Gresham Technologies Takeover Rumours (GHT)

They were originally going to announce the results yesterday, but the takeover document said it would now be by the end of April.

so because of takeover approach, I assume they don't need to publish their year end financial statement as it was supposed to come out today?

Looks like the recovery has started. Easily worth 1.80 even in current markets. Could be a takeover target ?

I doubt if the appointment of a Kestrel director has anything to do with a potential takeover. Some will remember that Max Royde of Kestrel was on the GHT board for some time when GHT was reinventing itself with Claretti. I think the appointment may strengthen the SP. I was always a bit concerned that the slow progress with the SP might encourage Kestrel to start selling which could lead to a massive share overhang for some time. Having a Kestrel director on the board indicates to me a commitment from GHT's largest shareholder. A solid set of results I feel, but again not spectacular.

I think the market reaction may be due to the cautious 2024 outlook, rather than the discontinuation of the legacy business. Both Techinvest and TechmarketView in the past have referred to GHT's software as being transformational in GHT's market area. I know however from my own past experience in IT sales it doesn't matter how good your product is, it can still be very difficult to dislodge incumbent suppliers. That is the reason I feel for the stubbornly low organic growth and the disappointing SP performance. As amt and others have pointed out, the business model is very sound indeed but I think the company is now a sitting duck for a takeover. Discontinuing the legacy business makes it even more so as the company has a cleaner structure. If a bid does come I just hope that more than one buyer is interested so that we might get a bidding process.

I managed to load up at around 1.20p before the big buyer moved in. Thanks to all the bears who made it possible. Just hope I timed it right but always a risk of a takeover so didn't want to leave it too long.

2.20 is realistic in decent market conditions. Barriers to entry are very difficult so a safe and reliable business on a low p/e with another potentially highly valuable product just been released. Plus a takeover target for a quick return

Yes Takeover inevitable since it has a reliable business model and the Floe business could match Clareti. So a great catch as not much complexity. I should think around about 2 quid given what happened to Sopheon.

It was going to happen at some point as it was never the future of their business and you can argue it was actually hindering any potential takeover. Singers now forecast flat PBT for next year with 10% Clareti recurring revenue growth as before. Puts them on a PE of 16/17 at 120p. I hold Sopheon (arguably a much less good business) which just got taken over at twice the valuation of GHT. IMHO it won't stay down here for long.