Rosslyn Data Technologies PLC on Tuesday reported a widened loss as revenue fell, but highlighted excitement about its prospects and a ‘major new client’.
The London-based data analytics company said pretax loss widened to £3.6 million in the financial year ended April 30, from £2.8 million a year ago.
Despite this, Rosslyn Data reported adjusted earnings before interest, tax, depreciation and amortisation of £2.5 million, compared to a loss of £2.0 million a year ago. ‘Gross margin was significantly increased through adjusting its professional services fees. Alongside this, an in-depth internal project was conducted to increase platform efficiency, which will result in reduced costs going forward,’ the company said.
Revenue fell 5.4% to £2.9 million from £3.0 million a year prior.
Operating costs increased by 22% to £4.7 million from £3.8 million.
Rosslyn Data emphasised that it secured a ‘major’ new client post-year end, noting the client ‘is a leading global technology company and household name’.
Looking ahead, the company said: ‘The board is greatly excited about Rosslyn’s prospects. In the near term, the group expects to achieve positive adjusted Ebitda and cash generation on a monthly basis by the end of the current financial year - which will enable accelerated revenue growth in the medium term as the group leverages the investment that has been made to substantially strengthen Rosslyn’s offer. The board looks forward to reporting on Rosslyn’s progress.’
Chief Executive Officer Paul Watts said: ‘Following a period of significant transition as we transformed our business - having reset our strategy, had that strategy validated and established the foundations to execute - we believe that we are now at an inflection point. We are particularly pleased with the progress that we have made with our AI-powered solution, AiCE - and the contribution our AI development made to securing our major new client win, which is of substantial significance and a further validation of our strategy.’
Rosslyn Data shares were 0.8% lower at 5.11 pence each on Tuesday afternoon in London.
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