Gresham Technologies Share Discussion Threads

[aishah] 25/7/2017 13:15

Techmarketview:

Gresham Technologies on growth track
Results for the six months to June show group revenues up 26% to around £10m, the like-for-like advance coming in at 19% (before the contribution of recently acquired C24 Technologies). Adjusted EBITDA was up 46% to £2.15m. Revenue generated by the Clareti real-time transaction control system was ahead by 53%, with related software revenues up 138% to £3.7m.

As chronicled in HotViews, (see here and work back) Gresham Technologies has made consistent progress, driven by the Clareti (CTC) system and enabled by investment in international sales and delivery capabilities. In the half year, Gresham added 8 new CTC customers, 3 of which were in the important US market. The purchase of C24 Technologies is also paying off, bringing with it additional technology and a development environment to further speed and simplify Clareti system implementation.

Gresham now enjoys significant momentum in key markets, with flagship clients in US Tier 1 banking and hedge fund management. In Europe, they are making good progress in large insurers. Success is growing in Asia and Australia. However, in addition to new customer acquisition, we now expect sustained growth in share of wallet.

Gresham has used a “breakthrough” proposition to penetrate companies which have huge technology budgets. Through targeted development and the C24 Technologies acquisition it now has a much broader service portfolio to drive follow-on sales. The Cloud-based Clareti-as-Service enables rapid adoption by smaller business units, Clareti Analytics provide additional business intelligence, Clareti Accounts Receivable Management is a vertically-targeted offering. They are developing a debt-servicing platform for complex loans as well as a Data Accelerator to improve the performance and quality of data lakes. As a consequence, we can expect sales to existing customers to be a major feature of company strategy and a substantial long-term revenue and profits driver.

[double double] 25/7/2017 13:06

We know we cannot make sense of brokers. But from actual results we can come to a sensible forecast for the year for ourselves and all things being equal the share price will reflect by end of the year.

[gottafly] 25/7/2017 12:34

miti 1000, the growth forecast remains a mystery.

Below is the finishing paragraphs of the Chief Executive view, this seems very much at variance with slide 13 (the last slide) of the Investor Presentation which appear to be unchanged and show 2018 revenues of £21.5 million (up 7.5%) and EBITDA of £5.9 million (up 13.5%).


Outlook - Challenger to Champion

We believe the success of recent years has created an opportunity for us to move from niche challenger to the champion and de-facto standard solution in financial markets for data integrity. The Group's priorities for the next six months include scaling up the US business, which represents the single largest global market for our technology with a focus on banking and asset management. In Europe we believe there is now an opportunity to more aggressively target the legacy vendor installed base across all financial industries. In Asia Pacific we will continue to focus primarily on major account management and carefully selected new sales opportunities, and we also plan to build further on the bank to corporate white-label solutions success we have seen in the region.

Globally we will continue to strengthen our marketing, channels and alliances operations to build pipeline and awareness, and we will continue to strengthen our global delivery model to ensure project wins are successfully implemented and enable us to create loyal long-term customers and recurring revenue. We will continue to manage our non-Clareti installed base, and we expect to see a decline in our software partner fees broadly offset by an increase in our contracting business.

The Group has made an excellent start to the year, and I am confident we are building the right foundations to create a successful global enterprise financial technology champion.

[miti 1000] 25/7/2017 10:37

Ok, thanks for that. A takeover is always a possibility though growth is North America is the key going forward.

I won't be able to attend the meeting tomorrow but hopefully Richp and any others will get a better idea of why both brokers are seeing such a derisory growth in revenues (for a supposedly fast growing tech stock) for next year.

[gottafly] 25/7/2017 10:17

miti 1000, I am giving Cantor the benefit of the doubt as the relative new boys on the block, N1Singer have no excuse for their continued down playing of GHT. Something in the forecasts and the GHT performance does not gel.

Have a look at the GHT web site, investor section/shareholder information, for the presentation of the half year results. In the video, Ian Manocha makes two very interesting statements.

Firstly that legacy (non Claretti) revenues are stable although there has been a change in the mix, so this revenue stream is not ending any time soon!

Secondly, GHT appear to be going after the existing legacy systems and replacing them, rather than simply looking for new application solutions which have a relatively easier sell. This confronts the current major vendors head-on and if they were not aware/irritated by GHT they will be now. I think this shows a high level of confidence that GHT can take on and beat anybody, very interesting times ahead and perhaps DD is right that a major bid for GHT is just a matter of time.

Lastly, Manocha repeats the statement of GHT's intention to be the Champion in the Data Integrity and Control space.

[double double] 25/7/2017 09:52

Not much selling could move higher.Glad i am not alone in seeing gresham as a big company. Last year i suggested one of the big competitors could easily spend a billion dollars to buy gresham. Just a matter of time.

[miti 1000] 25/7/2017 09:43

Gottafly ,

Cantors estimates for 2018 are also 21.5 mill and also 4.5m so picking on N1Singer is a bit rich (same forecast). I agree the forecast is a bit low but I'd much rather have forecasts set very conservatively so they can be beaten. Hence my heavy purchases over the last year.

As I said previously, if the motto challenger to champion in 2017 , has any merit, the 2018 should be smashed. If its not, it makes zero sense to have such a motto. Time will tell.

[richjp] 25/7/2017 09:41

PI presentation is tomorrow. I am going.

[miti 1000] 25/7/2017 08:55

Anyone going to the investors presentation today ?

[amt] 25/7/2017 08:44

I have penciled in eps of 8p next year and 15p the year after that. Its the GM at 80% that means in the early years profit should drop quickly to the bottom line. The legacy business is getting relatively smaller so sales can grow by 50% plus per annum or more going forward.

[gottafly] 25/7/2017 08:36

DD, without some broker revisions then why would the share price radically change?

Agree that the current situation is very strange and I have said on here before (many times) that N1 Singer forecasts make no sense, effectively they expect growth for Clareti to virtually stop or for the historic business (based on recurring revenues) to close - it just does not make sense. But where is the forecast from Cantor?

If we assume that the historic business is in gentle decline, I think GHT said something like 3%, then it will increasing become a smaller (and perhaps irrelevant) part of the business such that even static growth on the new Clareti stuff (50% or whatever) will translate into an increased overall growth for GHT. Yet N1Singer persist in a 2018 forecast showing very little growth.

Something has to give and hopefully we will see this today.

[amt] 25/7/2017 08:33

This is the breakthrough statement that have been waiting for since 2000. At last this looks like it could become a multi billion company over the next decade. My target for share price by ye is 3 quid. Its breaking free of where its been for years now.

[double double] 25/7/2017 08:17

Some of you may want to revise up your year end share price targets : - ))

[double double] 25/7/2017 07:34

Market still doesnt get it. Good for us those already invested. I dont have access to systems i would be grateful if someone could post any broker upgrades this week.

[aishah] 25/7/2017 07:29

Will the market wakeup?

"In the first six months of the year Clareti licence sales grew by over 100%. We added another eight new CTC customers and doubled our Clareti recurring revenue. There's strong demand for disruptive data solutions in global financial markets and Gresham is very well placed to capitalise on this as we enter the second half of the year".

[schytalk] 21/7/2017 20:04

DD, Sorry I am none the wiser.

[double double] 21/7/2017 18:32

Did a dummy trade

[gottafly] 21/7/2017 12:21

DD may I ask how you know this and what exactly does it mean?

[double double] 21/7/2017 11:17

Buys are going through as "sells" at 176.9

[gottafly] 18/7/2017 15:27

Seems GHT North America is in full on expansion mode.

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[miti 1000] 14/7/2017 09:45

Well, if the company motto, is to be believed ''challenger to champion in 2017'' , one would hope that the the 2nd half will be much better .If not, makes that claim a nonsense. Furthermore, 2018 , where Nsinger forecasts are so low will surely require a big upgrade.

[gottafly] 14/7/2017 07:59

dd, if you are correct that the second half will be better than the first (which is the normal GHT pattern) then the forecasts are nuts and need revision.

I notice that the bid/offer spread widens overnight when the market is closed but unlike previously, where the spread pointed lower it is now pointing higher 175/185 against a last price share price of 179.10. Once the markets open the spread changes/lowers to 170/180. As I say, this behaviour is different front previous and I think more likely indicates an upward movement rather than down.

[double double] 13/7/2017 09:41

A few of us had 260p and 280p as our year end targets. Admittedly I then edited for my target to be reached into few weeks of 2018. I suspect second half will be better than the first half and the share price will have some catching up to do. We are on pe of only 28 for 2017 on current "forecasts".

[gottafly] 13/7/2017 07:23

200p is the general consensus (on here) for the price at the year end, so we might see it earlier.

[philoosh] 12/7/2017 14:47

200p would be very good at the moment!!!