Rosslyn Data Tech. - Trading Update
("Rosslyn" or the "Group")
As reported in the 2019 full year results in September, the Group had a slower start to sales in the first few months of the financial year. Professional service revenues for the half have also been impacted due to some clients opting to defer contracted projects to a later period. In addition, we decided not to renew client contracts with a high element of resale revenue which were unsustainable due to low levels of gross margin.
However, we have signed a new spend analytics client in the transport sector, which manufactures rolling stock and infrastructure for the rail network. The contract is worth
The Group is pleased to note the Langdon business acquired in late September is proceeding satisfactorily, with the majority of clients having been retained. A product development plan has now been produced to manage client upgrades catering for Brexit in
The Group expects the Langdon retained annual recurring revenue (ARR) to be in excess of
With further contract wins expected in the coming months and a tight control on costs we expect the full year result to be in line with market expectations.
Rosslyn Chief Executive Officer,
"We continue to focus our attention on building out our client base with sustainable ARR, ensuring that gross margins are in line with our expectations. I am delighted that we continue to win significant contracts with major industry leaders with the RAPid platform demonstrating our domain expertise and knowledge.
The Langdon acquisition, although not delivering significant profitability in the first 9 - 12 months, has an extremely loyal customer base with low churn rates and provides a significant cross-selling opportunity. We expect the ARR achieved from Langdon to increase in the next half year as we face Brexit and the new customs declaration system upgrade."
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+44(0)77 7162 3345
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+44(0)79 3054 7441
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Notes to Editors
Further information can also be found on the Company's website at: www.rosslyndatatech.com
This information is provided by RNS, the news service of the
Quick facts: Rosslyn Data Technologies PLC
Market Cap: £10.61 m
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