StockMarketWire.com - Rosslyn Data Technologies reiterated that it had a slow start to the current financial year, but said it expected to benefit from a new contract in the second half.

The company said professional service revenues for the half had been impacted due to some clients opting to defer contracted projects to a later period.

'In addition, we decided not to renew client contracts with a high element of resale revenue which were unsustainable due to low levels of gross margin,' it added.

On the positive side, Rosslyn Data Technologies said it had won a contract from a client that made rolling stock and infrastructure for rail networks.

The contract was valued at £0.41m over a three-year term, with first revenues due to be recognised in the second half of the company's financial year.

Rosslyn Data Technologies also said that the Langdon business acquired in late September was proceeding satisfactorily, with the majority of clients having been retained.

'We continue to focus our attention on building out our client base with sustainable average rate of return, ensuring that gross margins are in line with our expectations,' chief executive Roger Bullen said.



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