Techmarket View9 Jan 2017 10:18
The management of this provider of real-time transaction control and enterprise data integrity solutions continued to make significant progress in November and December – capping what had already been a very successful year.
Firstly, “Gresham Computing” changed its name to Gresham Technologies, after the acquisition of C24 Technologies and to recognise the changing profile of the group. Another win for the company’s Clareti Transaction Control software was announced, adding a contract value of over £1.1m and a fourth insurance client to the company’s list of recent successes.
Potentially however, the biggest news was the signing up of a US Tier 1 bank at the end of December. The 5-year contract, initially with a minimum value of US$1.1m, will enable this major bank to replace out-dated in-house processes, improving data quality and customer service and supporting management controls and regulatory reporting. This is the first significant success for the company’s New York sales operation and opens a significant market opportunity (possibly explaining the sharp recent rise in the share price).
Today’s confident trading update forecasts 2016 revenues up 16%, to £17.2m (compared with a 10% rise in H1). Adjusted EBITDA is forecast up 39% to £3.8m. Revenues from the Clareti solution were up 42%, to represent over 40% of the Group total with Clareti software recurring revenues up 57%. The C24 acquisition is already making a significant contribution. 11 new Clareti customers were signed up during the year. The company has net cash of £7.2m.
2017 looks like being another year of progress and improving financials. The Clareti product is gaining momentum (as seen in the win with the major US bank) and Gresham has broadened and strengthened its routes to market, with international sales capability and the perceptive C24 acquisition. Detailed results will be published in mid-March.
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