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RNS Number : 2412E
Gresham Technologies PLC
06 July 2021
RNS
6 July 2021
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 2021.
Unaudited results, excluding any contribution from the
acquisition of Electra Information Systems Inc that completed on 22
June 2021, for the six months ended 30 June 2021 are expected to
show:
-- Group revenues of GBP14.5m (H1 2020: GBP12.2m), up 19% (or up
14% on a like-for-like basis*)
-- Clareti revenues of GBP9.6m (H1 2020: GBP7.4m), up 30% (or up
22% on a like-for-like basis*)
-- Forward looking Clareti Annualised Recurring Revenue ("ARR")
of GBP12.9m as at 30 June 2021 (30 June 2020: GBP10.7m), up 21% (or
up 9% on a like-for-like basis*) despite currency headwinds
-- Other non-Clareti revenues of GBP4.9m (H1 2020: GBP4.8m), up
2% (no change on a like-for-like basis*)
-- Net cash at 30 June 2021 of GBP8.1m (H1 2020: GBP7.4m), up 9%
* Growth rates presented on a like-for-like basis have been
adjusted to remove the contribution for H1 2021 from the Inforalgo
business acquired in July 2020
In the first half of 2021, thirteen new or incremental Clareti
licence agreements were signed including three new banks in Europe
and one of the world's largest professional services firms.
The Inforalgo business, acquired in July 2020, performed
strongly in the first eleven months of ownership with forward
looking ARR growth of 17% on a constant currency basis, including
very high levels of retention of the acquired contracts. As a
result, the Group expects to pay the first instalment of the
deferred consideration in full during the third quarter of 2021.
The business is now fully integrated and operating under the
Clareti Connect brand.
The Group successfully completed the transformative acquisition
of Electra Information Systems Inc on 22 June 2021 with strong
support from existing and new shareholders in the associated equity
raise. Electra employees and customers have responded positively to
the acquisition. Electra, as a standalone business, performed well
during the first six months of 2021, adding four new customers, and
growing forward looking ARR to approximately USD 12.7m, from USD
12.2m at 31 December 2020. The combined Clareti and Electra forward
looking annualised recurring revenue is expected to be GBP22.1m as
at 30 June 2021.
Non-Clareti businesses are performing in-line with management
expectations.
The high levels of contractually committed or confidently
expected revenue for the remainder of the year and beyond gives
management confidence in achieving market expectations for the full
year.
Gresham expects to announce its interim results for the six
months to 30 June 2021 on 21 July 2021 and further details
regarding presentations for investors and analysts will be
announced in due course.
Ian Manocha, CEO, commented:
"We are delighted to report another period of strong ARR growth
with our Clareti Control and Clareti Connect propositions both
performing well. It is particularly pleasing to have won three new
banks within the EU following our investment in continental
European sales a year ago.
Our acquisition of Electra Information Systems is expected to
accelerate growth in the United States as well as open up the
buy-side market globally. The market for automation solutions
continues to be very robust and our pipeline continues to
strengthen. We look forward to reporting further positive progress
in the second half of the year."
Enquiries
+44 (0) 207 653
Gresham Technologies plc 0200
Ian Manocha
Tom Mullan
Singer Capital Markets (Financial Adviser and +44 (0) 207 496
Broker) 3000
Shaun Dobson / Tom Salvesen / Jen Boorer / Iqra
Amin
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") as it forms
part of United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018. 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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