Gresham Q£ income up as revenues decline
07 November 2012 | 1232 views | 0
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 July 2012 to 6 November 2012.
Q3 YTD Highlights
· Revenues up 6% to £8.9m (2011: £8.5m), with annuity income up 15% over the same period;
· Profit before tax up 19% to £1.1m (2011: £0.9m);
· Adjusted EBITDA up 12% to £1.4m (2011: £1.3m);
· Cash at 30 September 2012 of £2.9m (30 September 2011: £2.7m);
· Scoping a number of new customers for deployment of CTC in Q4 2012; and
· Management confident about outlook.
Comments on trading and outlook
We continue to make good progress in our core Real-time Financial Solutions (RTFS) business with revenues from our bank partner-led cash and transaction management solutions remaining strong. In line with our strategy to achieve profitable revenue growth, we continued a planned reduction in those RTFS revenues that fall outside of the core cash and transaction focus; leading to an overall revenue reduction for Q3 2012 of 6% but delivering higher profitability and annuity revenues in Q3 2012 compared to Q3 2011.
Our investment in the CTC technology is on plan and we are making good sales progress across bank and non-bank markets, which have long and short sales cycles respectively. We are currently scoping the implementation of CTC with a number of customers for deployment in Q4 2012.
Our financial position, confirmed order book and pipeline remain strong and we are confident about our outlook for 2012 and beyond.
Chris Errington, CEO of Gresham, commented:
"There is significant interest in our CTC technology across both the bank and non-bank markets. We are engaged with a growing number of potential customers and CTC's market leading rapid on-boarding functionality is becoming an important factor in advancing these sales. The demonstrable ability to on-board data and configure reconciliations in minutes rather than days or weeks is attracting significant interest and clearly differentiates CTC from the primarily legacy and database constrained competitor offerings."