4 July 2019
Gresham Technologies plc
Gresham Technologies plc (LSE: "GHT", "Gresham" or the "Group"), the leading software and services company that specialises in providing real-time data integrity and control solutions, is pleased to provide a trading update for the half year to 30 June 2019.
Unaudited results for the six months ended 30 June 2019 are expected to show:
· Group revenues of £12.4m (H1 2018: £9.1m), up 36% (or 29% on a like-for-like basis)
· Clareti revenues of £8.3m (H1 2018: £5.5m), up 50% (or 38% on a like-for-like basis)
· Clareti software recurring revenues of £5.5m (H1 2018: £3.0m), up 83% (or 63% on a like-for-like basis)
· Clareti Annualised Recurring Revenue ("ARR") of £9.1m (30 June 2018: £6.2m), up 47% (or 31%, as at 30 June 2019, on a like-for-like basis)
· Other non-Clareti revenues increased by 17% to £4.1m (H1 2018: £3.5m), including a 21% increase in the Group's Australian sub-contracting business
· Adjusted EBITDA to be substantially higher than the same period in 2018 and remains in line with management expectations for the full year
· Net cash at 30 June 2019 was £8.3m (30 June 2018: £7.0m)
· Management remains confident in the full year outlook
1. Revenues exclude discontinued VME software business sold in January 2019 which contributed revenue of £0.06m during the period (H1 2018: £0.37m)
2. Growth rates presented on a like-for-like basis have been adjusted to exclude H1 2019 contribution from B2 Group
3. H1 2018 results have been adjusted for IFRS15
During the period, the Group made good progress against its stated strategy by announcing four strategically important Clareti wins, one of which was with a new name customer and three of which involved existing customers. Each of these wins has a contract software value exceeding £1m and, collectively, they represent a combined value in excess of £7.8m over the respective committed terms. In addition, the Group won five further new name Clareti customers and secured a number of chargeable upgrades in the period.
The integration of the B2 Group, the bank-to-corporate integration and cash management software specialist acquired by the Group in July 2018, was fully completed during the period. The division maintained a solid performance in the period and full year outturn for the division remains in line with management expectations.
The Group's Clareti Loan Control joint venture with Mount Street, entered into in 2016, is expected to be discontinued by mutual agreement during 2019 as both parties intend to focus their resources on other parts of their respective businesses.
Gresham expects to announce its interim results for the six months to 30 June 2019 on 23 July 2019. A copy of the presentation will be made available on the Company's website at 9.00 a.m. on the day. For further information, and to register attendance, please contact Gresham on [email protected].
Ian Manocha, CEO, commented:
"This has been an excellent first half with strong Clareti subscription growth driven by four strategic wins and a solid run rate of smaller new deals and customer upgrades.
We have made good progress with each of our three Clareti go-to-market initiatives: data integrity and control; regulatory data quality; and cash management and payments solutions, and there is good momentum in the business as we enter the second half."
Gresham Technologies plc
+44 (0) 207 653 0200
N+1 Singer (Financial Adviser and Broker)
+44 (0) 207 496 3000
Shaun Dobson / Lauren Kettle (Corporate Finance)
Tom Salvesen (Corporate Broking)
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 data integrity and control solutions. 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, all of whom are served locally from offices located in Europe, North America and Asia Pacific.
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 ensuring the integrity of data across an enterprise. It is designed to address today's most challenging financial control, risk management, data governance and regulatory compliance problems.
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