Gresham Technologies PLC Trading Update and Strategic Contract Extension (5229T)
25 November 2021 - 05:59PM
UK Regulatory
TIDMGHT
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 GBP2.8m 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 GBP0.2m to
GBP0.5m, with a further GBP0.1m 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 GBP23.3m, 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
+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
+44 (0) 203 405
Alma PR 0205
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.
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