Trading Update and Strategic Contract Extension

RNS Number : 5229T

Gresham Technologies PLC

25 November 2021

 

RNS

25 November 2021

Gresham Technologies plc

Trading update and strategic contract extension with Tier 1 bank

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 current financial year to 31 December 2021 and also announce a contract extension with a global Tier 1 bank customer. Following a strong performance, the Group anticipates Full Year results to be ahead of current market expectations.

Strategic contract extension

The Company has successfully executed a 5 year subscription with a global Tier 1 bank customer to extend its current investment in Clareti software. The contract value totals £2.8m for the on-going use of the technology to cover the period from 31 December 2021 to 30 December 2026 and follows the successful migration of the bank's global legacy cash nostro and securities depot "core reconciliations" to Clareti Control.

This new contract, executed on 24 November 2021, supersedes the existing license agreement announced in February 2019 and extends the contractual commitment by a further three years. The new agreement provides an increase in forward looking ARR of £0.2m to £0.5m, with a further £0.1m increase committed over the contract term. The customer also uses Clareti Control for the reconciliation of unstructured inter-systems data under a separate long-term contract.

Trading update

Clareti revenues, which include the recently acquired Electra business, are performing in line with market expectations. On a stand-alone basis, the Electra business is also performing as expected, with four new or incremental contracts signed, including a new customer in Europe, since the acquisition was completed on 22 June 2021. Integration work is progressing positively, and the Company remains confident in the underlying quality of the business. Including the strategic contract extension referred to above, Clareti (including Electra) forward looking ARR as at the date of this announcement is £23.3m, with the potential for further new business to close before the end of the year.

The Group's lower margin non-Clareti businesses have been performing ahead of plan.

As a result of this strong combined performance, the Company now expects full year Group revenues to exceed current market expectations, with both Group EBITDA and Group cash EBITDA also expected to be ahead of current market expectations.

Ian Manocha, CEO commented

"The strong trading performance seen in the first six months of the year has continued into the second half, with new Clareti wins in the UK, Europe, the United States and Australia. We're delighted to see an excellent contribution from the acquired Electra business and we are enjoying working together as one team in the market.

The Tier 1 bank contract is an important milestone. Clareti Control is the only modern reconciliation and data control platform in the market that is proven at scale across all reconciliation types typically found in Tier 1 banks and there is an encouraging pipeline of comparable opportunities building for FY22."

Enquiries

Gresham Technologies plc	[phone]
Ian Manocha
Tom Mullan
Singer Capital Markets (Financial Adviser and Broker)	[phone]
Shaun Dobson / Tom Salvesen / Jen Boorer
Alma PR	[phone]
Josh Royston / Hilary Buchanan / Matthew Young

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.

 

END

 

 

TSTBIBBTMTTTTFB