Gresham Technologies PLC Trading Update (5997T)
January 09 2017 - 2:00AM
UK Regulatory
TIDMGHT
RNS Number : 5997T
Gresham Technologies PLC
09 January 2017
9 January 2017
Gresham Technologies plc
Strong Clareti sales drive profitable growth for Group
Gresham Technologies plc (LSE: "GHT", "Gresham" or the "Group"),
the leading software and services company that specialises in
providing real-time transaction control and enterprise data
integrity solutions, provides the following trading update for the
year ended 31 December 2016 ("FY 2016").
The Group expects to report revenues for the year up 16% on the
prior period to GBP17.2 million including GBP0.3 million from C24
Technologies Limited ("C24") following the acquisition in October
2016, and adjusted EBITDA* up approximately 39% to GBP3.8 million,
in line with market expectations.
-- Clareti revenues are expected to be up approximately 42% to
GBP7.5 million (36% organic growth, 6% from C24);
-- Clareti software revenues are expected to be up approximately
40% to GBP4.7 million (32% organic growth, 8% from C24);
-- Clareti software recurring revenues are expected to be up
approximately 57% to GBP2.9 million (43% organic growth, 14% from
C24); and
-- The Group's closing contracted annual run-rate of recurring
Clareti revenues is expected to be up approximately 94% to GBP4.6
million (44% organic growth, 50% from C24).
All other parts of the Group performed in line with
expectations.
During FY 2016, the Group signed eleven new Clareti Transaction
Control (CTC) clients across various industry segments in the US,
Europe and Asia Pacific, and several existing customers extended
their use of, and investment in, the technology.
The integration of C24 into the Group has progressed in line
with plan and is now substantially complete. Since acquisition, the
Group has signed two new Clareti 24 Integration Objects OEM
agreements.
The Group closed the year with cash at GBP7.2 million and
remains debt-free. The Group's working capital inflow closed ahead
of expectations, benefitting from strong customer cash collection
in the last quarter of the year. The Group's financial position is
expected to remain strong throughout 2017 and beyond.
The Group expects to report results for FY 2016 in the week
commencing 13 March 2017.
Ian Manocha, CEO, commented:
"The Group made significant progress in 2016. We signed eleven
new CTC customers including two cloud subscriptions, and four wins
were in the increasingly important US market. New customers were
signed in banking, investment management, spread betting and
insurance broking where we have existing CTC customers, and we
signed our first customer in the commodities industry.
During the year, we opened our flagship Innovation Labs,
completed our first Clareti-led acquisition, established our
Clareti Loan Control joint venture business, and developed several
new partnerships to drive sales.
The Group continues to invest in innovation and in building
routes to market to further increase our momentum in 2017. We
remain focused on our goal to establish a leadership position in
the provision of enterprise data integrity solutions, and we remain
confident in the prospects of the Group."
*Earnings Before Interest, Taxation, Depreciation and
Amortisation adjusted to add back share-based payment charges and
exceptional items.
Enquiries
+44 (0) 207 653
Gresham Technologies plc 0200
Ian Manocha
Rob Grubb
+44 (0) 207 496
N+1 Singer (Broker) 3000
Nic Hellyer
Lauren Kettle
Note to editors
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 assuring enterprise data integrity and is
designed to address today's most challenging financial control,
internal risk management, data governance and regulatory compliance
problems. Gresham's portfolio of applications based on the Clareti
platform, including Clareti Transaction Control (CTC), Clareti
Accounts Receivable Management (Clareti ARM) and Clareti Loan
Control (CLC), provide innovative industry and domain specific
solutions for real-time data management based on business-driven
controls.
Gresham Technologies plc is a leading software and services
company that specialises in providing real-time transaction control
and enterprise data integrity solutions. Listed on the main market
of the London Stock Exchange (GHT.L) and headquartered in the City
of London, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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January 09, 2017 02:00 ET (07:00 GMT)