30 August 2017
Rosslyn Data Technologies plc
("Rosslyn", the "Company" or the "Group")
Rosslyn Data Technologies plc
("Rosslyn", "RDT" or the "Company")
Audited Results
For the year ended 30 April 2017
Rosslyn Data Technologies plc (AIM: RDT), the provider of a leading cloud-based enterprise data analytics platform today is pleased to announce its audited results for the year ended 30 April 201 7.
Financial Summary
Group Revenues of £3.6M (2016 £3.9M)
Loss before tax improvement of £0.4M to £2.0M (2016 £2.4M)
Cash used in Operations of £1.6M (2016 £2.9M)
Net Cash as at 30th April 2017 stands at £0.3M (2016 £1.9M)
Tight financial and operational management delivered a lower cash burn than expected
Operational Highlights
· Customer wins included a major logistics company and a global media brand
· Strategic partnership with Dun & Bradstreet to provide self-service data and analytics to procurement professionals
· Microsoft recognised the RAPid platform as one of the top cloud-based platform products in October 2016 and also recognised Rosslyn as a preferred partner, issuing us with their "Co-Sell Recommended Partner" status
· New investments made in developing our product suite on the RAPid platform, adding new tools and functionality to the mix whilst ensuring the RAPid platform is scalable, user friendly and provides a satisfying user experience for our partners and clients
· Investment of funds in the development of an HR analytics product suite utilising the core technologies from our other applications and demonstrating the versatility of the platform
· Development of the Group's strategy to focus on growth through acquisition and organically
Commenting on today's results Roger Bullen, CEO of Rosslyn, said, " I am pleased to report the Group results for the year ended 30 April 2017.
We have continued to invest in the development of our talented team, making key hires in sales, customer service, and R&D. The addition of these skilled people ensures that our product offering remains market-leading and that we provide the highest levels of service possible to our clients. Our continued development of the partner channel is exciting and is seeing the RAPid platform being progressively embedded in a number of organisations and I expect this list to increase. These Partnerships play an important role in closing the gap between the firm and the market place enabling us to grab market share far easier than through the direct channels.
We have a broad pipeline of new business and we are excited about the year ahead."
Chairman's Statement
Results
The financial year to 30 April 2017 was our third full year as a public company for Rosslyn Data Technologies plc after the listing on AIM in April 2014. The platform we have built over the last three years has received significant accolades this year, culminating in receiving a Microsoft Data Platform of the Year finalist accreditation in October 2016, confirming our belief that the progress we have made in developing a cloud-based solution is significant.
This year, growing both our partnerships and our direct sales client base has been both challenging and rewarding. We deployed a significant element of the IPO funds into our partnership, sales and marketing strategies, whilst ensuring we did not miss any developments that would enable the business to transform to profitability and organic cash generation. As previously reported, the progress this year was not as rapid as we would have liked; Brexit, the US presidential election and difficult trading times for some of our Partners and clients has led to a slowdown in the delivery of some larger contracts. Group revenue £3.6m (2016: £3.9m). Despite this we have been able to manage our cost base and we are now able to see a timeline when cash flow break-even and profitability occur; although we are not yet complete, we believe there is a strong chance of this occurring this new financial year.
We ended the year with net cash balances of £0.3m (2016: £1.9m), but following the share placement on 15 May 2017, the Board believes that we have adequate cash resources to take the Group through to break-even and cash generation.
Strategy
The Group's strategy has developed from last year with the appointment of Roger Bullen as CEO; our aim now is to establish the platform as a significant player in cloud-based analytics, delivering far more than the "Spend" environment we have focused on for the last three years. We are committed to growing revenues and profitability through a dual-track strategy of acquisition and organic growth. The acquisition of Integritie, now a 100% owned subsidiary in May 2017, demonstrates our determination to add new products and revenue streams to our platform and introduce new customers to the cloud.
Whilst we look at acquisition opportunities, to increase our scale and offering, we will also focus on developing the current relationships with our partners. We have been able to add more partners to our portfolio and have significantly expanded our relationship with Dun & Bradstreet, the world's largest data provider. We have confidence that these partnerships and relationships will continue to grow and flourish. We are particularly excited by the new opportunities we are discovering with our partners in North America and we are hopeful that we can continue to expand our footprint in this region in the months ahead.
Our direct sales operation has delivered some notable wins this year, in all the regions in which we operate - the UK, Continental Europe and the US - and have managed to grow our average annual contract value considerably, up by more than 50% (£50k - £77k) since IPO. We are particularly excited by the new opportunities we are unearthing in the "highly sensitive" data market around the world. We will continue to market to this sector in the months ahead.
Our Staff
Our business would be nothing without our innovative and hard-working staff. From the development team to the client support staff, it is an end-to-end effort. Each role is critical to our continued success. On behalf of the Board I would like to thank all of them for their outstanding efforts in the last year and look forward to working with them and the new enlarged team in the current year.
Outlook
The 2017-18 financial year is going to be a year of change within the firm. The Integritie acquisition has doubled the size of our business and will deliver a number of new opportunities for us. Our partnership strategy continues to develop and is coming to fruition in the US; these partnerships have the potential to deliver the majority of our revenue over the coming years. This, alongside the strengthening traction within our direct sales, makes this an exciting year for us.
Recent announcements demonstrate the high regard major players within the data and analytics industry hold Rosslyn, the RAPid platform and the Knowledge Capture environment. Converting these relationships into scalable revenue streams is key for our growth and our future. I am optimistic that recent product launches and the innovation we continue to deliver will drive the results the Company and our shareholders deserve.
CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME FOR THE YEAR ENDED 30th APRIL 2017
|
|
|
|
|
Year ended 30 April 201 7 |
|
Year ended 30 April 201 6 |
|
Revenue |
|
|
|
3 ,588 , 741 |
|
3,869,050 |
|
Cost of Sales |
|
|
|
( 651 , 605 ) |
|
(481,269) |
|
Gross Profit |
|
|
|
2 , 937 , 136 |
|
3,387,781 |
|
|
|
|
|
|
|
|
|
Other Operating Income |
|
|
|
- |
|
45,535 |
|
Administrative Expenses |
|
( 4,915,222 ) |
|
(5,819,195) |
||
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
|
( 1 , 978,086 ) |
|
(2,385,879) |
|
|
|
|
|
|
|
|
|
Finance Income |
|
|
|
15,029 |
|
11,058 |
|
|
|
|
|
|
|
|
|
Loss before Income Tax |
|
|
|
( 1 , 963 , 057 ) |
|
(2,374,821) |
|
|
|
|
|
|
|
|
|
Income tax |
|
|
|
222 , 308 |
|
256,878 |
|
|
|
|
|
|
|
|
|
Loss for the year |
|
|
|
( 1 , 740 , 749 ) |
|
(2,117,943) |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
( 33 , 764 ) |
|
(14,908) |
|
|
|
|
|
|
|
|
|
Total Comprehensive Income |
|
|
|
( 1 , 774 , 513 ) |
|
(2,132,851) |
|
|
|
|
|
|
|
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30th APRIL 2017
|
Assets |
|
|
|
|
30th April 2017 |
|
30th April 201 6 |
|
|
|
|
Non- Current Assets |
|
|
|
|
|
|
||
|
|
Property, Plant and Equipment |
|
29 , 003 |
|
57 , 353 |
|
|||
|
|
|
|
|
|
29,033 |
|
57,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
||
|
|
Trade and other receivables |
|
1, 879 , 635 |
|
1,907,521 |
|
|||
|
|
Corporation tax receivables |
|
2 20 ,000 |
|
253,000 |
|
|||
|
|
Cash and cash equivalents |
|
284 , 833 |
|
1,858,841 |
|
|||
|
|
|
|
|
|
2,384,468 |
|
4,019,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
2,413,471 |
|
4,076,715 |
|
||
|
|
|
|
|
|
|
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|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|||
|
|
Deferred tax |
|
|
- |
|
- |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
||
|
|
Trade and other payables |
|
(1,6 87 , 284 ) |
|
(1,635,015) |
|
|||
|
|
Financial liabilities - borrowings |
|
- |
|
- |
|
|||
|
|
|
|
|
|
(1,6 87 , 284 ) |
|
(1,635,015) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
(1,6 87 , 284 ) |
|
(1,635,015) |
|
||
|
Net Assets |
|
|
|
726,187 |
|
2,441,700 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
Called up Share Capital |
|
378,829 |
|
37 8,829 |
|
|||
|
|
Share Premium |
|
|
8,517,060 |
|
8,517,060 |
|
||
|
|
Share based payment reserve |
|
218,276 |
|
166,107 |
|
|||
|
|
Accumulated loss |
|
|
(1 3 , 453 , 865 ) |
|
(11,719,947) |
|
||
|
|
Translation reserve |
|
|
( 67 , 175 ) |
|
(33,411) |
|
||
|
|
Merger reserve |
|
|
5,133,062 |
|
5,133,062 |
|
||
|
Total Equity |
|
|
|
726,187 |
|
2,441,700 |
|
||
|
|
|
|
|
|
|
|
|
|
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CONSOLIDATED STATEMENT OF CASH FLOWS for the Year ended 30 April 2017
|
|
|
|
Year ended 30 April 201 7 |
|
Year ended 30 April 201 6 |
|
Cash flows used in operating activities |
|
|
|
||
|
|
Cash used in operations |
|
( 1 , 775 , 216 ) |
|
( 3 , 055 ,0 63 ) |
|
|
|
|
|
|
|
|
|
Corporation tax received |
|
2 55 , 308 |
|
221 , 960 |
|
|
Other comprehensive income |
|
( 33 , 764 ) |
|
(1 4 , 908 ) |
|
Net Cash used in operating activities |
|
( 1 , 553 , 672 ) |
|
( 2 , 848 , 011 ) |
|
|
|
|
|
|
|
|
|
Cash flows used in investing Activities |
|
|
|
|
|
|
|
Proceeds from sale of property, plant and equipment |
|
317 |
|
- |
|
|
Purchase of property, plant and equipment |
|
( 20 ,6 53 ) |
|
( 8 , 622 ) |
|
Net cash used in investing activities |
|
( 20 , 336 ) |
|
( 8 , 622 ) |
|
|
|
|
|
|
|
|
|
Cash flows (used)/generated from financing activities |
|
|
|
|
|
|
|
Repayment of borrowings |
|
- |
|
- |
|
|
Proceeds from share issuance |
|
- |
|
2,744 |
|
Net cash generated from financing activities |
|
- |
|
( 2 , 744 ) |
|
|
Net Decrease in cash and cash equivalents |
|
( 1 , 574 , 008 ) |
|
( 2 , 853 , 889 ) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
|
1 , 858 , 841 |
|
4 , 712 , 730 |
|
|
Cash and Cash equivalents at end of year |
|
284 , 833 |
|
1,858,841 |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
Rosslyn Data Technologies plc (the "Company") is a company domiciled in the UK. The address of the registered office is Fox Court, 14 Gray's Inn Road, London WC1X 8HN. The Company is the ultimate parent of Rosslyn Analytics Ltd. a company incorporated in the UK, and the ultimate parent of Rosslyn Analytics Inc., a company incorporated in the United States of America (collectively the "Group"). The Group's principal activity is the provision of data analytics using a proprietary form.
The principal accounting policies adopted in the preparation of the consolidated financial information are set out below.
2. Accounting Policies
Basis of preparation
The Group's consolidated financial statements have been prepared and approved by the Directors in accordance with the International Financial Reporting Standards (as adopted by the EU) and IFRC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention
Going Concern
Notwithstanding that the Group has made losses in the current year, these financial statements have been prepared on the going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future. Following the placement of 111,142,031 ordinary £0.005 shares at the price of £0.045 on 15 May 2017, the Directors believe that the Group has sufficient working capital to meet its present requirements for at least the next twelve months from the date of this consolidated financial information. The Directors have prepared cash flow statements for the period to 30 April 2025 to ensure going concern criteria are met.
Basis of Consolidation
On 23 April 2014 the Company acquired the Group's previous parent company, Rosslyn Analytics Ltd., via a share for share exchange whereby every ordinary share and A preference share in Rosslyn Analytics Ltd. Was exchanged for eight ordinary shares and eight A preference shares respectively in Rosslyn Data Technologies Ltd. (prior to conversion to a plc on 24 April 2014). On 24 April 2014 the A preference shares were converted into ordinary shares on a one for one basis.
On 29 April 2014 Rosslyn data Technologies were admitted to trading on AIM.
Accordingly these financial statements are presented in the name of the legal parent, Rosslyn data Technologies plc.
The Annual report will be available on the Company's website for download by 21st September 2017 and the Annual General Meeting will be held on 19th October at 10.30am, Waterhouse Square, 138 Holborn, London EC1N 2SW