Gresham Technologies Share Discussion Threads

[journeysend] 16/2/2017 08:34

4-10 that is very specific you know something or just wishful thinking?

[amt] 15/2/2017 18:41

Reporting new contracts other than through RNS is a double edged sword. One would expect at least one new client per month based on history. To justify current pe of 33 (ye Dec2016)perhaps should be aiming at 10 in 6 months. Sofar since December they have reported 2 so not bad going. We dont know though if they are reporting every new client. At least with RNS we knew if the contracts were significant so not sure if revised reporting helps much.

[4-10] 15/2/2017 17:10

Calm before the storm I forecast the share price will be up around £2 in the next 7/10 days.

[double double] 15/2/2017 15:25

I dont think anyone was asking for RNS, somekind of acknowledgement from Gresham would have been fine. In todays case I think Gresham have been caught sleeping.

We do keep hearing here how insignificant this or that news is and doesnt warrant us being informed. However, CTC revenue is growing 40%+ year on year...... of course these news are significant.

[richjp] 15/2/2017 15:02

This does not merit an RNS as far as I am concerned.

First of all it is about a letter of intent, not a contractual commitment of any kind, although I would expect one to follow in due course, otherwise Aareal Bank would not have issued a press release. A firm contract however could be months away.

Mount Street are already an established GHT partner and CTC user, however the press release says they will “examine”; the use of CTC as part of Mount Street’s service. The fact that they mention CTC suggests that it will be used but there is no guarantee of that. The whole project between Mount Street and Aareal is also only at an evaluation stage.

Any actual revenue will be months away and remember the same as any white lable offering, any CTC revenue will have to be shared anyway. In this case there are three parties involved. Of course the press release is bullish about the potential as all press releases are. I doubt that this announcement will have any significant amount on revenue in the current financial year.

This is the sort of news that the old Gresham of some years ago might have issued as an RNS only for disappointment to follow. A press release is the most appropriate.

[double double] 15/2/2017 14:57

They must read this board!

[gottafly] 15/2/2017 14:56

Well GHT finally got around to saying something, a tweet:-

Congratulations to Mount Street, our Clareti Loan Control partner, on their strategic partnership with Aareal Bank hxxp://goo.gl/3TKKMP

It points to a Mount Street press release which explains things further:-

PRESS RELEASE

15 February 2017

Mount Street management completes buyout and announces strategic partnership with
Aareal Bank Mount Street is pleased to announce the completion of a management buy
-out of the ownership interest of Greenfield Partners and the entry into a new strategic partnership with Aareal Bank.

Mount Street is an independent business specialising in loan servicing, due diligence, facility agent roles, security trustee roles, loan underwriting and work out in relation to both performing and non-performing loans and portfolios, with offices in London, Frankfurt, Amsterdam and Athens. Mount Street
and its affiliates are responsible today for €26 billion of commercial real estate debt (both CMBS and balance sheet positions) for a broad range of lenders hroughout Europe.

Mount Street’s principal seed backer - Greenfield Partners -invested in the company
at launch in 2013 and is now executing a profitable exit. Greenfield’s equity stake will be acquired by a combination of Mount Street’s founders - Ravi Joseph and Paul Lloyd – and Aareal Bank, with Aareal Bank taking a minority stake.

Simultaneously with the buy-out, Mount Street and Aareal Bank have signed a letter of intent for a strategic partnership to support Aareal’s commercial real estate credit and syndication processes – particularly in the syndication business with banks and insurance companies – with Mount Street products such as loan a gency and servicing functions.

As part of the strategic partnership, Mount Street, with the support of Aareal, intends to further expand its business relationships in the banking and insurance sectors in the coming years given the expected significant increase in demand for services in the area of credit management.

The innovative loan servicing software platform CLC (Clareti Loan Control) developed by Mount Street is an important part of the partnership with Aareal.
This IT has been developed by Mount Street in GMS Loan Technologies Ltd, the joint venture with Gresham Technologies plc.

Managing Partner Paul Lloyd commented: “Mount Street seeks to be a partner and solutions provider to banks, insurance companies and alternative lenders. Many
European banks seek to restructure, exit non-core businesses, and optimize the profit margins in their core businesses. The intersection of technology and Business Process Optimisation can drive changes in banking business models. With
this partnership we will provide value to Aareal, its business partners and third parties.”

Last month Mount Street announced a strategic transaction with EAA which xemplifies
a different type of solution: partnering with a financial institution to acquire
the platform which manages a €29bn wind-down portfolio of NPLs, ABS, leveraged credit, asset finance and structured finance assets. This acquisition will
add portfolio management of €29bn of diversified performing and non-performing credits to approximately €26bn of commercial real estate loans and bonds that the company currently manages, bringing Mount Street’s total AUM to over 55bn.

CEO Ravi Joseph concluded by saying: “After these transactions, Mount Street is we
ll-positioned for the future, with a stable capital structure supported by strategic investors. We offer a broad range of services to the credit and asset finance markets, including loan and bond servicing, credit analysis,
valuation, and debt restructuring and workout capabilities from a very experienced team across a broad array of asset classes. We are the only firm offering these capabilities in the European markets".

[double double] 15/2/2017 12:12

Its all good news for us in the end. Roll on the results.

[nurdin] 15/2/2017 11:56

mitie..curious to know why you do that...but you must have a good reason.

[miti 1000] 15/2/2017 11:48

double double, its a partnership not a contract win so its not financially significant at this stage so an rns is pointless.

WRT to the 7th Feb , there should have been an RNS for that as it was financially important. As you say, there PR needs improving.

[nurdin] 15/2/2017 11:21

Unfortunately what we dont know is whether this deal is financially significant for GHT or not .I am sure the company would have RNSed the news had it been so.

[double double] 15/2/2017 11:16

A significant bank it would seem.

Aareal Bank AG is an international company listed on the MDAX index with headquarters in Wiesbaden, Germany, which traded as DePfa Deutsche Bau- und Boden Bank AG and formed part of the DePfa Gruppe until 2002. Wikipedia
Headquarters: Wiesbaden, Germany
Stock price: ARL (ETR) €38.21 +0.43 (+1.14%)
15 Feb, 11:59 CET - Disclaimer
Number of employees: 2,861
Total assets: 51.9 billion EUR (2015)
Founded: 1923

[double double] 15/2/2017 11:06

Just to clarify todays press release from Aareal is for Loans (CLC) product where else Gresham press release on 7 Feb was about CTC.

[gottafly] 15/2/2017 11:00

dd totally agree that the communications strategy needs much work/improvement, as you know I have written to GHT in this regard.

I thought that this might have already happened given the GHT press release on Feb 7th re the Leading European Bamk win, it would seem not.

I have also pointed out on here that GHT are looking to employ a communications specialist, cannot happen soon enough given this latest 'lack of announcement'.

This lack of information certainly puts the small investor at a disadvantage but the cynic in me thinks that perhaps we are perceived as somewhat irrelevant and dare I say somewhat of a nuisance.

The share price movement continues to concern me since it takes very little to stimulate some activity so I guess the share is being 'watched' by a fair number of small investors due to the share tip etc. I think the 160p level is reasonable given the information (or rather lack of) available but it drifts down (for no reason?) and then picks up again on the slightest news, this does not seem to represent a 'fair' market, ok rant over!

[double double] 15/2/2017 10:12

Why are Gresham so bad at communications?! I dont care if this is indirect business alliances but it all matters and adds ups. If you reread some of the final and iterim accounts Gresham only really acknowledge "direct" client wins. Indirect clients wins or indirect business updates matter to me as an investor.

[double double] 15/2/2017 10:08

Here is why....

hxxp://www.aareal-bank.com/nc/en/media-portal/newsroom/press-information/press-information/article/aareal-bank-enters-into-strategic-partnership-with/


Aareal Bank enters into strategic partnership with UK based servicing company Mount Street

Wiesbaden, 15 February 2017 – Aareal Bank AG has signed a Letter of Intent for a strategic partnership with the pan-European loan servicing firm Mount Street. The London-based company specialises in the servicing and credit management for commercial property in particular. The aim of this strategic partnership is to support Aareal Bank's credit and syndication processes - and thus further growth - particularly in the syndication business with banks and insurance companies with the help of Mount Street products. Within the scope of this strategic partnership it has also been agreed that Aareal Bank Group will examine the use of the innovative credit management software CLC (Clareti Loan Control) at Group level. Mount Street has developed CLC together with Gresham Technologies plc and actively uses the software itself.

Mount Street and Aareal Bank expect the demand for services in the areas of credit management and servicing in Europe to increase markedly in the coming years. Within the framework of the strategic partnership, and with the support of Aareal Bank, Mount Street intends to leverage the potential resulting from this development and plans to further expand its business relationships in the banking and insurance sectors.

Mount Street was chosen for this important strategic partnership because of its market-leading credentials, professionalism, and the commitment shown to working with Aareal Bank on aforementioned matters. To underpin this strategic partnership, Aareal Bank will take a 20 per cent stake in Mount Street. The majority of the company will be owned by Mount Street’s management. The parties have agreed not to disclose financial terms of the transaction. The transaction itself only marginally affects Aareal Bank’s financial position.

Mount Street currently offers loan services in 18 European countries, and manages more than € 26 billion in property loans for approximately 175 global investors, sponsors and lenders. In addition, Mount Street recently announced its acquisition of EAA Portfolio Advisors (EPA) which will add a further € 29 billion to its assets under management when regulatory approvals are received.

"With this investment in Mount Street we consistently implement our "Aareal 2020" programme for the future", explains Hermann Merkens, Chairman of the Management Board of Aareal Bank AG. "In line with our strategy, we continue to expand our business along the commercial property finance value chain. At the same time, we secure our access to innovative technologies and a rapidly growing market."

[jadeticl3] 15/2/2017 09:41

Over 30 consecutive buys of between 300 and 5000 shares but the share price did not flicker.

[double double] 15/2/2017 08:54

Perhaps another write up in a small private investor tip sheet. But not moving the dial.

[miti 1000] 15/2/2017 08:39

A lot of small buys today....any reason ?

[gottafly] 10/2/2017 14:28

Have been away travelling and it seems I have missed some of the fun!

Interesting to see the share tip but even more interesting to see the reaction in the share price and the volume of shares traded. It does seem however that the share price currently has a ceiling of 160p - a large bid/offer spread (although not at this precise moment) seems to be being used to tease shares out into the market. As I have stated here previously, it seems nobody wants to sell at less than 150p but there are no real buyers above the 160p level, hence the share price is somewhat stuck in the absence of further contract wins/news.

That being said, the really good news is (not the share tip) the announcement of a "strategic win in the European banking sector". I had been expecting a European sale given the investment made in September when Jim Hannibal (ex Smartstream) was appointed Sales Director for Europe to be based in the newly established Luxemburg office. I think we can expect a series of European sales over the coming months.

The fact that Gresham chose to announce this strategic sale via a press release and not an RNS (Reach or otherwise) is perhaps the commencemnt of their revised (and much needed) communications programme that was 'hinted at' when I wrote to the company seeking some improvement in this regard.

Also see this recent tweet -

We're hiring! Are you a Communications or PR specialist looking for the next step? Join our growing company.

Hopefully we can look forwards to a much better information flow which is preferable to rumour, speculation and share tips.

[double double] 08/2/2017 09:46

Buyer in the backgroud, perhaps. Sells going through but share price holding steady, yesterday there was a late reported trade of 50k @ 161p.

Noticed a few days ago when we had large volume, there were also alot of sells with largish trades later reported in 40k's and 50k's.

[double double] 07/2/2017 15:50

It is very nice to hear brokers, tip sheets and new private investors starting to buy at these levels ;-)

[jadeticl3] 07/2/2017 15:44

My guess is that this is a significant contract because of who it is and where, rather than the intrinsic value. And as they are expecting to sign a stream of such contracts (but not always in new and strategic locations) they want to inform but not overhype, and this is the right means so to do.