Rosslyn Data Technologies FY losses better than feared, secures major client win

Cloud-based software provider Rosslyn Data Technologies revealed on Wednesday that it had secured a "major new client win" worth a minimum of £2.0m as it turned in better-than-expected FY24 underlying losses.

Rosslyn Data said annual revenues were broadly flat year-on-year, down from £3.0m to £2.9m, principally due to a £100,000 dip in annual recurring revenues to £2.3m, reflecting protracted timetables associated with contract negotiations for "sizeable new opportunities". Rosslyn also expects to report gross margins of approximately 39%, up from 34.7% in the prior year.

The AIM-listed firm expects to report full-year adjusted underlying losses of £2.5m and an overall LBITDA of £3.3m, widening from £2.0m and £2.4m, respectively. However, these figures were ahead of internal expectations, mostly due to the group's strategic decision to prioritise sustainable growth and focus on the quality of revenues.

Rosslyn also announced it had inked a new three-year contract with "one of the world's largest technology companies", which has a minimum revenue value of £2.0m and brought further possible growth opportunities through expansion into the customer's other divisions and operations.

Chief executive Paul Watts said: "This is a fantastic new customer win for Rosslyn, and a contract of substantial commercial value and transformational impact with significant growth potential. To be appointed by an organisation of this magnitude is a huge endorsement of our offering. It is also an important validation of our AI strategy, which was a key factor in determining the outcome of the competitive tender process - and which is further demonstrated by the customer engaging in, and funding, a co-innovation partnership with us.

"As expected with a customer of this calibre, it has been a complex and lengthy appointment process to which we have dedicated significant resources. As a result, we have established extremely strong foundations for our relationship with them and look forward to building on this and expanding our partnership to further opportunities in the future."

As of 1150 BST, Rosslyn Data shares had surged 54.32% to 14.28p.

Reporting by Iain Gilbert at Sharecast.com