3 contract renewals worth £0.9m in ARR

A key takeaway from COVID-19 is that the pandemic has accelerated ‘cloud’ adoption, and focused executive’s attention on cost savings, productivity & supply chain optimisation: all of these secular trends are right in the sweet spot of Rosslyn’s Big Data & Spend Analytics SaaS platform, RAPid.

The company today announced that it had extended 3 contracts, worth a combined £0.9m of ARR (annualised recurring revenues) and £1.5m in total value.

The extensions are with top quality clients: namely an international telecoms business, a world-renowned American university, and a UK government department to between Sept’21-Jun’23. Highlighting once again the criticality of the firm’s leading technology and services.

These 3 renewals add further visibility, support our £6.4m FY21 ARR estimate (£6.0m LY), and reinforce the modest 9.5p/share valuation.

Moreover, if the Board can achieve its strategic objective of tripling ARR by April’23 – then there should be no reason why the valuation could not justify at least a 3x-5x EV/sales multiple: equivalent to £54m-£90m, or 16p-26p/share.