Gresham Technologies Share Discussion Threads

[qantas] 01/2/2022 08:51

Happy New year of the Tiger,

[richjp] 13/1/2022 12:29

I think the N1Singer price target is very encouraging.

They have been pretty conservative in their forecasts with regard to GHT in the past and were criticised by some on this forum for doing so. They were however usually right and let us hope that they are this time. It would be good to get that £2 price level comfortably out of the way.

[planit2] 12/1/2022 10:24

Yes, hopefully this will push the share price over 200p in the next few weeks.

The pain of moving to a SAAS model is over and the added size with the acquisition should increase growth as the company gains credibility and opportunities.

[gottafly] 12/1/2022 08:14

crazycanuck, thanks for that, I received the notification and was going to post on here but you beat me to it. Very strong support from N1Singer with a Buy recommendation, so seems they think GHT is under valued. Given the numbers and this N1Singer view I am surprised the share price has not reason more, still if N1Singer are right we can look forwards to a 20% increase this year - happy days.

[crazycanuck] 12/1/2022 06:33

from Singer Capital Markets:

Highlights of FY21 are 28% organic revenue growth at Clareti, group EBITDA 8% ahead of our forecasts and net cash nearly £4m ahead of our expectations on “very strong” cash collections and lower than expected acquisition costs. Our unchanged FY22 forecasts are well underpinned by 88% contracted revenues. We forecast ARR will grow a further 17% organic in FY22, which is one of the fastest growth rates in our universe. We introduce a Buy recommendation and 220p price target.

[richjp] 11/1/2022 17:20

Certainly an excellent update pushing the share price in the right direction. The full results in March should be very encouraging.

The Electra acquisition seems to have gone very well indeed. It was a major deal by GHT's standards and should give them the platform they having seeking in North America.

[4-10] 11/1/2022 14:21

Richard Holway TechMarketView UKHotViews
Comments
Gresham grew 48% last year
Marc Hardwick, 08:20, 11 January 2022
Full-year trading update out this morning from financial services data integrity specialist, Gresham Technologies, outlines strong growth for 2021. Group revenues were up 48% to £36.8m, including a healthy contribution of £5.4m from the Electra acquisition (see here) it made back in June. Profitability also improved with Group Adjusted EBITDA up 58% to £7.1m.

The performance from Gresham's flagship software, Clareti, was particularly strong with revenues here up 63% to £25.2m, which also included the aforementioned contribution from Electra. Forward-looking Clareti Annualised Recurring Revenue (ARR) at the end of the year was up 95% to £24m, including £9.2m from Electra.

Gresham continues to prosper from strong demand for its data solutions and the acquisition of US vendor, Electra is already contributing to the top and bottom lines with the firm expanding its US footprint and doubling the customer base. 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.

[crazycanuck] 11/1/2022 07:50

and looks like we'll have a great opening start to trading.

[weatherman] 11/1/2022 07:40

Great trading update.

[gottafly] 20/12/2021 13:59

Well some good news it would seem because it has been very silent, wonder if we will get an end of year announcement of some kind.

We are thrilled to announce that
@ChartisRsch
has named us best #sellside reconciliation firm at this year’s #RiskTech100 – acknowledging our solutions as leaders in the post-trade reconciliations landscape hxxps://hubs.ly/Q010_K6j0 #dataintegrity #RegTech

[qantas] 28/11/2021 19:15

BBC News - Omicron symptoms mild so far, says South African doctor who spotted it

[richjp] 25/11/2021 19:10

I think this a reassuring update.

The acquisition was significant relative to the size of GHT and it's good that no nasty surprises seem to have arisen.

On the subject of sales growth I would make two points. From past experience I know how long sales cycles can be. GHT have previously admitted to nine month sales cycles, however our new chairman is also the chairman of D4T4 where I have taken a small punt. Talking about D4T4 he said they were involved in fifteen month sales cycles and I would not be surprised if that is the reality sometimes for GHT.

I no longer pretend to understand all of GHT's product set, however I know that compliance reporting is a significant market. I think banks are always prepared to spend big time on trading systems as well as back office payment and settlement systems. Despite regulatory pressure I suspect they are less eager to spend on software for that purpose. Hopefully that will gradually change.

[gottafly] 25/11/2021 15:31

Well a good announcement but agree that the current growth rate is not exactly startling. Whilst the acquisition of Electra may well prove to be a 'game changer' I think (as I would expect to be the case) it has somewhat occupied management time, so perhaps some effort was deflected away from sales growth whilst the full integration takes place.

N1Singer have produced a supportive note - Gresham has won an extension and expansion deal with a long-standing Tier 1 investment bank customer as it continues to standardise on the Clareti platform. Including this and other deals, current ARR rises to £23.3m, a 5% organic uplift from end June. Clareti/Electra are trading in line, though Gresham flags potential for further new business in FY21 and an “encouraging pipeline” for FY22. Non-Clareti revenues are performing ahead of expectations leading us to upgrade FY21 revenues and adj. EBITDA by 5%, leading to a cash EBITDA upgrade of 25% to £1.5m. Today’s deal underpins our FY22 estimates, which we leave unchanged, though suspect the risk is to the upside. The stock remains firmly in the “best ideas” stable.

The share price has ticked up a little which again shows this announcement is viewed as positive but in the 'steady as she goes' category. GHT have always been good at the technical stuff and in building better/wider offerings. However, in my view sales performance is still to meet the underlying Clareti potential, fingers crossed that the new board has well in hand and that 2022 is a great year.

[amt] 25/11/2021 08:00

The change in business model should get rid of the lumpiness and scary share price movements of the past also.

[planit2] 25/11/2021 07:51

It's only June since the Electra acquisition was completed, seems like ages. They have already sold into Europe which was quick and you would expect disruption.


This sounds positive too, hopefully there will be a nice line of signups next year making use of the bigger company status and cross selling:
"The Tier 1 bank contract is an important milestone. Clareti Control is the only modern reconciliation and data control platform in the market that is proven at scale across all reconciliation types typically found in Tier 1 banks and there is an encouraging pipeline of comparable opportunities building for FY22."

[amt] 25/11/2021 07:32

It's turning into a steady but reliable Company now so no fireworks but one to put away for the longrun.
Clarity which is what's it about in line so I am not expecting more than a modest uplift today.

[planit2] 25/11/2021 07:27

Reads well and as expected beat to current expectations.

Forward ARR only seems to have increased from 22.1m at the last announcement to 23.3m which isn't a huge growth rate for nearly 5 months.

[richjp] 25/10/2021 18:14

They have sometimes given autumn updates in November.

As they sounded so positive about meeting their targets when they announced the last major contract I think it very likely that we will get a TU before the year end.

It's always good to get good news out early.

[jadeticl3] 25/10/2021 18:06

Ok , thanks.

[crazycanuck] 25/10/2021 17:28

it was Jan 6th so I would expect similar date in 2022.

[planit2] 25/10/2021 15:49

I don't think there is normally one until after the year end. Normally there have been a steady random stream as they get substantial clients signed up.