Gresham sees lift from real-time services in Q1

Source: Gresham Computing

Gresham Computing plc, the specialist provider of software based solutions that enable customers to achieve real-time financial certainty in transaction and cash management, reports its Interim Management Statement for the period 1 January 2011 to 17 April 2011.

Highlights for Q1 2011

· Revenue up 32% to £2.5m (Q1 2010: £1.9m);

· Adjusted EBITDA profit £0.4m (Q1 2010: £0.1m);

· Profit before tax £0.3m (Q1 2010: £0.0m);

· Cash £3.3m (31 December 2010 £3.1m);

· Confirmed order book and pipeline remains strong; and

· Management confident about recently upgraded outlook.

Current trading and outlook

Revenues in the first quarter of 2011 were significantly ahead of the comparative period, with Real-time financial solutions revenues up 36%, from growth in both annuity and professional services, and Software revenues up 15% as customer demand for licensing and support continued.

Q1 2011 profitability was also significantly improved on the comparative period from a combination of growth in revenues, higher margin work and a restructured cost base.

The group's financial position remains strong with cash at 31 March 2011 of £3.3m (31 December 2010 £3.1m).

The confirmed order book and pipeline remains strong and we continue to grow our core annuity income base from a combination of contracted SaaS and traditional support and maintenance revenue streams.

Chris Errington, CEO of Gresham, commented:

"I am pleased with our performance so far in 2011 and the progress that we are making generally. All areas of the business are contributing well and we are now delivering consistent growth in a number of core areas."

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