Interim Management Statement

RNS Number : 0852Q

Gresham Computing PLC

13 October 2011

 



Gresham Computing plc
("Gresham" or "the Company")
Interim Management Statement
Period 1 July 2011 to 12 October 2011

Gresham Computing plc, the specialist provider of software based solutions that enable customers to achieve real-time financial certainty in transaction and cash management, reports its Interim Management Statement for the period 1 July 2011 to 12 October 2011.

Highlights for Q3 2011

·      Revenues up 40% in the quarter to £3.1m (Q3 2010: £2.2m), with Real-Time Financial Solutions up 90%;

·      Adjusted EBITDA profit £0.5m in the quarter (Q3 2010: £0.1m);

·      Profit before tax £0.3m in the quarter (Q3 2010: £0.1m);

·      Cash at 30 September 2011 of £2.7m (30 September 2010: £1.4m);

·      Significant new contract win announced in July 2011;

·      New product launched in September 2011;

·      Confirmed order book and pipeline remains strong; and

·      Management are confident about outlook.

Comments on trading and outlook

Revenue for the first nine months of 2011 was up 32% on the prior period, to £8.5m.  Within this we continued to grow the mix of revenues in our core focus area of Real-Time Financial Solutions, which now represent 73% of our total revenues, up from 59% in 2010.  Revenue growth has been driven predominantly from professional services work associated with the deployment of our cash and transaction solutions at major banks, which in turn grows our annuity revenue base.

Adjusted EBITDA for first nine months of 2011 was £1.3m (2011: £0.3m) and profit before tax was £0.9m (2011: £0.1m).

In July 2011, we announced a new contract worth approximately £3m over five years with a major bank to provide cash and transaction solutions.  The project is proceeding to plan and the bank has now on boarded the initial customers to the first phase of deployment.  We expect further progress during the remainder of the year as we deploy further phases of the overall solution.

In September 2011, we launched our new product Clareti Transaction Control at Sibos the global banking conference in Toronto. 

Our financial position, confirmed order book and pipeline remain strong and we are confident about our outlook for 2011 and beyond.

Chris Errington, CEO of Gresham, commented:

"I am pleased with our performance so far in 2011 and in particular the growth delivered in our core focus area of Real-Time Financial Solutions."

- Ends -

For further information please contact:

Gresham Computing plc Chris Errington, CEO Rob Grubb, CFO	[phone]
Singer Capital Markets Ltd Shaun Dobson, Partner and Joint Head of Corporate Finance James Maxwell, Director of Corporate Finance	[phone]

 

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