GHT.L Regulatory News (GHT)

4 Jan 2008 07:00

Gresham Computing PLC04 January 2008 Gresham Computing plc ("Gresham" or the "Company") 4 January 2008 Trading update Gresham Computing plc provides the following update to progress in respect ofthe year ended 31 December 2007. Financials We expect to report a significantly improved second half to 2007. The EBITDAloss for the second half is expected to be broadly half of that seen in thefirst half. Cash Reporting We have further increased the number of providers and currencies available onthe Clareti Cash Reporting Service at the request of our user banks. We now have29 major banks (an increase of 7 in 12 months) that have agreed to provide datato the service of which data from 20 of them is now available in 19 currencies,with more on the way. There are 9 user banks, some of which have deeply embeddedour solution in their back office environment. We are currently collating dataand building the business case for another 20 banks. When the service was originally launched the primary targets were the banks asthe end users of the data. Our experience indicates that while the pressure forreal-time data grows, especially in a credit crunch, the most significant driverof new revenues for us is the demand for intra-day/real-time cash managementinformation from the banks' corporate customers. This can then be used by thecorporate for intraday decision making and hence drives new revenues for thebank. It also acts as a differentiator in a globally competitive market. As at the 31 December 2007, our solutions were enabling 10 corporate customersof a major UK clearing bank with intraday cash management information. Wecurrently have a pipeline of several hundred new corporate users and will beworking closely with our partners to bring these onboard during 2008 and beyond. Payables Financing The payables financing service went live in the second half of 2007 initially inAustralia. The service is live with the first major corporate buyer and two morebuyers are being integrated onto the service. We have a strong pipeline of bluechip customers and a proven business and technology solution working inconjunction with a major global bank. Treasury Management Our partnership with Wall Street Systems continues to develop. We have madesignificant progress in this area in the latter stages of 2007, albeit that muchof the revenue will impact 2008. We expect this relationship to deliversignificant additional returns in 2008, capitalizing on the strong pipelinegenerated in 2007. Storage Our Virtual Tape Library solution (Clareti VTL) is growing in importance to thegroup and has now been successfully installed at 13 customer sites. The additionof high quality sales resource in the second half of 2007 has generated a stepchange in pipeline opportunity and we now enter 2008 with agreed proof ofconcepts where, if successful, our VTL solution will be deployed widely in FTSE100 sized companies, initially in North America. Outlook We start the year with a very substantial level of contracted revenues for 2008in the above mentioned areas of our business. We also have a strong pipeline ofnew or incremental revenue in each of our core areas of business. We areaggressively pursuing these opportunities which we believe will have significantimpact on our trading performance in 2008 and beyond. - Ends - For further information, please contact: Gresham Computing plc +44 (0)20 7653 0200 Andrew Walton-Green KBC Peel Hunt +44 (0) 20 7418 8900 Oliver Scott Financial Dynamics +44 (0)207 831 3113 James Melville-Ross This information is provided by RNS The company news service from the London Stock Exchange