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The share price of AIM-listed big data specialist Rosslyn Data Technologies (LON:RDT) has dropped by 13.73% to 5.09p (as of 14:00 GMT) after the company published a trading update. Management said that trading during the first few months of this year had been slow as clients deferred on renewing contracts and the business ceased certain low margin operations, but management said that they could still meet annual guidance with a tight focus on costs.
CEO Roger Bullen commented: “We continue to focus our attention on building out our client base with sustainable ARR, ensuring that gross margins are in line with our expectations. I am delighted that we continue to win significant contracts with major industry leaders with the RAPid platform demonstrating our domain expertise and knowledge.
“The Langdon acquisition, although not delivering significant profitability in the first 9 – 12 months, has an extremely loyal customer base with low churn rates and provides a significant cross-selling opportunity. We expect the ARR achieved from Langdon to increase in the next half year as we face Brexit and the new customs declaration system upgrade“.