Rosslyn Data warns of slower start to FY
By Iain Gilbert
Date: Wednesday 11 Dec 2019
(Sharecast News) - Big data firm Rosslyn Data Technologies told investors on Wednesday that it has had a slower than expected start to sales in the first few months of the financial year.
Rosslyn said professional service revenues for the half had been impacted due to some clients opting to defer contracted projects to a later period. In addition, the group revealed it had also decided not to renew client contracts with a high element of resale revenue which were unsustainable due to low levels of gross margin.
However, the AIM-listed group said it had signed a new spend analytics client in the transport sector. The contract was said to be worth £410,000 over a three-year term - with the first revenues being recognised in the second half of the current financial year.
The recently acquired Langdon business was projected to have retained annual recurring revenues in excess of £400,000 and this was said to potentially increase as renewals, revisions and new business contracts were finalised.
With further contract wins expected in the coming months and tight control on costs, Rosslyn still expects full-year results to be in line with market expectations.
Chief executive Roger Bullen said: "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."
As of 0940 GMT, Rosslyn shares had shed 13.59% to 5.10p.
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