Gresham Technologies PLC Trading Update (7554Y)

TIDMGHT

RNS Number : 7554Y

Gresham Technologies PLC

06 January 2020

RNS

6 January 2020

Gresham Technologies plc

Trading update

Gresham Technologies plc (LSE: "GHT", "Gresham", "Company" or the "Group"), the leading software and services company that specialises in providing solutions for data integrity and control, banking integration, payments and cash management, is pleased to provide the following trading update for the year ended 31 December 2019 ("FY2019").

The Group expects to report:

   --      Group revenues for the year up 30% to GBP25.0 million 
   --      Total Clareti revenues up 30% to GBP15.3 million 
   --      Clareti software revenues up 39% to GBP11.0 million 
   --      Other (non-Clareti) revenues performed strongly up 29% to GBP9.7 million 
   --      Group Adjusted EBITDA* up 344% to GBP4.0 million 
   --      The Group closed the year with cash at GBP9.6 million and remains debt free 

*Earnings Before Interest, Taxation, Depreciation and Amortisation adjusted to add back share-based payment charges and exceptional items and including continuing operations only. FY2018 has been adjusted for IFRS 16 which was adopted from 1 January 2019, this resulted in an increase to previously reported FY18 Group adjusted EBITDA of GBP0.4m.

The Group's move to subscription licensing within the Clareti business progressed particularly well during the year with forward-looking Clareti Annualised Recurring Revenue (ARR) expected to be up 30% to GBP9.6m compared with GBP7.4m at the end of FY2018. These additional, high quality, recurring software revenues provide the Group with significantly increased predictability and visibility for future performance.

As noted in the Company's update on 23 December 2019, the Group saw strong trading in the second half with six new Clareti licences sold, including a strategic contract win in the United States for one of the world's largest alternative investment management firms to replace its legacy vendor transaction lifecycle management solution with Clareti Transaction Control (CTC).

Additionally, during December 2019, contractual terms were finalised with a Tier 1 global bank for an enterprise scale deployment of CTC. This contract is likely to be executed in early 2020 and is expected to underpin the existing plans and expectations for Clareti software revenues in the financial year.

The Group remains confident in the opportunity for its Clareti technology across all the target markets of data integrity and control, regulatory data quality, and banking integration and cash management.

The Group anticipates that the audited results for FY2019 will be announced on 10 March 2020.

Ian Manocha, CEO, commented:

"The Group made significant progress in 2019 with three major legacy reconciliation vendor replacement agreements and multiple new Clareti client wins across our target markets. It is pleasing to see a much stronger underlying recurring revenue base and good momentum in the business as we head into the forthcoming year.

We will continue to invest in technology innovation and in building routes to market and we are confident in our plan to secure market leadership in the provision of data integrity solutions to the global financial services community."

Enquiries

 
                                                   [phone] 
Gresham Technologies plc                            0200 
Ian Manocha 
Tom Mullan 
 
                                                   [phone] 
N+1 Singer (Financial Adviser and Broker)           3000 
Shaun Dobson / Lauren Kettle (Corporate Finance) 
Tom Salvesen (Corporate Broking) 
 
 

Inside information

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

Note to editors

Gresham Technologies plc is a leading software and services company that specialises in providing real-time solutions for data integrity and control, banking integration, payments and cash management. Listed on the main market of the London Stock Exchange (GHT.L) and headquartered in the City of London, its customers include some of the world's largest financial institutions and corporates, all of whom are served locally from offices located in Europe, North America and Asia Pacific.

Gresham's award-winning Clareti software platform is a highly flexible and scalable platform, available on-site or in the cloud, designed to address today's most challenging financial control, risk management, data governance and regulatory compliance problems. Learn more at www.greshamtech.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 06, 2020 02:00 ET (07:00 GMT)