Gresham Computing PLC
04 January 2008
Gresham Computing plc ('Gresham' or the 'Company')
4 January 2008
Gresham Computing plc provides the following update to progress in respect of
the year ended 31 December 2007.
We expect to report a significantly improved second half to 2007. The EBITDA
loss for the second half is expected to be broadly half of that seen in the
We have further increased the number of providers and currencies available on
the Clareti Cash Reporting Service at the request of our user banks. We now have
29 major banks (an increase of 7 in 12 months) that have agreed to provide data
to the service of which data from 20 of them is now available in 19 currencies,
with more on the way. There are 9 user banks, some of which have deeply embedded
our solution in their back office environment. We are currently collating data
and building the business case for another 20 banks.
When the service was originally launched the primary targets were the banks as
the end users of the data. Our experience indicates that while the pressure for
real-time data grows, especially in a credit crunch, the most significant driver
of new revenues for us is the demand for intra-day/real-time cash management
information from the banks' corporate customers. This can then be used by the
corporate for intraday decision making and hence drives new revenues for the
bank. It also acts as a differentiator in a globally competitive market.
As at the 31 December 2007, our solutions were enabling 10 corporate customers
of a major UK clearing bank with intraday cash management information. We
currently have a pipeline of several hundred new corporate users and will be
working closely with our partners to bring these onboard during 2008 and beyond.
The payables financing service went live in the second half of 2007 initially in
Australia. The service is live with the first major corporate buyer and two more
buyers are being integrated onto the service. We have a strong pipeline of blue
chip customers and a proven business and technology solution working in
conjunction with a major global bank.
Our partnership with Wall Street Systems continues to develop. We have made
significant progress in this area in the latter stages of 2007, albeit that much
of the revenue will impact 2008. We expect this relationship to deliver
significant additional returns in 2008, capitalizing on the strong pipeline
generated in 2007.
Our Virtual Tape Library solution (Clareti VTL) is growing in importance to the
group and has now been successfully installed at 13 customer sites. The addition
of high quality sales resource in the second half of 2007 has generated a step
change in pipeline opportunity and we now enter 2008 with agreed proof of
concepts where, if successful, our VTL solution will be deployed widely in FTSE
100 sized companies, initially in North America.
We start the year with a very substantial level of contracted revenues for 2008
in the above mentioned areas of our business. We also have a strong pipeline of
new or incremental revenue in each of our core areas of business. We are
aggressively pursuing these opportunities which we believe will have significant
impact on our trading performance in 2008 and beyond.
- Ends -
For further information, please contact:
Gresham Computing plc +44 (0)20 7653 0200
KBC Peel Hunt +44 (0) 20 7418 8900
Financial Dynamics +44 (0)207 831 3113
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