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(Alliance News) - Rosslyn Data Technologies PLC's share price dropped sharply on Thursday after it lowered revenue estimates after Covid restrictions hurt the data management and analytics service provider.
AIM-listed Rosslyn Data now predicts revenue for the year ending April 30 will be "no less than" GBP6.0 million. This is 19% lower than June's estimates of GBP7.4 million. The new forecast is also 15% lower than the previous year's revenue of GBP7.1 million.
Annual-recurring revenue is predicted to be GBP5.1 million, which will have a corresponding impact on earnings before interest, tax, depreciation and amortisation.
The Portsmouth, England-based company's share price dropped by 12% to 3.80 pence each in London on Thursday afternoon.
In the year thus far, RDT has won some large deals and shifted its focus away from non-profitable business to focus on larger contracts. However, the longer lead times on larger contracts, compounded by Covid restrictions, have led to the revised revenue estimates, the company said.
RDT said it will explore ways to minimise costs, and continue to pursue more contracts before the end of their year in April.
Paul Watt, chief executive officer, commented: "Like many businesses we have not been immune to the effects of the pandemic and this is reflected in our anticipated financial performance for the current calendar year. However, with a refreshed leadership team, a great core product and a clear strategy now in place I believe that there are significant opportunities available to the group to drive growth and deliver shareholder value and am excited to look to the future."
By Elizabeth Winter; elizabethwinter@alliancenews.com
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