Gresham Technologies Share Discussion Threads

[qantas] 07/10/2017 13:09

04/10/17

Further, Gresham is pleased to confirm that there have been high levels of customer retention in the C24 Technologies business acquired on 10 October 2016, and accordingly the first deferred consideration payment is expected to be paid as planned in October 2017.

Above only talks about retention.

We will have to wait for results to see if this section made any money.

Please do your own research.

[gottafly] 07/10/2017 12:50

Qantas so you now throwing doubts about the C24 acquisition, your negativity continues unabated.

An acquisition is not simply about the financial numbers/price paid although this is clearly important, nobody wants to over pay. GHT have stated that C24 is a strategic fit (which is the best reason for an acquisition), the following statements were made at the time:-

Expected to be earnings enhancing in the first full year and represents the first acquisition for the Company as part of its strategy for Clareti-led growth.

Doubles the Group’s customer base by adding a further 35 recurring annuity-based customers in the Company’s target financial services markets in the UK, Europe, North America and Japan.

Acquires proven technology that will enable the Group’s flagship Clareti platform to connect to industry standard financial messaging networks thereby expanding the market opportunity for the Group’s Clareti products.

Brings a development team with deep experience in real time data management solutions which will ensure continuity of support for C24 customers and adds capacity to accelerate the Group’s development and innovation roadmap.

Acquires additional, as yet un-commercialised, intellectual property that complements the Group’s fast data management development activities.

..............................

Stephen Miller, Co-Founder of C24 Technologies, commented:

“In Gresham we have found a committed and experienced partner to support our global customers and realize our future C24 Data Platform vision. Gresham’s Clareti platform is regarded as industry leading, and our technology and expertise will further strengthen its position and opportunity in the market.”

...............................

GHT reported £0.3 million C24 revenue in 2016 (period from October 10th) and forecasts a minimum recurring revenue from C24 of £1.2 million for 2017. The 2017 half year report states that the C24 acquisition is delivering the expected benefits. The recent trading update confirms that C24 is performing as planned. Assuming the the total/maximum consideration of £4.55 million is paid we get a multiple of circa 3.8 times revenues.

Whilst the latest C24 accounts (December 2016) show a loss of £219k on turnover of £902k (note GHT predict a minimum of £1.2 million for 2017), net assets were £205k, cash at bank £235k. GHT say that C24 is earnings enhancing and is a net contributor.

With the information available estimating the likely C24 performance for 2017 is a high degree of guess work but assuming significant overhead/cost savings (management overhead reduction etc.) and the stated increased turnover of some £300k I think you easily get to profit of £300k plus. This represents a PE of 15 which admittedly looks a tad pricey but these are guesswork numbers.

However, the real value of the C24 acquisition is not in the historical performance, it is in the enhanced customer base and the development potential provided by the C24 development team headed by Stephen Miller. It is all about what GHT can do with C24 as part of the CTC wider product set.

The C24 acquisition seemed good at the time and GHT have been nothing but positive about the performance and benefits of C24.

[jadeticl3] 07/10/2017 10:23

I have valued the contribution about GHT from both of you but I am disappointed about these recent spats. please agree to cease.

[qantas] 07/10/2017 09:14

C24 they paid £3.41 million the next payment is £0.76 million and then subject to renewals after six months the pay out is £0.38 million
Please do your own research

[qantas] 07/10/2017 08:45

No good retaining customers you need to make money out of them will be very interesting results. Please do your own research.

[qantas] 07/10/2017 08:35

I am not going anywhere who do you think you are just going to ignore you. Perhaps you need to do more research on Gresham profits and C24 earnings and balance sheet when purchased.

[gottafly] 07/10/2017 07:42

Qantas - not sorry to see you go, enjoy your postings on other boards.

Gottafly/schytalk

[qantas] 06/10/2017 21:18

School talk goodbye.

[schytalk] 06/10/2017 21:02

As I have stated on here I have two user names depending upon which device I am using, this is not a secret and is well known on here.

[qantas] 06/10/2017 20:47

School talk you are not gottafly thank you.

[qantas] 06/10/2017 20:47

School talk you are not gottafly thank you.

[qantas] 06/10/2017 20:47

School talk you are not gottafly thank you.

[schytalk] 06/10/2017 20:28

Qantas yes I only post where I am invested, and you?

[double double] 06/10/2017 17:01

Do people now see the reason behind that spike. That second win! And not holiday makers diving in on the same day how amusing it may be.

[qantas] 06/10/2017 16:59

GottaFly

You seem very keep to pump this one up. Are you GHT as you only post on this board seems a bit strange?

Don't know why just my view.

Please do your own research.

[gottafly] 06/10/2017 16:04

Gresham have tweeted the trading update RNS.

Q3 update: trading in line & 2 new CTC customers in North America. Great work team Gresham! hxxp://goo.gl/uxvpvv #awesome #dataintegrity

Interesting headline on the GHT web site entry - Two important CTC wins in North America in third quarter, trading in line ...... I had missed this headline statement, which is also in the RNS, so perhaps the trading update is a little more informative than I first thought. As per my previous analysis, this does set the scene for a potential over performance for CTC and therefore 2017 overall.

As always DYOR.

[4-10] 06/10/2017 11:35

Come on girls play nice! All info is interesting to someone.

[qantas] 06/10/2017 11:05

You are entitled to your opinion.

[gottafly] 06/10/2017 11:01

Qantas if you publish it then you need to take some responsibility or state the source of the information. Just publishing other peoples information without comment seems of very limited value. My impression of your posts of late is that GHT is over valued and that you are expecting (perhaps even wanting) the share price to go down.

[double double] 06/10/2017 11:00

That is historic pe ratio based on 2016 numbers. We are looking foward to end of 2017 and the company has confirmed they expect to meet their expections.

[gottafly] 06/10/2017 10:46

Thanks dd, I somehow find your information so much more useful and information than the 'fundamentals' provided by Qantas (please note no U).

[qantas] 06/10/2017 10:21

Company Fundamentals

P/E Ratio
48.645 Perhaps a bit high?

Epic
GHT
ISIN
GB0008808825

Market Cap (GBP m)
131.948
Shares in issue (m)
67.49

P/E Ratio
48.645
EPS
4.06

Dividend Yield
0
Currency
GBP
Please do your own research.

[gottafly] 06/10/2017 09:58

richjp

An interesting take on the trading update. You could well be right that the 2017 figures are now pretty much assured because Q4 signing will only produce revenue in 2018 and therefore the 2018 forecast is still to be 'decided'. If signings continue at the rate they have been then Q4 should be good, especially as you say Q4 is always a better business quarter than Q3 because of the holiday season.

One thing I would query though is the legacy revenues. When I last spoke to GHT they were pretty comfortable with the business attrition rate going forwards and that the 'big hit' has happened in 2017, so that makes the 2017 numbers all the more impressive. So I don't think legacy revenues should be an issue in 2018 and as you say they continue to be of less importance year-on-year although still a very useful cash flow.