Rosslyn Data Technologies Share Discussion Threads

[parsons4] 09/9/2024 08:12

Doubled up this morning, I can't believe Amazon would have done a deal including future collaboration with a company that was not fully financed. GLA

[someuwin] 09/9/2024 07:56

Can currently buy £5k. But not £6k.

[puzzler2] 06/9/2024 13:18

Thanks someuwin - very helpful.

[someuwin] 06/9/2024 08:25

Remarkably, for a sub £3m company, they already have several institutional holders on board. Any others or similar HNW individuals wanting to join the party following the recent transformational AMZN tie up wouldn't stand a chance buying in the market. So I wouldn't be surprised to see some kind of funding arranged at a premium.

[someuwin] 06/9/2024 08:16

...In the latest trading update they acknowledge they will need more funding before becoming cash positive in 2025, but point out that the new Amazon contract makes that a lot easier as they pursue several options...

"The Contract win also strengthens Rosslyn's position in pursuing a number of funding options to extend the cash runway to when the Company becomes cash generative."

[puzzler2] 06/9/2024 07:41

Available cash still concerns me. There was cash of £807K at 30.04.24 and after acknowledging seasonality of contract renewals and overall cash burn of some £200K per month, there was cash at 31.07.24 of £703K - so, moving forward, with probably less seasonal income and continuing cash burn, one has to wonder how long this £703K will last and what the soution is in advance of achieving break-even? Placing?

[trotterstrading] 06/9/2024 07:08

Incredible bargain opportunity here, £2.7 Mcap is madness. Inevitable multibagger IMO

[hydrus] 06/9/2024 06:23

*with not either

[hydrus] 06/9/2024 06:22

I suppose the fact they have been able to renew a large contract with a 20% price increase suggest that the product is not vapourware. Main issue here is funding of course but this new contract with AMZN will make any fund raise easier. After years of disappointment the market cap is so small there is an element of anchoring. A c. 50% increase in market cap since the news seems impressive at first glance but as the market cap is still only £2.6m I'd suggest the risk reward here (either the risk still being very real) is favourable.

[cloudwars] 06/9/2024 06:20

I very much doubt that RDT would have been able to secure an Amazon deal with Vware - DD would have picked up on the products readiness. Securing contracts with such large companies takes time but once secured can be very sticky. From a security standpoint they are hardly likely to allow an unfinished product to enter their fold and let's not forget that Rosslyn was pitted against other competitors.

[harry163] 06/9/2024 05:58

Potential revenue is a wonderful thing, however you cannot pay your bills on potential revenues. The product bought by Amazon is probably part prototype part vapourware, as all leading edge sales pitches are. There is always a gap between selling and delivering, I fear that gap may be quite large at RDT.
Wishing the delivery team all the best in meeting Amazon's expectations in a timely manner. It would be a major achievement for RDT to cement this deal, after years of poor management, client erosion, staff attrition and wasting shareholder funds.

[kemche] 05/9/2024 18:15

Amazon all over this now.

[puzzler2] 05/9/2024 18:10

Agreed that the Amazon contract is good news, but does the company have sufficient cash to keep going until it becomes profitable? Looks to me as though cash may well be tight, in which case would they need to come back to the market to raise?

[cloudwars] 05/9/2024 14:51

Does your food business have a contract with Amazon?

[maty] 05/9/2024 14:48

This is the laugh of the century .. my small food business turns over more than this ... ?

[someuwin] 05/9/2024 13:35

17,659,275 shares in issue. So at current 15.5p valuation is still only £2.74m

[parsons4] 05/9/2024 13:20

Any business bought in from others would make AMAZON consider taking them over IMHO. The big boys don't like competition !!!

[someuwin] 05/9/2024 12:00

Read this slowly, and understand that the customer is $1.8 trillion valuation tech giant Amazon talking about £2.5m valuation RDT. This is awesome!

"The Contract was awarded to Rosslyn following an extensive nine month competitive tender process, after the Customer had taken the strategic decision to appoint an external provider rather than developing an in-house solution. The Company's management believe this represents one of the largest investments the Customer's procurement division has made to-date in third-party software. The Customer was attracted by, amongst other factors, Rosslyn's agility and also the development work being undertaken, based on Rosslyn's AI solution, to automate the data classification process and to establish an enterprise-grade procurement data lake. Accordingly, the Customer and Rosslyn have also established a co-innovation partnership, with the Customer providing funding for the development of next-generation technology, including AI elements, to enhance Rosslyn's platform."

[someuwin] 05/9/2024 11:48

...And on top of that you've got the Amazon JV..."The Customer and Rosslyn are also engaging in a co-innovation partnership for enhanced technology development."

i.e Amazons tech know how and funding to expand RDT's AI analytics products! How big could that become?

[someuwin] 05/9/2024 11:45

Initial Amazon contract size £2m almost as big as RDT market cap. Could be 10 to 20 tmes that.

"This initial contract is with the Customer's central procurement division and, upon successful deployment, has potential to expand to at least a further ten departments." Cavendish actually say in their note it would be expanded to include a further 15 to 20 divisions.