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Rosslyn Data Technologies negotiating "significantly larger" contracts

The group is now negotiating contracts that are significantly larger than ones it has landed in the past, but because of their size these deals tend to take longer to get over the line

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The firm has been short-listed as the preferred vendor in the US, UK and Europe for potential new contracts that cover a number of new verticals and applications

Big data analysis software provider Rosslyn Data Technologies PLC (LON:RDT) expects to achieve cash-flow break-even in 2018.

In its results statement covering the six months to the end of October, the company said the integration of Integritie, the data mining specialist it acquired in May, is complete and more than 85% of the expected synergies have been realised.

READ: Rosslyn Data looking to scale-up and leverage its RAPid platform

The half-year saw revenues of the expanded group rise 74% to £2.90mln from £1.67mln the year before.

The number of customers on the book was up 20% year-on-year to around 190, and a number of significant deals are currently under negotiation, Rosslyn said.

Loss before tax, excluding acquisition costs of £150,849, widened to £1.59mln from £1.08mln in 2016.

Net cash at the end of the reporting period stood at £1.0mln, up from £700,000 or so a year earlier.

"We continue to make progress and I believe that the company is increasingly well positioned to take advantage of the growing business opportunity it is seeing in the market,” said Roger Bullen, the chief executive of Rosslyn.

READ: Rosslyn bags three contracts worth £3.1mln

“The RDT RAPid platform remains a recognised and well-regarded technology in this large, growing market and, through our continued and disciplined execution and innovation we expect progress to continue. Our pipeline is extremely healthy and through the impact of our new tools and services we are negotiating contracts significantly larger than we have done in prior years, including three that are greater than £30K each per annum. Given their size, these contracts are taking longer to negotiate and an increased lead time for delivery,” Bullen explained.

“The board is working to deliver these contract wins during the current financial year but is mindful that certain of these contract negotiations may extend past the year-end. The ability to sign these contracts before the year-end will have a significant impact on the outcome of our revenues, EBITDA and cash for this year,” Bullen advised.

Quick facts: Rosslyn Data Technologies PLC

Price: 5.4 GBX

AIM:RDT
Market: AIM
Market Cap: £18.3 m
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Investor Update: Rosslyn Data Technologies grows revenues and generates cash

Top stories from the Proactive Investors UK newsroom: Rosslyn Data Technologies PLC (LON:RDT) cut its operating losses by 75% in the last financial year, while also turning cash generative and, according to the company, is well-positioned in the current year. In a trading update ahead of...

on 29/5/19

2 min read