14th Jan 2020 11:37
(Alliance News) - Rosslyn Data Technologies PLC on Tuesday reported a worsened performance in the first half of its current financial year but said it expects an improvement going forward.
The AIM-listed data management and analytics services provider said its pretax loss widened in the six months to the end of October to GBP1.0 million from GBP841,000, as revenue slipped 12% to GBP3.1 million form GBP3.5 million.
Rosslyn explained that during the year it was focused on trading out low margin revenue and replacing it with higher yielding annual recurring revenue.
"Whilst doing this we continued to acquire new customers, expand offerings with existing customers and grow internationally. The group has in parallel continued to invest in product development, enabling us to innovate and add new products into the portfolio," highlighted Chief Executive Roger Bullen.
"Whilst this focus on improving the quality of revenue impacted sales in the first half of the year compared to last year, we remain confident that the second half will enable us to stay on target and to meet management expectations," added Bullen.
Rosslyn said it has increased its backlog to GBP6.4 million as of Tuesday, up 26% from GBP5.1 million at the start of the company's financial year. Rosslyn also said it has grown its year-on-year annual recurring revenue by 19% to GBP6.0 million.
As a result, the London-headquartered company said it now expects earnings before interest, taxes, depreciation, and amortization to be positive in the second half of its financial year.
Rosslyn shares were trading 10% higher in London on Tuesday at 5.29 pence each.
By Evelina Grecenko; [email protected]
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