Last checked at 6 Dec 2018 07:00
6 December 2018
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 real-time data integrity and control solutions, provides the following trading update.
The Group's legacy software businesses are performing as planned, and the Group's Australian sub-contracting business has delivered a stronger performance in the second half as expected. The new Cash Management Solutions business is performing broadly as planned, with an additional new Clareti Multi Bank client win in recent weeks, bringing the total to three since the Company's acquisition of B2 Group in July 2018.
The Company continues to see strong demand in the market for its flagship Clareti Transaction Control offering and, as noted at the time of the interim results and the October Trading Update, the ability to convert the pipeline of new opportunities in the second half of 2018 has been key, and 80% of the planned revenues for the year are now contracted. Gresham has very good visibility of a further 15% of planned revenues, based on a small number of high-value, incumbent vendor replacement software deals where Gresham has achieved preferred vendor status following successful competitive evaluations.
Subject to these software deals being contracted and recognised by 31 December 2018 as anticipated, the Group expects to close the year with continued strong Clareti growth and Group revenues broadly in-line with expectations. However, as a result of certain other high margin significant software licence deals now being delayed into 2019 and on-going investments in product innovation and business development, the Company expects Adjusted EBITDA for 2018 to be materially below current market expectations.
In light of the complex data challenges and increasing regulatory burden faced by institutions operating in Gresham's target markets, the Board remains fully confident in the Group's prospects and its Clareti-led strategy to deliver sustainable and profitable growth over the long-term and will continue to make the appropriate investments in support of this strategy.
Enquiries
Gresham Technologies plc | +44 (0) 207 653 0200 |
Ian Manocha | |
Tom Mullan | |
N+1 Singer (Joint Broker) | +44 (0) 207 496 3000 |
Shaun Dobson | |
Lauren Kettle | |
Cantor Fitzgerald Europe (Joint Broker) | +44 (0) 207 894 7000 |
Marc Milmo | |
Catherine Leftley | |
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 data integrity and control solutions. 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, all of whom are served locally from offices located in Europe, North America and Asia Pacific.
Gresham's award-winning Clareti software platform has been designed to provide financial institutions with complete certainty in their data processing. Clareti is a highly flexible and fully scalable platform for ensuring the integrity of data across an enterprise. It is designed to address today's most challenging financial control, risk management, data governance and regulatory compliance problems.