6 July 2021
Gresham Technologies plc
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 £14.5m (H1 2020: £12.2m), up 19% (or up 14% on a like-for-like basis*)
· Clareti revenues of £9.6m (H1 2020: £7.4m), up 30% (or up 22% on a like-for-like basis*)
· Forward looking Clareti Annualised Recurring Revenue ("ARR") of £12.9m as at 30 June 2021 (30 June 2020: £10.7m), up 21% (or up 9% on a like-for-like basis*) despite currency headwinds
· Other non-Clareti revenues of £4.9m (H1 2020: £4.8m), up 2% (no change on a like-for-like basis*)
· Net cash at 30 June 2021 of £8.1m (H1 2020: £7.4m), 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 £22.1m 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."
Gresham Technologies plc
+44 (0) 207 653 0200
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Singer Capital Markets (Financial Adviser and Broker)
+44 (0) 207 496 3000
Shaun Dobson / Tom Salvesen / Jen Boorer / Iqra Amin
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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.