Cloud-based data analytics specialist Rosslyn Data Technologies PLC (LON:RDT) said its “land and expand” customer acquisition strategy is working well.
In its half-year report it revealed that revenue growth from its installed customer base continues to be ahead of the churn rate (a measure of cancellations).
Group revenues in the six months to the end of October eased to £1.67mln from £1.82mln in the same period of 2015, but would have risen year-on-year if a couple of orders worth £250,000 had come in just a few weeks earlier.
The loss before interest, tax, depreciation and amortisation narrowed 17% to £1.07mln from £1.29mln the year before, while the loss before tax shrank 18% to £1.08mln from £1.31mln.
The group continues to target achieving cash-flow break-even during the current financial year, which runs to the end of April.
At the same time, however, it said its relationship with business services provider Dun and Bradstreet has opened up a wider opportunity of leads than the company had expected, and to take advantage of this would require additional investment in the US market, which, if financed from internal resources, would endanger the cash-flow break-even target.
The company ended the reporting period with net cash of £0.7mln, which had risen to around £878,000 as of last night.
Since the end of October, existing clients have continued to extend their accounts. Rosslyn said there had been a near 100% increase in committed monthly revenues from a global defence contractor and extensions of contracts by five major clients beyond their initial terms.
The sales pipeline remains health and is growing, the company said.
"We have made significant progress during the first half of the year and I am extremely pleased with the quality and breadth of our partners,” said chief executive officer, Roger Bullen.
“Although it has taken longer than we had anticipated to monetise these relationships, I remain confident in our partner strategy,” he added.
“The quality of these partnerships and the number of others that we are in talks with, I believe, validates our partnership strategy as they recognise the scalability and utility of our platform. Furthermore this increased recognition has led to us being presented with potential acquisition opportunities, which, I believe, adds a further exciting avenue for us to explore when appropriate,” Bullen said.
Shares dipped to 7.35p from 7.625p overnight on the update.