Source: Gresham
Gresham, the leading software and services company that specialises in providing real-time financial transaction control software to the global matching and reconciliation market, reports its Interim Management Statement for the period 1 July 2014 to 8 October 2014.
The Group continues to make progress in commercialising Clareti Transaction Control (CTC), our new matching and reconciliation product. CTC revenues for the nine months to 30 September 2014 increased on the comparative period and other, non-CTC, parts of the business continue to perform in line with plan.
However, we now expect that a number of new CTC contracts previously anticipated for 2014 will instead fall into 2015 and as a consequence the Board expects total revenue for 2014 to be 10%-15% lower than current market expectations. As a result, earnings for the full year 2014 are expected to be materially below current market expectations.
We have a strong pipeline of CTC business and are currently engaged in a number of CTC proof-of-concept engagements, which will enhance our CTC customer base and recurring revenue streams. We continue to see increased use of CTC at existing customers, leading to increased recurring revenues.
Our financial position remains strong and we expect it to remain so through 2014 into 2015 and beyond.
Chris Errington, CEO Gresham, commented:
"We continue to win CTC customers and grow our CTC recurring revenues in line with our strategy. Clearly the delays in signing new contracts are disappointing however, we remain confident that the investments we have made will support further progress in 2015."