Gresham Technologies Share Discussion Threads

[double double] 13/3/2018 16:38

Today I’m looking at two exciting small-caps that have significant long-term potential. Are these stocks on your watchlist?

Gresham Technologies

£136m market cap Gresham Technologies (LSE: GHT) is a software and services company that specialises in providing real-time transaction control and enterprise data integrity solutions to financial services institutions. Its key product Clareti has been designed to assist companies with internal risk management, data governance and regulatory compliance.

Gresham released full-year results for 2017 this morning and the numbers look pretty good. For the year ended 31 December, group revenues increased 26% to £21.7m, easily beating consensus estimates, with revenues from Clareti surging 48% to £11.1m. Adjusted EBITDA rose 34%, while adjusted earnings per share climbed 38% to 6.5p. The company had a cash balance of £8.5m at year-end, up from £7.2m last year.

Management stated that it was confident about the group’s prospects, with CEO Ian Manocha commenting: “With Clareti sales now generating more than half of all Group sales and with the Group now generating surplus cash for the first time in many years, we are confident our strategy is on track and certain about our ability to deliver sustainable long-term profitable growth for our shareholders.”

One thing that stands out to me about today’s results is that the firm has initiated a progressive dividend policy. A final dividend of 0.5p per share was proposed. To my mind, this is a signal of confidence from management and suggests that the outlook for the firm is positive.

Given today’s strong numbers and the dividend initiation, I believe the story here looks exciting. It seems the market agrees with my stance, with the shares up 3% today. This is a stock to watch closely in 2018 and beyond.

[gottafly] 13/3/2018 15:57

Qantas and the relevance to GHT is please?

[qantas] 13/3/2018 15:27

Spring Statement: Why is the chancellor so upbeat about the economy?

hancellor Philip Hammond predicted a bright future for the UK in his first Spring Statement - but why was he in such an upbeat and jovial mood?

Well, Mr Hammond predicted a rise in growth in the short term, and a fall in inflation, borrowing and debt.

He told MPs: "We have made solid progress towards building an economy that works for everyone."

What did he say about borrowing?
Mr Hammond said borrowing was due to fall in each of the next few years, with the 2017 figure of 2.2% of GDP predicted to drop to 0.9% in 2022.

As a result, debt as a percentage of GDP is predicted to go down every year up to 2022 - the first sustained drop in 17 years.

"That is a turning point in this nation's recovery from the financial crisis a decade ago," said Mr Hammond. "There is light at the end of the tunnel."

The OBR says inflation will fall to 2% by the end of the year - in line with the Bank of England's target.



Please do your own research.

[4-10] 13/3/2018 11:58

From Richard Holways firm TechMarketView

Gresham set for further growth

Peter Roe, 09:56, 13 March 2018


When it came to the final adding up of 2017's performance, Rob Grubb, the departing CFO of Gresham Technologies, looks to have found an extra 2% of growth, with today's announcement showing revenues of £21.7m, an increase of 26% (rather than the 24% shown in the January update). We wish Rob well as he takes a well-earned break and in his future career.

The Clareti real-time transaction control solution generated total revenues of £11.1m, up 48%, with pure software revenue up 74%. Group EBITDA was up 34% to £5.1m. Year-end cash totalled £8.5m. During the year the integration of the C24 acquisition was completed and there was substantial progress in the North American market.

Gresham Technologies has come a long way over the past five years and has the opportunity for substantial further growth in revenue and profit.

Its Clareti system is now well established in Tier 1 banks in the UK, US and Canada as a go-to solution for complex reconciliations. Footholds have been established in Continental Europe and Asia from which to grow as resources become available. Demand for high-speed reconciliation is growing across the transaction banking sector and as MiFID2 and increasingly FRTB (the US equivalent) place greater regulatory reporting obligations on capital markets businesses. Gresham's partner ecosystem has gone up a gear with large system integrators, advisory firms, both large and boutique, acting as a route to market and source of specific domain expertise. The integration of C24 has added a broader product suite with messaging and data visualisation solutions as well as a larger customer base.

Revenue visibility is improved by the success of the Clareti business, with as-a-Service offerings adding to growth and the higher rate of new acquisition (+16 in 2017) gives further grounds for optimism.

[stewartf] 13/3/2018 11:51

A dividend! Nice. I've still got the counterfoils from earlier payments. The last one is dated 3rd May, 1999 and was for 0.6p.

[double double] 13/3/2018 10:56

Usually these targets for 12 months, but it is early in the year and plenty of time for revision(s).

[jadeticl3] 13/3/2018 10:53

Cantor target 250p—any time scale? Does that go alongside its general expectations for 2018? Is it time for us to start thinking of our targets for end 2018?

[double double] 13/3/2018 10:30

Cantor price target 250p.

[double double] 13/3/2018 08:32

N1SINGER broker numbers are out, whilst they have upped their revenue number by £2m for 2018 from their last forecast they have not uppped the profits or eps numbers - very strange. Still waiting for Cantors numbers.

The 2017 performance built strongly on 2016, with Clareti y-o-y revenue growth of 48% driving 40% growth in adjusted PBT even as the group continued to invest in the business. The balance sheet is strong providing flexibility and options and the Board also recommended initiating a dividend (0.5pps), signifying confidence. We upgraded our revenue growth expectations for Clareti (expect +38% in 2018 and +27% in 2019).

Revenue, 2018, 2019
£23.5, £25.0m

ebitda
£5.85, £6.71m

eps
6.6, 7.14

pe
30.1, 28.7

[crazycanuck] 13/3/2018 07:36

amt, you forgot to mention the dividend. Although quite small, I think this will be appealing to institutional investors.

[crazycanuck] 12/3/2018 19:18

Hi richjp, I will have a black coat on or feel free to text or call me tomorrow. 07793306003.

I'm really looking fwd to tomorrow's results and hoping to see a minimum of 2 new clients and I'm also hoping that they decide to pay out a dividend.

[gottafly] 12/3/2018 13:38

Have booked in but currently have a diary clash that I am trying to resolve.

[crazycanuck] 12/3/2018 12:48

yes richjp, I'm attending.

[jadeticl3] 12/3/2018 12:02

I would like to go, but alas I won’t make it, so, as in other years, I will have to rely on you richjp. Thanks for attending. I have always enjoyed your feedback. I am hoping that this year will be all good news!!

[richjp] 12/3/2018 10:48

I have registered for tomorrow's presentation. Is anyone else here attending?

[double double] 09/3/2018 13:39

Nice spike in preparation for next week once those important broker numbers are out investors will be able to judge the share price better.

Perhaps those reports for next week have been printed and make nice reading for some.

[double double] 06/3/2018 10:19

Well we are almost there a week more and we shall have updates from the company and brokers. Because the brokers had not updated any forecasts for the company for over 8/9 months bloomberg has been showing there are currently no forecasts for the company at all for the last few months. I know I have been banging on about the brokers and this is why, it doesnt give a good impression of the company. I have made this known to the company and they have promised to convey this to the brokers.

[gottafly] 20/2/2018 09:04

Seems GHT are busy recruiting and are tweeting about it, sale manager Singapore and the Legal Counsel looks interesting.


Senior Technical Consultant - New York

Software Engineer – Bristol

Channel Sales Manager, AP - Singapore

Legal Counsel - London or Southampton

Support Technical Analyst - Sydney

[double double] 16/2/2018 12:43

Now will this be just a technical bounce or lead to something more and perhaps a run to results announcement on 13 March.

[gottafly] 15/2/2018 12:25

Thanks inforaprofit.

The full details can be found here - hxxps://hfmustechnologyawards.awardstage.com/

The list of category contenders were:-

Most innovative technology firm

AlphaSense
Backstop Solutions Group
Barchart
Devexperts
Gresham Technologies
Imagine Software
Indus Valley Partners
Nasdaq

Most innovative technology firm
This general award is open to any tech firm providing specialist services to the US hedge fund sector which feels they have displayed genuine innovation in their offering over the past 12 months. Entries should demonstrate how the firm has stood out from the crowd in terms of its innovative approach and the ways in which this innovation has benefitted their hedge fund clients.

So this is limited to hedge funds but a notable achievement none the less.

[inforprofit] 14/2/2018 15:47

An interesting tweet from Gresham - looks to be an impressive 'win' - most innovative technology firm.



Gresham
‏

@greshamtech
1h1 hour ago
More
Thrilled to have won at last nights @HFMWeek US Technology Awards and be crowned 'Most Innovative Technology Firm' - hxxps://goo.gl/3uDzxw #innovation #DataIntegrity #awardwinners #awesome

[double double] 14/2/2018 09:19

The share price is well beaten could see a technical bounce anytime soon.

[double double] 08/2/2018 08:56

Tom Mullan's experience with the ipo may be of help here, cannot recall which bb but someone once mention gresham would be listing in the us at some point.

[gottafly] 06/2/2018 10:54

Agree richjp, I think that GHT have handled the leaving of Rob Grubb very well indeed. In fairness it was an amicable departure with Rob giving plenty of notice.

We can only surmise what the driver was for Rob's departure but I suspect the increasingly international/global nature of GHT was the prime reason. Managing a global entity (including the travel) is not for everyone.

Yes richjp, Rob did take on the CFO job at a very difficult time and has certainly grown with the company having had limited experience previously. I think that Rob has done a fantastic job for GHT, including his managed departure, and GHT shareholders should be very thankful. I for one wish Rob all the very best in the future.

[johnwise] 05/2/2018 20:22

Checkout PE

FORECAST

Year Ending 2017-12-31
Revenue (£m) 19.99
Pre-tax(£m) 3.96
EPS 6.21p
PE 30.8
PEG 1.1
EPS Growth 28%
Div 0.00 P
Yield 0.O%
......
Year Ending 31-Dec-18
Revenue (£m) 21.48
Pre-tax(£m) 4.62
EPS 6.56p
PE 29.1
PEG 5.1
EPS Growth 6%
Div 0.00 P
Yield 0.0%