Gresham Technologies plc (LSE: “GHT”, “Gresham” or the “Group”), the leading software and services company that specialises in providing real-time transaction control and enterprise data integrity solutions, provides the following trading update for the year ended 31 December 2016 (“FY 2016”).
The Group expects to report revenues for the year up 16% on the prior period to £17.2 million including £0.3 million from C24 Technologies Limited (“C24”) following the acquisition in October 2016, and adjusted EBITDA* up approximately 39% to £3.8 million, in line with market expectations.
Clareti revenues are expected to be up approximately 42% to £7.5 million (36% organic growth, 6% from C24);
Clareti software revenues are expected to be up approximately 40% to £4.7 million (32% organic growth, 8% from C24);
Clareti software recurring revenues are expected to be up approximately 57% to £2.9 million (43% organic growth, 14% from C24); and
The Group’s closing contracted annual run-rate of recurring Clareti revenues is expected to be up approximately 94% to £4.6 million (44% organic growth, 50% from C24).
All other parts of the Group performed in line with expectations.
During FY 2016, the Group signed eleven new Clareti Transaction Control (CTC) clients across various industry segments in the US, Europe and Asia Pacific, and several existing customers extended their use of, and investment in, the technology.
The integration of C24 into the Group has progressed in line with plan and is now substantially complete. Since acquisition, the Group has signed two new Clareti 24 Integration Objects OEM agreements.
The Group closed the year with cash at £7.2 million and remains debt-free. The Group’s working capital inflow closed ahead of expectations, benefitting from strong customer cash collection in the last quarter of the year. The Group’s financial position is expected to remain strong throughout 2017 and beyond.
The Group expects to report results for FY 2016 in the week commencing 13 March 2017.
Ian Manocha, CEO, commented: “The Group made significant progress in 2016. We signed eleven new CTC customers including two cloud subscriptions, and four wins were in the increasingly important US market. New customers were signed in banking, investment management, spread betting and insurance broking where we have existing CTC customers, and we signed our first customer in the commodities industry.
“During the year, we opened our flagship Innovation Labs, completed our first Clareti-led acquisition, established our Clareti Loan Control joint venture business, and developed several new partnerships to drive sales.
“The Group continues to invest in innovation and in building routes to market to further increase our momentum in 2017. We remain focused on our goal to establish a leadership position in the provision of enterprise data integrity solutions, and we remain confident in the prospects of the Group.”
*Earnings Before Interest, Taxation, Depreciation and Amortisation adjusted to add back share-based payment charges and exceptional items.