Disposal of Subsidiary

RNS Number : 6470Z

Gresham Computing PLC

11 March 2013

 



11 March 2013

Gresham Computing plc
("Gresham")
Disposal of Subsidiary

Gresham Computing plc announces that on 8 March 2013 it signed and completed an agreement to sell its 100% equity share interest in Gresham Computing Inc (Canada) ("GCIC") to BITSS Global Inc. ("Bevertec").

GCIC is registered in Ontario, Canada and is a trusted provider of Banking and Lending solutions predominantly to the Caribbean banking and financial institution market.

The total consideration received was £0.5 million, representing a settlement of the inter-company debt owed by GCIC to Gresham and a nominal amount for the shares of GCIC.  The consideration was satisfied in cash in full on closing. The sale proceeds from the disposal will be used for general corporate purposes.

The unaudited gross assets of GCIC as at 31 December 2012 were £0.4 million, the unaudited revenue of GCIC for the year ended 31 December 2012 was £1.8m and the unaudited profit or loss, after allocation of central costs for group segmental analysis purposes, was £nil million. The group loss on disposal of GCIC is approximately £0.3 million with a net cash inflow of approximately £0.3 million. The disposal is expected to have little impact on the Group's ongoing profitability at an operating level.

Chris Errington, CEO of Gresham, commented:

"We are pleased to announce the disposal of our Banking and Lending business, whose employees and customers will benefit from being owned by a company that has a strong presence in the Caribbean market with existing core strengths in financial markets.

This transaction represents the final step in the restructuring and refocusing of Gresham's activities, which to date has resulted in a transition to stability, profitability and growth. The disposal allows us to focus attention on our strategic objectives for Clareti Transaction Control in North America, through further investment in our Gresham North American business, based in Denver Colorado, which already supports software deployments at over fifty major customers globally; over twenty of which are major financial institutions."

- Ends -

For further information please contact:

Gresham Computing plc Chris Errington, CEO Rob Grubb, CFO	[phone]
N+1 Singer Shaun Dobson, Partner and Head of Corporate Finance Nick Donovan, Corporate Finance	[phone]

 

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