Trading Update

RNS Number : 2608D

Gresham Technologies PLC

27 October 2020

 

RNS

27 October 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.

The Company expects to close the year ending 31 December 2020 ("FY20") in-line with current market forecasts for Group Revenues and Adjusted EBITDA and benefits from record levels of contracted revenue. The Company has now completed the transition of the Clareti business to a recurring subscription model commenced two years ago. Clareti Software ARR has grown to £11.9m and additional growth is expected from contracts planned to be signed in the remainder of FY20.

The Group's strategic relationship with ANZ continues to develop positively. Revenues from signed contracts with ANZ are expected to exceed £11.0m in the year ended 31 December 2021 ("FY21"), which is approximately 20% more than the previous 12 months. As a result of steadily increasing investment in the Clareti Cash Management project, 37% of all contracted revenues with the bank are now Clareti related.

In accordance with our strategy to improve revenue visibility, the Group now has £22.5m of contracted revenue for FY21, of which £14.9m is Clareti and £7.6m is non-Clareti. This position will be further enhanced by any new contracts signed in the remainder of FY20.

The Inforalgo business acquired on 28 July 2020 is performing well and the Company is seeing immediate cross-sell potential and good pipeline growth. Business integration is expected to be materially complete by the end of the year including re-branding.

The Group's cash position remains strong at £5.4m as at 23 October 2020. This is in-line with expectations taking into account the payment in July of the £2.3m initial consideration for the acquisition of Inforalgo, and management remains confident in the Group's cash position given the seasonally strong period of cash collection expected during the remainder of the year. The Group continues to invest in sales and marketing and expects the Clareti business to continue to grow strongly in FY21 translating into further improvements in Group EBITDA and cash EBITDA.

Ian Manocha, Chief Executive Officer, said:

"The Gresham team has performed incredibly well during a thoroughly extraordinary year. We are on track to close FY2020 in-line with our original pre-COVID earnings plan and, in accordance with our strategy, the Group now benefits from record levels of recurring revenues. We expect to further strengthen forward-looking Clareti ARR in the remaining weeks of the year and are encouraged by a growing pipeline for 2021."

Enquiries

Gresham Technologies plc	[phone]
Ian Manocha
Tom Mullan
N+1 Singer (Financial Adviser and Broker)	[phone]
Shaun Dobson / Jen Boorer / Iqra Amin (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 the UK, 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.

 

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