Trading Update

RNS Number : 5079T

Gresham Technologies PLC

04 July 2018

 

RNS

4 July 2018

Gresham Technologies plc

Trading update

Gresham 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, provides the following trading update for the half year to 30 June 2018.

During the first half of 2018, the Group won six new Clareti contracts, including a first project in one of the world's largest global investment banks. In addition, six existing Clareti customers increased their subscriptions to support their increased usage of the software.

Gresham expects to report that, for the six months ended 30 June 2018:

·      Group revenues will be down by 5% compared to the same period in 2017.

·      Clareti revenues will be up by 12%, of which:

o    Clareti recurring revenues will be up by 17%.

o    Clareti software revenues will be similar to the same period in the prior year due to certain new contracts being delayed until the second half of 2018.

o    Clareti services revenues increased by 56%.

·      Other non-Clareti revenues are expected to be down by 21% due to lower than expected bookings from the Group's Australian sub-contracting business in the first six months of the year, which is expected to be offset by higher bookings in the second half.

·      While it will be impacted at the half year by the Clareti contract delays referred to above, adjusted EBITDA at the full year is expected to be broadly in-line with expectations.

·      The Group's planned investment in sales, marketing and alliances have proceeded well in the first six months of the year and a number of material deals are at an advanced stage.

·      Management remains confident in the full year outlook.

Net cash at 30 June 2018 was £6.8m (30 June 2017: £7.7m). Deferred consideration totalling £1.2m for the acquisition of C24 Technologies Limited was paid in October 2017 and April 2018. A dividend of £0.3m was paid in May 2018. Initial consideration due in respect of the Group's acquisition of B2 Group S.a.R.L, details of which will be announced shortly, includes a cash element payable in July 2018 of £2.9m.

Gresham expects to announce its interim results for the six months to 30 June 2018 on 24 July 2018.

Ian Manocha, Gresham CEO, commented:

"We won six new Clareti contracts in the first half of 2018 and have just completed the acquisition of the B2 Group bringing a further 15 customers into the Group. Our recent investments in direct sales, marketing and alliances have contributed to a strengthening Clareti pipeline and we are expecting a strong second half of the year."

Enquiries

Gresham Technologies plc	[phone]
Ian Manocha
Tom Mullan
N+1 Singer (Joint Broker)	[phone]
Shaun Dobson
Lauren Kettle
Cantor Fitzgerald Europe (Joint Broker)	[phone]
Marc Milmo
Catherine Leftley

Note to editors

Gresham Technologies plc is a leading software and services company that specialises in providing real-time data integrity and control solutions. 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, all of whom are served locally from offices located in Europe, North America and Asia Pacific.

Gresham's award-winning Clareti software platform has been designed to provide financial institutions with complete certainty in their data processing. Clareti is a highly flexible and fully scalable platform for ensuring the integrity of data across an enterprise. It is designed to address today's most challenging financial control, risk management, data governance and regulatory compliance problems.

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.

 

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