TIDMGHT
RNS Number : 9979X
Gresham Technologies PLC
11 January 2022
11 January 2022
Gresham Technologies plc
Trading update: continued strong growth; revenues, earnings and
cash ahead of market consensus
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 financial year ended 31 December
2021 ("FY21").
The Group expects to report:
-- Forward-looking Clareti Annualised Recurring Revenue ("ARR")
as at 31 December 2021 up 95% to GBP24.0 million, including
GBP9.2 million acquired with Electra
-- Group revenues up 48% to GBP36.8 million, including a contribution
of GBP5.4m from Electra since acquisition
-- Clareti revenues up 63% to GBP25.2 million, including a
contribution of GBP5.4m from Electra since acquisition
-- Group Adjusted EBITDA* up 58% to GBP7.1 million and Group
cash EBITDA** up to GBP2.4 million from GBP0.3 million in
2020
-- Cash and cash equivalents at 31 December 2021 of GBP9.1
million (FY20: GBP8.9 million), with no debt
-- Following a strong Q4 performance, overall revenues, earnings
and cash are all ahead of market expectations
As previously reported, the Company completed the successful
acquisition of Electra Information Systems Inc on 22 June 2021. The
Electra business, which has been integrated into Gresham's Clareti
business since acquisition, delivered a post-acquisition
contribution in-line with management's expectations, integration
work is well advanced and there is positive momentum across the
combined sales organisation, including joint solution
opportunities.
The Clareti business (including Electra) and the other
(non-Clareti) businesses, have both performed strongly throughout
the period with total Group revenues increasing 48% to GBP36.8
million (FY20: GBP24.8 million). Excluding the contribution from
Electra, the year-on-year Group revenue growth rate was a record
27%.
Forward-looking Clareti ARR, as at 31 December 2021, was GBP24.0
million, a 95% increase on the previous year (FY20: GBP12.3
million). After excluding the ARR acquired with Electra of GBP9.2
million from the annual growth in ARR, management is pleased to
report strong underlying organic growth on the opening ARR of 20%.
This has been driven by new sales and ARR net retention levels well
in excess of 100% in both Clareti and Electra, thus indicating the
high quality of the Group's client base and the business value of
our software and services. With its expanded offering, the Company
remains well placed to continue to grow its service provision and
total contract value within existing clients in 2022 as well as add
further new customers.
The Group finished the year with net cash and cash equivalents
of GBP9.1 million, well ahead of market expectations. This is due
to very strong Q4 cash collection, lower cash spend on exceptional
acquisition related costs during the year than originally expected,
and improved operational leverage within the Clareti business
flowing through to cash generation as it continues to scale.
The Group expects that the audited results for FY21 will be
announced on Tuesday, 8 March 2022.
Ian Manocha, CEO, commented:
"We are pleased to report another very strong year for Gresham,
both financially and strategically. Revenues, earnings and net cash
are all ahead of current market expectations as a result of an
excellent performance across all lines of business, including our
recent acquisitions.
The acquisition of Electra enables us to build on our strong
market position and reputation and provides us with a platform for
significant, scalable, growth with high quality, recurring
revenues. Our data and automation solutions are used every day by
major financial institutions and we are seeing good new business
momentum across all of our regional sales teams. Looking ahead,
with a strong pipeline, a great client base and a business model
that gives us in excess of GBP37 million of 2022 Group revenues
already under contract, we are very well placed to take advantage
of the growing market opportunity."
*Earnings Before Interest, Taxation, Depreciation and
Amortisation adjusted to add back share-based payment charges and
exceptional items and including continuing operations only.
**Group Adjusted EBITDA less capitalised development spend and
any IFRS 16 lease related cash payments.
Immediately prior to this announcement, the current market
consensus for FY21 includes: Group revenue of GBP35.3 million;
Group adjusted EBITDA of GBP6.6 million; and a year-end cash and
cash equivalents balance (excluding IFRS 16 operating leases
classified as debt) of GBP5.3 million.
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 / Hannah Campbell
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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END
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