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(Alliance News) - Shares in Rosslyn Data Technologies PLC were under selling pressure on Thursday after the company reported largely unchanged interim earnings, but it said it still believes full-year results will fall in line with expectations.
Shares in the Portsmouth, England-based data management and analytics service provider were down 14% at 18.00 pence each in London on Thursday afternoon.
Revenue for the six months that ended October 31 were GBP1.4 million for Rosslyn, unchanged from a year before.
Gross margin of 36% for the six months was up from 29% from a year prior, while administrative expenses were flat at GBP2.2 million.
Rosslyn reported an adjusted loss before interest, tax, depreciation and amortisation of GBP1.7 million, widened from GBP1.6 million in 2023. Pretax loss was GBP2.0 million, widened from GBP1.8 million a year before.
Rosslyn's monthly cash-burn rate of GBP276,000 was up 27% from GBP217,000 in 2023.
Rosslyn improved its cash position to GBP2.2 million as at October 31 from GBP676,000 in April, thanks to an August fundraise of GBP3.3 million via the issue of new shares and convertible loan notes.
As of October 31, the company's total sales pipeline was GBP3.9 million, with a weighted pipeline of GBP807,000, after the group secured two contracts with an unnamed "blue-chip European med-tech company" and an international transport consultancy group.
Rosslyn said that it is in discussions with "significant new partners" regarding near-term opportunities with "revenue-generation potential". As a result, the company said that forecasts for the full year remain in line with expectations. Rosslyn anticipates annual recurring revenue growth of approximately 15% for the 2024 financial year,
Commenting on the interim results, Chief Executive Officer Paul Watts said: "Following a year of major transformation and restructuring, and having undergone a fundraising during the period, we have now established the foundations for us to accelerate growth. We are currently in discussions with substantial partners regarding some significant opportunities, which reflect the recognised strength of our offer and are testament to our renewed go-to-market approach."
By Hugh Cameron, Alliance News reporter
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