Gresham Technologies PLC Trading Update and Notice of Results (2833R)
July 05 2022 - 2:00AM
UK Regulatory
TIDMGHT
RNS Number : 2833R
Gresham Technologies PLC
05 July 2022
5 July 2022
Gresham Technologies plc
Trading Update and Notice of Results
Strong first-half performance and confidence in Full Year
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 for the half year ended 30 June 2022
("H122").
The Board reports that positive trading has continued throughout
the first half of the year with Group revenue and profitability
performing strongly. Subject to finalisation of the half year
results, the Company expects to report the following:
Group revenues in the period increased 56% to approximately
GBP23.1m, including a positive contribution from Electra
Information Systems Inc ("Electra") which became part of the Group
on 22 June 2021. Excluding the contribution from Electra,
year-on-year Group organic revenue growth was 19%, representing a
strong improvement on the organic growth rate in the equivalent
period last year of 14%.
In line with the Board's strategy to build sticky subscription
revenues, forward looking Clareti Annual Recurring Revenue
increased to GBP25.9m at period end, representing an organic
increase of 17% on the position as at 30 June 2021. The pipeline of
opportunities continues to grow and, in the first six months of the
year, the Group partnered with six new customers and achieved more
than twenty upsells and cross-sells with existing customers,
including the significant Tier 1 bank contract announced on 6 May
2022.
The non-Clareti business has performed ahead of plan in the
first half and has the potential to maintain outperformance in the
second half depending upon the value of certain material annual
renewals expected in late Q3 and early Q4.
Group adjusted EBITDA and cash adjusted EBITDA are in-line with
Board expectations reflecting the strong revenue performance,
Electra synergies and the continued strategic investments balanced
alongside the on-going navigation of industry-wide inflationary
pressures.
The Group retains a strong balance sheet with net cash of
GBP6.4m and no debt as at 30 June 2022.
The Group's record levels of recurring revenue, strong customer
retention rates, continued strong performance of non-Clareti
business and high visibility of the second half pipeline give the
Board confidence in achieving at least market expectations(1) for
the full year and of starting 2023 with strong momentum. The Group
expects to be able to provide further positive updates throughout
the second half.
Notice of Results
The Group expects to announce its interim results for the six
months ended 30 June 2022 on 26 July 2022. Further details
regarding presentations for investors and analysts will be
announced in due course.
Ian Manocha, CEO, commented:
"The Group delivered another strong period of growth in the
first half of the year underpinned by a consistent conversion rate
of competitive new customer wins coupled with significant cross-
and up- selling success. The transformational building blocks put
in place last year with the acquisition of Electra, which brought
us scale, an enlarged international footprint and enhanced
technology capability, are working together to drive new growth
opportunities and high-quality subscription earnings.
"We enter the second half with a robust pipeline of demand and a
substantial opportunity to take further market share in our core
financial services market. Our strengthened service and product
offering is helping to accelerate digital strategies for our
customers, giving them confidence in their operations to radically
improve performance and competitiveness. The Group's positive
trading momentum, robust balance sheet and growing recurring
revenues provide the Board with confidence in the remainder of the
year and beyond."
(1) The Company believes that current market expectations for
the year ending 31 December 2022 are revenues of GBP42.0m and
adjusted EBITDA of GBP9.2m, with GBP46.2m and GBP10.6m 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 / Hannah Campbell
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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