the year-end was
Financial results
Consolidated statement of comprehensive income
|
Note |
Year ended 30 April 2019 £'000 |
Year ended 30 April 2018 £'000 |
Revenue |
3 |
6,965 |
6,433 |
Cost of sales |
|
(1,416) |
(1,538) |
Gross profit |
|
5,549 |
4,895 |
Administrative expenses |
|
(5,993) |
(6,861) |
Depreciation and amortisation |
|
(1,041) |
(1,064) |
Share-based payments |
|
(125) |
(194) |
Impairment of goodwill |
|
- |
(364) |
Operating loss |
|
(1,610) |
(3,588) |
Finance income |
|
1 |
- |
Finance costs |
|
(87) |
(101) |
Loss before income tax |
|
(1,696) |
(3,689) |
Income tax |
|
595 |
478 |
Loss for the year |
|
(1,101) |
(3,211) |
Other comprehensive income |
|
(27) |
(23) |
Total comprehensive income |
|
(1,128) |
(3,234) |
Loss per share Basic and diluted loss per share: ordinary shareholders |
|
Pence 0.57 |
Pence 1.76 |
|
|
|
|
|
|
|
|
Consolidated statement of financial position
|
|
30 April 2019 £'000 |
30 April 2018 £'000 |
Assets |
|
|
|
Non-current assets |
|
|
|
Intangible assets |
|
2,946 |
3,969 |
Property, plant and equipment |
|
14 |
23 |
|
|
2,960 |
3,992 |
Current assets |
|
|
|
Trade and other receivables |
|
1,697 |
2,150 |
Corporation tax receivable |
|
363 |
557 |
Cash and cash equivalents |
|
1,960 |
317 |
|
|
4,020 |
3,024 |
Total assets |
|
6,980 |
7,016 |
Liabilities |
|
|
|
Non-current liabilities |
|
|
|
Trade and other payables |
|
(126) |
(91) |
Deferred tax |
|
(218) |
(291) |
Financial liabilities - borrowings |
|
(653) |
(744) |
|
|
(997) |
(1,126) |
Current liabilities |
|
|
|
Trade and other payables |
|
(4,018) |
(3,771) |
Financial liabilities - borrowings |
|
(934) |
(330) |
|
|
(4,952) |
(4,101) |
Total liabilities |
|
(5,949) |
(5,227) |
Net assets |
|
1,031 |
1,789 |
Equity |
|
|
|
Called up share capital |
|
963 |
941 |
Share premium |
|
12,777 |
12,555 |
Share-based payment reserve |
|
515 |
390 |
Accumulated loss |
|
(18,241) |
(17,140) |
Translation reserve |
|
(116) |
(90) |
Merger reserve |
|
5,133 |
5,133 |
Total equity |
|
1,031 |
1,789 |
Consolidated statement of cash flows
|
|
Year ended 30 April 2019 £'000 |
Year ended 30 April 2018 £'000 |
Cash flows used in operating activities |
|
|
|
Cash generated/(used) in operations |
|
220 |
(3,450) |
Finance income |
|
1 |
- |
Finance costs |
|
(87) |
(95) |
Corporation tax received |
|
716 |
474 |
Other comprehensive income |
|
- |
(23) |
Net cash generated/(used) in operating activities |
|
850 |
(3,094) |
Cash flows used in investing activities |
|
|
|
Purchase of property, plant and equipment |
|
(10) |
(19) |
Acquisition of subsidiaries |
|
- |
(1,188) |
Net cash used in investing activities |
|
(10) |
(1,207) |
Cash flows generated from financing activities |
|
|
|
New loans in year |
|
1,000 |
278 |
Repayment of borrowings |
|
(441) |
(544) |
Proceeds from share issuance |
|
250 |
5,056 |
Costs of share issuance |
|
(6) |
(457) |
Net cash generated from financing activities |
|
803 |
4,333 |
Net increase in cash and cash equivalents |
|
1,643 |
32 |
Cash and cash equivalents at beginning of year |
|
317 |
285 |
Cash and cash equivalents at end of year |
|
1,960 |
317 |
Reconciliation of loss before income tax to cash used in operations
|
Year ended 30 April 2019 £'000 |
Year ended 30 April 2018 £'000 |
Loss before income tax |
(1,696) |
(3,689) |
Depreciation, amortisation and impairment charges |
1,041 |
1,427 |
Share-based payment transactions |
125 |
195 |
Costs to acquire subsidiary |
- |
151 |
Finance income |
(1) |
- |
Finance costs |
87 |
101 |
|
(444) |
(1,815) |
Decrease in trade and other receivables |
453 |
970 |
Increase in trade and other payables |
211 |
(2,605) |
Cash generated/(used) in operations |
220 |
(3,450) |
Notes to the consolidated financial statements
1. General information
2. Accounting policies
Basis of preparation
The Group's consolidated financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards (as adopted by the EU) and IFRIC interpretations and with 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 have prepared cash flow statements for the periods to
Having considered the forecasts and scenario actions for any downturn, 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 2019 £'000 |
Year ended 30 April 2018 £'000 |
Annual licence fees |
5,437 |
4,979 |
Professional services |
1,528 |
1,454 |
Total revenue from external customers |
6,965 |
6,433 |
|
Year ended 30 April 2019 £'000 |
Year ended 30 April 2018 £'000 |
|
5,248 |
4,615 |
|
1,717 |
1,818 |
Total revenue from external customers |
6,965 |
6,433 |
4. Operating EBITDA
Operating EBITDA is calculated from Operating loss as shown below.
|
Year ended 30 April 2019 £'000 |
Year ended 30 April 2018 £'000 |
Operating loss |
(1,610) |
(3,588) |
Depreciation and amortisation |
1,041 |
1,064 |
Share-based payments |
125 |
194 |
Impairment of goodwill |
- |
364 |
Acquisition costs |
12 |
150 |
Operating EBITDA loss |
(432) |
(1,816) |
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 2019 |
Year ended 30 April 2018 |
Loss for the year attributable to the owners of the parent |
|
|
Weighted average number of ordinary shares |
192,675,521 |
183,820,205 |
|
Pence |
Pence |
Basic and diluted loss per share: ordinary shareholders |
0.59 |
1.76 |
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
The Company's Annual General Meeting to be held at
Rosslyn |
|
+44(0)77 7162 3345 |
|
|
+44(0)79 3054 7441 |
Cenkos Securities, |
|
+44(0)20 7397 8924 |
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