Trading Update

RNS Number : 0498S

Gresham Technologies PLC

06 July 2020

 

RNS

6 July 2020

Gresham Technologies plc

Trading Update

Gresham Technologies plc (LSE: "GHT", "Gresham" or the "Group"), 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 half year to 30 June 2020.

Unaudited results for the six months ended 30 June 2020 are expected to show:

· Group revenues of £12.2m (H1 2019: £12.4m), down 2%

· Clareti revenues of £7.4m (H1 2019: £8.3m), down 11%

· Forward looking Clareti Annualised Recurring Revenue ("ARR") of £10.7m as at 30 June 2020 (30 June 2019: £9.1m), up 18% and crossing the £10m mark for the first time

· Other non-Clareti revenues of £4.7m (H1 2019: £4.1m), up 15%

· Net cash at 30 June 2020 of £7.4m (30 June 2019: £8.4m which included £1.7m from the sale of the VME business in January 2019 and a £3m upfront payment for three years of a £1m per annum subscription license.)

Since the trading update on 20 April 2020, full year revenues from business already won and renewals that have been contractually committed or are confidently expected have increased by in excess of £1.0m. Based solely on these highly visible revenues, management now has confidence in achieving a minimum of 88 per cent. of planned FY2020 Group revenues (up from 84 per cent. announced in the trading update on 20 April 2020) and on that level of revenue confidently expects to achieve FY2020 guidance for Group Adjusted EBITDA and Cash EBITDA.

During the period we were pleased to secure two important Clareti licence commitments, including a £1.7m licence contract with one of the world's largest banks. In line with our strategy to underpin our future earnings with high quality recurring revenue, both agreements were subscription based. Clareti renewals were strong during the period and, as a result, our forward looking Clareti annualised recurring revenues (ARR) at the end of the period are 18 per cent. higher than 12 months prior and 13 per cent. higher than 6 months prior.

Whilst new business activity was inevitably slower in the period than originally planned as a result of the impact of COVID-19, the Group remains confident in the underlying demand for its intelligent automation offerings. The Group continues to operate at full capacity since its move to remote working and expects to maintain current levels of investment in innovation and delivery for the foreseeable future. Subject to achievement of further new business wins, incremental investment in sales and distribution is planned for the second half in order to further strengthen pipeline into 2021 and capitalise on the market opportunity.

Gresham expects to announce its interim results for the six months to 30 June 2020 on 21 July 2020 and further details regarding presentations for investors and analysts will be announced in due course.

Ian Manocha, CEO, commented:

"Despite the challenging conditions we were delighted to finish the half year strongly with Clareti ARR passing the £10m mark for the first time.

We enter the second half with a strengthened sales and marketing organisation and are seeing sustained demand for automation solutions. We look forward to reporting further positive progress in the second half of the year."

Enquiries

Gresham Technologies plc	[phone]
Ian Manocha
Tom Mullan
N+1 Singer (Financial Adviser and Broker)	[phone]
Shaun Dobson / Iqra Amin (Corporate Finance)
Tom Salvesen (Corporate Broking)

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.

 

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