Rosslyn Data Technologies revenue increased on 2.1% and EBITDA Margin increased on 7.7 pp from -8.2% to -0.46%
22 Sep 2020 • About Rosslyn Data Technologies (
$RDT) • By InTwits
Rosslyn Data Technologies reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -0.5%
- Rosslyn Data Technologies spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -25.5%
- Rosslyn Data Technologies has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is -79.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 2.1%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.7 pp from -8.2% to -0.46% in FY2020. EBITDA Margin stuck to a growing trend at 16.9 pp per annum in FY2016-FY2020.
Gross Margin increased on 5.1 pp from 79.7% to 84.7% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2018 at 76.1% and was growing since that time. SG&A as a % of Revenue decreased slightly on 1.8 pp from 86.0% to 84.2% in FY2020. SG&A as a % of Revenue stuck to a declining trend at -18.7 pp per annum in the last 5 years.
Net Income margin decreased on 6.4 pp from -15.8% to -22.2% in FY2020. Net Income margin stuck to a growing trend at 10.1 pp per annum in FY2016-FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.11% in FY2020. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. It's average level of CAPEX/Revenue for the last three years was 0.18%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2017 at 0.59% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2020. Debt dropped on 23.4% while cash dropped on 59.5%.
Rosslyn Data Technologies has no short term refinancing risk: cash is higher than short term debt (204.6%).
Financial and operational results
FY ended 30 Apr 2020
Rosslyn Data Technologies ($RDT) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3.869 | 3.506 | 6.433 | 6.965 | 7.109 | 2.1% |
| Gross Profit | 3.388 | 2.855 | 4.895 | 5.549 | 6.023 | 8.5% |
| SG&A | 5.819 | 4.915 | 8.484 | 5.993 | 5.987 | -0.1% |
| EBITDA | -2.331 | -2.022 | -2.161 | -0.569 | -0.033 | |
| Net Income | -2.118 | -1.823 | -3.211 | -1.101 | -1.580 | |
Balance Sheet
|
|---|
| Cash | 1.859 | 0.285 | 0.317 | 1.960 | 0.794 | -59.5% |
| Short Term Debt | 0.000 | 0.000 | 0.330 | 0.934 | 0.388 | -58.5% |
| Long Term Debt | 0.000 | 0.000 | 0.744 | 0.653 | 0.828 | 26.8% |
Cash flow
|
|---|
| Capex | 0.009 | 0.021 | 0.019 | 0.010 | 0.008 | -20.0% |
Ratios
|
|---|
| Revenue growth | 36.9% | -9.4% | 83.5% | 8.3% | 2.1% | |
| EBITDA growth | -31.6% | -13.3% | 6.9% | -73.7% | -94.2% | |
|
|---|
| Gross Margin | 87.6% | 81.4% | 76.1% | 79.7% | 84.7% | 5.1% |
| EBITDA Margin | -60.2% | -57.7% | -33.6% | -8.2% | -0.5% | 7.7% |
| SG&A, % of revenue | 150.4% | 140.2% | 131.9% | 86.0% | 84.2% | -1.8% |
| Net Income Margin | -54.7% | -52.0% | -49.9% | -15.8% | -22.2% | -6.4% |
| CAPEX, % of revenue | 0.2% | 0.6% | 0.3% | 0.1% | 0.1% | -0.0% |
|
|---|
| ROIC | -67.9% | -137.4% | -195.6% | -50.1% | -79.2% | -29.1% |
| ROE | -60.7% | -136.6% | -318.5% | -78.1% | | |
Peers in Software & Computer Services
Below you can find Rosslyn Data Technologies benchmarking vs. other companies in Software & Computer Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Actual Experience ($ACT) | 2.3% | -49.1% | 195.1% | 79.7% | - |
| Ideagen ($IDEA) | - | 23.6% | 33.2% | 29.2% | 21.2% |
| Eagle Eye Solutions Ltd ($EYE) | - | 71.2% | 24.6% | 22.8% | 20.6% |
| Arcontech Group ($ARC) | - | 7.8% | 9.2% | 12.8% | 4.0% |
| Oxford Metrics ($OMG) | 14.6% | -1.1% | 8.6% | 11.7% | - |
| |
|---|
| Median (15 companies) | 12.4% | 15.9% | 17.5% | 4.7% | 4.0% |
|---|
| Rosslyn Data Technologies ($RDT) | - | -9.4% | 83.5% | 8.3% | 2.1% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Craneware ($CRW) | 94.0% | 93.8% | 94.9% | 93.8% | 93.7% |
| Eagle Eye Solutions Ltd ($EYE) | 78.8% | 88.3% | 89.3% | 93.1% | 93.5% |
| Ideagen ($IDEA) | 88.0% | 89.5% | 91.2% | 91.6% | - |
| Netcall ($NET) | 91.2% | 91.7% | 90.2% | 89.8% | - |
| Dotdigital Group ($DOTD) | 87.4% | 86.1% | 78.9% | 89.7% | - |
| |
|---|
| Median (14 companies) | 61.1% | 58.2% | 46.4% | 73.8% | 48.3% |
|---|
| Rosslyn Data Technologies ($RDT) | 87.6% | 81.4% | 76.1% | 79.7% | 84.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dotdigital Group ($DOTD) | 30.4% | 31.7% | 26.9% | 34.9% | - |
| Arcontech Group ($ARC) | 14.5% | 16.7% | 23.0% | 32.4% | 40.4% |
| Micro Focus International ($MCRO) | 40.9% | 38.9% | 27.5% | 30.3% | - |
| Craneware ($CRW) | 32.3% | 30.4% | 31.1% | 30.3% | 33.4% |
| Ideagen ($IDEA) | 23.9% | 21.8% | 23.8% | 23.5% | - |
| |
|---|
| Median (15 companies) | 10.9% | 11.3% | 13.7% | 15.4% | 17.1% |
|---|
| Rosslyn Data Technologies ($RDT) | -60.2% | -57.7% | -33.6% | -8.2% | -0.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Netcall ($NET) | 2.7% | 0.7% | 0.8% | 4.7% | - |
| International Bus Mach Corp ($IBM) | 4.5% | 4.1% | 4.3% | 3.1% | 4.1% |
| Unisys Corp ($USY) | 3.0% | 4.1% | 3.8% | 2.9% | 2.9% |
| Micro Focus International ($MCRO) | 0.8% | 0.9% | 0.8% | 1.7% | - |
| Ideagen ($IDEA) | 1.6% | 1.1% | 1.4% | 1.5% | - |
| |
|---|
| Median (15 companies) | 1.2% | 1.2% | 0.9% | 1.2% | 0.7% |
|---|
| Rosslyn Data Technologies ($RDT) | 0.2% | 0.6% | 0.3% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Craneware ($CRW) | 27.9% | 30.0% | 34.9% | 33.4% | 29.8% |
| Rm ($RM.) | 254.7% | 73.8% | 39.0% | 31.6% | - |
| Dotdigital Group ($DOTD) | 28.9% | 29.3% | 26.6% | 25.9% | - |
| Arcontech Group ($ARC) | 14.5% | 14.5% | 17.8% | 22.9% | 20.4% |
| Oxford Metrics ($OMG) | 16.3% | 12.7% | 16.4% | 14.7% | - |
| |
|---|
| Median (16 companies) | 7.1% | 5.6% | 5.6% | 5.1% | 6.7% |
|---|
| Rosslyn Data Technologies ($RDT) | -67.9% | -137.4% | -195.6% | -50.1% | -79.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micro Focus International ($MCRO) | 2.1x | 6.6x | 4.2x | 4.3x | - |
| International Bus Mach Corp ($IBM) | 1.7x | 1.8x | 1.7x | 3.8x | 4.1x |
| Rm ($RM.) | -2.2x | 0.7x | 0.2x | 0.5x | - |
| Ncc Group ($NCC) | 0.5x | - | 0.8x | 0.5x | 1.0x |
| Unisys Corp ($USY) | -0.3x | -0.6x | 0.1x | 0.4x | -0.6x |
| |
|---|
| Median (11 companies) | -0.9x | -0.5x | -0.2x | 0.1x | -0.6x |
|---|
