Gresham Technologies Share Discussion Threads

[wjccghcc] 22/6/2021 13:41

Someone's offloaded 200k or so. It's not that liquid so not surprising it's dropped.

[jadeticl3] 22/6/2021 12:58

Has anyone got ideas as to why this company’s share price has fallen so much on a day when the general market is going up, and recent events for this company appear to be positive not negative. It puzzles me.

[crazycanuck] 22/6/2021 08:51

this from Research Tree today.

hxxps://www.research-tree.com/companies/uk/it-services/gresham-technologies-plc/research/n-1-singer/upgrades-on-transformational-acquisition/c6411dcb-a831-409d-ae25-8f0460facdd3/7ee3c85d-1c58-40d4-a0fd-4a8cffe6a189

We upgrade FY22 EPS by 18% today on completion of the Electra acquisition. This is a strategic acquisition that marks a decisive step on the path to creating a global fintech champion of substantial scale, and yet we see no strategic premium in the price paid (11x EV/EBITDA). It more than triples Clareti’s North America ARR to some £12m, significantly enhancing its presence in the largest market for its products and accelerates FCF b/e. Stripping out legacy businesses and cash and valuing Clareti/Electra services on 2x sales, the implied EV/ARR for Clareti/Electra is 3.9x FY22. Looking at growth scenarios beyond our forecast horizon and resulting FCF scenarios, we see Clareti capable of generating FCF of £5- 10m by FY24/5 and suspect that could lead to material upside in the stock.

[wh1spa] 22/6/2021 08:50

We upgrade FY22 EPS by 18% today on completion of the Electra acquisition. This is a strategic acquisition that marks a decisive step on the path to creating a global fintech champion of substantial scale, and yet we see no strategic premium in the price paid (11x EV/EBITDA). It more than triples Clareti's North America ARR to some £12m, significantly enhancing its presence in the largest market for its products and accelerates FCF b/e. Stripping out legacy businesses and cash and valuing Clareti/Electra services on 2x sales, the implied EV/ARR for Clareti/Electra is 3.9x FY22. Looking at growth scenarios beyond our forecast horizon and resulting FCF scenarios, we see Clareti capable of generating FCF of £5- 10m by FY24/5 and suspect that could lead to material upside in the stock.

[gottafly] 21/6/2021 16:34

Well the share price has eased off slightly but now surprise given the share issue. The general meeting was a non event with overwhelming support and disappointingly no further detail or explaination - it was very short, 4 minutes or so.

Anyway the RNS following the meeting seems to have a clear upbeat message from IM.

"We are delighted to confirm the acquisition of Electra Information Systems and to have received such strong support from existing shareholders, new institutions, retail investors, and from our Board and management. This transformative initiative gives us scale in the important North American market and puts the enlarged Group in a leadership position in buy-side capital markets. Over the coming months, we will be globalising our operations to deliver on the benefits of this transaction for our customers and shareholders, as we execute our ambitious plan to build out a leading global financial technology business. We look forward to providing an update at the interim results in July 2021."

Note the ambitious plan, roll on the July update.

[planit2] 07/6/2021 11:11

No one commented on the director buys as part of the placing, really nice to see such widespread support and shows the board are working together

As part of the Placing, the Directors have agreed to subscribe for a total 118,750 Placing Shares at the Issue Price. Details of those Placing Shares for which the Directors have subscribed, and their respective resultant shareholdings, are displayed below.


Director Number of Number of Placing Number of Ordinary Percentage
Existing Ordinary Shares being Shares held of Company's
Shares subscribed on Admission enlarged
for as part issued share
of the Placing capital on
Admission
Peter Simmonds 30,000 62,500 92,500 0.11%
------------------- ------------------ ----------------
Ian Manocha 106,834 6,250 113,084 0.14%
------------------- ------------------ ----------------
Tom Mullan 30,938 3,125 34,063 0.04%
------------------- ------------------ ----------------
Andy Balchin 8,233 9,375 17,608 0.02%
------------------- ------------------ ---------------
Jenny Knott - 31,250 31,250 0.04%
------------------- ------------------ ----------------
Ruth Wandhöfer 13,403 6,250 19,653 0.02%
------------------- ------------------ --- ---------

[4-10] 30/5/2021 13:22

Richard Holway TechMarkerView on the recent acquisition.

"Gresham announces £27m US acquisition
Jon C Davies, 08:23, 28 May 2021
Financial services data integrity specialist, Gresham Technologies, has announced an agreement to acquire US vendor, Electra Information Systems in a deal worth around £27m. Gresham has entered into a conditional agreement to purchase 100% of Electra's stock on a debt free, cash free basis for a total consideration of $38.6m.

Founded in 1998, New York based Electra focuses on the capital markets segment and provides solutions around post-trade processing and risk mitigation. The company's key offerings support reconciliation, data aggregation, settlement and billing. Electra currently has around 150 customers and is reported to have a good reputation for innovation and customer service.

In March, Gresham announced a significant new win for its flagship Clareti offering, following the release of annual results reflecting a steady performance in a challenging environment (see: Gresham secures €1.4m Clareti deal). The Electra acquisition should help Gresham to build on its recent success by significantly expanding its US footprint and doubling its customer base. The transaction is scheduled to close in June 2021."

4-10

[richjp] 28/5/2021 17:08

Regrettably I am afraid these fees are a fact of life in the city. I think it is all a cartel for this kind of thing.

The deal however seems like a good one to me. Several years ago they said that the North American market was vitally important to them and although they do have some excellent references over there already, this should give them a lot more scale and substance.

[wjccghcc] 28/5/2021 16:05

That includes the expenses for the acquisition (legal, banking, regulatory) as well.

[zangdook] 28/5/2021 14:05

the Company has conditionally raised gross proceeds of GBP21 million through a Placing of 12,500,000 new Ordinary Shares and the Retail Offer of 625,000 new Ordinary Shares.

...
The net proceeds totalling approximately GBP18.5 million (after the deduction of costs and expenses associated with the Proposed Acquisition, Placing and Retail Offer)

Costs and expenses of £2.5m???? So the company only gets £1.37 a share.

[crazycanuck] 28/5/2021 10:25

found this and worth a read
hxxps://info.electrainfo.com/pressreleases/gresham-technologies-announces-agreement-to-acquire-electra

[planit2] 28/5/2021 09:19

My verification didn't work. :(

[zangdook] 28/5/2021 09:16

You just have to give them your details, and your broker details for them to send the shares to, and you pay by debit card. They have a steady flow of offers coming through. It's worth signing up I think - I've picked up a few things, some of them I flipped and some I've held onto. It all has to be done via app on your phone which could be annoying.

[bonsaisumo2] 28/5/2021 09:07

I registered with them previously, so to put a bid in this morning took just 5 minutes.

[bonsaisumo2] 28/5/2021 09:05

Yes. You need to register with Primary Bid first - this is a one-off, then you can log in and bid on any future offers they may handle. Not difficult.

[planit2] 28/5/2021 08:53

The retail offer is by an App, has anyone done this before? Looks like we have 2 hours.

[zipstuck] 28/5/2021 08:26

The placing price at 160 with directors participating gives some confidence in the acquisition.

[weatherman] 28/5/2021 08:23

They are buying electra, with a placing, cash resources, and a difficult to access retail offer. They say will be earnings enhancement going forwards. Adding about £10m turnover for about £27m.

[jadeticl3] 28/5/2021 08:00

Not sure I understand the very lengthy statement made today. Help anybody?

[weatherman] 28/5/2021 07:21

The acquisition looks positive - but not easy to take up the retail offer.

[gottafly] 20/5/2021 16:26

planit2, yes I was getting somewhat impatient until the new board was formed back in October. Initially I thought little about the changes but the actions since then have been very positive. We have seen a significant change in the drive for growth and the general 'mood music' and the revised sales operation is expected to deliver.

Reckon we are on a win-win here because if GHT sales accellerate quickly then great but if not the new board will take action to realise shareholder value as . In my view IM is in the last chance saloon with the new board deciding to work with him to realise the potential.

I repeat below an earlier post from GHT regarding a potential plan B should sales growth not be as expected- Further, the new board appears to have a plan B with the statement that transformative M&A will be considered. This underlines the new boards determination to deliver shareholder value (at last) so I think prospects are very good but as has been mentioned previously some continued patience, as regards the SP, will be required.

Further whilst the share price has been somewhat static there has been a significant rise the the volume of shares traded - 5,10,15k etc. so something is happening.

As always DYOR but a win-win for me.