Gresham Technologies PLC Clareti Contract Win and Trading Update (7437X)
December 23 2019 - 1:00AM
UK Regulatory
TIDMGHT
RNS Number : 7437X
Gresham Technologies PLC
23 December 2019
23 December 2019
Gresham Technologies plc
Clareti Contract Win and Trading Update
Gresham Technologies plc (LSE: "GHT", "Gresham", "Company" 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 the following update on trading in the second half of 2019,
together with an updated outlook for FY2019 and FY2020.
On 20 December 2019, one of the world's largest alternative
investment management firms signed a contract with the Group for an
enterprise deployment of CTC with total expected licence value of
$1m over three years. The firm, which has a global multi-strategy
investment approach with a presence in the United States, Europe
and Asia, selected CTC to replace their ageing legacy vendor
transaction lifecycle management software. The adoption of CTC will
help to drive operational efficiencies, strengthen risk and
financial management and provide a more agile capability for the
future.
This new contract, combined with strong trading in the second
half, now means that the Group has full contracted visibility of
2019 forecast revenues. As a consequence, the Board now expects
that Group Adjusted EBITDA will be materially higher than current
consensus forecasts. Cash performance is expected to be ahead of
expectations.
Overall, the Company continues to see positive demand for its
data integrity and control solutions with six new Clareti licences
sold since 30 June 2019, including the contract win referred to
above. Pleasingly, the Group's move to subscription licensing
within the Clareti business has progressed better than expected
with forward-looking Clareti annualised recurring revenues expected
to be approximately GBP9.6m at the end of the year, compared with
GBP7.4m at the end of FY2018. The Group's non-Clareti portfolio is
performing ahead of expectations providing increased contractual
coverage of Group revenues and, as a consequence, the Group's
expectations for FY2020 have increased.
In addition to the new contract referred to above, other new
Clareti licence wins since 30 June 2019 include a strategically
important new regulatory control project with an existing global
investment bank client, a second project with one of the world's
largest energy companies, a new digital banking initiative with a
global consumer bank, a financial control project in the gaming
industry, and a new customer in settlement and clearing services.
The Group continues to invest to attack the legacy reconciliation
vendors in the cash and securities market: implementations at the
two Tier 1 bank projects signed in the first quarter are
progressing well and the ambitious programme of product
enhancements for cash and securities is on track.
Commenting on the progress in the year to date, Ian Manocha,
Chief Executive Officer said:
"This contract win is another powerful customer endorsement of
our Clareti technology and highlights the potential for our data
integrity and control solutions to displace legacy vendors and
establish a leadership position in capital markets.
As we close out a strong FY2019, we are preparing ourselves for
FY2020 and will continue to invest in sales, marketing and customer
success to capitalise on the opportunity ahead."
Enquiries
+44 (0) 207 653
Gresham Technologies plc 0200
Ian Manocha
Tom Mullan
+44 (0) 207 496
N+1 Singer (Financial Adviser and Broker) 3000
Shaun Dobson / Lauren Kettle (Corporate Finance)
Tom Salvesen (Corporate Broking)
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
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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