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(Alliance News) - Gresham Technologies PLC on Friday said it would discontinue its legacy IT contracting business.
Shares in Gresham fell 14% to 118.00 pence each in London on Friday morning.
The London-based software and services provider focused on data integrity and control, banking integration, payments and cash management said it has agreed with its largest customers, Australia and New Zealand Banking Group Ltd, to "completely exit" the lower margin legacy subcontracting business under which it provides locally based freelance IT contractors to ANZ.
Gresham will discontinue the business from January 2024, but expect to lose GBP8.5 million in revenue as a result of the deal.
It added that by discontinuing the IT contracting business, it would "further accelerate" its plan to become a pure-play subscription software company, as well focus on creating "long-term value" through its high margin Clareti platform.
Chief Executive Officer Ian Manocha commented: "We are pleased to have supported ANZ for more than a decade to meet their need for skilled IT resources and will now focus on Clareti solutions where ANZ continues to be an important partner.
On Friday, the company also reported that it expects its full-year revenue to fall in line with market forecasts. It already had 98% of expected revenue recognised or under contract at the end of October.
Gresham declared an interim dividend for the three months to September 30 of 1.8375 pence.
Looking ahead, Gresham said it would be making "no other material changes" to its guidance for 2024 revenue.
By Sabrina Penty, Alliance News reporter
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