Rosslyn Data Technologies PLC (LSE:RDT) reported revenue of £3.0 million for the financial year ended 30 April 2026, broadly unchanged from the previous year, while increasing its gross margin and reducing its adjusted EBITDA loss.
The AIM-listed provider of cloud-based procurement analytics software recorded a gross margin of 46.8%, compared with 40.7% in 2025. Its adjusted EBITDA loss narrowed to £1.4 million from £2.0 million, reflecting lower hosting costs and changes to its operating expenses.
Annual recurring revenue remained at £2.3 million, while the company’s sales pipeline stood at £3.6 million at the financial year-end, compared with £4.1 million a year earlier.
Rosslyn also reported progress in the commercial adoption of its artificial intelligence-powered procurement tools, including its AICE classification technology, and continued discussions about expanding services with a major global technology customer.
Cash and cash equivalents declined to £0.8 million at 30 April 2026 from £1.7 million a year earlier. The company subsequently reported cash of approximately £0.4 million at 20 October 2026 and identified a material uncertainty relating to its ability to continue as a going concern.
Revenue Remains Broadly Unchanged at £3 Million
Rosslyn reported annual revenue of £2.96 million, compared with £3.01 million in the previous financial year.
Annual licence fees increased to £2.3 million from £2.2 million, accounting for approximately 77% of total revenue, compared with 73% in 2025.
Professional services revenue declined to £0.6 million from £0.8 million, representing 20% of group revenue.
Managed services revenue, which includes platform hosting for a major customer, increased to £0.1 million from approximately £0.03 million.
Annual recurring revenue remained stable at £2.3 million.
Rosslyn said it had continued to prioritise contracts offering higher margins and recurring revenue, including decisions not to renew certain lower-value agreements.
Some customers did not transition to the company’s revised pricing structure, resulting in contract churn. This was offset by new customer agreements and increased fees from existing customers.
Gross Margin Increases to 46.8%
Rosslyn reported gross profit of £1.4 million, compared with £1.2 million in the preceding year.
Gross margin increased by 6.1 percentage points to 46.8% from 40.7%.
The improvement reflected lower hosting costs and changes to the composition of the company’s revenue.
Rosslyn’s cost of sales includes platform hosting, third-party technology costs, customer support and professional services expenditure.
Management expects the gross margin to improve further in the financial year ending April 2027, reflecting a full-year contribution from the lower hosting costs.
The company did not provide a numerical gross margin target for the current financial year.
Adjusted EBITDA Loss Narrows to £1.4 Million
Rosslyn reduced its adjusted EBITDA loss to £1.45 million from £1.98 million in the previous year.
The reduction of approximately 27% reflected higher gross profit and lower operating expenses.
Total operating costs decreased to £3.8 million from £3.9 million.
Administrative expenses declined to £3.1 million from £3.3 million, primarily due to lower employee-related costs following workforce reductions.
These savings were partly offset by an increase in share-based payment expenses.
The operating loss narrowed to £2.4 million from £2.7 million.
However, the loss before tax increased to £2.9 million from £2.6 million.
Rosslyn attributed the increase in the pretax loss partly to a £0.3 million fair value loss arising from the remeasurement of its convertible loan note derivative liability, compared with a £0.3 million gain in the previous year.
Adjusted EBITDA excludes interest, taxation, depreciation, amortisation, exceptional items and share-based payments.
Monthly Cash Burn Declines to £106,000
Rosslyn reported a reduction in its average monthly cash burn to £106,000 during FY2026, compared with £160,000 in the previous year.
The company said the reduction followed cost-saving measures implemented to preserve cash.
Cash used in operations decreased to £1.5 million from £1.8 million.
However, net cash used in operating activities increased to £1.6 million from £1.4 million, reflecting working capital movements.
Net cash used in investing activities declined to £0.4 million from £0.6 million, primarily relating to software development.
Financing activities generated £1.0 million, compared with £2.9 million in 2025.
During the year, Rosslyn raised net proceeds of £0.8 million through the issue of ordinary shares and £0.3 million through convertible loan notes.
The company ended April 2026 with cash and cash equivalents of £0.8 million, compared with £1.7 million a year earlier.
Cash Balance Falls to £400,000 in October
Rosslyn reported that its cash balance had declined further following the financial year-end.
At 20 October 2026, cash and cash equivalents stood at approximately £0.4 million.
The company said it had reduced its monthly cash burn to approximately £70,000 since the end of April.
Management continues to focus on expenditure controls while pursuing new business opportunities and contract renewals.
Rosslyn said the board expects its cash position at 30 April 2027 to be in line with market expectations, based on anticipated conversions from its commercial pipeline.
However, the company acknowledged that its financial forecasts have limited headroom.
The board is considering further cost reductions and potential funding options to support operations and future growth.
Material Uncertainty Identified Over Going Concern
Rosslyn’s annual report includes a material uncertainty relating to the company’s ability to continue as a going concern.
The directors said that although the business remains operational and has opportunities to generate additional revenue, its current financial forecasts provide limited flexibility.
Management is therefore considering additional cost reductions and potential capital raising arrangements.
The company reported net liabilities of £1.0 million at 30 April 2026, compared with restated net assets of £1.0 million a year earlier.
The change reflected the reduction in cash and an increase of approximately £0.9 million in non-current liabilities, primarily associated with convertible loan notes and derivative financial instruments.
The directors concluded that preparing the financial statements on a going concern basis remained appropriate.
Nevertheless, they acknowledged that the identified uncertainty could cast significant doubt on the company’s ability to continue operating without further financial support or sufficient commercial progress.
Annual Sales Pipeline Stands at £3.6 Million
Rosslyn reported a total sales pipeline of £3.6 million at 30 April 2026, compared with £4.1 million at the previous financial year-end.
Its weighted pipeline increased to £1.7 million from £1.6 million.
The weighted pipeline reflects the company’s assessment of the probability of converting prospective contracts into revenue.
Management said the business continues to pursue opportunities with new customers while seeking to expand services provided to existing clients.
The company’s growth strategy is focused on securing additional software subscriptions, increasing adoption of its AI-powered products and developing relationships with larger enterprise customers.
Rosslyn said it remained confident of achieving current market expectations, although it did not specify the associated financial figures in its announcement.
Major Technology Customer Expands Use of Rosslyn Platform
Rosslyn reported further progress with a major global technology company secured as a customer during FY2025.
The company has completed the rollout of its procurement analytics platform within the customer’s central procurement department.
The customer has also trialled Rosslyn’s AICE artificial intelligence classification technology in its live operating environment.
Rosslyn said it is in advanced negotiations concerning commercial adoption of AICE by the customer.
Discussions are also underway with another department about extending the use of Rosslyn’s services.
In addition, the companies are undertaking joint development work involving Rosslyn’s AI technology and other potential applications.
Management identified the relationship as a principal potential contributor to near-term growth.
The customer has not been named, and Rosslyn has not disclosed the total value of potential additional contracts under discussion.
New Contracts Include Media Group and Train Operator
Rosslyn secured several customer agreements during the financial year.
The company signed a three-year contract with a global media and technology business that is expected to generate $160,000 in annual recurring revenue, alongside $60,000 in professional services fees during the first year.
The customer, which was separated from an existing Rosslyn client, selected the company’s full product suite following a competitive tender.
The agreement also includes the company’s newly developed initiative tracking and benchmarking tools.
Rosslyn separately secured a one-year agreement with a British train operating company worth £85,000.
In January 2026, it signed a one-year contract worth £95,000 with a global business specialising in process technology licensing and catalyst supply.
That agreement followed the customer’s separation from another longstanding Rosslyn client.
The company said these contracts contributed to offsetting revenue lost through its decision not to renew certain lower-margin agreements.
Customer Renewals Total $1.5 Million
Rosslyn completed two customer renewals in April 2026 with a combined contract value of $1.5 million.
A multinational medical devices and healthcare company renewed its agreement for three years, with a total contract value of $1.2 million.
The renewal includes an increase in licence fees and the customer’s first adoption of Rosslyn’s AICE technology.
A separate media and entertainment customer agreed to a one-year renewal worth $300,000.
Rosslyn also reported that it was in advanced discussions regarding renewals with two additional longstanding customers.
The company has not disclosed the expected value or completion dates of those potential agreements.
AICE Artificial Intelligence Tool Gains Additional Customers
Rosslyn reported progress in commercial adoption of AICE, its AI-powered procurement data classification technology.
Three customers have adopted the product commercially.
A further three customers, including the major global technology client, have completed trials.
Rosslyn said it was in advanced negotiations with the major customer regarding adoption of the technology.
Three additional customers are continuing to trial AICE.
The company also expects that another existing customer may incorporate the product into a future contract renewal.
AICE is designed to classify procurement data and support the organisation and analysis of large datasets.
Rosslyn said its strategy involves using the classified information to support additional analytics and decision-making applications.
New AI-Powered Procurement Tools Introduced
Rosslyn launched two additional AI-powered products during FY2026.
The first, IniTrack, enables procurement teams to plan, monitor and report on purchasing initiatives.
The software incorporates generative AI capabilities intended to identify potential outcomes and provide information to procurement managers.
It can also be used to monitor initiatives relating to supply chain risk and sustainability.
The second product, Benchmarking, enables customers to compare purchasing prices across business divisions, industry peers and publicly available price information.
Both products are offered as additional modules to Rosslyn’s existing platform.
The company said the tools are intended to extend its offering beyond data consolidation and classification into procurement analysis and operational decision support.
Further AI Product Development Underway
Rosslyn is developing additional AI-based capabilities for its procurement platform.
These include Automated Insights, intended to provide procurement teams with detailed information generated from purchasing data.
The company is also working on enhancements to its existing dashboard tools, including the use of natural language interfaces.
Another planned product, Strategic Playbooks, is intended to provide recommendations relating to supplier and category management.
Rosslyn is also developing Connect Further AI, designed to allow customers to use consolidated and classified procurement information in their own AI projects.
The company has not announced commercial launch dates or revenue expectations for these products.
CEO Paul Watts Comments on Annual Performance
Paul Watts, Chief Executive Officer of Rosslyn, commented on the company’s financial performance and product development strategy.
“During the year, we saw the benefits begin to come through of the actions we have taken to enhance the quality of our revenue as part of our focus on delivering sustainable growth. We also continued to execute on our strategy to unlock the value of procurement data through providing AI-led actionable insight as well as enhance our relationship with our Major Client, which we believe will be the primary driver of growth in the near term.
“Looking further ahead, we continue to assess the best ways to fund growth and deliver value to Rosslyn’s shareholders. Rosslyn operates in a market with enormous opportunities as procurement increasingly embraces agentic AI technologies. Having made the strategic decision several years ago to invest in the development of large language model-based AI technology, we have built a product that we believe offers the lowest total cost of ownership of building, managing, maintaining and governing large, complex procurement data lakes. That technology has been stress tested by some of the world’s largest, most complex companies. This, combined with the depth of our procurement experience and expertise, means Rosslyn is well positioned to capitalise on this market potential.”
Outlook for FY2027
Rosslyn expects its commercial development during FY2027 to be influenced by customer contract renewals, adoption of AI-powered products and potential expansion of services with its major technology client.
The company anticipates further gross margin improvement from lower hosting costs.
Management is also continuing to transition customers to its revised pricing model and expand the use of its procurement analytics tools.
However, the company’s financial position remains dependent on maintaining cost controls and securing additional revenue.
Rosslyn said it continues to assess funding options while targeting current market expectations.
The board has not provided a numerical revenue or profitability forecast in its announcement.
More About Rosslyn Data Technologies
Rosslyn Data Technologies PLC is an AIM-listed software company providing cloud-based procurement analytics and spend intelligence services.
Its Rosslyn Platform helps organisations consolidate, classify and analyse purchasing information across suppliers and business operations.
The company’s technology incorporates artificial intelligence, machine learning and automated workflows to support procurement analysis and supplier management.
Rosslyn serves enterprise customers across multiple industries and is developing additional AI-powered tools for procurement planning, benchmarking and data analysis.
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