Last checked at 20 Apr 2020 07:00
RNS
20 April 2020
Gresham Technologies plc
Trading Update - COVID-19 Impact
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 light of the COVID-19 global crisis.
The Company successfully moved all its global staff to 100% home working during the week of 9 March and is operating at full capacity with negligible disruption experienced. Following a successful FY2019, the Company benefits from record levels of recurring revenue and a strong book of contracted services engagements, the majority of which can be delivered remotely. Revenues from business already won and renewals that have been contractually committed or confidently expected, together provide a high level of visibility for the current year, equivalent to 84 percent of planned FY2020 Group revenues. In recent weeks, management has reviewed its planned investments for FY2020 and taken appropriate actions to preserve cash and earnings and protect liquidity in a way that does not compromise the excellent long-term growth prospects of the business. As a result of these actions, management is confident in its ability to achieve FY2020 guidance for Group Adjusted EBITDA and Cash EBITDA based solely on these highly visible revenues.
The potential impact of COVID-19 on the Group's ability to generate new revenues to the levels planned for FY2020 remains unclear at this stage, although new business activity has unsurprisingly slowed over the last two months. Nevertheless, the Company remains confident in the underlying demand for its intelligent automation offerings which help firms to remove manual processes, improve operating efficiencies and reduce cost. The Company expects to maintain current levels of investment in innovation and distribution for the foreseeable future in order to capitalise on the opportunity in the medium term.
The Company continues to operate with no debt, and as at 31 March 2020, has cash at hand of £6.8m, prior to collecting in excess of £3.3m of regular quarterly customer invoicing. Notwithstanding the high level of revenue visibility for the current year and the Group's current cash position, the Board does not believe it would be appropriate to provide further forward-looking financial guidance in light of the uncertainty surrounding the impact of COVID-19. A further update on trading will be provided at the AGM on 14 May 2020.
Enquiries
Gresham Technologies plc | +44 (0) 207 653 0200 |
Ian Manocha | |
Tom Mullan | |
N+1 Singer (Financial Adviser and Broker) | +44 (0) 207 496 3000 |
Shaun Dobson / Iqra Amin (Corporate Finance) | |
Tom Salvesen (Corporate Broking) | |
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.