UK software house Gresham Computing says it expects to report a pre-tax loss of £1.5 million for the first half of the year, although it expects full year trading to be in line with management's expectations.
In a trading update, the group says it expects to report widening pre-tax losses of £1.5 million for the six months ended 30 June 2007. The vendor posted a pre-tax loss of £0.4 million for the first half of 2006.
First half revenue is expected to come in at £6.4 million, compared to reported revenue of £7.0 million for H1 2006. Gresham says cash at the half year was £1.1m.
But despite the first half results Gresham says its has a strong pipeline and will begin to reap the rewards of its investment programme during the second half of 2007. As a result, trading for the full year "will be in line with management's expectations".
The group has more than doubled its sales team in the last year. Earlier this year the group set up a new regional headquarters in New York and recruited Gary Gibbs to drive its business in the North America banking and corporate markets.
Gresham says in the 12 months to 30 June 2007 the value of transactions sent over its Clareti Cash Reporting Service (formerly known as the Cable & Wireless Real Time Nostro system) has grown over 90% to over US$500 billion per day on average. The vendor has added two new data providers to the service since April 2007, raising the total number of providers to 24.
Gresham says it has also agreed a deal with a major Asia Pacific telecommunications company to deliver its Clareti Payables Financing product. This agreement is expected to deliver a material impact on future earnings over the next few years, says Gresham.