Gresham Technologies PLC Trading Update (7554Y)
January 06 2020 - 2:00AM
UK Regulatory
TIDMGHT
RNS Number : 7554Y
Gresham Technologies PLC
06 January 2020
RNS
6 January 2020
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
2019 ("FY2019").
The Group expects to report:
-- Group revenues for the year up 30% to GBP25.0 million
-- Total Clareti revenues up 30% to GBP15.3 million
-- Clareti software revenues up 39% to GBP11.0 million
-- Other (non-Clareti) revenues performed strongly up 29% to GBP9.7 million
-- Group Adjusted EBITDA* up 344% to GBP4.0 million
-- The Group closed the year with cash at GBP9.6 million and remains debt free
*Earnings Before Interest, Taxation, Depreciation and
Amortisation adjusted to add back share-based payment charges and
exceptional items and including continuing operations only. FY2018
has been adjusted for IFRS 16 which was adopted from 1 January
2019, this resulted in an increase to previously reported FY18
Group adjusted EBITDA of GBP0.4m.
The Group's move to subscription licensing within the Clareti
business progressed particularly well during the year with
forward-looking Clareti Annualised Recurring Revenue (ARR) expected
to be up 30% to GBP9.6m compared with GBP7.4m at the end of FY2018.
These additional, high quality, recurring software revenues provide
the Group with significantly increased predictability and
visibility for future performance.
As noted in the Company's update on 23 December 2019, the Group
saw strong trading in the second half with six new Clareti licences
sold, including a strategic contract win in the United States for
one of the world's largest alternative investment management firms
to replace its legacy vendor transaction lifecycle management
solution with Clareti Transaction Control (CTC).
Additionally, during December 2019, contractual terms were
finalised with a Tier 1 global bank for an enterprise scale
deployment of CTC. This contract is likely to be executed in early
2020 and is expected to underpin the existing plans and
expectations for Clareti software revenues in the financial
year.
The Group remains confident in the opportunity for its Clareti
technology across all the target markets of data integrity and
control, regulatory data quality, and banking integration and cash
management.
The Group anticipates that the audited results for FY2019 will
be announced on 10 March 2020.
Ian Manocha, CEO, commented:
"The Group made significant progress in 2019 with three major
legacy reconciliation vendor replacement agreements and multiple
new Clareti client wins across our target markets. It is pleasing
to see a much stronger underlying recurring revenue base and good
momentum in the business as we head into the forthcoming year.
We will continue to invest in technology innovation and in
building routes to market and we are confident in our plan to
secure market leadership in the provision of data integrity
solutions to the global financial services community."
Enquiries
+44 (0) 207 653
Gresham Technologies plc 0200
Ian Manocha
Tom Mullan
+44 (0) 207 496
N+1 Singer (Financial Adviser and Broker) 3000
Shaun Dobson / Lauren Kettle (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
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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