Final pieces of the jigsaw are falling into place

Rosslyn Data Tech is a Big Data Procurement, AI & Customs Management software specialist that is transitioning into a high growth, profitable & cash generative SaaS firm. Sure, it’s not quite there yet… but the stars are aligning. Particularly after the appointment of CEO Paul Watts in April, who has literally grabbed the business by the scruff of the neck.

Clearly the pandemic hasn’t helped. Yet, equally one could argue that with the shares languishing on a 1.7x trailing EV/turnover multiple (vs >5x sector), and clients moving ‘full bore’ towards all things digital, the upside potential is even greater.

Indeed, since the £7.3m placing at 5p in May’20, Rosslyn has made significant progress in terms of product development, sales & marketing, cost control and management. Today reporting that FY21 adjusted LBITDA was “in line with expectations” at -£250k (+£36k LY) on turnover of £7.4m (+4% £7.1m LY) with net cash closing April 2021 at £5.6m.

Consequently we maintain our 10p/share valuation, albeit acknowledge it could ultimately prove conservative, especially given many supportive tailwinds. We also look forward to the prelims in August and hope to hear more about the findings from the operational review.