Rosslyn Data Technologies Share Discussion Threads

[bwm2] 15/1/2021 12:17

The increase in earnings expectation over three years and anticipated uplift i, valuation multiple that ought to go with it are enticing. However, I have enough invested so will sit back and wait. Could very well be a 5 bagger for me

[masurenguy] 14/1/2021 08:51

Following Hastings excellent write-up, here is an interview with Bullen and Mehta.

[riddlerone] 13/1/2021 15:27

Thanks also Hastings,very informative.

[daicaprice] 13/1/2021 14:46

Thanks hastings.

DC

[adamb1978] 13/1/2021 14:34

Thanks for sharing Martin

[hastings] 13/1/2021 14:27

Hopefully of interest to other holders.Https://martinflitton1.wixsite.com/privatepunter/post/rdt-looking-to-the-future-13-01-21

[kemche] 13/1/2021 08:25

Yesterday's dip was well bought into.

[adamb1978] 13/1/2021 08:22

Early nudge up to 6.75p....can we make the elusive break to 7p?!?

[adamb1978] 12/1/2021 13:46

The can acquire RDT if they want...but would be nice if they could wait a couple years for the company to be a good bit larger first!

[daicaprice] 12/1/2021 13:33

There was an article in the Sunday Times a few years ago saying Microsoft were eyeing them up with a view to swallowing.

DC

[woolybanana] 12/1/2021 13:31

Weren't Microsoft rumoured to be circling at one time?

[chrisdgb] 12/1/2021 10:41

Nice results, agree with the Equity Development comment that it may well be acquired.......

[adamb1978] 12/1/2021 10:21

Agreed hasting. This was always a 2-3 year investment for me, but these interims were always going to be key for me to see whether management and getting some momentum into the business which would drive revenues over that 2-3 year period. It seems that they are so, like you, might add further on weakness

[riddlerone] 12/1/2021 09:57

All looks good to me.The question always for me is if I looked at the results this morning with fresh eyes and not already an investor would I be attracted to buy shares? In this instance for me a resounding yes and would expect other investors to think the same.

[hastings] 12/1/2021 09:29

Not surprised Adam, as with many punters the focus is too brief and concentrated on short term attention! Taken the opportunity to add a few more and my horizon on this remains 2022 and beyond. Plenty of cash and excellent prospects to execute and no doubt a decent acquisition or two along the way.

[adamb1978] 12/1/2021 08:58

Bit surprised at the share price reaction first thing, though I guess when your average daily volume is c.£20k in value, individual's decisions can move the price. Important thing is that the business seems to be performing well

[kemche] 12/1/2021 08:34

Agreed - reads well.

[adamb1978] 12/1/2021 08:14

Very nice results this morning and per my comment a day or so ago, the commentary for me is more important.
- pipeline is largest ever
- second half begun well
- "significant opportunity to achieve higher growth rates next year and beyond."

Lots in there to like. From a valuation perspective, I tend to look at where companies might get to in 2-3 years time. I think there's very comfortably the potential for these to double in a couple years (£10m - £12m revenue and even if only re-rating to 3x-4x) but also the potential for the share price to increase 4x-5x.

A happy holder

[hastings] 12/1/2021 07:59

Cheers edmonda- Mas, I'm speaking with them very late afternoon as they are pretty well tied up with back to back calls throughout the day, so probably post the write up tomorrow morning.

[masurenguy] 12/1/2021 07:51

Cheers edmonda - I liked the comment:
"a host of bookings for the group’s leading 100% cloud-powered Customs software (re Brexit)"

and their forward projection:
"At 6.5p, we think the shares not only appear undervalued vs peers (re 2.2x CY EV/sales vs >6x) - but also trade at a wide discount to our 10p/share valuation."

Martin - looking forward to your feedback from management later today.

[edmonda] 12/1/2021 07:46

No orders cancelled @RosslynBI in H1 ’21 and H2 has ‘begun well’. Interims: Revs + 14.6%, low churn and net £6.1m cash. Qualified sales pipeline up healthy 18% in H1.

Shares look under-rated vs peers and Equity Development's 10p /share valuation, read their new research note here:

[hastings] 12/1/2021 07:46

Agreed Mas and it looks like some larger and more lucrative contracts ready to come through.

[masurenguy] 12/1/2021 07:30

Positive developments and looking good for 2021. Circa 32% of the current market cap is cash - current EV is circa 4.5p per share.

Results for the year ended 31 October 2020

Highlights

-- Significant investment into growing our sales and marketing teams, including the appointment of a Chief Customer Officer and a doubling of headcount.

-- This investment is already delivering returns and our pipeline has grown to its largest ever size.

-- Investment into product development, including User Interface and User Experience (UI/UX) improvements to the Rosslyn platform, such as self-service tools and smart dashboard creation and further developments in progress covering Artificial Intelligence and Robotic Process Automation

-- Group revenues of £3.6m (H1 2020: £3.1m) and gross profit margin of 82.2% (H1 2020 81.2%)

-- Administrative expenses increased to £3.14m (H1 2020: £2.69m) as a result of investment into sales and marketing

-- Operating EBITDA loss was £144,000 (H1 2020: £155,000 loss)
-- Annual Recurring Revenue ("ARR") of £6.2m (H1 FY2020: £6.0m)
-- Successfully raised £6.8m net of expenses in May; cash balance of £7.23m as at 31 October 2020.

-- Post period end launch of CustomsCloud(TM) , a cloud-based self-service solution designed to enable importers to manage the additional customs procedures resulting from the UK's departure from the EU.

[riddlerone] 11/1/2021 11:42

Cheers hastings