LONDON (ShareCast) - (Sharecast News) - Rosslyn Data Technologies reported narrower losses and improved cash flow for the year ended 30 April on Monday, as the company's turnaround strategy and investment in artificial intelligence technology started to show results.
Revenue rose slightly to £3m from £2.9m, while the adjusted EBITDA loss narrowed to £2.0m from £2.5m.

Gross margins improved to 40.7% from 38.8%, and the AIM-traded company's cash position strengthened to £1.7m at year end, up from £646,000 a year earlier.

Monthly cash burn fell to £160,000 from £218,000.

Annual recurring revenue was stable at £2.3m, while the total sales pipeline expanded to £4.1m, up from £3.3m, with a weighted pipeline of £1.6m.

The firm said it secured new contracts during the year, including a major global technology firm and a top five global consulting company.

Operational progress was underpinned by the commercial launch of its AI-powered classification solution, AICE, alongside new AI tools for initiative tracking and benchmarking.

"Over the last two years, Rosslyn has been on a complex turnaround journey," said chief executive Paul Watts.

"This involved the investment of significant resources into developing an AI-based platform, balanced against undertaking fundraising activity to address our cash flow.

"This development project has now come to fruition with our AI classification tool, AICE, having been fully released and stress tested by some of the largest companies in the world with substantial volumes of data.

"This was a pivotal moment for Rosslyn and we strongly believe this technology will be the foundation on which we can now execute commercially as well as be the springboard for us to be able to unlock the value of procurement data through providing AI-led actionable insight."

Watts added that Rosslyn ended the year "in a stronger position than we entered" and said the company looks to the future "with confidence," supported by an improved balance sheet and a growing sales pipeline.

At 1249 GMT, shares in Rosslyn Data Technologies were up 6.25% at 3.4p.

Reporting by Josh White for Sharecast.com.

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