Gresham Technologies Share Discussion Threads

[double double] 22/1/2019 09:43

Thanks for the research gottafly. I am content with my holding and the business as is so havent bothered to keep up with some of this.

[gottafly] 21/1/2019 14:12

Yet more promotional activity from GHT, this time the Multibank offering.

Our Innovation Lab explores Clareti Multi-Bank and its ability to streamline overwhelming bank tokens down to a single solution for connection to all banks.

hxxps://www.greshamtech.com/videos/payments-automation-for-corporates

[richjp] 21/1/2019 11:11

The sale of the VME business looks like a good move to me. I posted quite recently that they said some time ago the best they could get for some of the legacy stuff was twice annual revenue. At £2M they are getting 2.3 times 2017 revenue so it seems they have achieved at least as much could be expected. Looking at the annual accounts there still seems to be some legacy stuff left excluding the sub contracting side and assuming I can get to the AGM this year I will try and find out what it is.

I notice they went to the trouble of stating that the discussions with Fujitsu commenced in the first half of last year. They had no need to give that information and I think they gave it so as to make it clear that this was not some kind of emergency fund raising.

It does streamline the business and may actually make it a little more attractive to a potential bidder, as the VME issue will no longer be a distraction.

I was hoping that this announcement might prompt a slight further recovery in the share price but it looks that we may need to wait a bit longer.

[gottafly] 19/1/2019 11:25

Interesting, further to my earlier post on this subject it seems that GHT want to promote it!

Gresham on Twitter


‏

@greshamtech Jan 18

New video from Gresham's Innovation Lab sheds light on the latest big data technology. See how Clareti is accelerating data transfer rates - faster than Google! #bigdata #clareti #innovation

[gottafly] 15/1/2019 18:52

The above numbers from the Holway extract makes the sale of the VME business look pretty good businezs, clearly in excess of 2 times revenue and they also confirm the resulting increase of focus on Clareti.

Looks pretty positive to me.

[4-10] 15/1/2019 17:48

This is what Holways firm had to say about the VME sale
TechMarketView

Gresham sells VME business to Fujitsu
Angela Eager, 08:50, 14 January 2019
Specialist provider of real-time transaction control and enterprise integrity solutions Gresham Technologies is to sell its declining VME software business to Fujitsu for £2m as it concentrates on is flagship Clareti platform. VME was ICL's flagship operating system, which was then acquired by Fujitsu.

The mainframe software part of the business generated revenue and profit of £0.87m and £0.70m, respectively in FY17, out of total revenue of £21.7m (and is on a downward trajectory) so the impact on Gresham is not substantial but it will mean it can focus its effort and resocues on growth engine Clareti. This is important as the platform experienced a blip during FY18 (see Gresham disappoints) when its rate of growth dropped substantially.

The transfer of the VME business - which involves 13 customers - is part of a transformation programme that has seen Gresham change shape over the past five years. Having undertaken a technical feasibility study with Fujitsu during 2018 regarding the compatibility of Gresham's VME products with Fujitsu's successor platform and to quantify the product upgrade requirements and associated benefits and risks, the decision was taken sell the VME business. The transaction will complete on 31 January 2019. For Gresham the move is part of a tidying up process, for Fujitsu it pulls another 13 mainframe customers closer, with the potential to take them through an upgrade programme.

[gnnmartin] 14/1/2019 18:02

Indeed, it is why I first bought GHT, a long time ago!

[stewartf] 14/1/2019 15:35

I've only just seen the announcement about the sale of the VME software. End of an era. I worked on and with that product. Groundbreaking in its day. I'll raise a glass to Lionel, the chief architect.

[gottafly] 14/1/2019 12:54

dd I like your thinking and the hiatus of the missed numbers creates an opportunity for a change of direction.

jadeticl3, I suspect any offer will be hostile unless it is very generous, 3 times price say, so I doubt management will have much say in it.

[jadeticl3] 14/1/2019 10:58

Normally a good deal for investors, when an offer for the company is made, is a price 80% more than current valuation. However, in this case that would be well below its valuation a year ago. If Management truly believes what it says it should not even consider such an offer, and I hope it would not, even though we would gain compared with now.

[double double] 14/1/2019 09:44

Cash generative, focused business model, growing client base, world leading products..... cheap as chips.

Agree a takeover target but not now please let us develope into a decent small/mid cap first.

[gottafly] 14/1/2019 08:26

amt I think you can assume that the dividend remains and will probably be increased, not that I am a fan of the dividend.

[gottafly] 14/1/2019 08:17

Interesting indeed and would seem to be a bit of rapid housekeeping.

The VME software was always due to end soonish but as is quite normal it has been prolonged. I suspect that Fujitsu were the main driver in this and did not want to simply renew on the same terms. I would guess the price is circa two times revenue (so £1 million recurring revenue lost) and I think GHT should come clean on this but I guess we will have to wait for the annual report, presumably a few staff will depart as well.

So removal of this legacy annuity increases GHT's focus on the future, namely the Clareti product set. GHT seems not be be valued on any legacy revenues anyway and assuming Clareti is strongly cash generative (as GHT says) then this can be seen as positive, essentially the VME revenue stream is no longer needed.

I was concerned that cash would be hit with the B2 payments, clearly this is now sorted. You could argue that GHT have swapped VME legacy margin/cash for the (hopefully) B2 expanding business - old for new. GHT was already existing the Cashfac legacy business and I presume that the EDT product line is also for sale.

In my view a bit of a bold move assuming that GHT had much choice in the matter. It emphasises that Clareti is now centre stage (always was of course) and that there can be no hiding place for IM, time to deliver.

It also in my view increases the chances, which I think are very strong now, for a take-over offer, watch this space I reckon, game well and truly on.

[tacticaltrader] 14/1/2019 07:44

Tying up loose ends?

[amt] 14/1/2019 07:32

Good move and increases their very healthy cash balance. Perhaps they could return that extra cash to shareholders by increasing dividend.

[onjohn] 14/1/2019 07:16

Get ready for hairy ride

Sold its cash cow


Will need placings

[double double] 14/1/2019 07:13

14 January 2019Gresham Technologies plcSale of VME mainframe software businessGresham Technologies plc (LSE: "GHT", "Gresham" or the "Group"), the leading software and services company that specialises in providing real-time data integrity and control solutions, is pleased to announce that it has entered into a definitive agreement (the "Agreement") with Fujitsu Services Limited ("Fujitsu") for the sale of its VME mainframe software business for £2 million (the "Transaction").

[owenski] 13/1/2019 09:20

Good posts GottaFly, cheers.

[gottafly] 13/1/2019 09:04

Just been spending some time looking around the GHT website, on first glance it is flash and modern looking. However, it is too flash in my opinion and is certainly not very intuitive, you have to know where to look for things. Also, it does not work overly well with Windows/Mouse (out hat I know) and is really geared to tablet usage.

For access to general news, blogs, papers etc. you have to know to select the Resources option, as I say not very intuitive. I trust that the Clareti UI does not have the same issues given the claim of ease of use etc.

In the Papers section, the latest entry (published on December 18th but actually produced in October) is titled 'Taming the Fire-Hose Faster than Google'. I presume this is part of the Data Accelerator that GHT development recently. The paper explains that Clareti has a date compression/handling facility called Preon which accelerates data transfer rates in a Big Data world. It is apparently home grown proprietary software, a big tick there I would suggest.

Anyway the conclusion is that GHT's Preon outperforms everything else by quite some margin, including the Google FlatBuffers (66% improvement - 75k operations per second against 45k).

The concluding statement - "We’ve demonstrated that Preon is faster and more efficient than other serialisation technologies. By using Preon we are able to ingest, process and transfer more data using less hardware resources.
Preon is continuously invested in to maintain this best in class performance. Enterprise ready and Production proven, Preon continues to be a core technology for Gresham.".

This seems to underline what we investors home/believe, that the Clareti technology is class leading!

[gottafly] 11/1/2019 08:17

In no particular order this is a list (20) of customers from the GHT website - a rolling banner display. They have 75 plus, I would love to see how that number has risen over time both organically and with acquisition, seems like a KPI as far as an investor is concerned. Can anyone add to the list?

Standard Chartered
Morgan Stanley
Trafigura
Willis Towers Watson
M&G
Easyjet
Nokia
Moventum
ABN-AMRO
Santander
Black Rock
Sberbank
Mountstreet
TRAX
ANZ
Handelsbanken
Sogelife
UBS
Statestreet
TD

[gottafly] 11/1/2019 07:59

Gresham’s Clareti platform recognised in three respected publications
28 November 2018
Gresham
New FinTech, RiskTech and RegTech accolades for Gresham

London – 28th November 2018 - Gresham Technologies plc, the leading software and services company that specialises in providing real-time data integrity and control solutions, is delighted to announce recognition in three leading FinTech industry awards.

RiskTech100_2018
Gresham’s enterprise data integrity Clareti platform has been included for the first time in the RegTech 100 2019. A panel of analysts and industry experts voted from a long-list of over 800 companies, compared to 416 last year demonstrating RegTech’s growth as a technology category. The finalists were recognised for their innovative use of technology, or ability to generate efficiency improvements, across regulatory compliance functions.

Secondly, Capital Markets CIO Outlook recognised Gresham in it’s global listing of top 10 Reconciliation Platform Solution Providers. Gresham are ‘at the vanguard of the reconciliation revolution’ and are considered ‘trend setters across the world’ according to the report which focuses on companies innovating in the data management marketplace.

Finally, for the fourth year in a row, Gresham has been recognised in Chartis Research’s market-leading RiskTech100® 2019, rising to #35 this year.

Paul White, CMO of Gresham:

“It is a testament to Gresham’s vision and commitment to innovation that the Clareti platform is recognised so regularly by technology analysts. A common principle across all RiskTech, FinTech and RegTech is that data integrity and control underpins successful innovation, regulatory control and efficiency breakthroughs which is exactly what Clareti is delivering to the most demanding firms around the world”

[jadeticl3] 10/1/2019 22:12

Let us be grateful for small mercies. It has been a very good week so far after the very bad news.

[richjp] 10/1/2019 17:08

I agree but it often seems to move down on low volumes as well.

[gottafly] 10/1/2019 15:04

Good continued climb in the share price but all small deals, would be nice to see a sizeable deal go through to underpin the rise.