Can anyone enlighten me. I always thought that share options were meant to incentive staff to improve performance and thus share price. How can issuing options at below the current share price act as an incentive? Options at 5.625P and current share price 6.4p.
Its encouraging to see Hugh Cox, Founder & Chief Data Officer, purchase 165,00 shares into his SIPP yesterday. He is now reported as having a total interest of over 10Million (5.85%) shares in the company
Full year revenues down on the previous year was worse than I expected. When they are making a loss of over 50% of sales and revenues are declining it seems questionable whether they have a viable business here at all. Cash flow breakeven is apparently in sight but I thought that was the case a year ago.
The recent acquisition may transform the business but I am not going to hang around to find out.
Draw your own conclusions. For me, it's a pretty hefty price. I believe they justified by the total assets of the company which are pretty on par.
However, the additional £2.5 million will be for Rosslyn. The cash injection, which would add enough cash flow for another 2 years at the current rate of churn. The addition of results show they have not hit Break-even point still.
This acquisition will OCR capture to Rosslyn's suite of "Services". I imagine it's because, as they noted - they are great at getting Paperless based data (SAP, Orcale etc). However powerless when organisations are still paper based (Very much the case for countries outside of UK/US).
Disappointing revenues. If you want to adjust for the one off receipt last year and for the two contracts deferred to H2 this year then you could claim an underlying increase of about 15%, but since a lot of the revenues are clearly lumpy I am not sure that is justified and 15% isn't what i had hoped for anyway. It does seem that the partnerships are taking longer than expected to generate revenue. Note also that cost of sales increased.
The good news is that cash outflow has fallen and cash has actually increased by £150,000 in the 2 and a half months since the half year ended.
Management also make encouraging noises about the current half year's revenues and management has not historically overhyped the performance so this probably does mean something.
They want to increase US marketing but seem to be saying they won't do so until they can afford to.
All in all it still seems plausible that the cash they hold will be sufficient to take them through to cash flow break-even, so no dilution. Obviously it would be highly undesirable for existing holders if they raised further funds at the current price.
If they can get to cashflow break even the shares will look cheap.
Results very much in line with the earlier trading update and confirm good progress. With the increasing number of partners doing much of the selling for them, revenue should accelerate next year. Note the board say: "The Board believes that we have adequate cash resources to take the Group through to break-even and cash generation." That certainly seems plausible given the trends in profit and cash flow, so I don't see why they would want to raise further funds at the current price. (They give the impression they are already spending enough on R&D and in building direct sales, given that a lot of the sales growth will come through partners.)
Although small I think this is a class act with a lot of potential (and so much better value than the likes of Wandisco) although it may take the market a while to wake up to it (hence only a "weak buy")
"Wildnet was a small private software company in which Mr Quinn had previously invested. It has outstanding liabilities owed to third party and trade creditors of approximately £17,000."
Did Mr Quinn sell his shares today, which of whom I suppose may of been the 395,757 sold 11:22am. If so, this was done *before* the announcement (not sure how allowed this is) in order to pay back the liabilities owed for Wildnet?
Software & Computer Services
: Description: Cenkos
Rosslyn Data Technologies Plc (RDT, 17p, £13m, BUY)
Ramping up into 2016E
The FY15 results show a pre-tax loss slightly lower than expected. The partner relationships are only just beginning to ramp-up so the historic results show little positive benefit from these. 2016E is the year when these partnerships begin to materially impact the business and the share price, still almost 50% below the issue price, has not woken up to this.
n 2015A results. Revenues rose 37% yoy to £2.83m in line with Julys trading update while second half revenues of £1.58m rose 50% yoy, reflecting the positive impact of the IPO proceeds. Partners represented 25% of revenues, up from 10% last year. LBT of £3.5m was better than the loss indicated in the update of £3.65m.
n Growth. Lead generation is reported as accelerating, sales cycles reducing (from 120 to 75 days) and conversion rates increasing. Management is also reporting a sales pipeline growing faster than reported revenues. We believe a number of material new partnerships are in the pipeline.
n New mining client. Last week Rosslyn announced a direct customer win in the mining sector. The two year contract ramps-up mid-next month and the £400k value will be recognised evenly over the contract term. The focus is on cash management and analytics ‑ a growing area for commodity companies looking to become more agile.
n 2016E is key. The recently announced partnership agreements begin to ramp-up in this year. A number of existing Genpact clients will migrate on to Rosslyns platform within the next couple of months. Rosslyn is also beginning to pitch jointly alongside Genpact for other new business. With the PwC and other contract wins already announced this year, annualised new business wins for FY16E amount to over well over £1m.
n Meeting forecasts. We are in month five of Rosslyns fiscal 2016E period and contract wins to date have been very material. We have in our forecasts a total of £1.6m new business wins to meet our £5.0m revenue forecast. Every indication is that Rosslyn will meet our 2016E forecasts.
n EV/Sales 2.1x. Using a forward cash balance of £2.3m, the stock is trading on a 2016E EV/sales ratio of 2.1x. Rosslyn could deliver c80% revenue growth this year and breakeven next fiscal period. The rating of the stock is out of kilter with the opportunity. We are Buyers.
Well it is reported at 13.5 but afterwards there was a much bigger trade at 16.5, so maybe fat fingers? The advertised spread on this share is so wide it's virtually impossible to hazard a guess at buy or sell on trades as the real hidden spread is always much tighter.
Tuesday April 14 2015 | 12:00pm - 1:00pm EST | 4:00pm - 5:00pm GMT
In modern law firms, procurement has a strategic role that goes beyond just contracting with suppliers.
In this interactive webinar, Jeff Young, Global Strategic Sourcing Manager, Linklaters, LLP, will discuss the evolution of procurement in law firms and how they are the quiet force behind well run operations and client management success. Jeff will be joined by Paul Cook, VP Global Sales at Rosslyn Analytics, where they will share real-world examples of how analytics is empowering better decision-making and value creation across entire law firms:
Procurement: Quickly identify potential cost savings and efficiencies opportunities and potential supplier risks through detailed analysis of spend, contracts and external supplier information
Finance: Quickly improve and forecast cash flow by automatically assessing the cost of paying suppliers early.
Compliance: Monitor for potential fraud by automatically identifying anomalies in credit card transactions and vendor invoices.
ICT: Significantly reduce the cost of developing, testing and delivering self-service applications by providing analytics as-a-service to colleagues
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