Rosslyn Data Technologies PLC (LON:RDT) ticked up on Wednesday after it cut its operating losses by 75% in the last financial year and also turned cash generative.
In a trading update ahead of results for the year ended 30 April 2019, the ‘big’ data technology firm said its operating (EBITDA) loss narrowed to £432,000 from £1.8mln last year, while revenues rose 8.3% to £7mln.
READ: Rosslyn unveils its new chief financial officer
Underlying annual licence fee revenue, meanwhile, increased by 9.2% to £5.4mln from £5.0mln in 2018.
The group also said it had reached a “key milestone” by generating £329,000 in cash from its operations as opposed to spending £3.45mln last year, adding that excluding £900,000 spent on research and development it would have reported an operating EBITDA profit of £500,000 compared to a £700,000 loss in 2018.
Looking ahead, Rosslyn Data said it was currently in contract discussions with several high value blue chip clients and, while these would take longer to negotiate, they would provide upside to the group.
Overall, the company said it was “well positioned” going into its new financial year.
"This year we have been able to grow our top line revenues, particularly licence fees, reduce our cost base and, most importantly, generate cash during the year, all whilst maintaining excellent service delivery to our clients”, said Roger Bullen, chief executive.
The group’s full-year results are scheduled to be released in September.
In early deals, shares were up 0.4% at 7.2p.
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