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Gresham Computing (GHT)

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Monday 03 September, 2007

Gresham Computing

Trading Update

Gresham Computing PLC
03 September 2007



3 September 2007



               Gresham Computing plc ('Gresham' or the 'Company')

       Operating and trading update and significant contract announcement



Gresham Computing plc provides the following operating and trading update
together with news of a significant new contract for the group.



Financials - accelerating our product to market

In the first half of 2007 we continued the step change in our sales and
marketing investment to enable us to take our core products and solutions to
market faster.  We have more than doubled our sales and marketing team in the 12
months to 30 June 2007 to over 30 people.  We expect to report revenues for the
six months ended 30 June 2007 of approximately £6.4m and a loss before tax of
approximately £1.5m. Cash at the half year was £1.1m.  Interim financial
statements for the six months ended 30 June 2007 are expected to be released
shortly.



Given the strength of our existing pipeline we believe that we will begin to
reap the rewards of our investment programme during the second half of 2007.  As
a result, we believe that trading for the full year to December 2007 will be in
line with management's expectations.



We are pleased to report the following progress on a number of key initiatives.



Clareti Cash Reporting Service ('CCRS') - momentum for SIBOS

We assumed primary responsibility for this service from Cable & Wireless in the
second quarter of 2006. In the 12 months to 30 June 2007 the value of
transactions has grown over 90% to in excess of US $500 billion per day on
average, reflecting both the growth in the number of users and their increasing
data demands.



As a result of the increasing data demands from service users, we have added two
new data providers since April 2007, raising the total number of providers to
twenty four, of which: sixteen banks are now integrated to the hub and one bank
is undergoing final acceptance testing.  We now provide coverage of the
following thirteen currencies: AUD, CAD, EUR, GBP, HUF, JPY, NZD, PLN, SEK, THB,
TRY, USD and ZAR.



Requests for data from both potential and actual users is driving the addition
of new providers onto the service.  We are currently working with four new banks
that have been asked to provide data to the service at the request of trial
users of the service, which if successful would add a further four currencies to
the service, being: CHF, DKK, FIH and NOK.



We have agreements for five 'Browser bank users' and five 'Direct bank users'.
As noted above, we are working to satisfy the requirements of prospective and
existing users and anticipate that much of this work will be evident in time for
SIBOS, the international banking conference, which this year takes place in
October in Boston, USA.



In the banking sector, we note that the Bank of International Settlements issued
a consultative report in July 2007 entitled 'Progress in reducing foreign
exchange settlement risk'. The report highlights the need for the wider banking
community to now more rapidly adopt solutions and controls to mitigate large,
and often unknown, financial risks associated with cash movements. Our CCRS
solution is currently being used by a number of the largest banks in the world
to assist them in managing the exposures identified in this report.



Clareti Payables Financing ('CPF') - significant contract

CPF is our patent pending supply chain financing technology. The technology has
been designed and built over the last 3 years, designed out of our expertise
gained through CCRS. We believe it is world class both in terms of innovation
and performance.



We are very pleased to announce that we have agreed contracts with a major Asia
Pacific telecommunications company to provide our technology solution to market.
  We expect this deal to build in the short term to then deliver a material
impact on our future earnings over the next few years.



The service has been launched in Australia with a first 'FTSE sized' customer
that is now in the final stage of integration.  Working alongside our partners,
our expectation is that this service will be rolled out to a number of other
similar-sized businesses in Australia over the next few years.



The supply chain financing service will be provided by the telecommunications
company, who in turn will be working closely with a major global bank. Our
consortium approach brings together Gresham's technology and expertise, the
global bank's wide reaching competencies in the financial market place and an
established telecommunications company with existing e-procurement capabilities.
  Gresham derives revenue on a transaction basis, following the methodology of '
software as a service'.  We are pleased to be working with such highly respected
partners each seeking a mutually beneficial result.



We believe that this solution is perfectly placed to capitalise on solving the
opposing needs of buyers and suppliers; namely buyers wanting to hold on to
their cash for as long as possible and suppliers who want payment as fast as
possible. By leveraging the buyer's credit rating and working with a global bank
and supply chain experts, we are able to assist in unlocking working capital and
providing greater transparency of the physical and financial supply chain.
Providing access to real time payment information is an effective solution and
working alongside a service provider and a bank we can provide a full service
solution.



Clareti VTL - growing the sales pipeline

VTL stands for Virtual Tape Library. Clareti VTL is a data storage solution that
addresses the market need to more efficiently manage both virtual and physical
media (disk and tape), as well as to store and retrieve data in very large and
complex data storage environments. While the data storage requirements of many
companies and governmental organisations continue to grow exponentially across
the globe, the need to reduce energy consumption and cost per byte of data
stored also increases.



Clareti VTL Version 2 was released to the market for the second half of 2007.
Since release, we have seen significant progress with this solution and expect
to see further progress in the back half of 2007.

                                    - Ends -

For further information, please contact:


Gresham Computing plc                                        +44 (0)20 7653 0200
Andrew Walton-Green
Financial Dynamics                                           +44 (0)207 831 3113
James Melville-Ross




                      This information is provided by RNS
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