Rosslyn Data Technologies PLC (AIM:RDT) has reported resilient interim results in the first half, and also revealed that it has secured a multi-year contract worth £285,000.
The provider of a cloud-based enterprise data analytics platform saw a slight slip in revenue for the six months ended 31 October 2022, to £1.4mln, compared to £1.5mln a year earlier. However, gross margins improved to 29.3% compared to 22.3% the previous year, partially due to lower administrative expenses, while adjusted net losses were reduced to £1.6mln compared to a loss of £1.9mln for the previous year.
The group achieved 11% growth in annual recurring revenue, with a net revenue retention rate of 97% and a customer acquisition cost payback of 69 months. The company’s contracted order book increased by 57% over the six-month period.
Looking forward, Rosslyn said it “expects to achieve strong growth for the full year to 30 April 2023 and is on track to deliver trading in line with market expectations”.
In the results statement, Rosslyn chief executive Paul Watts commented: "This has been a pivotal period for Rosslyn … We have been executing on our refocused go-to-market strategy while maintaining tight cost control and improving operational efficiency.
“While it is still relatively early days, we are pleased with our delivery against our key performance indicators. We are receiving growing demand for our best-in-class procurement analytics solution - both from new and existing customers as they increasingly discover the value that our platform offers. As a result, we are on track to deliver strong growth for the full year, in line with market expectations, and we look to the future with confidence."
The company's half-year cash burn rate of £217,000 per month represented a 27% year-on-year decrease, with Rosslyn noting that it is on track for its target of £100,000 per month by this May.
Rosslyn said it is debt free with cash and cash equivalents of £1mln as of December 31, 2022.
Highlights for the interim period included the launch of a new and improved Rosslyn Platform, with customer migration substantially complete by the end of the period and a rebranding exercise to reflect the group’s focus on a single product comprising a “best-in-class” Software-as-a-Service solution.
Rosslyn divested Langdon Systems, which generated a profit of £160,000, and later agreed to sell Integritie for up to £3mln in cash.
The company also won new long-term contracts for international clients including a tier-one Japanese bank, a multinational medtech corporation, and a multinational aerospace engineering company.
Rosslyn wins new multi-year contract
In a separate statement, Rosslyn Data Technologies said its latest multi-year contract worth £285,000 is with a blue-chip, mission-critical solutions provider.
The customer, which employs around 4,500 people globally, specialises in providing application-engineered bespoke solutions in the defence, security, critical detection and control markets, working with the US Department of Defense, the UK Ministry of Defence and the Australian Department of Defence.
The contract is to provide the Rosslyn procurement platform to assist in managing the customer's supply chain and provide data to empower decision-making.
Commenting on the contract win, Watts said: “Our appointment by this customer is excellent validation of the strength of our platform and the value it can provide. We are receiving increasing interest in our solution, which is reflected in our expanded pipeline, and we look forward to continuing to grow our customer base and build long-term relationships."