Rosslyn Data Technologies Share Discussion Threads

[hydrus] 03/7/2022 16:32

Kemche my thoughts also. If it's such a bargain with a rosy future then the Directors would surely be buying.

[kemche] 03/7/2022 15:56

Curious how the BOD are not wading in at these giveaway prices.

[masurenguy] 03/7/2022 11:56

Some abbreviated comments on the recent update from Paul Hill, posted on Twitter last Friday.
If the Cenkos net cash figure is correct then the current EV is circa only £3.9m.

ROSSLYN DATA TECHNOLOGIES(mrkcap £6m).
Indiscriminate selling has IMO driven the shares down to ‘silly’ levels. This #bigdata/analytics firm currently trades on a 1x EV/sales multiple baring little resemblance to the considerable strategic progress that has been made over the past 12 months. Today, the company said it had successfully:
1) rebranded,
2) launched its new functionality rich #saas platform receiving “very positive customer feedback”,
3) shifted gears towards a more partner-led distribution model,
4) built up a substantial pipeline of prospects,
5) started converting these into new orders, inc 2 significant deals with financial institutions since y/e.

Sure FY’22 revenues fell 30% to £5.9m vs £7.4m LY. Yet equally this decline is in the ‘rear-view’ mirror and this nearly always happens ahead of major product refresh, when clients typically hold off on new software purchases ahead of a major new technology refresh. CEO Paul Watts commenting: "Since Q4’22, we have had a record number of new inbound opportunities, which I believe validates our strategy and underpins our confidence in the future. The Board is confident that we will generate meaningful revenue growth in FY'23 [Cenkos Securities plc est T/O £6.4m]."

Fine, but how much is the business worth? Well given the imminent disposals of Integritie and Langdon, its difficult to say exactly. However, in light of RDT’s exciting growth trajectory, I would value the stock on an EV/revenues multiple of between 2x-4x, representing a mid point of 5p/share. Granted there's still plenty to do. Yet as shareholder, I’m delighted to hear the substantial progress that is being made. Cenkos Securities reckon there was still £2.4m of net cash as at Apr'22.

[riddlerone] 30/6/2022 17:44

At around 3.34 in he seems to think there is a good return coming

[hastings] 30/6/2022 05:48

They paid £2.6m for Integritie five years ago, so it'll be interesting to see what they get for it now!

[riddlerone] 29/6/2022 12:51

Thanks hastings,Of the two I think Integritie will have a larger percentage of the two revenue streams but I doubt if the disposals are factored into any of Cenkos's modeling which would be understandable as we don't know If,When or How much they will go for.We can hope one of them at least will be sooner rather than later or even the whole lot for the right money.

[hastings] 29/6/2022 12:27

They don't break down the revenue, so no idea what Langdon's contribution is.

[riddlerone] 29/6/2022 12:02

A question hastings does the £6.4m take into account that a decent proportion of existing revenue will be gone with the disposal.

[hastings] 29/6/2022 11:53

Wouldn't disagree with his assessment and the EV/revenue valuation of a mid point 5p per share. I see Cenkos is (conservatively) forecasting revenue next year of £6.4m with ARR at £5.7m.Perfectly understandable for people to avoid, but as he says it's at a silly level down here!

[daicaprice] 29/6/2022 11:41

Broker note from PMH Capital.

DC

[riddlerone] 29/6/2022 08:40

Would be nice if Brummy_git could get an interview

[smithydave] 29/6/2022 07:55

Doesn't look like anything is happening with Langdon sale either. You would have thought it would have flown off the shelf given the customs / brexit situation.

[chrisdgb] 29/6/2022 07:48

Well let us hope Gresham can get us a return.......

[kemche] 29/6/2022 07:39

Revenues down (after expanding the sales force meaningfully), cash dwindling at a rapid pace - what's not to like?

Oh, and let's capitalise development expenditure - that will help pimp up the P&L.

Awful - simply awful.

[riddlerone] 29/6/2022 07:32

The delays I can accept but its the silence from the company for all these months that has been poor.On the face of it I think they will do well as the update sounds positive but I really hope that Gresham gets involved with improving their communication.For example why was this not an RNS

" The Company has made a positive start to the current financial year to 30 April 2023 with two significant deals closed with financial institutions since 1 May 2022"

It has been in the past and it would have supported the shareprice and stopped investors leaving.

[chrisdgb] 29/6/2022 07:20

We know the story has been delayed here and that is reflected in the share price but the business is no write off and glad to see some contracts signed and positivity for the current year, keep up the dialogue management...!

[rimau1] 29/6/2022 07:11

Looks investable to me IMO. Loss making and cash burn plus a looming external recession. My caveat is I have no idea how to value Langdons or any other divestments.

[daicaprice] 29/6/2022 07:00

Well we got our update, not sure how the market will react but at least there is something to build on.

DC

[rimau1] 29/6/2022 06:53

Hastings - what do you think the value of the customs business is?

[kemche] 29/6/2022 06:36

Paul Watts, CEO of Rosslyn Data Technologies, commented:

"I am pleased with the progress that has been made over this last year."

I am so glad he is pleased.

Awful - simply awful.

[hastings] 29/6/2022 06:28

£2.4m according to the Cenkos note this morning. Looks like the customs business will be sold before long providing a boost.

[rimau1] 29/6/2022 06:22

I always get worried when there are a lot of nice words and few numbers. I can’t see an updated net cash position, anyone?

[hastings] 29/6/2022 06:14

An update at last, which is welcome!