Trading Update

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:

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 £48.6 million (FY21: £36.8 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 £28.0 million, a 17% increase on the previous year (FY21: £24.0 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 £6.3 million and no debt. This is despite significant cash outflows of £4.6 million for deferred consideration in relation to the acquisitions of Electra and Inforalgo, and one-off free cash outflows in excess of £2 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 expectations⁴.  

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 £42 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 £48.5m and adjusted EBITDA of £10.1m, with £50.2m and £10.9m respectively for the year ending 31 December 2023.

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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.