17 September 2015
Rosslyn Data Technologies plc
("Rosslyn", "RDT" or the "Company")
Audited Results for the Year Ended 30 April 2015
Rosslyn Data Technologies plc (AIM: RDT), the provider of a leading cloud-based enterprise data analytics platform today announces its audited results for the year ended 30 April 2015.
Financial Summary
Group revenues of £2.8M in line with projections and up 37 per cent from 2014 (£2.1M)
Loss before tax of £3.5M (2014 £3.1M)
Cash used in operations of £4.1M (£2.7M)
Net cash as at 30th April 2015 stands at £4.7M (2014 £8.8M)
Tight financial and operational management delivered a lower cash burn and loss than expected
Operational Highlights
Encouraging progress made since the Company's IPO in April 2014. Results are in line with expectations:
· Grown customer base by over 100 per cent as the combination of the direct sales team and partnership strategy has gathered momentum
· The direct sales team has seen a marked improvement in key metrics and continues to win contracts in respected global companies
· Revenues generated from existing clients by the Client Success team have accelerated as the 'land and expand' strategy bears fruit. This has been driven by:
o The broader adoption of the platform and the release of new products
o Client renewal rates remaining high with a churn rate of below 5 per cent
· The Partner Channel has developed well during the period with notable relationships including the Joint Business Relationship with PWC and, since the period end, has signed a partnership with Genpact. The Directors feel these partner relationships provide Rosslyn with a powerful foundation from which to generate increased business and further differentiate RDT's business model from competitors. The Directors intend to leverage these existing relationships to expand overseas and enter new verticals. The Directors also believe the RAPid platform performs an integral role within the business functions of RDT's partners, freeing up valuable resource enabling them to focus on building new, high margin revenue streams and giving them greater speed and agility to respond to changing client needs. The Directors are in advanced talks with a number of other potential strategic partners and look forward to announcing these in due course
· Continued focus on R&D during the period, as part of the Group's commitment to investing in the development of the product offering. The focus has been on speed, scalability, automation and self-service. This has enabled the Rosslyn's clients to efficiently gain insights into their data, identify opportunities and profit from these whilst minimising risks. The Company's continued focus on developing an on-demand, intuitive workflow for data preparation, fast application development and an Apps platform, where insights are shared across the enterprise, is becoming increasingly pervasive. By building easy to use technologies, that mask the complexities of analytics, Rosslyn's products are shortening the time it takes for clients and partners to analyse data, driving down the cost of analytics and increasing their ROI
· The high levels of contracted recurring revenues and low churn rates provide good visibility on Rosslyn's turnover. During the period the Company signed one 5 year contract with the remainder having a minimum of 1 year term. The Directors are encouraged by the size of the current pipeline coming through, via direct and indirect sales channels, and the speed at which it is growing
Commenting on today's results, Charles Clark, CEO of Rosslyn said:
"Following Rosslyn's admission to AIM in April 2014, I am pleased to report that the Group has made good progress and has recorded an encouraging set of results for the year ended 30 April 2015.
"Our focus has been on investing in the development of the team, making key hires in sales, customer success, and R&D. The addition of these key people ensure that we provide the highest levels of service possible and that our product offering remains market-leading. Our successful development of the partner channel is exciting and is seeing the RAPid platform being progressively embedded in a number of key players and I expect this list to increase. These relationships play an important role in closing gaps between the firm and the market place.
"We have a broad pipeline of new business and we are excited about the year ahead."
Notes to Editors
Rosslyn Data Technologies plc, (AIM: RDT), a leading provider of a Cloud-based enterprise data analytics platform, was founded in 2005 by Charles Clark and Hugh Cox. Business Intelligence was ranked first in the top ten technology priorities for Chief Information Officers in 2012 by Gartner. The Company provides analytical services by combining four key technologies: data extraction; cleansing; enrichment; and visualisation, through a single cloud platform enabling users with detailed data to make more informed decisions. Rosslyn's RAPid platform is the Group's primary product available to its multinational customers, including Aberdeen Asset Management plc, Babcock Corporate Services plc, Xerox Business Services and Coca-Cola Enterprises, Inc. Rosslyn Data Technologies plc is the ultimate holding company of the Group and owns 100 per cent of Rosslyn Analytics Limited.
Further information can also be found on the Company's website at: www.rosslynanalytics.com
Chairman's Statement
Results
The financial year to 30th April 2015 was the first full year as a public company for Rosslyn Data Technologies plc. I am delighted with the progress we have made in the year. Our task this year has been to deploy a significant element of the IPO funds into the business to allow a transformation to profitability and for organic cash generation to take place. This task is not yet complete and there is further work to do in 2015-16 to achieve our goals but we have made a strong start.
Group revenue increased by 37 per cent to £2.8M (2014 £2.0M). The second half of the year saw a growth rate of 50 per cent on a year on year basis. As we have deployed funds into an enlarged product development team and sales and marketing, we have seen an increase in losses at the EBITDA level to £3.4M (2014: £2.8M). This was somewhat less than we anticipated at the start of the year.
We ended the year with net cash balances of £4.7M (2014:£9.0M).
Costs have been kept under control and the Company's cash profile remains in line with, or ahead of, management's expectations. The Board remains confident that the Company has the resources and business plan in place to enable the Company to become cashflow positive in line with its expectations. The Board constantly reviews the conflicting opportunities relating to the Company's rate of growth and speed of achieving cashflow breakeven.
Strategy
The Group's strategy remains unchanged from the time of our listing. We are committed to growing revenues through a dual track strategy of direct sales and working with partners. The Group's relationship with Xerox goes back to 2013. Our relationship continues to grow and we have confidence that this relationship will continue to flourish. They remain our single largest customer.
During the year we established a new partnership with PriceWatehouseCoopers LLP (PWC). This relationship is developing in an encouraging manner and I look forward to reporting on further progress next year. As a result of this relationship PWC stood down as auditors during the year. They took up their appointment in 2013 and acted as reporting accountants during our listing process and as auditors for the financial years 2013 and 2014. I would like to thank them on behalf of our shareholders for all their help, support and objectivity. Grant Thornton UK LLP has replaced PWC as auditors and we look forward to working with them.
Our direct sales operation has also had a successful year. We have had a number of notable wins in all the regions in which we operate - the UK, Continental Europe and the US. We are particularly excited by the opportunities we are discovering in North America in the education field. In January we signed a five year agreement with the Florida State University Board of Trustees to provide data analytic services to twelve universities in Florida. We are hopeful that we can continue to expand our footprint in this sector in the months ahead.
Board Changes
I am delighted to welcome Roger Bullen to the Rosslyn family as a Director of the Company. He takes up his post as Chief Financial Officer on 1 October 2015. He has served with distinction as International Finance and Operations Director at Navigant and his operational experience will be extremely valuable to us as the business grows and develops. He replaces Francis Reid, who announced his departure in May. We are sorry to lose him and wish him well for the future. He has worked with Roger to establish a smooth handover. The Board would like to express its thanks to Francis for all his contribution to the Group's development and, in particular, steering us through the IPO process.
Our Staff
Our business would be nothing without our imaginative and hardworking staff. From the development team to the client and 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 in the current year.
Outlook
I look forward with confidence to the 2015-16 financial year. We are seeing accelerated traction within our Direct Sales and our clients are investing in the benefits our innovative products are bringing to an extremely competitive market.
I am exceptionally pleased with the progress we have made within our Partnership strategy. Recent announcements from our Partners demonstrate the high regard with which major players, within the industry, hold Rosslyn and the RAPid technology platform. Converting these partnerships into healthy revenue streams is key for our growth and our future. I am optimistic that these partnerships will deliver the results the Company and our Shareholders deserve.
CONSOLIDATED STATEMENT OF COMPRHENSIVE INCOME FOR THE YEAR ENDED 30th APRIL 2015
|
|
|
|
Year ended 30 April 2015 |
|
Year ended 30 April 2014 |
Revenue |
|
|
|
2,826,034 |
|
2,066,041 |
Cost of Sales |
|
|
|
(442,309) |
|
(349,072) |
Gross Profit |
|
|
|
2,383,725 |
|
1,716,969 |
|
|
|
|
|
|
|
Other Operating Income |
|
|
|
128,948 |
|
34,615 |
Administrative Expenses - Excluding Exceptional Items |
|
(6,019,581) |
|
(4,638,104) |
Administrative Expenses - Exceptional Items |
|
|
|
|
(223,460) |
|
|
|
|
|
|
|
Operating Loss |
|
|
|
(3,506,908) |
|
(3,109,980) |
|
|
|
|
|
|
|
Finance Income |
|
|
|
28,687 |
|
0 |
Finance Costs |
|
|
|
|
|
(1,753) |
|
|
|
|
|
|
|
Loss before Income Tax |
|
|
|
(3,478,221) |
|
(3,111,733) |
|
|
|
|
|
|
|
Income tax |
|
|
|
222,216 |
|
148,510 |
|
|
|
|
|
|
|
Loss for the year |
|
|
|
(3,256,005) |
|
(2,963,223) |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
(18,503) |
|
0 |
|
|
|
|
|
|
|
Total Comprehensive Income |
|
|
|
(3,274,508) |
|
(2,963,223) |
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30th APRIL 2015
|
|
|
|
|
Year ended 30 April 2015 |
|
Year ended 30 April 2014 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Non- Current Assets |
|
|
|
|
|
|
Intangible Assets |
|
|
0 |
|
17,019 |
|
Property, Plant and Equipment |
|
104,005 |
|
29,016 |
|
|
|
|
|
104,005 |
|
46,035 |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Trade and other receivables |
|
1,203,747 |
|
714,091 |
|
Corporation tax receivables |
|
218,082 |
|
147,643 |
|
Cash and cash equivalents |
|
4,712,730 |
|
9,019,458 |
|
|
|
|
|
6,134,559 |
|
9,881,192 |
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
6,238,564 |
|
9,927,227 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Deferred tax |
|
|
|
|
(4,134) |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
(1,704,224) |
|
(1,914,588) |
|
Financial liabilities - borrowings |
|
|
|
(200,000) |
|
|
|
|
|
(1,704,224) |
|
(2,114,588) |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
(1,704,224) |
|
(2,118,722) |
Net Assets |
|
|
|
4,534,340 |
|
7,808,505 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Called up Share Capital |
|
377,229 |
|
377,029 |
|
Share Premium |
|
|
8,515,916 |
|
8,515,773 |
|
Share based payment reserve |
|
288,017 |
|
329,000 |
|
Accumulated loss |
|
|
(9,761,381) |
|
(6,546,359) |
|
Translation reserve |
|
|
(18,503) |
|
0 |
|
Merger reserve |
|
|
5,133,062 |
|
5,133,062 |
Total Equity |
|
|
|
4,534,340 |
|
7,808,505 |
CONSOLIDATED STATEMENT OF CASH FLOWS for the Year ended 30 April 2015
|
|
|
|
|
Year ended 30 April 2015 |
|
Year ended 30 April 2014 |
Cash flows used in operating activities |
|
|
|
|
|
Cash used in operations |
|
|
(4,082,046) |
|
(2,694,552) |
|
|
|
|
|
|
|
|
|
Finance costs paid |
|
|
|
|
(1,753) |
|
Corporation tax received |
|
|
150,880 |
|
131,235 |
|
Other comprehensive income |
|
(18,503) |
|
|
Net Cash used in operating activities |
|
(3,949,669) |
|
(2,565,070) |
|
|
|
|
|
|
|
|
Cash flows used in investing Activities |
|
|
|
|
|
Purchase of Intangible assets |
|
(5,626) |
|
(19,450) |
|
Purchase of property, plant and equipment |
(151,776) |
|
(23,678) |
Net cash used in investing activities |
|
(157,402) |
|
(43,128) |
|
|
|
|
|
|
|
|
Cash flows (used)/generated from financing activities |
|
|
|
New loans in year |
|
|
0 |
|
200,000 |
|
Repayment of borrowings |
|
|
(200,000) |
|
|
|
Proceeds from share issuance |
|
343 |
|
12,812,444 |
|
Costs of share issuance |
|
|
0 |
|
(1,462,009) |
Net cash (used)/generated from financing activities |
(199,657) |
|
11,550,435 |
Decrease in cash and cash equivalents |
|
(4,306,728) |
|
8,942,237 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year |
9,019,458 |
|
77,221 |
Cash and Cash equivalents at end of year |
|
4,712,730 |
|
9,019,458 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
Rosslyn Data Technologies Ltd. was incorporated on 7 February 2014 and on 24 April 2014 converted from a private limited company to a Rosslyn data Technologies plc.
Rosslyn Data Technologies plc (the "Company") is a company domiciled in the UK. The address of the registered office is 25 Eccleston Place, London SW1W 9NF. 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 . 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.
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 30th September 2015 and the Annual General Meeting will be held on 28th October at The Viceroy Room, The Grovesnor, 101 Buckingham Palace Road London SW1W 0SJ.
