Gresham Technologies Share Discussion Threads

[amt] 20/9/2016 17:33

Yes if they have a very strong second half. They need to sign some big contracts in the next 3 months.

[thebullyboy] 20/9/2016 14:47

As I have pointed out previously, GHT has historically trade at pe of about 30 and on that basis we COULD perhaps be trading at 150p by end of the year IF the markets thinks they will meet current forecast.

[thebullyboy] 19/9/2016 11:08

Ok the leg up is happening sooner than I expected and without any news. Thats even better!

[thebullyboy] 15/9/2016 11:48

Probably another leg up coming soon in the share price Will probably conincide with expected contract wins this year. We did get some contract wins announcements sep/oct last year. I am sure BOD wont wait until Jan/Feb to update us of any good news.

[thebullyboy] 06/9/2016 14:32

Here is the text in the techinvest which richjp was referring earlier:

Gresham Computing (GHT; 96.5p): The shares are essentially unchanged from where
we made them a New Buy at 100p in the September issue last year. Regular update
notes followed including February this year, followed by each of April, May and June. The latter covered the AGM on April 28 which confirmed a strong start to 2016, with four new customers for its upmarket big-ticket CTC product, all from within the fund management/ administration sector. All four were received in Q1, with hints of more to come before the end of Q2. Further news on this front should drive the shares usefully higher over coming months.

[thebullyboy] 01/9/2016 10:50

We have been very fortunate with Kestrel buys and if they can go upto 29% that will certainly give the share price some kind of a floor.

[schytalk] 01/9/2016 10:39

Max Royde(Kestrel)) remains very positive and nobody knows more about GHT prospects than him. He will soon no longer have the restrictions of a director so could be interesting times especially if Kestrel can go up to 29%.

[richjp] 01/9/2016 10:14

I am pretty certain you can hold up to 29% before having to make a bid.

It's still good to see Kestrel still buying though.

[schytalk] 01/9/2016 08:32

Thanks for the info BB, they bought another 100k yesterday. Mind you given that Kestrel are buying on behalf of multiple clients/funds nit sure how/when the 15% would apply.

[thebullyboy] 01/9/2016 08:18

Kestrel can buy upto 15% and they are on 13.7%. From memory going over 15% triggers a bid which I am sure they are not after.

[schytalk] 28/8/2016 09:07

Kestrel bought a further 250,000 shares on the 26th making 450,000 in all, clearly Max Royde is using the trading statement as a buying opportunity. I remain of the view that the GHT board believe the share price is below where it should be, looking forwards to an increase to 110p and above. With Max leaving the Gresham board Kestrel will have no restrictions as regards share trading, interesting times ahead.

[schytalk] 27/8/2016 08:01

well it seems that Schroders we a seller disposing of 488,500 shares leaving them with 8,401,500/13.2%.

[schytalk] 26/8/2016 13:13

Well it seems that Kestrel bought 200,000 shares on the 25th but some 900k were traded that day. Good to see Kestrel continuing to buy and also that others are buying, but who are they?

[thebullyboy] 26/8/2016 12:01

How rude! I was sharing information about a possible competitor. This is a platform for share information if you dont know where you are. I dont hold that company.

[qantas] 26/8/2016 11:50

Big Bully Boy I don't like AIM stocks and this thread is only for GHT.
No good you punting your stock on this thread thank you.........

[thebullyboy] 26/8/2016 11:34

I wonder if First Derivatives are going after the same clients as GHT or the other way round. First Derivatives are capitalised at almost £500m. If GHT manage half of this I would still be happy.

This is from their last annual:

Software

We experienced an acceleration of contract wins through the year within Capital Markets, driven by demand from clients. Our capability to service that demand increased following investment both during the year and in prior years in software development, pre-sales support, sales and marketing, implementation and support.
Despite our success during the year, we still remain at the early stages of commercial exploitation of our software products within financial services and believe we have significant room for growth. FD’s core competitive advantage is our capability to address client challenges around the management of large volumes of data in real time for the purposes of risk management, balance sheet optimisation and for regulatory and compliance purposes, all of which resonate strongly with existing and potential clients. The success of deployments of our software to date is driving further growth in our pipeline as satisfied customers report the benefits it is delivering to their business.

Outside financial services, we are making strong progress in digital marketing and utilities, where the acquisitions of Prelytix LLC and Affinity Systems Limited respectively have accelerated our growth. We continue to work to position ourselves in additional markets and have developed a pipeline of direct sales opportunities across them. We are also exploring opportunities to partner with companies with domain expertise in these areas to accelerate our growth.


Financial Review

The Group performed well in the year with revenue increasing by £33.8 million (40.6%) to £117.0m, with organic growth of 27% and the remainder attributable to the strategic acquisitions made during the year. Consulting revenue increased by £16.7m (28.6%) and software revenue by £17.1m (68.7%). Software revenue represented 35.9% of Group revenue for the year (2015: 29.9%). Within our software revenue, £21.4m (51% of the total) was recurring, up from £12.0m (48%) in 2015. The remainder was split between perpetual license sales (£3.4m, compared with £0.9m in 2015) and the implementation and support of our software (£17.2m, compared with £12.0m in 2015).

[thebullyboy] 26/8/2016 08:31

It looks like Kestrel and some other are buying up these shares. The other may be a new investor and still under 3% as we have not had a holdings announcement from any other - yet.

I am sure the share price will rise as news of big wins in the second half come as anticipated.

[schytalk] 26/8/2016 07:53

A further 1.8 million share traded which will hopefully have removed the remaining disgruntled investors following the fund raising and profits warning. It will be interesting to see who has bought these shares, hopefully new investors. Given the strength of the words in the half year report I still think an share price of at least 110p (the CEO option price) is where it should be. If the board thought this was a reasonable level a year ago then given the progress, albeit the figures have lagged a little bit, then it should be worth at least that now. Hopefully GHT can deliver on what appears to be a promise of a very strong H2.

[schytalk] 25/8/2016 10:17

900k share traded yesterday and another million this morning, the half year report has certainly created some share movement. A good thing in my view and I would prefer to see this as people buying in rather than getting out, especially given the strength of the half year. Think we could be on the cusp of a decent rise in the share price

[4-10] 24/8/2016 16:54

Comments from Richard Holways UKHotViews from TechMarketView

Gresham's Clareti software drives 10% growth
John O'Brien, 08:40, 24 August 2016

After updating on a solid first half back in July (see here), Gresham has now released the numbers, which show an impressive performance from its flagship Clareti transaction control and data integrity software (CTC).
Headline revenues for the period to 30 June, were up 10% to £7.8m, in which Clareti revenues were up 46% to £3.2m. Gresham is actively managing a shift away from project-based consultancy services as it focuses on its new core around Clareti. Here other software and services revenues fell 5% to £4.65m. The adjusted EBITDA (before all the nasty bits) grew 28% to £1.5m, driven by the performance from Clareti. Including the nasty bits operating profits were up 4.7% to £665k.
Particularly encouraging is that three of the six new Clareti wins were in the strategically important US market, including its first Clareti-as-a-Service customer also in the US. Meanwhile, in July, it signed another US contract with a Tier 1 bank. Closer to home there is also a chargeable pilot project with a UK Tier 1 bank. All of these deals should help boost revenue further in H2. In all today Gresham now has 30 CTC customers vs. 20 this time last year.
Looking ahead, there’s more reason for optimism with a number of Clareti opportunities with Tier 1 and other major institutions, which are expected to close in the second half. It’s also encouraging to see Gresham continue investment in the UK, setting up its new flagship innovation labs at The Brewhouse in Bristol during Q2. This is also now home to Gresham’s 24/7 operations centre for cloud customers, and a hub for for client presentations and workshops.

[the drewster] 24/8/2016 16:05

I'm sure they'd be able to claim possible re-use.

Anyway, my biggest worry here is that we're open to being snaffled up by a predator before true value is allowed to come out.

Reckon everything is on course for a few exceptional years of enhanced shareholder value personally.

[richjp] 24/8/2016 15:21

Now for the £0.4M capitalisation which for me is a grey area illustrating the questions that arise when companies capitalise so called “development costs”. I originally qualified as a management accountant before moving into IT sales so I do have a little knowledge in this area.

The money was spent to hire temporary resource to help “specific client funded product delivery”. In principle you should only capitalise costs if the work produced can be reused in other situations, otherwise it has no future value. There is obviously little detail, but if it was client specific that suggests it is a one off cost which could or should have been charged to the P&L. If that had been done the pretax profit would be reduced from £0.87M to £0.47 compared to £0.74M last year. Just think what that does to the PE ratio.

It is sort of topic that accountants can argue about (gripping stuff eh?)but seriously I think it is a murky area and that is why the cash position is so important.

[schytalk] 24/8/2016 15:19

The appointment of Imogen Joss as non exec looks very interesting, very strong financial sales background. Looks to be a further strengthening of the sales focus and underlines the seriousness of the board to make this happen.

Max Royde has done a great job in helping to rescue Gresham from oblivion under a certain CEO. He now seems confident to step aside and let specialist sales folks drive the business forward. Also, he will no longer be an an insider so it frees him up somewhat, could a GHT bid/acuisition be on the cards at some point?

[richjp] 24/8/2016 15:17

I feel a lot more comfortable now than I did after the trading update. They have made some particularly reassuring noises about cash flow, discussing again the prospect of a future dividend, explaining where the cash has gone in the first half and stating that “cash flow is expected to increase”.

I am not totally comfortable with the £0.4M they have capitalised and will address that separately.

The order situation and sales pipeline is encouraging but they obviously need to deliver in Q2. I am never too impressed with any company when they make statements such as progress being in line with management expectations. That to me is just a bit of waffle. As always state what those expectations or better still, show me the money.

Another encouraging statement is that they now have a “path to true enterprise wide deployments” which can “achieve larger deal sizes”. So far they seem to have been seeking niches within major accounts, so as not to rock the boat with clients’existing suppliers. If they are now confident enough to go after bigger prizes that is all to the good.

I am a bit sorry to see Max Royde of Kestrel depart, however it is possible that his role is now complete following all the restructuring that has been done. I just hope that Kestrel will remain as a supportive shareholder. The new director coming in does seem to have the perfect profile for the future.

We now finally seem to have a platform from which the company can move forward, although we have been lead to believe that before.

Last but not least, if all is as positive as they have stated, it looks as if the new CEO is doing well!