GHT.L Regulatory News (GHT)

RNS

6 January 2021

Gresham Technologies plc

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 trading update for the year ended 31 December 2020 ("FY2020").

The Group expects to report:

· Forward-looking Clareti Annualised Recurring Revenue (ARR) as at 31 December 2020 up 29% to £12.3 million

· Group revenues down 2% to £24.6 million

· Total Clareti revenues flat at £15.5 million; of which Clareti recurring software revenues up 11% to £11.5 million

· Other (non-Clareti) revenues down 3% to £9.2 million (in line with the strategy)

· Group Adjusted EBITDA* of at least £4.4 million, (a 7% increase on the prior year) and cash EBITDA** flat

· Overall trading for the year in line with recently upgraded market expectations

Forward-looking Clareti Annualised Recurring Revenue (ARR) as at 31 December 2020 is £12.3 million, which is a 29% increase on the prior year. During the year the Group completed its transition to subscription licensing, with all new Clareti software business being contracted on recurring terms. These high-quality revenues provide the Group with significantly increased predictability and visibility for future performance.

Organic Clareti ARR as at 31 December 2020 demonstrates an increase of 17%, a strong performance given the impact of the Covid19 pandemic during the year. The Inforalgo business acquired in July 2020 contributed £0.6 million of Clareti revenue to the year and £1.2 million of Clareti ARR going into FY2021, which is in line with expectations. The acquisition is now fully integrated into the Group.

The Group closed the year with cash at £8.8 million, after an outflow of £2.3 million for the initial consideration related to the acquisition of Inforalgo, and remains debt free (other than IFRS 16 lease liabilities).

The Group's sales pipeline strengthened steadily during H2 2020 and the Company continues to see positive demand for its intelligent automation and connectivity solutions in financial markets despite challenging macro-economic factors.

The Group expects that the audited results for FY2020 will be announced on Tuesday 9 March 2021.

Ian Manocha, CEO, commented:

"By any measure 2020 was an extraordinary year. In challenging circumstances, the Gresham team performed admirably winning new key accounts, supporting our customers and partners, growing our forward-looking ARR by almost 30% and closing the year ahead of market expectations

In the second half of the year, we increased investment in sales and marketing, as well as completing our strategic investment into the regulatory and STP markets with our acquisition of Inforalgo. These excellent foundations have set us up well for another exciting year ahead."

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

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

Enquiries

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.