NOTE: THIS EARLY STORY INCLUDES AN IMPORTANT UPDATE FROM THE BROKER CENKOS
Rosslyn Data Technologies (LON:RDT), the data analytics specialists, said top line growth in the year just gone was strong as it updated on trading.
It said it expects revenues to be no less than £2.8mln, which represents a year-on-year rise of 35%, although it reckons sales growth was closer to 50% in the second half.
Unsurprisingly for a company at this stage in the commercialisation process, Rosslyn was lossmaking. It expects the deficit to be around £3.65mln when the figures are finalised and released in early September.
More importantly, with £4.7mln in the bank, it has the cash resources to meet its immediate needs.
In an interview with Proactive in April, chief executive Charles Clark said Rosslyn had the financial resources to make it break even, which analysts reckon is around 18 months down the road.
Broker Cenkos said told investors this morning: “The loss before tax will be lower than we had expected.
“Growth with cash conservation in mind is the key theme and management has engineered a lower cash breakeven rate for the business.
“We have changed our estimates to reflect this and forecast lower trading losses until trading and cash flow breakeven is reached next year.”
Separately, the company said chief financial officer Francis Reid is resigning to “pursue other opportunities”.
Chief executive Charles Clark said: "The board owes a huge debt of gratitude to Francis who has helped us lead the firm through this challenging and exciting period and has played a central role in this first year as a public company. We all wish him every success in the future."
Rosslyn, which listed last April, helps make sense of the welter of information stored within a business so that it can go out and sell more products or purchase more effectively. In other words the benefits are tangible.
The company is borne of an era when IT teams are shrinking yet the demand for meaningful commercial information has never been greater.
This has led to a shift in data analysis with the departments, country offices and divisions of big firms carrying out their own number crunching rather than it being done centrally.
This, by extension, means the process is being overseen by workers unfamiliar with the technology and coding needed to extract the data required of their particular part of the business.
Rosslyn has five interlocking technologies that make it easy for the lay user to do just that and its key product is the RAPid Cloud-based data analytics platform.
In the statement earlier, Rosslyn said the current financial year had started well aided by agreements with professional services group PwC and E&I, an education firm from the US, which “provide additional scale and reach”.