TIDMGHT
RNS Number : 1640M
Gresham Technologies PLC
10 January 2023
RNS
10 January 2023
Gresham Technologies plc
FY22 Trading Update
Another strong year of growth and enhanced profitability
Gresham Technologies plc (LSE: "GHT", "Gresham", "Group",
"Company"), 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 a trading update for the financial year ended 31 December
2022 ("FY22").
Following a strong Q4 performance, the Group expects to
report:
-- Group revenues up 31% to GBP48.6 million (1)
-- Clareti revenues up 39% to GBP35.5 million (1)
-- Group Adjusted EBITDA (2) up 43% to GBP10.3 million and
Group cash EBITDA (3) up 76% to GBP4.3 million
-- Forward-looking Clareti Annualised Recurring Revenue ("ARR")
as at 31 December 2022 up 17% to GBP28.0 million
-- Cash and cash equivalents at 31 December 2022 of GBP6.3
million with no debt (FY21: GBP9.1 million)
The Clareti business (including Electra, acquired in June 2021)
and the other (non-Clareti) businesses, have performed strongly
throughout the period with total Group revenues increasing 31% to
GBP48.6 million (FY21: GBP36.8 million). Excluding the contribution
from Electra, which accounts for the majority of currency benefit
in the year, the year-on-year Group revenue growth rate is 16%.
Forward-looking Clareti ARR, as at 31 December 2022, was GBP28.0
million, a 17% increase on the previous year (FY21: GBP24.0
million). This has been driven by new sales, ARR net retention
levels in excess of 100% and the strengthening of customer
contracting currencies against the GBP.
The Group finished the year with net cash and cash equivalents
of GBP6.3 million and no debt. This is despite significant cash
outflows of GBP4.6 million for deferred consideration in relation
to the acquisitions of Electra and Inforalgo, and one-off free cash
outflows in excess of GBP2 million.
The Group expects that the audited results for FY22 will be
announced on Tuesday, 14 March 2023.
Ian Manocha, CEO, commented:
"We are pleased to report another very strong year for Gresham,
both financially and strategically, with revenues and earnings
closing slightly ahead of recently upgraded market expectations (4)
.
There was a consistent performance across all product lines and
sales regions. Supplementing strong key account growth, we signed
twelve new name Clareti clients including several of the world's
largest financial institutions.
We now have very good visibility across both Clareti and
non-Clareti with over GBP42 million of 2023 Group revenues already
under contract. This, alongside other growth initiatives, continues
to provide us with good confidence in delivering further profitable
growth in the coming years."
(1) Including a full year contribution from Electra acquired in
June 2021.
(2) Earnings Before Interest, Taxation, Depreciation and
Amortisation adjusted to add back share-based payment charges and
exceptional items and including continuing operations only.
(3) Group Adjusted EBITDA less capitalised development spend and
any IFRS 16 lease related cash payments.
(4) The Company believes that current market expectations for
the year ending 31 December 2022 (as upgraded on 13 December 2022)
are revenues of GBP48.5m and adjusted EBITDA of GBP10.1m, with
GBP50.2m and GBP10.9m respectively for the year ending 31 December
2023.
Enquiries
+44 (0) 207 653
Gresham Technologies plc 0200
Ian Manocha
Tom Mullan
Singer Capital Markets (Financial Adviser and +44 (0) 207 496
Broker) 3000
Shaun Dobson / Tom Salvesen / Jen Boorer
+44 (0) 203 405
Alma PR 0205
Josh Royston / Hilary Buchanan / Matthew Young
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.
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END
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