Last checked at 23 Dec 2019 07:00
23 December 2019
Gresham Technologies plc
Clareti Contract Win and Trading Update
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 on trading in the second half of 2019, together with an updated outlook for FY2019 and FY2020.
On 20 December 2019, one of the world's largest alternative investment management firms signed a contract with the Group for an enterprise deployment of CTC with total expected licence value of $1m over three years. The firm, which has a global multi-strategy investment approach with a presence in the United States, Europe and Asia, selected CTC to replace their ageing legacy vendor transaction lifecycle management software. The adoption of CTC will help to drive operational efficiencies, strengthen risk and financial management and provide a more agile capability for the future.
This new contract, combined with strong trading in the second half, now means that the Group has full contracted visibility of 2019 forecast revenues. As a consequence, the Board now expects that Group Adjusted EBITDA will be materially higher than current consensus forecasts. Cash performance is expected to be ahead of expectations.
Overall, the Company continues to see positive demand for its data integrity and control solutions with six new Clareti licences sold since 30 June 2019, including the contract win referred to above. Pleasingly, the Group's move to subscription licensing within the Clareti business has progressed better than expected with forward-looking Clareti annualised recurring revenues expected to be approximately £9.6m at the end of the year, compared with £7.4m at the end of FY2018. The Group's non-Clareti portfolio is performing ahead of expectations providing increased contractual coverage of Group revenues and, as a consequence, the Group's expectations for FY2020 have increased.
In addition to the new contract referred to above, other new Clareti licence wins since 30 June 2019 include a strategically important new regulatory control project with an existing global investment bank client, a second project with one of the world's largest energy companies, a new digital banking initiative with a global consumer bank, a financial control project in the gaming industry, and a new customer in settlement and clearing services. The Group continues to invest to attack the legacy reconciliation vendors in the cash and securities market: implementations at the two Tier 1 bank projects signed in the first quarter are progressing well and the ambitious programme of product enhancements for cash and securities is on track.
Commenting on the progress in the year to date, Ian Manocha, Chief Executive Officer said:
"This contract win is another powerful customer endorsement of our Clareti technology and highlights the potential for our data integrity and control solutions to displace legacy vendors and establish a leadership position in capital markets.
As we close out a strong FY2019, we are preparing ourselves for FY2020 and will continue to invest in sales, marketing and customer success to capitalise on the opportunity ahead."
Enquiries
Gresham Technologies plc | +44 (0) 207 653 0200 |
Ian Manocha |
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Tom Mullan |
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N+1 Singer (Financial Adviser and Broker) | +44 (0) 207 496 3000 |
Shaun Dobson / Lauren Kettle (Corporate Finance) |
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Tom Salvesen (Corporate Broking) |
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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 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.