Rosslyn Data Technologies PLC (LON:RDT) , the big data specialist, revealed late on Thursday that it has raised £7.3mln in a heavily oversubscribed placing to strengthen its balance sheet against possible coronavirus (COVID-19) pandemic disruption.
Coronavirus has had relatively little impact so far, the group said, aside from some delays in the signing of contracts, which should now occur in the current year ended April 30, 2021.
Roger Bullen, Rosslyn's chief executive, noted that the level of demand for the shares reflected confidence in Rosslyn's strategy and future growth.
“With the group having reached the EBITDA positive inflection point, and now being properly funded, we are able to accelerate sales to increase EBITDA and operational cashflow in future periods,” Bullen added in a statement.
The data specialist added that it would post an underlying profit (EBITDA positive) in the year to April 30, 2020, with revenues of between £7.0mln-£7.2mln.
Going into the current year, annual recurring revenue was £6mln compared to £5.4mln a year ago, it said, adding that it also expects to increase underlying profits for the year while maintaining similar margins.
Gross bank debt at the year-end will be £1.3 mln, which will be managed over its remaining two-year term.
The placing was priced at 5p, a small premium to last Thursday's closing price, and amounted to 43% of the shares in issue.
