|I sold the last of mine today. I don't like the way bullish targets keep getting watered down and the promise of second half profitability now looks like a pipedream. I also don't like the talk of acquisitions before they can get their core business running profitably, as they can be used to mask poor performance. Good luck to holders.|
|Rosslyn Data Technologies (RDT.L, 7.75p) – Speculative Buy
The leading global data technology company, which has developed smart technologies that are enabling companies of all sizes to turn their complex data into meaningful information, yesterday announced its interim results for the six months ended 31 October 2016. Financial highlights included Group revenues of £1,666,577, with two revenue items together totalling some £250,000 concluded just outside the period end (2015: £1,821,517) with EBITDA loss decreasing 17% to £1,074,174 (2015: £1,290,170). Loss before tax decreased 18% to £1,081,665 (2015: £1,316,412), leaving net Cash at 31 October 2016 £0.7m (2015: £2.6), which increased to approximately £878,000 as at 25 January. Operationally, management noted that subscription revenues remain strong, with customer churn at below 5%. During the period, RDT was the only non-US company selected as one of three Finalists for the 'Microsoft Global Partner of the Year - Data Platform' award; customer wins include a major logistics company, a global media company and extensions into new territories for defence contractor clients. The Strategic Partnership with Genpact, a leading Global BPO firm, is deepening and the recently announced global relationship with Dun and Bradstreet has generated a significant amount of interest and leads. The Board confirmed it remains focused on achieving cash flow break-even during the current financial year, while the sales pipeline remains healthy and is growing with new partners being added and direct clients being at the forefront. In his statement to shareholders, CEO Roger Bullen noted "…increased recognition has led to us being presented with potential acquisition opportunities, which, I believe, adds a further exciting avenue for us to explore when appropriate. The Company is now, more than ever I think, better positioned to take full advantage of the growth within the data analytics arena."
Our view: The benefit of the doubt. Lumpy contracts were the reason H1'2017 compares badly. Two large contacts have slipped into 2H which, although uncomfortable, suggests there is no need to alter full year forecasts for either 2017E or 2018E (Beaufort forecasts revenues of £5.2m leading to a pre-tax loss of £0.8m, followed by £6.4m and a pre-tax profit of £0.1m respectively). On this basis, the Group is valued at less than 1x the 2018E enterprise value, for its advanced analytics SaaS offer which attracts a blue-chip customer base a company twenty times the size of RDT would be proud of. That said, investors will be aware that RDT's balance sheet remains under quite considerable strain, particularly if management see fit to undertake the overdue ramp-up of its sales and marketing effort. They will also have noticed the CEO's results sign-off, in which he highlighted a desire to grab hold of certain identified acquisition opportunities. Presumably, these are vehicles with complementary technologies that might reduce their operational cost by sitting on the RAPid platform, while opening new customer doors; it would be even better if their model also lends itself to being embedded in a customer's product code in order to be sold on an annuity basis, as RDT now doing through SAP Ariba's cloud-based solutions. The good news is that deep relationships like this, and also D&B, have the potential to multiply very significantly and also become exceptionally sticky. The bad is that RDT presently is really too small for them to be willing to jump totally into bed with. So management have presumably recognised they now have to take a big step forward, possibly doubling their size overnight, while also strengthening their balance sheet. Right now that suggests more equity, a lot of it, although credibility could be gained by placing some of this into the hands of strategic investors while also enjoying the continuing participation of existing senior institutional holders. Rosslyn Data Technologies clearly offers its customers something unique, a value-added service that its peers cannot get near to. Sooner or later this will lead to significant monetisation opportunity or result in envious competitors recognising that it is much cheaper and quicker to buy it out, rather than try to emulate it. Beaufort retains its Speculative Buy recommendation on the shares.|
|There's our results, still a loss but not for long I feel.
|Hi DC..the results are overdue never a good sign. I suspect there is a placing or Open Offer round the corner...I am targetting a 5p share price. DYOR GLA|
|One of the tipsters trying to get in cheap maybe by posting something negative?
|What's up here today? Or down?|
|Nice bit of blue on one 10k buy @9.45p
|Yes, unlikely to move the share price without figures, but reassuring none the less.|
|Can anyone tell me anything about the Share Profits website and particular one Zak Mir who really seem to have it in for RDT? In a recent recording he seemed to accuse the directors of 'puffing' this share because they regularly announce contracts or alliances gained.
He seems not to understand the process of growing a company, the ups and downs, and the difficulty of gaining and maintaining confidence. Though I do accept that there are dangers of directors going over the top for the wrong reasons.
Is there evidence that RDT has overclaimed in terms of sales or alliances? I have not found any.
In the Dun and Bradstreet announcement, it was D and B who announced the deal, not RDT.|
|Trading update soon?
Lat year a TU was issued on Nov 17th for the 6 month period up to Oct 31st.|
|Nice 50k buy @9.9p absolute bargain.
|Does this mean that the share is substantially derisked?|
|Tweet a few hours ago from D&B
Together with @RosslynBI, we are disrupting the traditional #data #analytics market. http://bit.ly/2eUzUv9 #webinar|
|phew, thank Bobo I got a few two days ago|
|Another piece in the jigsaw.
Further contracts should follow in due course , producing higher revenue and becoming profitable in short term with SP/MCap rising accordingly.|
|rambutan2 gave the heads up on 8th. Well done RDT.|
|Excellent news, should get it noticed.
|A really great association....RDT + D&B = major cred for RDT, imo.
Talk about establishing your bona-fides - this will make folks really take note.
Well done RDT!
|Nice RNS announcement.
About Dun & Bradstreet
Dun & Bradstreet (NYSE: DNB) grows the most valuable relationships in business. By uncovering truth and meaning from data, we connect our customers with the prospects, suppliers, clients and partners that matter most, and have since 1841. Nearly ninety percent of the Fortune 500, and companies of every size around the world, rely on our data, insights and analytics.|
|From Beaufort broker note in early June this year,
One way or another Rosslyn's share price should soon start to reflect this, particularly given that an obvious basket of comparable, slower growing enterprises presently trades in a range of 4x to 5x FY16 EV/Sales, which is more than twice Rosslyn's own multiple. Beaufort reiterates its Speculative Buy recommendation and places a price target of 24p on the shares.
|I think I'm right in saying that trade this morning was at the all time low price.|
|That's huge compared to CLP where 5 and 6 trades regularly occur @.8p for 4p
|1299 shares sold to raise £104 before deductions. Something very odd about that. The market makers have dropped the offer to 8p and widened the spread to 25% (though effectively 16% as you can buy inside), so they definitely do not want the stock. As they've taken it down on trivial volume, and I don't buy the theory of a major seller, I'm more inclined to wonder what they know that we don't.|