REG - Gresham Tech - Trading Update and Notice of Results

Gresham TechnologiesAnnouncement

05/07/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220705:nRSE2833Ra&default-theme=true

RNS Number : 2833R  Gresham Technologies PLC  05 July 2022

5 July 2022

 

Gresham Technologies plc

 

Trading Update and Notice of Results

 

Strong first-half performance and confidence in Full Year

 

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 update for the half year
ended 30 June 2022 ("H122").

 

The Board reports that positive trading has continued throughout the first
half of the year with Group revenue and profitability performing strongly.
Subject to finalisation of the half year results, the Company expects to
report the following:

 

Group revenues in the period increased 56% to approximately £23.1m, including
a positive contribution from Electra Information Systems Inc ("Electra") which
became part of the Group on 22 June 2021. Excluding the contribution from
Electra, year-on-year Group organic revenue growth was 19%, representing a
strong improvement on the organic growth rate in the equivalent period last
year of 14%.

 

In line with the Board's strategy to build sticky subscription revenues,
forward looking Clareti Annual Recurring Revenue increased to £25.9m at
period end, representing an organic increase of 17% on the position as at 30
June 2021. The pipeline of opportunities continues to grow and, in the first
six months of the year, the Group partnered with six new customers and
achieved more than twenty upsells and cross-sells with existing customers,
including the significant Tier 1 bank contract announced on 6 May 2022.

 

The non-Clareti business has performed ahead of plan in the first half and has
the potential to maintain outperformance in the second half depending upon the
value of certain material annual renewals expected in late Q3 and early Q4.

 

Group adjusted EBITDA and cash adjusted EBITDA are in-line with Board
expectations reflecting the strong revenue performance, Electra synergies and
the continued strategic investments balanced alongside the on-going navigation
of industry-wide inflationary pressures.

 

The Group retains a strong balance sheet with net cash of £6.4m and no debt
as at 30 June 2022.

 

The Group's record levels of recurring revenue, strong customer retention
rates, continued strong performance of non-Clareti business and high
visibility of the second half pipeline give the Board confidence in achieving
at least market expectations(1) for the full year and of starting 2023 with
strong momentum. The Group expects to be able to provide further positive
updates throughout the second half.

 

Notice of Results

 

The Group expects to announce its interim results for the six months ended 30
June 2022 on 26 July 2022. Further details regarding presentations for
investors and analysts will be announced in due course.

 

Ian Manocha, CEO, commented:

 

"The Group delivered another strong period of growth in the first half of the
year underpinned by a consistent conversion rate of competitive new customer
wins coupled with significant cross- and up- selling success. The
transformational building blocks put in place last year with the acquisition
of Electra, which brought us scale, an enlarged international footprint and
enhanced technology capability, are working together to drive new growth
opportunities and high-quality subscription earnings.

 

"We enter the second half with a robust pipeline of demand and a substantial
opportunity to take further market share in our core financial services
market. Our strengthened service and product offering is helping to accelerate
digital strategies for our customers, giving them confidence in their
operations to radically improve performance and competitiveness. The Group's
positive trading momentum, robust balance sheet and growing recurring revenues
provide the Board with confidence in the remainder of the year and beyond."

 

(1) The Company believes that current market expectations for the year
ending 31 December 2022 are revenues of £42.0m and adjusted EBITDA
of £9.2m, with £46.2m and £10.6m respectively for the year ending 31
December 2023.

 

Enquiries

 

 Gresham Technologies plc                               +44 (0) 207 653 0200
 Ian Manocha / Tom Mullan

 Singer Capital Markets (Financial Adviser and Broker)  +44 (0) 207 496 3000
 Shaun Dobson / Tom Salvesen / Jen Boorer

 Alma PR                                                +44 (0) 203 405 0205
 Josh Royston / Hilary Buchanan / Hannah Campbell

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUPUCWMUPPGBC