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 2.08% 172.00 14,511 13:00:58
Bid Price Offer Price High Price Low Price Open Price
167.00 177.00 172.00 168.50 168.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 24.75 0.31 1.84 93.5 121
Last Trade Time Trade Type Trade Size Trade Price Currency
13:00:40 O 2,000 174.00 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 168.50p.
Gresham Technologies Plc has a 4 week average price of 152.50p and a 12 week average price of 147p.
The 1 year high share price is 177.50p while the 1 year low share price is currently 103.50p.
There are currently 70,201,458 shares in issue and the average daily traded volume is 93,710 shares. The market capitalisation of Gresham Technologies Plc is £119,693,485.89.
gottafly: Jadeticl3, surprised you see my last notes as ominous, it was certainly not meant to be. I think most people on here believe, as apparently house broker N1Singer does, that GHT is undervalued and should have a higher share price I have been highlighting some industry coverage which shows that GHT does not have 'universal support' whch perhaps, in part, explains the share price level. planit2 made a very good point about the switch to SAAS/ARR was a major cause of the headline non performance, so with the switch completed in theory the share price should be higher baxsed on a SAAS model. Whilst I am certainly not an expert the valuation of an SAAS company is complicated and takes into account a number of measures. so I reckon it is very subjective. The fact (sadly) remains that the headline GHT growth has been behind the industry average and that growth in the last five years under IM's leadership has been below par. However, GHT now state that they have everything in place - product offering and sales team - to drive the business forwards, hence the statement that no further bolt-on acqusitions are planned. Further, the new board appears to have a plan B with the statement that transformative M&A will be considered. This underlines the new boards determination to deliver shareholder value (at last) so I think prospects are very good but as has been mentioned previously some continued patience, as regards the SP, will be required. As always DYOR
planit2: The last 5 years has seen the move over to SAAS under IM's watch. Moving to SAAS is painful for the share price as the company can't show increased profits but will still be rated by the markets under the old system for a while. Now this transition has been completed the share price can be rated as a multiple of sales. This is why N1Singer thinks the share price is undervalued, they are working completely using SAAS valuation metrics as they know the company well. I was surprised that the share price dropped back so quickly from the 175p peak, in my opinion the recent news is worth considerably more than the 5p per share increase.
gottafly: Just been sent this link which is a GHT analysis report dated just 2 days ago, a good read in my view. The headline is "Gresham Technologies plc's (LON:GHT) Stock is Soaring But Financials Seem Inconsistent: Will The Uptrend Continue?". The analysis is quite comprehensive and highlights the lack of performance in the past and concludes with the statement - mixed feelings about Gresham Technologies. With GHT, IMHO it is all about what GHT can deliver in the future with the Clareti (industry leading) product set. And, as if to underline the share price volatility, today we have had one share trade on one share!
gottafly: Well another positive signing announced yesterday and the second new 'fresh' deal this month and a new usage to boot. I think this clearly shows that if you have no legacy system then Clariti is the product of choice. planet2, you are correct that GHT stopped posting each new deal as an RNS some time back. They moved, thankfully in my view, to a more measured approach, with only significant wins being individually announced. The problem with this change though was that because GHT provide 'enabling software' (and therefore are not naturally front page news) this exposed the poor level of their other news channels - social media, blogs, white papers etc. GHT went from 'overkill' to largely 'radio silence'. Getting the right message to the market is not something that GHT has been particularly good at (which doesn't help share price stability) but as I posted earlier I get the sense of a significant change of 'mood music' and determination from the new board. Borisjohnson, you are correct about the GHT share price being circa 110p when IM took over and yes no great progress, despite the strong product offering, over his 5 year tenure. This is really time to deliver and I say again, I think the new board are very focused on achieving share holder value, hence the transformative M&A statement. Getting back to the share price I believe it is at a crossroads, apparently somewhat stuck in the 150's yet with N1Singer stating they believe it is undervalued. As an example, Yahoo finance are predicting 180p within the next 12 months, good but not earth shattering. Whilst it is great to see these two new significant deals, they did not replace an existing legacy system, which is where I beleive the real prize is and I believe is the basis for the transformative M&A statement. IM has stated that replacing legacy systems takes considerable effort and has protracted time scales, so this is a long hard slog hence the search for a better way. Watch this space! As always DYOR.
gottafly: richjp - you make a good point about GHT share movement on minimal trades. jadeticl3 - I believe that some 80% plus of GHT shares are in the hands of institutional/large holders/insiders so the level of freely available/traded shares for 'public consumption' is limited which can cause exagerated movements, both up and down. The good news however is that the underlying share price trend seems to be very much in the upwards direction. The last major trades I can find, ones which are greater than 100k shares and so are unlikely to be private investor dealings, are back in early March which went through at circa 152p. So I would suggest that the share price rise from that level has been caused of 'day trades' and is therefore potentially subject to some volatility. GHT is also an unusual beast in that yes it is small cap but it is on the main market. Also, pretty unusually for a tech stock, it is debt free and all Clareti investment has been performed without additional finance, this is something that IM appears to be very proud of! Further, GHT also tends to be fairly conservative as regards press/news so there is not a steady flow of information to continually feed price activity. However, N1 Singer released a revised note, as per below, on 9th March when the share price was sitting at the 152p level which then jumped to 162p. "After producing impressive 17% organic growth in Clareti ARR in FY20, despite COVID headwinds, we expect ARR growth to accelerate to >25% in FY21, with 85% plus of this revenue already visible given the recurring revenue model. We introduce forecasts today of a further 20% ARR growth in FY22. Stripping out cash of £9m, valuing legacy revenues at 1x (£9m) and Clareti Services at 2x (£11m), the residual £78m is 4.9x FY21 Clareti ARR, falling to 4.1x FY22 ARR. This looks too low to us: a key reason GHT is one of our top picks for 2021." So, house broker N1 Singer, believe that GHT is under valued and it is one their top picks for 2021. Personally, I am pretty relaxed about the current share price level and the direction of travel, especially given the N1 Singer support which has not always been the case in the past.
gottafly: Well where do we all think we are with GHT progress and the future SP, any guesses for where the share price will be at the year end and into next year? As a GHT long term shareholder, using my rose coloured spectacles of course, I view the current share price level as significantly below where it should be. All stocks took a hit with Covid, including small market cap stocks, but overall they have recovered back to pre Covid levels, however this is not the case with GHT, perhaps it is just lagging behind the curve? The share price was circa 150p back in Feb/March so why is the share price currently well below this. I don't have access to professional research on GHT (too mean I guess) so rely on trawling the public interent sites to get a concensus, overall it does seem pretty neutral with the occasional strong buy recommendation, but in general I think the stock is a little unloved. I did find one site that stated GHT were trading at a 44.58% discount to the analyst concensus target price of £229.07. Another forecast a short term share price increase (to 135p) but then the share price down to £104.777 in a years time! Yet another, with a strong buy recommendation, quotes an analysts 12 month concensus price of 180p (this price has been around for some time). As I said in a previous post, the recent trading statement made little sense to me, it did not say a great deal new (but overall was positive) and therefore why did GHT decide an unscheduled announcement was needed. From the contents, there does not seem to be a clear and obvious reason for the trading update but clearly GHT decided that one was required. Significantly I think, the trading update was made just a couple of weeks after the board changes where Knott and Wandhoffer were appointed. I have no personnal knowledge of these individuals but they do seem to have the expertise/experience that GHT desparately need as regards delivering on the potential of the Clareti product line. Im my view, progress in the last couple of years has been woeful, with perfomance more like a family run firm than a Fintech. So my guess is that the new directors (or should I say the new board) took stock of where GHT was and concluded that a public restatement of progress - the trading update - was required. I have previously stated that the half year results announcement was lacklustre and yet the investor presentations were much more positive, so there was a disconnect created here. The other thing that concerns me is that UK Equity stocks are, in general, seriously under valued so GHT potentially looks to be a cheap aquisition (especially to a foreign buyer). So yes, I do have rose coloured spectacles, but to me everything points to GHT being significantly under valued or at this price an attarctive acquisition target. Looking at the GHT share chart, if it was worth 150p back in March then, with continued progress, it should be worth at least that now. If that were the case then the 180p level is not that far away. Ramble (due to lockdown) over, any thoughts anyone?
richjp: amt, I am keeping a fair bit of my portfolio in cash at the moment in case the wider market crashes in these volatile times, otherwise I might already have dabbled in D4t4. There may be a better moment in the short term however I don't think most of us can time the bottom of a dip. If the GHT share price perks up a bit more, that might tempt me in to having a small punt in D4t4. I can always add more later. With every year the GHT foundations seem to me to be getting stronger as is the cash position, so I think the downside risk is pretty limited at the moment. GHT is over 20% of my portfolio, which is high I know, but it does mean that the strength of GHT influences other decisions I might take.
richjp: I think the recent results are as good as could have been expected in the circumstances, although GHT is unloved again today. As far as I am concerned IM is definitely the right man for CEO and I hope he continues. There is also nothing untoward about Ken Archer standing down. That was announced a year ago. As a non exec he is legally obliged to stand down after nine years in office. In fact it will be around ten when he finally leaves. The new chairman seems to have the right background and it seems that the company took it’s time in finding him. I do hope however that he puts has hand in his pocket and buys a decent number of shares. I was surprised to see how confident they were in the online presentation. If the formal announcement seems a bit subdued I feel we have to remember that they have issued two profit warnings in recent years, although both times it was simply a case where major orders got deferred for a few months and the share price got hammered. In making optimistic public announcements you could say that they are damned if they do and damned if they don’t. The presentation made it clear how demanding it can be to win new major accounts. It is not just about having a superior product or getting onto to tender lists. From my own experience it’s about getting to know how an organisation works, understanding the decision making process and who the influential figures are. It would be easy to throw a number of sales people out there and having them chase opportunities that will not come to fruition. Historically it has been the face to face contact whereby good professional sales people get to qualify opportunities, which is why I am a bit cautious when they seem to be saying that conducting sales business remotely is effective. Perhaps in that respect it’s because I am an old geezer and not up to date with modern methods of working! At the presentation I attended a year ago, they were asked if they were concerned about the share price They said it was an issue not only because it might make it difficult to raise money in the market if needed, but also because the employees share scheme is affected. In the longer term it is always the market that decides the share price no matter what the company may say. The GHT share price moves up and down on small volumes of share transactions. The trading updates last December and this January were upbeat and in fact I bought more. Pre Covid the share price was recovering steadily and I think would be much further ahead if it were not for Covid. When they first turned cautious concerning Covid was when the share price fell. It is frustrating but it is what it is. Markets get it wrong on both the upside and downside. The hot money in the market is elsewhere at the moment rightly or wrongly. GHT is not seen as a high growth stock but I still think that consistent growth is there. The business model as far as I am concerned is good and they are generating cash.
richjp: I had to curtail a ski trip in Italy last week and was unable to attend GHT’s presentation as I usually do. I am now self isolating. I think the results were excellent and in accordance with the expectation set up by the January TU. There were one or two blips but that is to be expected and the bigger the company gets the less impact they will have. amt, I think you may be placing too much emphasis on the PE ratio. As shown on this website the PE, although based on 2019 earnings, is dynamic and changes with moves in the share price and market cap. As I type this it is down around 41 rather than 50 a couple of weeks ago. There were also a number of exceptionals this year including the £647K write down because of the discontinued venture with Mountview and others which I do not fully understand. That had a significant impact on the bottom line and hence the PE. Many tech companies pour a lot of money into market development and have much higher PEs still. The likes of Uber, Snapchat and Spotify do not make profits at all, yet the market has been quite happy with that, so they will not even have a PE even though they are billion dollar companies. If the PE has significance, I would be more interested if one of the brokers has provided a forward PE for 2020, which should be free of exceptionals because exceptionals cannot be known at this time. An often preferred measure for growing tech companies is the price to sales (PS) ratio. Again as reported on ADVFN it is dynamic and for GHT currently standing at 3.14. The lower the PS ratio the better. Everything I have read says that PS ratios should be compared with companies within their specific industry sectors. The following site gives the average PS ratio for software and programming companies as 5.86 hxxps:// I believe the figure of 5.86 is based on the last four quarter earnings so therefore is not dynamic. As there are no reported figures for any companies for Q1 2020, that average PS ratio is not up to date and will not take into account the recent market falls. If we use the recent high of 150P for the GHT share price to compare like for like (i.e. before the crash) the PS ratio was still only 4, well below the average. The share price crash is purely down to the coronavirus scare. I think the biggest concern for GHT is the travel ban. Although they are expanding their sales teams internationally, I am sure IM and perhaps other senior management get involved with the major deals. A tier one bank I suspect will want to meet the CEO face to face. Having said that, most prospective clients should by now have completed their budgets for the year and know which projects they want to sign up and get started and will hopefully still try and go ahead. If not for the coronavirus problem I think the share price would be progressing beyond the recent high and moving up towards more like 180. If the GHT share price ratio were to increase to the industry average of 5.86, that would give a share price of 215P which two weeks ago I would have thought to be a reasonable target for the end of this year.
gottafly: The recent institutional buying was done at circa 145p. The interesting thing is that once the institutional buying was complete the share price rose 5p on very little private investor volume. I have seen this before with GHT and I find it curious. I would have thought that trying to buy a high volume of stock when the liquidity is somewhat limited (no willing sellers) would tend to push the share price up. Instead it seems to be a drag on the share price which once the major buying is completed the share price rebounds somewhat to give an 'instant' modest profit showing buys at 145p to be good value. I am no market expert but given that any big volume purchase has to come from another major investor then perhaps a deal was struck at 145p (if you want them you have to pay that) and could only be completed once the share price had reached that level in the general market. As I have said in a previous post, I view this major purchase as very positive and that the institutions currently value GHT at circa 145p. There seems to be strong confidence from both the GHT management and the major shareholders - very good news in my view. As always DYOR but I eagerly await the full years results in March which I very much doubt will disappoint.
Gresham Technologies share price data is direct from the London Stock Exchange
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