Share Name Share Symbol Market Type Share ISIN Share Description
Rosslyn Data Technologies Plc LSE:RDT London Ordinary Share GB00BKX5CP01 ORD GBP0.005
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 5.50 5.30 5.70 5.50 5.50 5.50 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Technology Hardware & Equipment 7.0 -1.7 0.6 9.6 11

Rosslyn Data Technologies PLC Half-year Report

14/01/2020 7:00am

UK Regulatory (RNS & others)


Rosslyn Data Technologies (LSE:RDT)
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2 Months : From Dec 2019 to Feb 2020

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TIDMRDT

RNS Number : 6648Z

Rosslyn Data Technologies PLC

14 January 2020

Rosslyn Data Technologies plc

Interim report and accounts

For the six months ended 31 October 2019

Highlights

   --      Significant contract wins during the period and since the period end including: 

-- a multinational general insurance company, and a manufacturer of rolling stock and infrastructure for the rail network (combined contract value of GBP0.9 million)

   --      a science-led sustainable technologies business (GBP0.6 million) 
   --      an international building materials group (EUR1.0 million) 

-- Annual Recurring Revenue ("ARR") carried forward increased by 18.8% to GBP6.0 million vs H1 2019 (GBP5.0 million)

-- 25.5% increase in contract revenue backlog to GBP6.4 million today, from GBP5.1 million at 1(st) May 2019.

-- Acquisition of the trade and assets of Langdon Systems, which specialises in supply chain data relating to import and export duty management and has a blue-chip client base of 60 clients

-- Group revenues GBP3.1 million (H1 2019: GBP3.5 million) following removal of low margin generating revenues which improved gross profit margin to 81.2% (H1 2019 78.4%)

-- Administrative expenses tightly controlled at GBP2.8 million (H1 2019: GBP3.0 million) resulting in Operating EBITDA (excluding acquisition costs and share based remuneration) loss of GBP155,000 (H1 2019: GBP213,000 loss)

-- Cash balance of GBP499,000 following drawdown of loan of GBP0.5 million and repayment of pre-existing loan notes and other loans of GBP722,000 during the period.

Chief Executive's Review

The first half of the year has seen us follow a process of trading out low margin revenues and replacing them with higher yielding annual recurring revenue ("ARR"). Whilst doing this we continued to acquire new customers, expand offerings with existing customers and grow internationally. The Group has in parallel continued to invest in product development, enabling us to innovate and add new products into the portfolio. Whilst this focus on improving the quality of revenue impacted sales in the first half of the year compared to last year, we remain confident that the second half will enable us to stay on target and to meet management expectations.

A key highlight of the first half was the acquisition of the business of Langdon Systems Ltd. Langdon specialises in bulk handling of supply chain data with a strong position in import and export duty management systems, providing import and export data reporting, visualisation and data mining. Although not generating significant returns in the current financial year, Langdon adds over GBP0.4 million to our ARR and does not significantly increase our cost base. Already within three months of the acquisition, we have been able to increase the Langdon ARR, integrate the solution onto the RAPid platform and we are now able to offer the services to a broader customer base utilising our in-depth knowledge of data extraction, data cleansing and reporting. The impact of Brexit, although uncertain, is likely to create a significant jump in demand for the Langdon data services in the coming months and years as companies become required to report to HMRC for imports and exports with the EU. We are excited by its prospects and are implementing plans to benefit from this potential upside.

We have been able to develop and integrate new technologies and robotic process automation solutions that have been contributed to reducing our cost base. This has provided the additional resources to focus our attention on building out our Sales and Marketing team whilst managing our costs tightly and it is our expectations are that within the next 12 months this will start to show material financial benefits to the Company.

I am pleased to report that since the half year our sales growth has been significant, as can be seen in the recent announcements. We have increased our backlog to GBP6.4 million as of today, an increase of 25.5% from GBP5.1 million at the start of the year, and we have grown our year on year ARR by 18.8% to GBP6.0m. This alongside our cost management initiatives provide us with the confidence to expect EBITDA being positive in the second half of the year.

Our Customer retention rate remains high at greater than 90% and in most clients we are expanding our sales opportunities and revenues.

We believe that the quality of the RDT RAPid platform continues to be highly recognised, giving us the opportunity to take major steps forward on a number of important fronts, including moving out of traditional spend analytics to be more involved with the complete Supply Chain Analytics and Master Data Management.

Underpinning this progress is our talented and skilled team who are fuelling the continued development of innovative solutions and widening the sphere of sales opportunities. This is reflected in our growing list of clients. These include many leading global businesses and the increasing number of partnerships we are establishing. Partnerships that bring us closer to where high volumes of business and commerce meet, giving us the opportunity to play a significant information management role.

Our sales team continues to gain momentum as demonstrated by our increasing pipeline and the wins announced in the last few months. Furthermore, revenue growth from our installed customer base remains healthy as we continue to expand our ARR. This, we believe, is evidence of the success of our "land and expand" strategy as well as of the emerging value of the Rosslyn business model. Our customer churn remains extremely low, at less than 10% per annum.

We remain confident that, supported by strong contracted revenue visibility and new business momentum, we will continue to build on the solid progress and foundations laid.

Business Review

The six months to 31 October 2019 saw revenues drop slightly as we implemented a programme of removing low margin products and services and their replacement with higher margin ARR contracts. At the same time, we have been able to maintain and improve the cost efficiencies that we worked hard to deliver last year. The revenue growth and the cost savings enable us to see a clear path to EBITDA being positive in the second half of the year, and an operating cash break-even position (excluding working capital movements) during the full financial year.

Our ARR growth has been achieved as a result of our ability to assist enterprises to significantly reduce the complexities associated with capturing and managing their data whilst improving their analytics capabilities. At the same time, we have been able to support our clients by reducing the costs of deploying analytics, increasing the speed of deployment whilst being able to demonstrate a positive return on investments.

As enterprises modernise, we are benefiting from the migration from traditional on-premise applications to cloud based services. The technology value gap between a traditional on-premise solution and a cloud-based approach is increasing as we continue to develop faster, better and more intuitive solutions. We are now being frequently asked to deliver our solutions into a "private" cloud environment, owned and maintained by our clients. We believe this will assist us in improving our sales cycle metrics, accelerate our expansion plans and maintain a low churn rate.

We are increasing our investments in the sales and marketing teams, particularly focusing on large enterprises in key industry segments. We have deployed dedicated managers whose focus is on establishing deep and trusted relationships with strategic accounts. Supporting each of these areas is a customer success team who support not just the implementation but also the expansion of the footprint of the platform in each account.

The Group's sales pipeline continues to grow and I am pleased to report that we are in negotiations with a number of large enterprises and look forward to updating shareholders in due course. On the partner front, our focus is on making our existing partners ever more effective in selling the benefits of the platform through which we extend and scale our sales capability.

We are continuing to build on our world-class and well-regarded development team. Their depth of expertise and agile approach enables us to respond quickly to customer needs and market opportunities and give us an advantage over the traditional on-premise approach.

The Group's strategy remains to build a strong and dynamic company focused on growth and building shareholder value.

Prospects

The second half of the year has begun well. There have been a number of new contract wins as well as expansion of our current customer portfolio. The firm has been short listed as the preferred vendor in the US, UK and Europe for potential new contracts which cover a number of new exciting verticals and applications for RDT and we look forward to updating shareholders in due course.

The research and development team are executing on an exciting schedule of improvements and new technologies, which we expect to be released into full production late in the second half of this financial year. Of note, we expect to deliver: simple self-service tools that will enable clients to improve data management capabilities; compliance reporting and predictive analytical capabilities; supplier information management capabilities and full contract to cash management capabilities. We expect these tools to improve our customers' risk analytics and compliance reporting capabilities along with information and insights to support their fundamental business needs and their strategic decision making.

Our pipeline is healthy and, through the impact of our new solutions and services, we are negotiating contracts with significantly larger values than we have done in the past. Given their size, these contracts are taking longer to negotiate but we have been able to automate many internal processes, reducing the lead-time for delivery and shortening the time to value extraction for our clients. Management are working to deliver these contract wins during the current financial year and, if achieved, would significantly increase EBITDA for this year. Even without these contracts at this time we have every confidence in meeting our expectations.

The directors are pleased with the progress made to date and believe that the Company is increasingly well positioned to take advantage of opportunities. The RDT RAPid platform is emerging as a recognised and well-regarded technology in this large and growing market place, and through our continued and disciplined execution, we expect progress to continue. As a result, we believe the Company is in an exciting position for the rest of this year and beyond.

Roger Bullen

Chief Executive

14 January 2020

Finance Director's report

Group revenues reduced by 11.7% to GBP3.12 million (H1 2019: GBP3.53 million) but this was driven primarily by a reduction in low-margin professional service revenues, with licence revenue only down slightly to GBP2.57 million (H1 2019: GBP2.73 million). The Group usually has a stronger second half than first half due to the timing of our clients' year end typically being December, and also due to our first half including the quieter summer months. We expect this to continue to be the case in the current year.

Gross profit margin improved to 81.2% (H1 2019 78.4%) as we cancelled certain contracts generating little margin and made more efficient use of third-party cloud resources.

Administrative expenses have been managed tightly in the period, in anticipation of the lower revenues, at GBP2.80 million (H1 2019: GBP2.98 million), but these will now increase due to the addition of seven headcount employed following the Langdon acquisition and also because we have chosen to invest further into sales and marketing. The average headcount in the period was stable at 62 (H1 2019: 62).

The Operating EBITDA loss was GBP155,000 (H1 2019: GBP213,000 loss) with a loss after tax of GBP826,000 (H1 2019: GBP660,000 loss).

The basic and diluted loss per share for the period was 0.43p (H1 2019: 0.36p).

Cash at the end of the six-month period was GBP0.5m (H1 2019: GBP0.4m). During the period we drew down the remaining GBP0.5 million of the GBP1.5 million term loan facility with Clydesdale Bank and also repaid pre-existing loan notes and other loans of GBP722,000.

Cash flows from operating activities (excluding working capital movements) were GBP155,000 (H1 2019: GBP212,000), but cash used from operations in the period was GBP1.1 million (H1 2019: GBP0.2 million) due to a reversal of a favourable working capital position at the last year end. Consistent with the Group's working capital cycle, we expect to be cash generating in the second half of the year.

The annual recurring revenue at the period end increased by 18.8% to GBP6.00 million (H1 2019: GBP5.05 million) and by 11.1% since the last balance sheet date (30 April 2019: GBP5.4 million).

The contract revenue backlog increased 25.5% to GBP6.4 million as of today (30 April 2019: GBP5.1 million).

IFRS 16

IFRS 16 addresses the accounting for leases and requires lessees to recognise all leases on balance sheet with limited exemptions. This results in the recognition of a right-of-use asset and corresponding liability on the balance sheet, with the associated depreciation and interest expense being recorded in the income statement over the lease period. Limited exemptions apply for short-term leases (leases with a term of 12 months or less) and low value leases but these have not been utilised in the period.

The Group has adopted IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application (GBPnil) is recognised in retained earnings at 1 May 2019. Accordingly, the comparative information has not been restated and continues to be reported under IAS 17 'Leases' and IFRIC 4 'Determining Whether an Arrangement contains a Lease'.

On transition to IFRS 16 the Group recognised an additional GBP321,000 of right-of-use assets and GBP321,000 of lease liabilities. As at 31 October 2019 the right-of-use asset recognised is GBP209,000 with a corresponding lease liability of GBP209,000, having released GBP112,000 in the current period. Without this release the Operating EBITDA loss would have been GBP267,000 (H1 2019: GBP213,000 loss).

Ash Mehta

Finance Director

14 January 2020

Consolidated statement of comprehensive income

For the six months ended 31 October 2019

 
                                                     Six months   Six months       Year 
                                                          ended        ended      ended 
                                                     31 October   31 October   30 April 
                                                           2019         2018       2019 
                                                      Unaudited    Unaudited    Audited 
                                             Notes      GBP'000      GBP'000    GBP'000 
-------------------------------------------  -----  -----------  -----------  --------- 
Revenue                                                   3,117        3,532      6,965 
Cost of sales                                             (586)        (764)    (1,416) 
-------------------------------------------  -----  -----------  -----------  --------- 
Gross profit                                              2,531        2,768      5,549 
Administrative expenses                                 (2,686)      (2,981)    (5,993) 
Depreciation of IFRS16 property asset                     (112)            -          - 
Depreciation and amortisation                             (606)        (517)    (1,041) 
Share based payment                                        (59)         (77)      (125) 
Operating loss                                            (932)        (807)    (1,610) 
Finance income                                                -            1          1 
Finance costs                                              (80)         (35)       (87) 
Loss before income tax                                  (1,012)        (841)    (1,696) 
Income tax credit                                           186          181        595 
-------------------------------------------  -----  -----------  -----------  --------- 
Loss for the period attributable to the 
 equity holders of the parent                             (826)        (660)    (1,101) 
-------------------------------------------  -----  -----------  -----------  --------- 
Other comprehensive loss                                    (4)         (19)       (27) 
Total comprehensive income                                (830)        (679)    (1,128) 
-------------------------------------------  -----  -----------  -----------  --------- 
 
Loss per share 
Basic and diluted loss per share: ordinary 
 shareholders (pence)                          3         (0.43)       (0.36)     (0.59) 
-------------------------------------------  -----  -----------  -----------  --------- 
 

Consolidated balance sheet

As at 31 October 2019

 
                                     31 October  31 October  30 April 
                                           2019        2018      2019 
                                      Unaudited   Unaudited   Audited 
                                        GBP'000     GBP'000   GBP'000 
-----------------------------------  ----------  ----------  -------- 
ASSETS 
Non-current assets 
Intangible assets                         3,031       3,463     2,946 
Property, plant and equipment                10          14        14 
-----------------------------------  ----------  ----------  -------- 
                                          3,041       3,477     2,960 
-----------------------------------  ----------  ----------  -------- 
Current assets 
Trade and other receivables               1,917       1,594     1,697 
Corporation tax receivable                  521         345       363 
Cash and cash equivalents                   499         412     1,960 
-----------------------------------  ----------  ----------  -------- 
                                          2,937       2,351     4,020 
-----------------------------------  ----------  ----------  -------- 
Total assets                              5,978       5,828     6,980 
-----------------------------------  ----------  ----------  -------- 
LIABILITIES 
Current liabilities 
Trade and other payables                (4,052)     (3,222)   (4,018) 
Financial liabilities - borrowings        (587)       (771)     (934) 
-----------------------------------  ----------  ----------  -------- 
                                        (4,639)     (3,993)   (4,952) 
-----------------------------------  ----------  ----------  -------- 
Non-current liabilities 
Trade and other payables                      -           -     (126) 
Deferred income                               -        (59)         - 
Deferred tax                              (182)       (254)     (218) 
Financial liabilities - borrowings        (887)        (92)     (653) 
-----------------------------------  ----------  ----------  -------- 
                                        (1,069)       (405)     (997) 
-----------------------------------  ----------  ----------  -------- 
Total liabilities                       (5,708)     (4,398)   (5,949) 
-----------------------------------  ----------  ----------  -------- 
Net assets                                  270       1,430     1,031 
-----------------------------------  ----------  ----------  -------- 
 
  Equity 
Called up share capital                     965         963       963 
Share premium                            12,777      12,777    12,777 
Share-based payment reserve                 574         466       515 
Accumulated loss                       (19,071)    (17,800)  (18,241) 
Translation reserve                       (108)       (109)     (116) 
Merger reserve                            5,133       5,133     5,133 
-----------------------------------  ----------  ----------  -------- 
Total equity                                270       1,430     1,031 
-----------------------------------  ----------  ----------  -------- 
 

Consolidated cash flow statement

For the six months ended 31 October 2019

 
                                                        Six months   Six months       Year 
                                                             ended        ended      ended 
                                                        31 October   31 October   30 April 
                                                              2019         2018       2019 
                                                         Unaudited    Unaudited    Audited 
                                                           GBP'000      GBP'000    GBP'000 
-----------------------------------------------------  -----------  -----------  --------- 
Cash flows from operating activities 
Loss before income tax                                     (1,012)        (841)    (1,696) 
Adjustments for: 
- depreciation, amortisation                                   718          517      1,041 
- share-based payments                                          59           77        125 
- finance income                                                 -            -        (1) 
- finance costs                                                 80           35         87 
                                                             (155)        (212)      (444) 
(Increase)/decrease in receivables                           (201)          556        453 
(Decrease)/increase in payables                              (755)        (582)        211 
-----------------------------------------------------  -----------  -----------  --------- 
Cash generated/(used) from operations                      (1,111)        (238)        220 
Finance income                                                   -            -          1 
Finance costs                                                 (80)         (35)       (87) 
Corporation tax received                                         -          357        716 
Other comprehensive income/(expense)                             -         (20)          - 
-----------------------------------------------------  -----------  -----------  --------- 
Net cash from operating activities                         (1,191)           64        850 
-----------------------------------------------------  -----------  -----------  --------- 
Cash flows from investing activities 
Purchase of property, plant and equipment                      (1)          (3)       (10) 
Acquisition of business                                       (49)            -          - 
Net cash used in investing activities                         (50)          (3)       (10) 
-----------------------------------------------------  -----------  -----------  --------- 
Cash flows from financing activities 
Proceeds from share capital issued (net)                         2          244        244 
Proceeds from bank and other borrowings                        500            -      1,000 
Repayment of bank and other borrowings                       (722)        (210)      (441) 
Net cash from/(used in) financing activities                 (220)           34        803 
-----------------------------------------------------  -----------  -----------  --------- 
Net (decrease)/increase in cash and cash equivalents       (1,461)           95      1,643 
Cash and cash equivalents at beginning of period             1,960          317        317 
Cash and cash equivalents at end of period                     499          412      1,960 
-----------------------------------------------------  -----------  -----------  --------- 
 

Consolidated statement of changes in equity

for the year ended 30 April 2019

 
                                  Called 
                                      up                            Share-based 
                                   share  Accumulated  Translation      payment     Share    Merger     Total 
                                 capital         loss      reserve      reserve   premium   reserve    equity 
                          Note   GBP'000      GBP'000      GBP'000      GBP'000   GBP'000   GBP'000   GBP'000 
-----------------------  -----  --------  -----------  -----------  -----------  --------  --------  -------- 
Balance at 1 May 2017                379     (13,952)         (67)          218     8,517     5,133       228 
Issue of share capital               562            -            -            -     4,038         -     4,600 
Share-based payment 
 transaction                           -            -            -          195         -         -       195 
Release                                -           23            -         (23)         -         -         - 
Loss for the year                      -      (3,211)            -            -         -         -   (3,211) 
Other comprehensive 
 income                                -            -         (23)            -         -         -      (23) 
------------------------------  --------  -----------  -----------  -----------  --------  --------  -------- 
Balance at 30 April 
 2018                                941     (17,140)         (90)          390    12,555     5,133     1,789 
------------------------------  --------  -----------  -----------  -----------  --------  --------  -------- 
 
Balance at 1 May 2018                941     (17,140)         (90)          390    12,555     5,133     1,789 
Issue of share capital                22            -            -            -       222         -       244 
Share-based payment 
 transaction                           -            -            -          125         -         -       125 
Loss for the year                      -      (1,101)            -            -         -         -   (1,101) 
Other comprehensive 
 income                                -            -         (26)            -         -         -      (26) 
------------------------------  --------  -----------  -----------  -----------  --------  --------  -------- 
Balance at 30 April 
 2019                                963     (18,241)        (116)          515    12,777     5,133     1,031 
------------------------------  --------  -----------  -----------  -----------  --------  --------  -------- 
 
 
Balance at 1 May 2019     963  (18,241)  (116)  515  12,777  5,133  1,031 
Issue of share capital      2         -      -    -       -      -      2 
Share-based payment 
 transaction                -         -      -   59       -      -     60 
Loss for the year           -     (830)      -    -       -      -  (830) 
Other comprehensive 
 income                     -         -      8    -       -      -      7 
------------------------  ---  --------  -----  ---  ------  -----  ----- 
Balance at 30 April 
 2019                     965  (19,071)  (108)  574  12,777  5,133    270 
------------------------  ---  --------  -----  ---  ------  -----  ----- 
 

Notes to the unaudited interim statements

For the six months ended 31 October 2019

1. Basis of preparation

This interim report has been prepared in accordance with the accounting policies disclosed in the full statutory accounts for the year ended 30 April 2019.

These policies are in accordance with International Financial Reporting Standards and International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board, as endorsed for use in the European Union, that are expected to be applicable for the year ending 30 April 2020.

During the period the Group adopted IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application (GBPnil) is recognised in retained earnings at 1 May 2019.

The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing the interim consolidated financial information.

The financial information in this statement relating to the six months ended 31 October 2019 and the six months ended 31 October 2018 has not been audited.

The financial information for the year ended 30 April 2019 does not constitute the full statutory accounts for that period. The annual report and financial statements for the year ended 30 April 2019 has been filed with the Registrar of Companies.

The Independent Auditor's Report on the annual report and financial statement for 2018/19 was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.

The interim report for the period ended 31 October 2019 was approved by the Board of Directors on [14] January 2020.

2. Operating EBITDA

Operating EBITDA is calculated from Operating loss as shown below.

 
                                 Six months   Six months       Year 
                                      ended        ended      ended 
                                 31 October   31 October   30 April 
                                       2019         2018       2019 
                                  Unaudited    Unaudited    Audited 
                                    GBP'000      GBP'000    GBP'000 
------------------------------  -----------  -----------  --------- 
Operating loss                        (932)        (807)    (1,610) 
Depreciation and amortisation           718          517      1,041 
Share-based payments                     59           77        125 
Operating EBITDA                      (155)        (213)      (444) 
------------------------------  -----------  -----------  --------- 
 

3. Earnings per share

Basic earnings per share is calculated by diving the net loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by dividing net profit for the period attributable to ordinary shareholders outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all dilutive potential ordinary shares into ordinary shares.

 
                                                           Six months   Six months          Year 
                                                                ended        ended         ended 
                                                           31 October   31 October      30 April 
                                                                 2019         2018          2019 
                                                            Unaudited    Unaudited       Audited 
--------------------------------------------------------  -----------  -----------  ------------ 
Loss for the period attributable to the owners             GBP830,000   GBP679,000  GBP1,128,000 
 of the parent 
Weighted average number of ordinary shares                192,847,695  190,625,126   192,675,521 
 
                                                                Pence        Pence         Pence 
Basic and diluted loss per share: ordinary shareholders        (0.43)       (0.36)        (0.59) 
--------------------------------------------------------  -----------  -----------  ------------ 
 

4. 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 decisions. 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 segment, as no internal reporting is produced either by geography or division. The Group does view performance on the basis of the type of revenue, and the end destination of the client as shown below.

 
                         Six months   Six months       Year 
                              ended        ended      ended 
                         31 October   31 October   30 April 
                               2019         2018       2019 
                          Unaudited    Unaudited    Audited 
                            GBP'000      GBP'000    GBP'000 
----------------------  -----------  -----------  --------- 
Annual licence fees           2,573        2,732      5,437 
Professional services           460          800      1,528 
----------------------  -----------  -----------  --------- 
Continuing operations         3,033        3,532      6,965 
 
Annual licence fees              55            -          - 
Professional services            29            -          - 
----------------------  -----------  -----------  --------- 
Acquisitions                     84            -          - 
Total revenue                 3,117        3,532      6,965 
----------------------  -----------  -----------  --------- 
 
 
                                       Six months   Six months       Year 
                                            ended        ended      ended 
                                       31 October   31 October   30 April 
                                             2019         2018       2019 
                                        Unaudited    Unaudited    Audited 
                                          GBP'000      GBP'000    GBP'000 
------------------------------------  -----------  -----------  --------- 
UK and Europe                               2,421        2,630      5,248 
North America and Rest of the World           696          902      1,717 
------------------------------------  -----------  -----------  --------- 
Total revenue                               3,117        3,532      6,965 
------------------------------------  -----------  -----------  --------- 
 

5. Acquisitions

On 23 September 2019 Rosslyn Data Technologies acquired the trade and software assets of Langdon Systems Limited ("Langdon") from its administrators. The Langdon business specialises in bulk handling of supply chain data with a strong position in Import and Export duty management systems, providing import and export data reporting, visualisation and data mining for both on-premise and cloud-based solutions. The business has a blue-chip client base of 60 clients similar to that of Rosslyn but with little or no overlap. The acquisition will provide continuity and security for many leading UK companies that rely on Langdon's service.

Moreover, the Directors believe the acquisition will enhance Rosslyn Data Technologies' product and customer base, increase its recurring revenue streams and provide cross-selling opportunities.

Rosslyn acquired the assets, primarily comprised of software IP, client list and associated contracts, for a consideration of GBP49,000, funded by the Group's existing cash resources.

Details of the fair value of identifiable assets and liabilities acquired, and the purchase consideration are as follows:

 
                                             GBP'000 
----------------------------------------    -------- 
Amount settled in cash to the sellers             49 
Fair value of consideration transferred           49 
------------------------------------------  -------- 
 
 
 
Fair value of assets acquired                        GBP'000    GBP'000 
------------------------------------------------   ---------  --------- 
Contract and customer related intangible assets 
 (recognised on acquisition)                             428 
Intellectual property of internally generated 
 software (recognised on acquisition)                     49 
Deferred income                                        (428) 
Net identifiable assets and liabilities                              49 
-------------------------------------------------  ---------  --------- 
 

6. Dividends

No interim dividend (2018: nil) will be paid to shareholders.

7. Principal risks and uncertainties

The principal risks and uncertainties for this six-month period remain broadly consistent with those set out in the Financial Review section of the financial statements of the Group for the year ended 30 April 2019.

8. Interim report

Copies of the interim report are available to the public from the offices of Rosslyn Data Technologies plc at 60 St Martin's Lane, London WC2N 4JS. The interim report and the interim announcement will also be available from the Group's website at www.rosslyndatatech.com .

Directors and advisors

 
 Directors                                Registered office 
  James Appleby                            60 St. Martin's Lane 
  Non-executive Chairman                   Covent Garden 
  Roger Bullen                             London WC2N 4JS 
  Chief Executive                          Corporate brokers 
  Ash Mehta                                Cenkos Securities plc 
  Finance Director                         6.7.8 Tokenhouse Yard 
  Hugh Cox                                 London EC2R 7AS 
  Chief Data Officer                       External auditor 
                                           Grant Thornton UK LLP 
  Barney Quinn                             St John's House 
  Non-executive Director (independent)     Haslett Avenue West 
  Ginny Warr                               Crawley RH10 1HS 
  Non-executive Director (independent)     Registrars 
  Company Secretary                        Link Asset Services 
  F&L CoSec Limited                        The Registry 
  Registered in                            34 Beckenham Road 
  England and Wales                        Beckenham BR3 4TU 
  Company number 
  08882249 
  Share listing 
  The Company's shares are listed on 
  AIM. 
  EPIC/TIDM 
  RDT 
  ISIN 
  GB00BKKX5CP01 
  T: +44 (0) 20 3285 8008 
  E: investors@rosslyndatatech.com 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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