Gresham promises 'jam tomorrow' following disappointing first half

Gresham promises 'jam tomorrow' following disappointing first half

Gresham Computing is forecasting a bump in second half annuity income from its real-time financial solutions business after reporting a disappointing first half to June 30 in which losses doubled to £1 million on revenues of just £5.6 million - down 22% from last year.

The trading update coincides with the sale of the group's loss-making Software Labs arm, which specialises in offering storage software and support for HP NonStop systems, for a total consideration of £470k, payable in two tranches.

The UK software house has been steadily restructuring its business and disposing of non-core assets as it looks to concentrate on matching costs to recurring income from a new generation of real-time financial reporting software.

In April, Gresham scored a significant contract with an un-named global banking group for its cash management, payment gateway and cash reporting software, which will be rolled out by the bank to its corporate customers.

Gresham says the size of the related sales pipeline has exceeded initial expectations and that it is currently working with the bank to close a number of major customer contracts.

"Annuity revenue to Gresham per customer, secured via the bank, is expected to range from approximately £50,000 to £500,000 per annum depending on the size of the deal," says the company.

Gresham has also spent the past five years promoting and developing its Clareti real-time cash reporting suite, a subscription-based service which banks can use to gain access to real-time information about payments enabling them to better control liquidity and risk. The core product is supported by complementary applications for virtual supply chain financing and account management.

In a statement, the company says: "These combined business lines now generate over £1.2m of annually recurring revenue and the Board expects to see further progress in the second half of this year."

Shares in the vendor slipped by nearly 11% to 38 pence in early morning trading as the markets digested the results.

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