Rosslyn, the AIM-quoted provider of cloud-based enterprise spend intelligence software, has reported a smaller annual loss and improved margins, signalling early progress in its two-year turnaround strategy focused on artificial intelligence-driven analytics.
The company LON:RDT said revenue for the year to 30 April 2025 edged up to £3.0 mn from £2.9 mn a year earlier, while its adjusted EBITDA loss narrowed to £2.0 mn from £2.5 mn. Gross margin improved to 40.7 per cent from 38.8 per cent, reflecting operational efficiencies and higher-value contracts.
Monthly cash burn fell to £160,000, down from £218,000 the previous year, and cash and cash equivalents stood at £1.7 mn at year-end, a significant increase from £646,000 in 2024, aided by recent fundraising.
Annual recurring revenue was steady at £2.3 mn, while the company’s sales pipeline strengthened: total opportunities rose to £4.1 mn, up from £3.3 mn, with the weighted pipeline increasing to £1.6 mn.
Rosslyn’s AI platform begins to gain traction
Chief executive Paul Watts said Rosslyn had reached a “pivotal moment” after a period of restructuring and investment in new technology. The group has completed the commercial rollout of AICE, its artificial intelligence-based classification engine designed to automate and enhance spend analytics for large corporate clients.
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“Over the last two years, Rosslyn has been on a complex turnaround journey,” Watts said. “This development project has now come to fruition with our AI classification tool, AICE, having been fully released and stress-tested by some of the largest companies in the world with substantial volumes of data.”
He added that the technology would form “the foundation on which we can now execute commercially” and serve as a platform to “unlock the value of procurement data through providing AI-led actionable insight”.
Alongside AICE, Rosslyn has developed new AI-powered initiative tracking and benchmarking tools aimed at expanding its product suite and driving greater customer retention.
The group also announced a number of commercial milestones, including securing a major new client described as a “leading global technology company” and winning work with one of the world’s top five consulting firms — both expected to underpin growth in the coming year.
Signs of operational stabilisation
Rosslyn’s financial performance suggests that its cost-reduction and product-development measures are beginning to stabilise the business following years of underperformance and cash pressure.
Watts said the company ended the year “in a stronger position than we entered and we look to the future with confidence.”
What we think
We believe the improvement in margins and cash position are a positive sign that Rosslyn’s strategy to pair AI innovation with tighter financial discipline is gaining ground, though the company remains in loss-making territory and faces continued pressure to convert its growing pipeline into revenue.
The firm’s shares have traded at low levels over the past year, reflecting investor caution toward smaller listed technology groups. However, the addition of global clients and the launch of proprietary AI tools could help restore confidence if the technology delivers measurable efficiency gains.
Rosslyn’s annual report for the year ended 30 April 2025 will be published shortly, providing further detail on the group’s operational and financial outlook.
