Rosslyn Data Technologies plc
("RDT", the "Group" or the "Company")
RDT provides the following trading update.
2021 marked the start of a transformational period for Rosslyn. Following the appointment of Paul Watts as CEO in April 2021, a new leadership team has been put in place and a full operational review has been conducted in order to ensure that the business is able to provide solutions to the continually evolving needs of its customer base.
With an increased corporate focus on supply chain resilience, risk and sustainability, RDT's clients are placing more focus on procurement savings and efficiencies and the Board believes that the Group's core RAPiD product is becoming ever more relevant.
Accordingly, the Board has focused its efforts and invested heavily on developing the next generation of the Group's core RAPiD product, which it will launch before the end of March 2022. The product is currently in beta testing and the Board is extremely pleased that feedback, so far, has been overwhelmingly positive. The next generation of the RAPiD product includes, amongst other things:
· a transformation of the UI/UX interface to expand user adoption across a much broader range of procurement professionals;
· a move towards a pure best of breed cloud delivery;
· a foundation architecture built to deliver advanced intelligent automation and machine learning into the category management functions; and
· an enhancement to the product's data mining capability into a specific product called Data Factory.
Delivering growth and profitability in RDT's core market is the Board's key priority, and the operational review focused on how best to achieve this. The review identified that the Integritie and Langdon Systems acquisitions, whilst performing well since they became part of the Group, have limited crossover in terms of customer base or strategic rationale. As a result, the Board will continue to consider how to best capitalize on the Group's core business, which may include the divestment of these non-core elements of the Group, in order to deliver the best value to shareholders as a whole. The Board believes that following a strategy to enable RDT to operate as a single market data company, focused on procurement with a dynamic in-house operating model and culture will best position the Group to drive growth and deliver shareholder value in the medium to long term.
During the year, the Group has invested in its growth, with a number of key hires being made, whilst also remaining disciplined on costs and the Board will continue to explore ways to minimise costs.
The Group has made good progress so far this financial year, including winning deals for a top 10 global pharmaceutical business, a top 3 global beverage company, and a top 5 UK Law firm. At the same time, there has been a focus on exiting non-profitable business lines, to enable the Company to focus on larger, more profitable contracts. However, and as has been reported previously, larger contracts have lengthy lead times and Covid restrictions that have been experienced across the economy have lengthened these further. Whilst the Company will continue to work hard to secure further contracts before the end of the financial year, the challenges being faced, mean that the Board is taking a more conservative view on the outcome for the year ending 30 April 2022 and now expects revenue to be no less than £6.0m, with ARR to be at least £5.1m and a corresponding impact on EBITDA.
Paul Watt, CEO, commenting, "Like many businesses we have not been immune to the effects of the pandemic and this is reflected in our anticipated financial performance for the current calendar year. However, with a refreshed leadership team, a great core product and a clear strategy now in place I believe that there are significant opportunities available to the Group to drive growth and deliver shareholder value and am excited to look to the future."
This announcement contains inside information.
Rosslyn Data Technologies plc
Paul Watts, Chief Executive Officer
+44(0) 7555 144983
James Appleby, Chairman
+44 (0) 7940 560624
Stephen Keys/Camilla Hume/Giles Balleny
+44(0)20 7397 8900