Gresham Share Price (GHT)

Nice volumes after a reasonable TU.

Ian Manocha, CEO, Richard Last, Chair, Tom Mullan, CFO, Neil Vernon, CTO, Geneva Loader, CMO and Alan Huse, Head of Transaction Banking Product Management, ANZ present an investor briefing, focused on the launch of Floe, the Group’s next-generation smart bank account platform, followed by Q&A.

Watch the video here: https://www.piworld.co.uk/company-videos/gresham-technologies-ght-investor-briefing-introduction-to-floe-october-2023/

Or listen to the podcast here: https://piworld.podbean.com/e/gresham-technologies-ght-investor-briefing-introduction-to-floe-october-2023/

I do think the market has already priced in what was published this morning.

The outlook has a lot of green shoots !

Gresham Technologies (GHT.L, mkt cap: £119m, corporate): Interims - Enviable contracted visibility. H1 organic revenue growth of 5% y/y (cc.), driven by continued positive momentum in Clareti revenues (+11% y/y). 5 new Clareti contract wins alongside 16 upgrades, have all contributed to strong top-line growth, with performance also underpinned by a NRR of 103% (+1pp h/h). Cash adj EBITDA was £1.7m (H1’22: £1.8m), with net cash of £3.8m (H1’22: £6.3m). The key highlight is contracted forward-looking revenue visibility of 95%/FY’23e (at Jun’23), leaving an undemanding c£2m revenue to find in H2. Even given macro turbulence and rapid base rate rises which drove major disruption in HTM bond book values and subsequently across global financial services institutions (GHT’s core market), GHT’s market-leading proposition continues to capture healthy demand and “a strong pipeline of opportunities”. Rapid and accurate reconciliation software becomes even more critical in our view, with cadence of deals having potential to accelerate in H2 onwards (not in forecasts). Looking forward, we model cash EBITDA margins of 15% by FY’25e (FY’22: 9%) driven by GHT guidance for 40%/new ARR dropping through. Couple this with projected 14% sales CAGR to FY’25e and FCF yield moves sharply higher to 5%/7% by FY’24e/FY’25e. That’s compelling.

Don't see much of a growth in today's report, they managed to break even - which is positive of course, but valuation is x3 of what their net profit suggests (especially considering what one-third of it is because of taxation offset).
That's rather a strong sell despite positive results.

https://www.proactiveinvestors.co.uk/companies/news/976819/gresham-technologies-modern-technology-seasoned-experts-and-scalable-solutions-976819.html