REG - Gresham Technologies - Trading Update

Gresham TechnologiesAnnouncement

10/01/2023 07:00

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RNS Number : 1640M  Gresham Technologies PLC  10 January 2023

RNS

10 January 2023

Gresham Technologies plc

FY22 Trading Update

Another strong year of growth and enhanced profitability

Gresham Technologies plc (LSE: "GHT", "Gresham", "Group", "Company"), 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 a trading update for the financial year
ended 31 December 2022 ("FY22").

 

Following a strong Q4 performance, the Group expects to report:

 

 ·               Group revenues up 31% to £48.6 million(1)
 ·               Clareti revenues up 39% to £35.5 million(1)
 ·               Group Adjusted EBITDA(2) up 43% to £10.3 million and Group cash EBITDA(3) up
                 76% to £4.3 million
 ·               Forward-looking Clareti Annualised Recurring Revenue ("ARR") as at 31 December
                 2022 up 17% to £28.0 million
 ·               Cash and cash equivalents at 31 December 2022 of £6.3 million with no debt
                 (FY21: £9.1 million)

The Clareti business (including Electra, acquired in June 2021) and the other
(non-Clareti) businesses, have performed strongly throughout the period with
total Group revenues increasing 31% to £48.6 million (FY21: £36.8 million).
Excluding the contribution from Electra, which accounts for the majority of
currency benefit in the year, the year-on-year Group revenue growth rate is
16%.

 

Forward-looking Clareti ARR, as at 31 December 2022, was £28.0 million, a 17%
increase on the previous year (FY21: £24.0 million). This has been driven by
new sales, ARR net retention levels in excess of 100% and the strengthening of
customer contracting currencies against the GBP.

 

The Group finished the year with net cash and cash equivalents of £6.3
million and no debt. This is despite significant cash outflows of £4.6
million for deferred consideration in relation to the acquisitions of Electra
and Inforalgo, and one-off free cash outflows in excess of £2 million.

 

The Group expects that the audited results for FY22 will be announced on
Tuesday, 14 March 2023.

 

Ian Manocha, CEO, commented:

 

"We are pleased to report another very strong year for Gresham, both
financially and strategically, with revenues and earnings closing slightly
ahead of recently upgraded market expectations(4).

 

There was a consistent performance across all product lines and sales regions.
Supplementing strong key account growth, we signed twelve new name Clareti
clients including several of the world's largest financial institutions.

 

We now have very good visibility across both Clareti and non-Clareti with over
£42 million of 2023 Group revenues already under contract. This, alongside
other growth initiatives, continues to provide us with good confidence in
delivering further profitable growth in the coming years."

 

(1) Including a full year contribution from Electra acquired in June 2021.

(2) Earnings Before Interest, Taxation, Depreciation and Amortisation adjusted
to add back share-based payment charges and exceptional items and including
continuing operations only.

(3) Group Adjusted EBITDA less capitalised development spend and any IFRS 16
lease related cash payments.

(4) The Company believes that current market expectations for the year
ending 31 December 2022 (as upgraded on 13 December 2022) are revenues
of £48.5m and adjusted EBITDA of £10.1m,
with £50.2m and £10.9m 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 / Matthew Young

 

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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