Gresham Technologies Share Discussion Threads

[goldnugget] 25/2/2015 19:43

If its a sell it would explain the price drop over the last couple of days.

[jadeticl3] 25/2/2015 18:33

My system says it is a seller.

[schytalk] 25/2/2015 17:17

It seems we have some volume at last, a trade of 628k going through at 79p.

Will be interesting if this is a fresh investor or one topping up.

Anyway good to see that there is some demand out there.

[schytalk] 25/2/2015 12:53

EGM results in full now available on the Gresham web site - hxxp://www.gresham-computing.com/regulatory-announcements/resolutions-passed-general-meeting-held-24-february-2015/

[schytalk] 25/2/2015 12:36

goldnugget

I think the EGM was needed because the board are taking positive action following a slower than previously expected take up of CTC - hence the profit warning.

It is a wake up call and they have shown confidence in the future by promising dividends (good) but requiring addition share options (shareholder dilution, not so good) to provide the appropriate incentives to new joiners who will deliver the CTC potential.

This effects all shareholders not just the recent new placing who I suspect might be beyond redemption.

All to play for in my opinion and game on.

Onwards and upwards.

[goldnugget] 25/2/2015 12:11

You could say the EGM was to placate the institutional investors who are currently sitting on a 38% loss (bought at 125p placing) and the promise of a dividend the same. DYOR...

[schytalk] 25/2/2015 11:57

goldnugget

Interesting point about Kestrel I believe they are linked with Max Royd the non exec, so now the EGM is gone and done perhaps they will invest further. Clearly for the share price to rise we need demand and I expect this to happen on the back of positive Gresham announcements otherwise why have the EGM - time will tell.

[goldnugget] 25/2/2015 11:18

The high share price over the last year was based on future potential and with the profits warning brought some reality to the share price. In essence there have been no buyers - prior to the warning we had Kestral (i think) continually buying and without this the price has gradually drifted lower. Until there is concrete evidence of real revenue growth from these new deals I can't see the price moving higher. DYOR...

[schytalk] 25/2/2015 10:40

Good news that all resolutions were passed yesterday.

However, results for the EGM indicate that some shareholders are not supportive of the board, This, together with broker disinterest, I think explains why the share price is drifting, looks like a sizeable number of shares could be available.

The results can be found on Morning Star and at some point are promised to be on the Gresham Web Site - hxxp://tools.morningstar.co.uk/tsweu6nqxu/globaldocuments/document/documentHandler.ashx?DocumentId=84666830

From a list of major investors it can be seen that MA Green (3,326,280) is anti but others are also in opposition. Resolution 1 - the share option plan increase - was the most resisted with 23,556,224 for, 11.786,392 against and 7,483,532 withheld, that is a sizeable 19 million not in favour.

We can only speculate why the EGM and resolutions were thought necessary by the board. Being an EGM it shows a degree of urgency which is not necessarily a bad thing.

As always DYOR but I believe the share option changes can only be to bring new talent into the business to ensure that CTC is a major success and that is something all shareholders should support - Gresham is on the cusp of something big here. The promise of Gresham becoming a dividend stock shows confidence in the long time prospects. I suspect that the anti brigade is a not untypical short term 'instant gratification' reaction and long term investors, like me, see things differently. That said, the profits warning and drop in share price was clearly an unpleasant surprise.

I would welcome other views but it seems that the share price may have some downward pressure in the short term. However, I am with the board and expect further good news from Gresham and a rise in the share price accordingly.

Onwards and upwards, here's hoping for an exciting ride.

[amt] 24/2/2015 06:53

No interest in the shares at the moment. Seems to be drifting lower on virtually no turnover.

[qantas] 23/2/2015 21:15

hxxp://www.gresham-computing.com/jobs/

As we continue to grow, we continue to look for talented people to join us across all areas of the business. Though an established company, we still have the feel of a start-up and you will be joining us at a really exciting time. Just send us your cv and a cover letter telling us a little about yourself and what you could bring to the party.

[jadeticl3] 19/2/2015 20:15

Thanks Quantas

[qantas] 19/2/2015 18:18

hxxp://www.gresham-computing.com/wp-content/uploads/2015/01/Shareholder_Circular.pdf

Proxy form

hxxp://www.gresham-computing.com/wp-content/uploads/2015/01/Shareholder_Proxy_Form.pdf

The above is a link for the proxy form all nomimee accounts may vote they even give you freepost.

[schytalk] 19/2/2015 18:17

jadeticl3

Your shares will be held electronically so contact the custodian (broker?) and they will vote according to your wishes. The share price is stuck because we are all waiting for proof of a break through, there is an old saying however 'always darkest before the dawn'.

Nothing is guaranteed in investment (or life) but Gresham are showing the sort of confidence and already have established signings that provides a great platform. The next phase is delivery of volume sales. I hope and expect that new hires, using options, will make the difference.

The share price is bound to be somewhat static at the moment - yes the profits warning was a crass mistake - pending the outcome of the general meeting. That is why in my opinion it is so important to support the board. I have been critical of the CEO in the past and remain so but the non execs plus the very good staff at Gresham just need that star quality as regards sales/marketing.

As always DYOR but onwards and upwards.

[jadeticl3] 19/2/2015 17:23

Hardly any share price action for 2 months now, and what we have seen is in the wrong direction! So anything positive that you can do Schytalk is fine by me, but all my holdings are in nominee accounts so I don't have the privilege you have to support management.

[schytalk] 19/2/2015 15:38

The Gresham Company Meeting is on Tuesday where resolutions will be presented for adjustments to the share option scheme and a capital restructure (remove share premium account) such that dividends can be paid.

Despite some reservations I have supported the resolutions and my proxy is lodged with Gresham. I concluded that the board needed full support and would humbly suggest that all shareholders do likewise, a large vote in favour would be a vote of confidence.

As always DYOR but why have I voted in favour. I think (and hope) the additional options will be used to bring new senior sales expertise to the company to deliver the volume sales we need. The promise of a dividend is a confident and positive action by the board and supports the annuity income stream that CTC promises.

Onwards and Upwards.

[richjp] 13/2/2015 18:04

Wh1spa, I doubt very much if you will find the identity of that client, not through official channels anyway.

When I attended the AGM last year GHT made it clear that many clients do not want to publicise the fact that they have signed up for CTC. The reason stated was that by going public they are implying that their existing systems are inadequate. We have all read what GHT keeps saying about many organisations using spreadsheets for such an important function. I am not sure if clients are concerned about their competitors knowing that their systems are inadequate, or perhaps that any regulatory bodies that might be watching.

GHT did not see this as a problem as far as PR is concerned. I am sure that GHT are correct when they say that banking users talk to their peers in other organisations often at the appropriate conferences and possibly more informally still. They also said that the CTC clients already live are happy and willing to provide positive references on a one to one basis.

[richjp] 13/2/2015 18:00

jadeticl, regarding your post 5377 of yesterday I think your question is most valid. I spent over twenty five years in high value sales in the I T industry back in the days when IBM controlled everything. There was an industry saying then that “nobody ever got fired for buying IBM”. It may have been dreamed up by an IBM marketing man for all I know, however there was a lot of truth in it. I represented “smaller”; companies although they were American based with revenues of £1billion annually and although the technology was more advanced, they were still perceived as higher risk compared to IBM. I doubt if that saying is quite as true now by the way.

The same applies now in the software industry. Many customers prefer to stick with their known supplier, or go with a more established supplier, rather than take what they perceive as a greater risk. Careers can be affected when things go wrong. GHT unfortunately has had an erratic record for over ten years now and it takes a while to get over that. You can indeed mitigate the risk to some extent as schytalk has said by proving software source code or using escrow but that is an absolute last resort. Nobody buys the service of an external provider with a view to wanting to take in in house later.

One of the most important aspects of selling is qualifying the prospect. One way it was taught to me was by asking three questions:

Will they buy?
Will they buy now?
Will they buy from me?

That is over simplifying it but to go into a bit more detail it means the following:

Will they buy? – Have they identified a need and committed to doing something about it?

Will they buy now? - “Now” in the context of this type of sales cycle meaning in the next six to twelve months and do they have the budget to do so, or if not can they find the funds somehow.

Will they buy from me? - “Me” in this context meaning the company I represent.

In qualifying a prospect those questions have to be asked very honestly and the third question is just as important as the first two, if not more so. It is tempting if you are desperate for business to chase after every opportunity, whereas it is far better to focus on the opportunities you are much more likely to win.

Now the good news! Gresham in my view did exceptionally well during 2013 and the first part of last year particularly to close the accounts they did. That will do a lot to give potential clients more confidence, but there will always be the barrier that I mentioned above with some clients.

The other positive aspect is that despite the conservatism of many potential clients, there should still be plenty to go for where the prospect is prepared to consider GHT as a credible supplier. The skill is in targeting the right clients.

I hope you all do not mind the sales lecture!

[qantas] 12/2/2015 11:39

hxxp://tabbforum.com/opinions/spreadsheet-gridlock-getting-from-a-to-b-with-stp

11 February 2015
Spreadsheet Gridlock: Getting from A to B with STP
More than half of global corporates still use spreadsheets to manage their general ledger or accounts receivable processes, and it takes as long as a week to allocate and reconcile money received in the back office. The implications are time wasted, costs elevated, and mistakes made.

In a recent poll we conducted with global corporates, more than half of the respondents confessed to still using spreadsheets to manage their general ledger or accounts receivable processes. When we asked them how long, on average, it takes to allocate and reconcile money received in their back office, 39% said it takes three days or more, with 16% taking up to a week. When you’re dealing with high volumes of transactions, this has a real impact on working capital. So how can corporates reduce spreadsheet gridlock, and get from A to B more quickly?

The first step is to lift the bonnet and take a closer look at the systems currently in place. For most organisations, many with different offices in a range of national and international locations, the ability to share and access up-to-date and accurate information across the board is imperative. When using spreadsheets to reconcile transactions, it’s easy to get caught up in information jams where timely sharing of knowledge is hindered through disparate files, folders and processes. Deploying a reconciliation/allocation system that can be used across the enterprise will not only allow the majority of transactions to be matched straight-through, with no manual intervention, but also encourage an environment where visibility, control and auditability are achievable.

One major benefit of adopting an automated system for reconciliations is the standardisation of data across different platforms and departments. In our poll, the vast majority of corporates surveyed agreed that this was the main challenge preventing them from achieving operational maturity (when driving abroad, for example, it’s often confusing to try to understand foreign road signs, signals and customs – imagine how simple it would be if they were all the same).

Understandably, for organisations, the task of matching up this data can be a veritable nightmare. The implications of this? Time wasted, costs elevated, and mistakes made. When information is arriving in so many formats, it is important to adopt reconciliation processes that recognise this and take on the brunt of the work on behalf of your personnel, who will be able to focus on exploring and resolving exceptions rather than detecting them in the first place. The key is to find a reconciliation tool that retains flexibility and oversight by not imposing a fixed schema for your data.

Many corporates could benefit from a more efficient handling of account receivables to relinquish their reliance on spreadsheets. It is crucial to understand the benefits of streamlining your firms’ operations into a more simplified process where visibility and standardisation of data are of the utmost importance. In a complicated world where corporates can often get bogged down in disparate processes, it’s important to avoid spreadsheet gridlock in order to achieve full oversight and operational maturity with sound straight-through-processing.

hxxp://marketsmedia.com/reconciliations-not-just-back-office/

Reconciliations Not Just About Back Office
February 2, 2015

The number of transactions that require reconciliation on a daily basis is exceeding the capabilities of financial institutions as they struggle to comply with new regulations.

In an arena where alacrity is key, a step-change in reconciliation software is the only way forward, according to Bill Blythe, global business development director at Gresham Computing, a provider of reconciliation software.

“When you are a large corporate or large financial institution, you have thousands of bank accounts and millions of transactions going in and out every day, and you need computers to be able to reconcile and validate what you think happened with what happened with your counterparties in the rest of the world,” said Blythe. “The software that we build is specifically designed to automate, to control, to provide security and access around those types of messages.”

Reconciliation exists in every single area of a bank. “Whether it’s in the front office, middle office, back office, everybody knows what reconciliation is,” Blythe said.

Because reconciliations are a key facet to identifying risk, it’s imperative that every transaction is reconciled in real-time and that discrepancies are reported immediately.

“Lowering risks, whether they are market risk, credit risk, operational risk, are about insuring that checks and balances are in place, that your money is where it should be, that you paid people on the right time,” said Blythe. “That’s one key business driver of reconciliation.̶1;

The second is the growing need to prove integrity. “Whether it’s the SEC or the FCA, you can get locked up in prison if you don’t get this stuff right, so it’s about ensuring that you have true completeness across your organization, that you have robust controls, that you have accountability across the organization so that you don’t just have these point-to-point silos anymore,” Blythe said. “Dodd-Frank, which requires any financial institution to report holistically from a group perspective, means that you need these controls and these integrity points across the entire lifecycle of the trade.”

The biggest driver by far is regulation. “The regulatory landscape is ever changing, and there are more and more demands on institutions to be able to report timely, costly, accurately, and you need to do that in real time, and that’s why you need real-time financial certainty across your organization,” Blythe said.

Gresham Computing’s core competency is financial reconciliation. “It’s about bringing complicated data sets into the system quickly,” said Blythe. “To do that in the legacy technology, it takes weeks and months. What we’re offering is a smart, innovative way to bring on data or reconcile and match within hours.”

“We’re bringing something very new and innovative to a very stale market,” Blythe added. “The vendor community is building reconciliation solutions for probably close to 20 years, but the world is a very different place now and to maximize efficiency you need to make better use of technology.”


hxxp://www.techmarketview.com/ukhotviews/archive/2015/02/10/new-use-case-adds-to-greshams-fight-back


Tuesday 10 February 2015
New use case adds to Gresham’s fight back

logoA couple of weeks ago we reported on Gresham Computing’s confident review of recent performance, see Gresham – trading update shows progress. In this we repeated the mantra that it would take time and a sustained flow of good news to complete the company’s rehabilitation after forecasts were cut due to contract delays.

This process is one step further advanced by today’s announcement of a contract win at a major European bank for the company’s CTC in-memory reconciliation solution. This contract represents a new and potentially important use case as the system is to be used to ensure that the bank’s transaction reports are consistent with its regulator’s required formats and rules. This adds to a growing list of such use cases, with recent contract wins for deployment in the real-time matching and reconciliation of exchange traded derivatives and intersystem transactions, for working with Oracle systems to manage payment transactions and to supply CTC to a North American provider of asset management solutions.

This contract reaffirms the management’s view that there is a good base on which to build for 2015.

[schytalk] 12/2/2015 10:25

jadeticl3

I don't think you should be concerned as regards Gresham's credibility to provide a banking solution. Banks are risk averse and often slow to change but I would suggest that Gresham now have enough of a CTC customer base to provide security, also they have been around a long time.

Banks can often, as I believe is the case with CTC, run a higher risk of not doing something because of an existing exposure, so the risk equation can work in Gresham's favour. If a particular bank is really concerned this can be covered off by in house training/support and access to source code etc.

I firmly believe we are in the roll out stage. In my view a bigger risk is can Gresham grow quickly enough to gain a significant market position and avoid staying as a niche provider - it will be a whole new challenge. The technology I believe is proven and the business is there to be had, so it is a case of sales/delivery. I hope and expect to see Gresham continue to strengthen its capability in this area. Perhaps that is what the enlarged share options pool is for, remember they do not have a sales or delivery director.

Onwards and upwards.

[wh1spa] 12/2/2015 08:56

Anyone any ideas as to the identity of the large US outfit that GHT have done a deal with? (Old news I know but I can't find any info, trying to gauge the calibre of the company involved)

[amt] 11/2/2015 22:56

They have "won their spurs" there have been many implementations over the last couple of years and this is beginning to snowball. Banks are just slow to update their software.

[jadeticl3] 11/2/2015 20:22

So much looks good about the product range that Gresham has that success always appears just round the corner.

However, big contracts are not plentiful. Can I ask richjp (and others who have worked in this field) a question that can be known only with experience. Is it very difficult for big companies eg banks, to commit significant sums of money, but also to entrust important regulatory issues to a small company that has not yet won its spurs in the big world of business? Are they afraid (or wary) that although the product is great the company supplying it may not have the resources to continue through a tough period in the business cycle?

[4-10] 11/2/2015 14:11

From Richard Holway
UKHotViews from TechMarketView LLP

New use case adds to Gresham’s fight back
Peter Roe, 08:13, 10 February 2015
A couple of weeks ago we reported on Gresham Computing’s confident review of recent performance, see Gresham – trading update shows progress. In this we repeated the mantra that it would take time and a sustained flow of good news to complete the company’s rehabilitation after forecasts were cut due to contract delays.

This process is one step further advanced by today’s announcement of a contract win at a major European bank for the company’s CTC in-memory reconciliation solution. This contract represents a new and potentially important use case as the system is to be used to ensure that the bank’s transaction reports are consistent with its regulator’s required formats and rules. This adds to a growing list of such use cases, with recent contract wins for deployment in the real-time matching and reconciliation of exchange traded derivatives and intersystem transactions, for working with Oracle systems to manage payment transactions and to supply CTC to a North American provider of asset management solutions.

This contract reaffirms the management’s view that there is a good base on which to build for 2015.

[amt] 10/2/2015 19:37

The share price is where it was two years ago when we had to take it on trust that CTC was going to be implemented by lots of top tier banks and investment houses. Now that is coming to fruition I would have thought the downside risk has gone and its juts a matter of how big it can get. So share price hasn't followed any logic in the last couple of years.
Its just sentiment that small caps are hated by investors at the moment on an epic scale. Just look at AIM where the small caps have crashed over the last year, many down 80%+ . Its risk off big time. Eventually it will be risk on and then there will be a lot of money to be made. Whether that's 3
months or 3 years away don't know.