5th Mar 2025 07:00
5 March 2025
Rosslyn Data Technologies plc
("Rosslyn" or the "Company")
Trading Update
Rosslyn (AIM: RDT), the provider of a leading cloud-based spend intelligence platform, provides the following update on trading for the year ending 30 April 2025.
As noted in its interim results announcement, the Company entered the second half of FY 2025 in a stronger position than at the same point of the prior year. This was due, in particular, to the Company having secured a major new client that is a leading global technology company and household name (the "Major New Client") and strengthening the balance sheet with the completion of a fundraising. At the same time, the Company also started to benefit from the initial actions taken to focus on quality of revenue and increased operational efficiency.
The Company is pleased to report that it is making excellent progress with the deployment of its initial contract with the Major New Client, which is to provide the Rosslyn platform to the customer's central procurement department and which has now entered user acceptance testing. The Company's solution has been well-received and the Major New Client intends to embed the technology before rolling it out to further departments, which is now expected to commence in the Company's next financial year. As a result, some of the revenue that the Company had anticipated receiving from the Major New Client in the current financial year is now expected to be received in FY 2026.
The Company has continued its focus on prioritising sustainable growth, with an increased emphasis on cash conservation with the intention of ensuring a sufficient cash runway until it becomes cash generative, which it expects to achieve on a monthly basis by the end of FY 2026. Following the implementation of further cost control measures, the Company's cash burn rate has continued to reduce in the second half of the year to under £100k per month (H1 2025: £125k per month).
The Company's pipeline remains strong, with customer profiles moving up the size spectrum and good progress has been made with the new significant consulting partner that was secured during the first half. Commensurate with the increase in customer size profiles, timelines for converting some of the pipeline opportunities have elongated. Nonetheless, the Company continues to expect to deliver strong growth in the current year and beyond.
As a result, the Company now expects to report revenue for FY 2025 of c. £3.3m, representing year-on-year growth of c. 14% (FY 2024: £2.9m), and a significant improvement in adj. EBITDA to c. £1.7m loss (FY 2024: £2.5m loss). The Company expects to report cash and cash equivalents at 30 April 2025 of c. £1.7m (30 April 2024: £0.6m).
Paul Watts, CEO of Rosslyn, said: "As highlighted at the time of our interim results, Rosslyn has significantly strengthened its position compared with previous years. Having undertaken a comprehensive transformation, we began executing on our renewed strategy and have had that strategy validated with the winning of major contracts. Our refocusing on quality of revenues and prioritisation of cash generation are critical steps towards establishing a sustainable business. While we have prudently adjusted our revenue projections for certain contracts, we remain on track to deliver strong growth in FY 2025 and beyond and expect to become cash generative by the end of FY 2026. As a result, we continue to look to the future with confidence."
This announcement contains inside information.
Enquiries
Rosslyn | |
Paul Watts, Chief Executive Officer James Appleby, Chairman | +44 (0)20 3285 8008
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Cavendish Capital Markets Limited (Nominated adviser and Broker) | |
Stephen Keys/Camilla Hume/George Lawson | +44 (0)20 7220 0500 |
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Gracechurch Group (Financial PR) | |
Claire Norbury/Anysia Virdi | ++44 (0)20 4582 3500 |
About Rosslyn
Rosslyn (AIM: RDT) provides an award-winning spend intelligence and predictive analytics platform. The Rosslyn Platform helps organizations with diverse supply chains mitigate risk and make informed strategic decisions. It leverages automated workflows, artificial intelligence and machine learning to extract and consolidate procurement data providing visibility of complex supplier data, enabling supplier spend savings and delivering rapid ROI. For more information visit www.rosslyn.ai. Investors wishing to contact the Company should email [email protected].
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