In October, chairman John O’Hara said that the firm had forecast a profit for the full year with a positive cash flow as it continued to see strong demand for data analytics.
Narrowed first half loss
The company, which provides data management and analytics services to business through its RAPid platform, reported a narrowed loss in its first half in November, with margins boosted by several new contract wins.
In the first 6 months, the underlying (EBTIDA) operating loss was £213,477, smaller than the £1.1mln loss a year ago, while revenues climbed to £3.5mln from £3.2mln previously.
The group’s gross profit margin was also up 3.5% on the year-ago period at 78.4%, while annual recurring revenue carried forward rose 12% to £5mln.
The average value of a contract increased by more than 7%, lifted by several contract wins.
Looking forward, Roger Bullen, Rosslyn’s chief executive, said it was expected that by the end of the financial year the run rate would be below that of average monthly revenues.
He added that the company was currently “in negotiations with a number of large enterprises” with its sales pipeline growing, while also saying the firm expected to reach a cash break-even position during the current financial year.
Multiple contract wins
Since July, Rosslyn has secured a string of new agreements including a three-year contract, worth over €560,000, with one of Europe’s largest logistics firms.
READ: Rosslyn Data secures analytics contract with large European logistics firm, says making good progress
The new contract is expected to provide €320,000 of anticipated revenue in the first year and €120,000 per year thereafter, with an option to extend beyond the initial term and add additional services.
This followed a win in September when the firm clinched a US$650,000 contract with an unnamed high profile global defence, aerospace and security company.
The contract covers a three-year period with US$250,000 to be billed in the first year and US$200,000 a year in subsequent years. The contract includes an option to extend beyond the three-year term as well as the capability of having additional services provided during the contract life.
Further back in the summer, the company secured another three-year deal with a global brewer worth more than €1mln, with €500,000 to be paid in the first year and then €250,000 a year in the following two years.
The spate of new business has also helped to lift the share price over the last few months, with the stock price rising 55% over six months to 28 November 2018.
With shares trading around 7.5p, Rosslyn carries a market cap of around £14.5mln.