Share Name Share Symbol Market Type Share ISIN Share Description
Gresham Technologies Plc LSE:GHT London Ordinary Share GB0008808825 ORD 5P
  Price Change % Change Share Price Shares Traded Last Trade
  -3.50 -2.33% 146.50 34,643 15:45:53
Bid Price Offer Price High Price Low Price Open Price
143.00 150.00 150.00 146.50 150.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 19.27 -2.20 -2.09 100
Last Trade Time Trade Type Trade Size Trade Price Currency
16:26:11 O 1,000 146.49 GBX

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Gresham Technologies Daily Update: Gresham Technologies Plc is listed in the Software & Computer Services sector of the London Stock Exchange with ticker GHT. The last closing price for Gresham Technologies was 150p.
Gresham Technologies Plc has a 4 week average price of 144p and a 12 week average price of 103.50p.
The 1 year high share price is 154p while the 1 year low share price is currently 83.50p.
There are currently 68,256,458 shares in issue and the average daily traded volume is 12,955 shares. The market capitalisation of Gresham Technologies Plc is £99,995,710.97.
6gr: Thanks for the kind words on my first post. In relation to the share price move, I've seen 35% upside in 2 months from the point I first invested which is encouraging. I feel that the right range for the current outlook is 150-200p and that to go beyond that would require meaningful new contract wins and/or an update to a more promising 2020 projection. In relation to the dividend comment, I want GHT to spend all their money on the sales force for their existing proven products as well as investing in the products themselves to both protect them against innovation and increase the ability to upsell extra features to existing users. A suitable small acquisition that fitted strategically would also be good, especially a private company valued at a lower p/e multiple. Regarding dividends, they are for low-growth stable stocks, like energy, utilities etc. They can often not use the money internally and the market values them as dividend payers. For growth stocks dividends are a distraction and the management have to believe they can deliver a 20-30% return internally, so should be seeking to re-invest aggressively and not distribute cash.
6gr: Thats an interesting analysis of the holdings, but I would be careful about drawing too many conclusions from it. The institutional figure will include the market-makers holdings which is very much liquid stock and some of the institutions are also happy to buy and sell based on price movements, as happened after the Trading Update, where volume was huge. The price movement then was less than has been seen in recent days on very small volumes. Additionally many holdings from individual investors will be held within nominee accounts at stockbroker, investment firms or SIPP providers, which are likely reported as 'institutional holdings'. My holding is reported by a SIPP provider for example. What is clear though is that there is good momentum in trading, with GHT having products that clearly work well for their financial sector clients. This is a very deep global pool of potential clients, so the potential for new clients is massive and the investment in the sales force welcome. The switch towards recurring revenue is great as although it can be a little painful during adoption, it provides a huge stability of revenue, enabling better planning and also a higher p/e attribution. The operational upside leverage of the business is huge, given that the cost of providing services to new Clareti clients is small. Whilst there will be swings in some of the lower profitability consulting aspects of the services (which is of little concern) the Claretti revenues should keep growing every year by 20-30% in my opinion. My investment horizon is 5 years+ so the bullish case for me is that in 5 years time they could have a revenue of £60m+, be generating profits of £20m+, have a market cap of £500m and a share price of £7+. The costs of Claretti to many of the clients is actually very small. I worked in global investment banks and financial institutions and their total spend on IT and compliance is in the billions per annum. The annual cost of the Claretti products are less than the loss on a single deal if it goes wrong or a fraction of a fine for non-compliance from a regulator. If anything the risk is that GHT as a small company is too conservative in its pricing and underprices its products, which is commonly the case when a smaller company engages with massive clients. I suspect that many of the sales of these products are to companies who MUST buy a solution, so the only issue is ensuring that GHT can prove they have the best product and that they are a credible competitor to the larger legacy vendors. They have done so with many big wins and their increased financial stability, cash reserves and profitability will help calm nerves with buyers. Once they start to really threaten the legacy vendors (which they are already) I'd be amazed if they weren't subject to a bid. At that point my concern is that the low ownership of the stock by management means any takeover will be determined by the institutional fund holders with management unable to hold much sway over the direct voting share. This often results in companies being sold too early during a growth phase. I believe we are just at the start of a long slow run of upward momentum in both trading results and share-price.
jprich: re PE we will have to wait till 2021 or 2022 for it to come back inline as people understand it, currently it is 55 for 2020 on Bloomberg. If you dont have Bloomberg have a look at this link where the pe is 64 for 2020: hTTps:// But doesnt mean the share price will be static as until the trading statements, the pe was 75 for 2019, now 58. Hopefully with time this year and perhaps another upgrade after the interims, the share price will move higher and could command a higher pe again.
jadeticl3: Let’s give them the benefit of the doubt (and because it is what we hope will happen) and believe that, at last, this company truly is a rapidly growing fin-tech. I think we all believed that to be true about 18 months ago, and the share price then reflected that. However, it is clear from the current share price that most interested parties are not fully convinced today.
richjp: I think it was Benjamin Graham that first came up with the term “Mr. Market”. I suggest anyone not familiar with it should do a google search. What Graham says that it is Mr Market that determines a share price and that Mr Market can be very irrational in either over valuing or under valuing stocks. A company can put out as much information as it likes but it is the market that decides the share price If the two contracts that were deferred had been closed in December the impact would have been significant on the stated 2018 results. Under their old revenue recognition system they would have booked a large amount of the revenue from today’s announcement up front as it is a fixed term deal. In any case they are receiving £3M cash up front so together with the £2M cash received from the sale of the VME business, on top of the £8.5M cash at the year end, they are in a strong financial position. Before the warning in November the share price was around 160P. We have had an order slippage of up to three months which is nothing in the longer term. You can argue that there are many ways of putting a price on a share and maybe at 200P it was overvalued but I would suggest that 160P would be more than reasonable again, particularly given that the two deals are seen as strategic and the business is more streamlined with the sale of the VME business. I still think that GHT are in a market where it is difficult to grow quickly without taking significant risk, however they are still growing and I think they are on ever stronger foundations. GHT at the moment anyway, is not perceived as a high growth stock and I think that is what primarily is holding the SPP back in the short term.
jadeticl3: In the period from mid July to end of November there was hardly any movement in GHT share price. Now it is all excitement. About 6 weeks ago we were speculating on whether there would be “the normal update” on January 9th. Well-before-that we had news we did not want to hear, quickly followed by more news we are not sure about, like “the curates egg”. Do we still expect the “normal update”? Now, today, the share price has jumped up over 10% (it was before I started to write this). Is this simply that the fall was overdone? Or has the existing news been read differently? Or what? This is exciting, is it not? At least I am pleased that I bought more of these when the price was below 70p!!
gottafly: crazycanuck thanks for explanation re B2 and the intraday reconciliation requirement, makes sense. I still think GHT could have partnered or JV'd rather than acquire, anyway acquisitions are out of the question now (which I am quietly pleased about) so the focus is now all about organic growth. As for pricing I do believe that GHT price/position Clareti as a premium product on the basis that it is a class leading solution. Not sure if dropping the price would be an incentive and might alienate existing users, there is a common commercial culture (switch to me) to reward new customers more than existing (loyal) clients which might win customers in the short-term but possibly at the expense of long-term commitments. Perhaps some price flexibility to meet an individual clients budget would help and I don't know whether GHT's price book is rigidly enforced. In any event, especially with the large deals, I don't think price is the main driver, getting a client to change supplier (fear of change) and breaking long-term relationships is never easy, after all the incumbent supplier is not simply going to let it happen and perhaps will use price as a weapon.
jadeticl3: Is richjp correct in saying “we may have to wait for the January trading update, or even the full year results” for the market to start moving GHT share price? That is a long wait for us who think things must be happening, but we cannot be sure.
inforprofit: Well it looks like some confidence is returning to the GHT share price. The presentation had a large section on the B2 acquisition and clearly GHT are pretty excited about it. B2 was not cheap but it does look a good fit with some strong upside potential but only time will tell, so potentially another blinding deal. As the Holway report says this is now all about delivery and fulfilling the undoubted potential (and I think technical lead) of the Clareti product set. Management are confident in delivering an enhanced H2 to rescue the H1 miss, if they do not then I would expect changes. One last thought, at the current share price and with the undoubted potential that GHT has, they are increasing looking like a take over target. As always DYOR.
gottafly: GHT share price 'guestimate game' of one year back. The table below (thanks to 4-10) shows our predictions for the share price at the end of 2017, with a mid market price of 192.35p it would seem that jadeticl3 is the winner of our little competition. 160p Qantas 175p crazycanuck 199p jadeticl3 199.50p shytalk/gottafly 200p noble3r 200p richjp 207p inforprofit 210p luckymouse 260p double double 280p 4-10 Anyone brave enough, before the Jan 9th trading statement, to give it a shot?
Gresham Technologies share price data is direct from the London Stock Exchange
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