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Rosslyn Data Technologies CEO describes performance as "encouraging"

Last updated: 13:43 17 Sep 2015 BST, First published: 08:16 17 Sep 2015 BST

financialresults
The financial results passed muster, said CEO Charles Clark.

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Rosslyn Data Technologies (LON:RDT) said it had a “broad pipeline” of new business as it revealed what it described as an “encouraging” set of prelims.

The results revealed the company was sitting on net cash of around £4.7mln as at the end of April after spending £4.1mln in the year just gone.

Not unusually for a firm at this formative stage of its development, Rosslyn was lossmaking. The deficit was a £3.5mln, while revenues grew by 37% to £2.8mln.

The company, which specialises in cloud-based data analytics, said its performance to date was in line with expectations set out at the time of IPO last spring.

In the year gone it has doubled its customer base, while client renewal remains high with the churn rate (denoting the numbers that quit the service) a highly respectable 5%.

Revenues generated from existing clients have “accelerated”, the AIM-listed technology firm revealed, while it has brought on blue-chip partners such as PWC and Genpact, which should help generate significant new lines of business.

"Our focus has been on investing in the development of the team, making key hires in sales, customer success, and R&D,” said chief executive Charles Clark.

“The addition of these key people ensure that we provide the highest levels of service possible and that our product offering remains market-leading. 

“Our successful development of the partner channel is exciting and is seeing the RAPid platform being progressively embedded in a number of key players and I expect this list to increase.

“These relationships play an important role in closing gaps between the firm and the market place.  

 "We have a broad pipeline of new business and we are excited about the year ahead."

Canaccord is forecasting Rosslyn will win around £1.6mln in new contracts in the current financial year, helping it to hit its £5mln revenue target.

The broker reckons turnover will hit £8.8mln the year ended April 2017 and the business will be modestly profitable.

Reiterating his ‘buy’ advice, analyst Simon Strong said: “The rating of the stock is out of kilter with the opportunity.”

At 1.40pm, the shares were changing hands for 17.4p – up almost 1%. They have fallen 27% in the last   year.

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