TIDMRDT
RNS Number : 7826E
Rosslyn Data Technologies PLC
31 October 2022
31 October 2022
Rosslyn Data Technologies plc
("Rosslyn", the "Group" or the "Company")
Final Results
Rosslyn (AIM: RDT), the provider of a leading cloud-based
enterprise data analytics platform, announces its final results for
the year ended 30 April 2022.
Financial summary*
-- Adoption of revised policy on development costs, in line with industry best practices
-- Revenue from continuing and discontinued** operations for FY22 was GBP5.9m
o Revenue for continuing operations was GBP2.7m (2021 restated:
GBP3.6m) due to the churn in the customer base during restructuring
and before the new platform was introduced
-- Decrease in total administrative expenses in FY22 to GBP4.5m (2021 restated: GBP4.7m)
-- Adjusted EBITDA*** for FY22 from continuing and discontinued
operations was a loss of GBP2.4m (GBP3.4m loss under the previous
accounting policy of expensing development costs)
o Adjusted EBITDA from continuing operations was a loss of
GBP3.7m (2021 restated: loss of GBP1.8m)
-- Debt free with net cash of GBP2.4m as at 30 April 2022 (30 April 2021: net cash of GBP5.8m)
o Net cash as at 30 September 2022 was GBP882k prior to receipt
of sale proceeds from both Langdon Systems and Integritie
* See the Financial Review for further detail on the restatement
of accounts
** Integritie and Langdon Systems are classified as discontinued
operations for the purpose of the statutory accounts
*** Adjustments made are for exceptional items and share-based
payments
Operational and strategic highlights
-- Major restructuring, enabling all efforts to be focussed on a
single core product and a SaaS business model
-- Launch of the new and improved Rosslyn Platform, with
customer migration now nearing completion
-- Rebranding to present Rosslyn as a modern visionary business,
focussing on a single product comprising a best-in-class
solution
-- New operational leadership team, which now consists of 80%
new employees all from the B2B SaaS enterprise software space, with
proven track records of executing successful turnaround
projects
-- New go-to-market strategy focussed on leveraging partnerships
to grow adoption of the Rosslyn Platform at scale resulting in some
notable client wins
-- New KPIs introduced from this year that are in line with the
industry best practice and aimed at driving an entrepreneurial
operating model in a fully collaborative environment
-- Significant new client wins including a top 10 global
pharmaceutical business, a top 3 global beverage company, a top 5
UK law firm and, post period, a Tier-1 Japanese bank via the
partnership with ChainIQ and a three-year GBP500k contract with a
multinational medtech corporation with an option to extend for a
further two years
-- Post period, value-accretive divestment of Langdon Systems
for GBP100k in cash and in advanced discussions with regards to the
sale of Integritie, which is expected to complete shortly
Paul Watts, CEO of Rosslyn, said: "During this financial year,
we underwent a fundamental restructuring of our business and
refreshed our product, team, brand and go-to-market strategy. We
are now focussed on our core Rosslyn Platform, which we believe
offers a best-in-class solution for procurement analytics,
particularly for complex cases. The customer migration to our new
platform is almost complete and we have been receiving great
feedback, which is excellent vindication of the investment that we
have made. We have also secured some notable wins from our new
partner-led go-to-market approach. This, combined with a strong
pipeline and expected reduced cash burn following the disposal of
non-core operations, means we are now in growth execution mode.
Accordingly, we expect to start seeing the fruits of our investment
come through in the current and next financial year, and we look
forward to reporting on our progress."
This announcement contains inside information
Enquiries
Rosslyn
Paul Watts, Chief Executive Officer
James Appleby, Chairman +44 (0)20 3285 8008
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Cenkos Securities (Nominated adviser
and Broker)
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Stephen Keys/Camilla Hume +44 (0)20 7397 8900
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Gracechurch Group (Financial PR)
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Harry Chathli/Claire Norbury +44 (0)20 4582 3500
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About Rosslyn
Rosslyn (AIM: RDT) provides an award-winning spend analytics and
predictive analytics platform. The Rosslyn Platform helps
organizations with diverse supply chains mitigate risk and make
informed strategic decisions. It leverages automated workflows,
artificial intelligence and machine learning to extract and
consolidate procurement data providing visibility of complex
supplier data, enabling supplier spend savings and delivering
rapid ROI. For more information visit www.rosslyn.ai
Chairman's Statement
The year to 30 April 2022 has been one of transformation for
Rosslyn. We started the year with a new CEO, Paul Watts, who
implemented a full-scale strategic and operational review - taking
into account our product set, our team and our go-to-market
strategy. The outcome of this exercise was the decision to trim the
business back to its core strengths - to focus on where we really
excel and what we are best known for, which is spend analytics.
The delivery of this vision involved a significant restructuring
of our company. A fundamental element of this was the decision to
dispose of Integritie and Langdon Systems, which have limited
crossover with our core business in terms of customer base or
strategic rationale. Given the challenging market conditions that
have prevailed over the past year, this process has taken longer
than we had hoped. However, we were pleased to have completed the
disposal of Langdon Systems at the beginning of October 2022 and we
are in advanced negotiations regarding the disposal of Integritie,
which we expect to complete in the coming weeks. A further
announcement will be made on this as appropriate.
Alongside this, we put great effort into the development of our
core Rosslyn product, with the upgraded platform being launched
post period. As Paul discusses in his CEO Review, our product is
now better designed to meet our customers' needs and we are
receiving excellent feedback from those that have been migrated to
the new platform.
Having reviewed our go-to-market strategy, we moved to a
partner-led approach, which involves strengthening and expanding
our existing partnerships as well as establishing others. Under
this model, some partners serve as introducers while others service
the end customer - both of which increase our reach within the
market. While it is still relatively early days, we have already
generated some notable wins from this approach.
A further element of our transformation was the restructuring of
our core team. While working hard to retain certain key staff below
the senior level, we have completely refreshed the management team
with the aim of creating a culture of a high energy, high growth
software business. Importantly, this new team was involved in
helping to set the new strategy that we are now following. Under
the leadership of Paul, who is an extremely experienced business
builder with invaluable expertise in driving SaaS companies, we now
believe we have the right core team in place with the energy to
drive the business forward.
Accordingly, we believe we are now well positioned for growth.
While it is still early days and our journey won't be without bumps
in the road, we are starting to see results. We have a much
stronger pipeline, a much stronger retention rate and a much
happier customer base. We are focused on doing one thing and doing
that one thing really well as a high-growth ARR-based software
business.
I would like to thank all our staff and our stakeholders for
their support as we undergo this transition. We believe that by
delivering on our vision, we will generate value for our
shareholders and I look forward to doing so. Hugh Cox and Ash Mehta
stepped down from the Board during the year under review and, as I
said in my statement last year, we thank them for their
contributions. I would also like to express my gratitude to Barney
Quinn who, in line with best practice corporate governance, will be
retiring from the Board before his ninth anniversary in April 2023.
Barney is working with the Board to assist in the identification of
a suitable successor.
With our refreshed product, team and strategy, we exited the
year in a far stronger position than when we entered it - and,
indeed, than at any point in our recent history. We are now working
hard to deliver on this strategy and I look forward to reporting on
our progress.
CEO's Review
Introduction
The last financial year was an important turning point in our
business development. We are now at the very end of a major
restructuring, resulting in a refocusing on a single core product
and a SaaS business model. With a refreshed operational leadership
team, we have also renewed our go-to-market strategy to a
partner-led approach.
We solidified Rosslyn's leadership position in procurement
analytics for the most complex and high-volume enterprise
requirements, which is reflected in us having $1.4 trillion of
spend under management on a month-to-month basis. The ability to
help enterprises with the most complex problems through making data
visible, understandable and insightful for procurement departments
is what Rosslyn is known for. Our product is relied on by some of
the world's leading companies, with new customers added this year
including a top 10 global pharmaceutical business, a top 3 global
beverage company and a top 5 UK law firm.
We heavily invested during the financial year to build a solid
foundation and, whilst this had a corresponding impact on our
earnings for this year, we now have a solid platform for growth and
expect to start seeing the fruits of this investment come through
in the current and next financial year.
Market opportunity
We feel that our investments are well-timed as the market
opportunity for Rosslyn continues to grow. The macroeconomic and
geopolitical landscape is the most complex it has ever been. With
stretched supply chains, compounded by events such as the conflict
in Russia-Ukraine, it is crucial to leverage all data available to
manage risks and make strong strategic procurement decisions.
Combined with this, there is a growing requirement for taking ESG
factors into account in procurement - from a risk management and
ethical business perspective. This can only be achieved with
specialised technology with strong data aggregation and analytical
capabilities. At the same time, there has been an under investment
by corporates in procurement and risk technology, which is further
driving demand for solutions such as ours.
Rosslyn has an advantage of 15 years' experience in the space.
We are very good at helping enterprises clean and digest their data
easily to make strategic decisions deep within their supply chain.
Coupled with other competitive advantages and a timely
restructuring, I believe that Rosslyn is well positioned to
capitalise on these market opportunities in the coming years.
Platform
Focusing on our platform, I would like to emphasise our unique
selling proposition:
-- 15 years' experience means that we've seen it all and have
built a platform that can cater for even the most unexpected
scenarios.
-- We can handle the most complex data landscapes with multiple sources and source locations.
-- We have unmatched data extraction capabilities, which we
strive to continuously improve and automate as much as possible to
improve our utility to larger scale organisations.
We've put the customer experience at the centre of our business,
with a laser focus on ensuring they extract maximum value from our
solution.
We have now migrated almost all of our clients to the new
platform, and I am happy to report strong customer, partner and
analyst endorsement. For the last three years, Rosslyn has been
named on the "50 to know" list by Spend Matters, a provider of
procurement solutions intelligence, where the overall score
combines analysts' evaluation and customers' feedback. This
recognition is a testament to how we have been able to make
continuous improvements within our own platform, enabling our
clients to make data driven decisions with confidence. Hitherto, in
Spend Matters' SolutionMap ranking, we have been a Solution Leader,
which is based on product strength. This year's ranking is expected
to be published in the coming months and I am hopeful that the
refreshed Rosslyn will transition to a Value Leader, which reflects
the level of service we give to our customers as well as the
strength of our product.
The new Rosslyn Platform delivers a simplified, more intuitive
interface and streamlined navigation, making it easier for users to
quickly gather the insight they need. The collaboration functions
have been improved to facilitate the sharing of dashboards and
reports with key stakeholders across a business. There is also a
closer integration between data and visualisation, including
features such as enabling specialist teams within customer
organisations to have their own tailored view of procurement data.
Users want to spend more time on the new platform and we are also
pleased to see customers growing the number of users of the
platform, reflecting the value that it offers. Our aim is to
provide our customers with a single source of truth, from all of
their internal and external data, that can be leveraged across
their organisation.
Customer Advisory Board and ESG
Towards the end of the year, Rosslyn held the inaugural meeting
of its Customer Advisory Board and immediately began implementing
some of the recommendations. In particular, we have started
incorporating a broader range of data - such as related to supply
chain risk, sustainability and diversity - into the analytics
alongside supplier spend data. We still have a way to go in terms
of tracking and analysing a wide range of ESG metrics across the
supply chain, but we are making good progress and we were
delighted, post period, to implement our first contract where the
customer had appointed us specifically for our ability to provide
diversity data.
Now that the migration of our clients to the new platform is
almost complete, and the first results are in, we will soon hold
another meeting of the Customer Advisory Board as continuous
improvement is essential to stay ahead in the very dynamic area of
procurement. Moving forward , we will be looking at key areas for
innovation within the Rosslyn Platform, such as AI, machine
learning and ESG tracking.
Rebranding
Along with the new platform one of the major initiatives this
year was a rebranding programme, which completed post year end, to
refresh Rosslyn's appearance making it more engaging for today's
market and aligning it with the new direction of the business. In
particular, we are now branded simply as 'Rosslyn' to reflect the
strategic focus on a core SaaS platform.
The rebrand has brought great results both in terms of
interaction with the Rosslyn brand and in terms of the generation
of new opportunities. Where a year ago there was very limited
traffic on our website, now we are averaging 8,000 interactions a
month.
Partner-led development
With the new platform, the new brand and a new sales and
marketing team, we are now focused on executing on our strategy to
have a partner-led approach to business development. This involves
increasing our business with existing partners as well as
establishing new partnerships. We believe we have best-in-class
partner onboarding and support systems, and in the coming financial
year, we expect to increase the number of partners that we have in
execution mode.
While we are still in the early stages of implementing this
strategic shift in our go-to-market model, we are already seeing
some great results. Post period, we won a contract for the
international arm of a tier 1 Japanese bank via our partnership
with Chain IQ. Since forming the partnership last year, Chain IQ
and Rosslyn have undertaken a number of successful
proof-of-concepts with potential customers, with this new contract
representing the first to transition to a full enterprise customer.
We are confident that more will follow in the near term. We also
won a three-year GBP500k contract with a multinational medtech
corporation, with an option to extend for a further two years,
which came via a new partner of ours.
Divestment
To be able to move faster and in a more focused manner, we
decided to divest all non-core businesses - namely, Integritie,
which is a content management platform, and Langdon Systems, which
specialises in bulk handling of supply chain data associated with
import and export duty management systems. Divesting of these
non-core parts of the business will provide us with far greater
strategic and operational focus on our primary product - the
Rosslyn Platform - as well as reduce cash burn. We sold Langdon
Systems in October 2022 for GBP100k, generating value from the sale
and providing working capital that will enable us to accelerate the
execution of our growth strategy, and we expect to complete the
disposal of Integritie in the coming weeks.
On a similar note, during the year there was a focus on exiting
non-profitable business lines to enable us to prioritise larger
contracts. While the sales cycle for such contracts is longer, the
end result is more valuable.
KPIs
As discussed in the Finance Review, we have established new KPIs
by which we will measure the success of the business. These KPIs
are in line with industry best practice for B2B SaaS enterprise
software businesses - with the most important metric being annual
recurring revenue (ARR) growth. Through clear and appropriate KPIs,
we are empowering the new leadership team with an entrepreneurial
operating model to drive their line of business in a fully
collaborative environment.
Outlook
Looking ahead, Rosslyn is now in growth execution mode. We have
done a lot of heavy lifting in the last 12-18 months on the
product, the brand, the team and the go-to-market model and we are
now looking to get a return on those investments in the short term
while continuing to strengthen the foundations of the business to
deliver sustainable growth in the long term.
Trading in the first half of FY23 to 30 September 2022 has been
as expected and we believe we are close to completing the disposal
of Integritie. Accordingly, and with a good pipeline for the rest
of the year, we remain on track to deliver increased revenue for
the full year, in line with market expectations and look to the
future with confidence.
Financial Review
The Group's results reflect the transitional nature of the year
under review as the business underwent a comprehensive
restructuring and invested in the development and launch of the new
Rosslyn Platform.
Discontinued operations
Integritie and Langdon Systems have been classed as discontinued
operations for the period and historical comparisons restated on
that basis.
Change of accounting policy and costs allocation
As previously mentioned, the Group has updated its accounting
policy on development costs under accounting standard IAS38 -
Intangible Assets, which means such costs are now capitalised as
opposed to expensed. This policy is in line with the standard
accounting approach for software companies and is to provide
readers with more transparency and facilitate benchmarking of
performance. In addition, cost of sales hitherto only included
platform & hosting, but has now, as a result of the
introduction of improved reporting systems, been expanded to
incorporate other elements, such as support and customer success
management, which were previously classified as administrative
expenses. We believe this will enable a more accurate and
transparent benchmarking of our business in terms of gross margin.
As noted above, the figures for the year under review reflect the
transitional nature of the business during the period and we have
strategies in place to improve our performance going forward.
Profit and loss account
Revenue for the year for continuing and discontinued operations
was GBP5.9m. Revenue for continuing operations was GBP2.7m (2021
restated: GBP3.6m) due to the churn in the customer base as we
underwent our restructuring, and with the period under review being
largely before the new platform was introduced. Gross margin was
16.6% (2021 restated: 49.0%) reflecting lower revenue as well as
cost of sales increasing to GBP2.3m (2021 restated: GBP1.8m) due to
higher prices for platform and hosting as a result of a
renegotiation of a contract with a key supplier.
Total administrative expenses were reduced to GBP4.5m (2021
restated: GBP4.7m), but increased as a percentage of revenue as a
result of the investment into marketing of the new product.
Historically the Group has expensed its development costs but,
following an improvement in its reporting facilities, the Company
can now distinguish between research and development costs.
Accordingly, the Company is now able to capitalise development
costs in accordance with accounting standard IAS 38 - Intangible
Assets.
Operating loss stood at GBP4.0m (2021 restated: GBP2.9m loss).
Adjusted EBITDA for continuing operations was a loss of GBP3.7m
(2021 restated: GBP1.8m loss), which includes the capitalisation of
development costs. For continuing and discontinued operations,
adjusted EBITDA was GBP2.4m loss including the capitalisation of
development costs and GBP3.4m loss excluding the capitalisation of
development costs.
The loss before income tax for the year was GBP4.1m (2021
restated: GBP3.0m loss). This includes share-based payment charge
of GBP161k (2021 restated: GBP194k).
Cash flow and funds
Cash used in operating activities was GBP2.7m (2021 restated:
GBP774k).
Cash balance at the year-end was GBP2.4m (2021: GBP6.7m). During
the year, we repaid the secured loan in full (GBP890k). At the end
of the financial year, we had no outstanding debt.
Net cash at the year-end stood at GBP2.4m (2021: net cash
GBP5.8m).
Balance sheet
The major movements in the balance sheet during the year
were:
-- Trade and other receivables reducing to GBP820k (2021 restated: GBP2.4m)
-- The decrease in cash, as described above
-- Assets held for sale amounting to GBP650k (2021 restated:
GBPnil) representing the intended divestment of Integritie and
Langdon Systems
-- Current trade and other payables were reduced to GBP2.3m
(2021 restated: GBP4.5m) as current deferred revenue fell to
GBP0.9m (2021 restated: GBP2.8m) due to the reduction in revenue
and changes in timing for invoicing customers
-- The repayment of debt, as described above
-- Liabilities directly associated with assets held for sale
amounting to GBP1.5m (2021 restated: GBPnil), as described
above
Material uncertainty
As discussed in note 2 to the financial statements, the Board of
Directors of Rosslyn considers the Company to be a going concern.
However, if the Group is unable to deliver upon the proposed sale
of Integritie, its proposed revenue projections or, alternatively,
proposed cost reductions, there is limited headroom in the current
forecasts and as such there is considered to be a material
uncertainty relating to going concern. As noted above, the
Directors are confident that the disposal of Integritie will be
complete in the coming weeks and that the Group is on track to meet
its projections. The independent auditors' report is not modified
in respect of this matter. The financial statements do not include
any adjustments that would result if the Company were unable to
continue as a going concern. For further details, refer to the
'Going Concern' section in note 2 to the financial statements.
Key metrics
Commencing from this year, we have introduced new Key
Performance Indicators ("KPIs") for measuring our progress. As
previously mentioned, we have chosen these metrics as they are
better suited for a high-growth, SaaS-based business. As this is
the first year that we have introduced these KPIs, we do not have
comparative figures, but are providing the results for the year to
30 April 2022 as a base measure for moving forward. As discussed
further in our annual report and accounts, which is being published
today, our KPIs now comprise: weighted pipeline, annual recurring
revenue (ARR) growth, gross margin, customer acquisition cost (CAC)
payback, net revenue retention, cash burn rate and net
profit/(loss). We look forward to reporting on our progress against
these KPIs going forward.
Consolidated statement of comprehensive income
for the year ended 30 April 2022
Restated*
Year ended Restated Year ended
=========================================
30 30 April 30 April 30 April
April
=========================================
2022 2022 2021 2021
Note GBP'000 GBP'000 GBP'000 GBP'000
========================================= ==== ============= =============== =========== =============
Continuing operations
Revenue 3 2,731 3,585
Cost of sales (2,278) (1,830)
========================================= ==== ============= =============== =========== =============
Gross profit 453 1,755
========================================= ==== ============= =============== =========== =============
Admin expenses (4,464) (4,683)
Analysed As
Administrative expenses (4,287) ( 4,536)
Other operating income - 89
Depreciation and amortisation (40) (42 )
Share-based payments (137) (194)
========================================= ==== ============= =============== =========== =============
(4,464) (4,683)
========================================= ==== ============= =============== =========== =============
Operating loss (4,011) (2,928)
Finance income 5 34
Finance costs (44) (124)
========================================= ==== ============= =============== =========== =============
Loss before income tax (4,050) (3,018)
Income tax 391 486
========================================= ==== ============= =============== =========== =============
Loss for the year for continued (2,532
operations (3,659) )
Profit for the year from discontinued
operations 5 297 560
Other comprehensive income - translation
differences 19 (2)
========================================= ==== ============= =============== =========== =============
Total comprehensive income (3,343) (1,974)
========================================= ==== ============= =============== =========== =============
Loss per share Pence Pence
=========================================== ===== =====
Basic and diluted loss per share: ordinary
shareholders - Continued 4 1.07 0.77
Basic and diluted loss per share: ordinary
shareholders - Total 4 0.98 0.60
* 2021 was restated due to discontinued activities (note 5) and
also a change of disclosure of costs from Administration to cost of
sales (note 6) .
The accompanying notes form part of these financial s t a t e m
e n t s .
Consolidated statement of financial position
as at 30 April 2022
30 April 30 April
Note 2022 2021
GBP'000 GBP'000
=================================== ====== ======== ==========
Assets
Non-current assets
Intangible assets 1,105 994
Property, plant and equipment 16 55
Right-of-use assets 236 73
=================================== ====== ======== ==========
1,357 1,122
=================================== ====== ======== ==========
Current assets
Trade and other receivables 820 2,354
Corporation tax receivable 161 309
Cash and cash equivalents 2,433 6,681
=================================== ====== ======== ==========
3,414 9,344
=================================== ====== ======== ==========
Total current assets 4,771 10,466
=================================== ====== ======== ==========
Disposal group assets 5 650 -
=================================== ====== ======== ==========
Total assets 5,421 10,466
=================================== ====== ======== ==========
Liabilities
Non-current liabilities
Trade and other payables (168) (386)
Deferred tax - (73)
(168) (459)
=================================== ====== ======== ==========
Current liabilities
Trade and other payables (2,284) (4,489)
Financial liabilities - borrowings - (890)
=================================== ====== ======== ==========
Total current liabilities (2,284) (5,379)
=================================== ====== ======== ==========
Disposal group liabilities 5 (1,547) -
=================================== ====== ======== ==========
Total liabilities (3,999) (5,838)
=================================== ====== ======== ==========
Net assets/(liabilities) 1,422 4,628
=================================== ====== ======== ==========
Equity
Called up share capital 1,699 1,699
Share premium 18,923 18,923
Share-based payment reserve 255 657
Accumulated loss (24,485) (21,662)
Translation reserve (103) (122)
Merger reserve 5,133 5,133
=================================== ====== ======== ==========
Total equity 1,422 4,628
=================================== ====== ======== ==========
The accompanying notes form part of these financial s t a t e m
e n t s .
Consolidated statement of changes in equity
for the year ended 30 April 2022
Accumulated Translation Share-based
Called loss reserve payment Share Merger Total
up share GBP'000 GBP'000 reserve premium reserve equity
capital GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
============== ============= ================ ============= ================ ============== ============= =============
Balance at 1
May
2020 965 (19,707) (120) 470 12,777 5,133 (482)
Loss for the
year - (1,972) - - - - (1,972)
Other
comprehensive
income - - (2) - - - (2)
Issue of share
capital 734 - - - 6,618 - 7,352
Expenses on
raising
capital - - - - (472) - (472)
Share-based
payment
transaction - 17 - 187 - - 204
Balance at 30
April
2021 1,699 (21,662) (122) 657 18,923 5,133 4,628
=============== ============= ================ ============= ================ ============== ============= =============
Balance at 1
May
2021 1,699 (21,662) (122) 657 18,923 5,133 4,628
Loss for the
year - (3,362) - - - - (3,362)
Other
comprehensive
income - - 19 - - - 19
Lapsed options - 539 - (539) - -
Share-based
payment
transaction - - - 137 - - 137
Balance at 30
April
2022 1,699 (24,485) (103) 255 18,923 5,133 1,422
=============== ============= ================ ============= ================ ============== ============= =============
The merger reserve arises from the Group reorganisation that
occurred on 23 April 2014. Rosslyn Data Technologies plc acquired
Rosslyn Analytics Limited in a share for share t ransac tion .
There was no change in rights or proportions of control in the
Group as a result of this t ransac tion . As common control exists
IFRS 3 was deemed to not apply and this has been accounted for as a
capital r eor ganisation . The difference between the share capital
and share premium of the Company and the share capital and share
premium of Rosslyn Analytics Limited at 23 April 2014 is recognised
in the merger reserve.
The translation reserve comprises translation differences
arising from the translation of financial statements of the Group's
foreign entities (Rosslyn Analy t i c s , I n c . ) into sterling (
GBP ) .
The accumulated loss reserve includes all current and prior
period retained profits and losses.
The share-based payment reserve comprises the fair value of
options granted under the Group's Enterprise Management Incentive
Scheme , less reductions for those options that lapsed during the y
e a r.
The accompanying notes form part of these financial s t a t e m
e n t s .
Consolidated statement of cash flows
for the year ended 30 April 2022
Year ended Year ended
30 April 30 April
2022 2021
GBP'000 GBP'000
=============================================== =============== ==========
Cash flows used in operating activities
Cash used in operations (2,653) (774)
Finance income 5 34
Finance costs (44) (124)
Corporation tax received 467 301
================================================ =============== ==========
Net cash used in operating activities (2,225) (563)
================================================ =============== ==========
Cash flows used in investing activities
Purchase of property, plant and equipment (28) (66)
Acquisition of software (1,105) -
Net cash used in investing activities (1,133) (66)
================================================ =============== ==========
Cash flows generated from financing activities
New loans in year - -
Repayment of borrowings (890) (364)
Proceeds from share issuance - 7,352
Costs of share issuance - (472)
================================================ =============== ==========
Net cash generated/(used) in financing
activities (890) 6,516
================================================ =============== ==========
Net increase/(decrease) in cash and cash
equivalents (4,248) 5,887
Cash and cash equivalents at beginning
of year 6,681 794
================================================ =============== ==========
Cash and cash equivalents at end of year 2,433 6,681
================================================ =============== ==========
Reconciliation of loss before income tax to cash used in
operations
Year ended Year ended
30 April 30 April
2022 2021
GBP'000 GBP'000
================================================ ======================================================= ==========
Loss before income tax (3,343) (2,458)
D e p r e c i a t i on , amortisation and
impairment charges 40 1,106
Share-based payment transactions 137 204
Finance income (5) (34)
Finance costs 44 124
================================================ ======================================================= ==========
(3,127) (1,058)
Decrease in trade and other receivables 875 (317)
Increase/(decrease) in trade and other payables (401) 601
================================================ ======================================================= ==========
Cash used in operations (2,653) (774)
================================================ ======================================================= ==========
The accompanying notes form part of these financial s t a t e m
e n t s .
Notes to the consolidated financial statements
for the year ended 30 April 2022
1. General information
Rosslyn Data Technologies plc (the "Company") is a company
incorporated and domiciled in the UK. It is quoted on AIM, part of
the London Stock Exchange Mark e t . The address of the registered
office is 1000 Lakeside North Harbour , Western R oad , Portsmouth,
Hampshir e , PO6 3EN. The Company is the ultimate parent company of
Rosslyn Analytics Limited and Rosslyn Data Management Limited,
companies incorporated in the UK, and the ultimate parent company
of Rosslyn Analytics, Inc., a company incorporated in the USA ( c o
l l ecti v e l y, the "G r o u p " ). The Group's principal
activity is the provision of data analytics using a proprietary
form, data cap tur e , data mining and workflow managemen t .
2. Accounting policies
Basis of preparation
The principal accounting policies adopted in the preparation of
the financial statements are set out in our annual report and
accounts for the year ended 30 April 2022. The policies have been
consistently applied to all the years prese n t e d , unless
otherwise s t a t e d .
The Group financial statements have been prepared under the
historical cost convention subject to fair valuing certain
financial instruments and in accordance with international
accounting standards in conformity with the requirements of the
Companies Act 2006.
Going concern
Information on the business environment and the factors
underpinning the Group's future prospects and product portfolio are
included in the CEO's statement. The cash balance at 30 April 2022
was GBP2.4m and the Group subsequently sold Langdon for GBP100k on
the 30 September 2022, and there is the impending sale of
Integritie. The Group has performed prudent scenario analysis on
revenue and cost performance. These demonstrate that the Group can
meet its liabilities as they fall due.
After making appropriate enquiries, the Directors consider that
it is appropriate to adopt the going concern basis in preparing the
consolidated financial statements, Accordingly, the financial
statements do not include any adjustments which would be required
if the going concern basis of preparation was deemed to be
inappropriate. However, if the Group is unable to deliver upon the
proposed sale of Integritie, its proposed revenue projections, or
alternatively proposed cost reductions, there is limited headroom
in the current forecasts and as such there is considered to be a
material uncertainty which may cast significant doubt on the
Group's ability to continue as a going concern.
3. Segmental reporting
Management has determined the operating segments based on the
operating reports reviewed by the Executive Directors that are used
to assess both performance and strategic dec i s i o n s .
Management has identified that the Executive Directors are the
Chief Operating Decision Maker in accordance with the requirements
of IFRS 8 Operating segments.
The determination is that the Group operates as a single seg men
t , as no internal reporting is produced either by geography or
division. The Group views performance on the basis of the type of r
e v enu e , and the end destination of the client as shown
below.
Year ended Year ended
30 April 30 April
2022 2021
as restated
GBP'000 GBP'000
====================== ========== ============
Annual licence fees 2,414 3,148
Professional services 317 437
====================== ========== ============
Total revenue 2,731 3,585
====================== ========== ============
Year ended Year ended
30 April 30 April
Analysis of revenue by country 2022 2021
as restated
GBP'000 GBP'000
================================= ========== ============
United Kingdom 1,643 1,800
Europe 414 1,001
North America 674 784
================================= ========== ============
Total revenue 2,731 3,585
================================= ========== ============
Included in Europe is the Netherlands which had revenues of
GBP158,000 in the Year ended 30 April 2022 (2021: GBP575 , 00 0 ) .
Included in North America is the USA which had revenues of
GBP674,000 in the Year ended 30 April 2022 (2021: GBP784,000 )
.
Year ended Year ended
30 April 30 April
Analysis of future o b lig a t i o n s : 2022 2021
GBP'000 GBP'000
============================================== ========== ==========
Performance obligations to be satisfied in
the next year 1,763 1,728
Performance obligations to be satisfied after
30 April 2023 1,426 1,224
============================================== ========== ==========
Total future performance obligations 3,189 2,952
============================================== ========== ==========
There were no significant customers who make up greater than 10%
of total revenue in the y e a r . The following revenue arose from
the Group's largest customer in each yea r :
Year ended Year ended
30 April 30 April
2022 2021
GBP'000 GBP'000
====================== ========== ==========
Annual licence fees 199 394
Professional services 8 8
====================== ========== ==========
Total revenue 207 402
====================== ========== ==========
4. Loss per share
Basic earnings per share is calculated by dividing the net loss
for the year attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the y e a
r.
Diluted earnings per share is calculated by dividing the net
loss for the year attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the
year plus the weighted average number of ordinary shares that would
be issued on the conversion of all dilutive potential ordinary
shares into ordinary shares.
Year ended Year ended
30 April 30 April
2022 2021
============================================= ============ ============
Loss for the year attributable to the owners GBP3,367,000 GBP1,972,000
of the parent
Weighted average number of ordinary shares 339,862,521 328,655,751
============================================= ============ ============
Pence Pence
Basic and diluted loss per share: ordinary
shareholders - continued 1.07 0.77
Basic and diluted profit per share: ordinary
shareholders - discontinued (0.09) (0.17)
============================================= ============ ============
Basic and diluted loss per share: ordinary
shareholders 0.98 0.60
============================================= ============ ============
As the Group recorded a loss for the y e a r, the basic and
diluted loss per share are the same a m o u nt.
5. Discontinued operations
In order to deliver the Group's emphasis on the Rosslyn product
a decision was taken to dispose of the Langdon Systems and
Integritie parts of the Group. The Langdon Systems sale was
completed post year end on the 30 September 2022, with the
Integritie sale expected to complete shortly, as such these
reported as discontinued operations for the current period. The
associated assets and liabilities were consequently presented as
held for sale in the 2022 consolidated statement of financial
position. The results of Langdon Systems and Integritie was
presented as discontinued operations in the current year statement
of comprehensive income. The prior year statement of comprehensive
income was also restated to show the results of the discontinued
operations. Financial information relating to the discontinued
operation for the Group is set out below.
Statement of comprehensive income
Year Year ended
30 April ended 30 April 30 April
2022 30 April 2021 2021
GBP'000 2022 GBP'000 GBP'000
GBP'000
Discontinued operations
Revenue 3.140 3,832
Cost of sales (958) (962)
-------------------------------- ----------- ---------- ----------- -----------
Gross Profit 2,184 2,870
-------------------------------- ----------- ---------- ----------- -----------
Admin expenses (1,885) (2,310)
Analysed as
Administrative expenses (943) (1,236)
Depreciation and amortisation (942) (1,064)
Share-based payment - (10)
-------------------------------- ----------- ---------- ----------- -----------
(1,885) (2.310)
-------------------------------- ----------- ---------- ----------- -----------
Operating profit 297 560
Finance income - -
Finance costs - -
-------------------------------- ----------- ---------- ----------- -----------
Profit before income tax 297 560
Income tax - -
-------------------------------- ----------- ---------- ----------- -----------
Total comprehensive income for
discontinued operations 297 560
-------------------------------- ----------- ---------- ----------- -----------
S tatement of financial position
The major classes of asset and liabilities held for sale at 30
April 2022 are, as follows
30 April
2022
GBP'000
==================================== ==========
Assets
Non-current assets
Intangible assets 62
Property, plant and equipment 17
Right-of-use assets 60
===================================== ==========
139
==================================== ==========
Current assets
Trade and other receivables 511
Corporation tax receivable -
Cash and cash equivalents -
==================================== ==========
511
==================================== ==========
Disposal of Group assets 650
===================================== ==========
Liabilities
Non-current liabilities
Trade and other payables 195
Deferred tax -
Financial liabilities - borrowings -
==================================== ==========
195
==================================== ==========
Current liabilities
Discontinued operations held for
sale
Trade and other payables (1,352)
Financial liabilities - borrowings -
==================================== ==========
(1.352)
==================================== ==========
Disposal of Group liabilities (1,547)
===================================== ==========
Net liabilities directly associated
with disposal (897)
===================================== ==========
Before the classification of Langdon Systems and Integritie as
discontinued operations, the recoverable amount was estimated for
the assets and no impairment loss has been identified.
6. Prior year restatement
Consolidated statement of comprehensive income
for the year ended 30 April 2022
Year Discontinued Reclassification Restated*
Ended operations of costs Year ended
30 April 30 April 30 April 30 April
2021 2021 2021 2021
GBP'000 GBP'000 GBP'000 GBP'000
========= ============= ================ =============
Revenue 7,417 (3,832) - 3,585
Cost of sales (1,316) 962 (1,476) (1,830)
=============================== ========= ============= ================ =============
Gross profit 6,101 (2,870) (1,476) 1,755
=============================== ========= ============= ================ =============
Administrative expenses (7,248) 1,236 1,476 (4,536)
Other operating income 89 - - 89
Depreciation and amortisation (1,106) 1,064 - (42)
Share-based payments (204) 10 - (194)
=============================== ========= ============= ================ =============
(8,469) 2,310 1,476 (4,683)
============================== ========= ============= ================ =============
Operating ( loss)/profit (2,368) (560) - (2,928)
Finance income 34 - - 34
Finance costs (124) - - (124)
=============================== ========= ============= ================ =============
Loss before income tax (2,458) (560) - (3,018)
Income tax 486 - - 486
=============================== ========= ============= ================ =============
Loss for the year (1,972) (560) - (2,532)
Other comprehensive income (2) - - (2)
=============================== ========= ============= ================ =============
Total comprehensive income (1,974) (560) - (2,534)
------------------------------- --------- ------------- ---------------- -------------
* The restatement of the prior year for the discontinued
operations has been disclosed in note 5.
For the reclassification of costs it was decided by the Board,
that a better representation of the gross profit of the Group would
be shown if cost of sales included the salaries and associated
costs of staff employed, who were directly involved with the
product. In order for this year and the prior year to be comparable
a restatement to the prior year was required.
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END
FR UAVSRUVUROAA
(END) Dow Jones Newswires
October 31, 2022 11:07 ET (15:07 GMT)
Rosslyn Data Technologies (LSE:RDT)
過去 株価チャート
から 3 2024 まで 4 2024
Rosslyn Data Technologies (LSE:RDT)
過去 株価チャート
から 4 2023 まで 4 2024
