Gresham Technologies plc (LSE: GHT), the leading software and services company that specialises in providing real-time transaction control and enterprise data integrity solutions, provides the following trading update for the year ended 31 December 2017.
Gresham expects to report 2017 revenues to be up 24% year on year to £21.3 million and adjusted EBITDA* up approximately 32% to £5.0 million, in line with market expectations.
Total Clareti revenues are expected to be up approximately 48% year on year to £11.1 million, with Clareti software revenues increasing by 74%. The Group’s closing Clareti annualised recurring revenues are expected to be up 24% at £5.7 million.
During 2017, Gresham won fifteen new Clareti Transaction Control (CTC) clients across various established industry segments including banking, investment management and insurance broking, as well as a second win in the energy and commodities sector. New clients were signed in the United States, Canada, Australia, UK and Europe. Gresham continued to make excellent progress in the North American market which in the year contributed 39% of new Clareti revenues following direct sales investment into the region during 2016 and 2017.
Newly introduced products provided competitive differentiation with five new Clareti Analytics licences and twelve Clareti 24 Adapters being sold in the year either in conjunction with CTC or separately. The integration of C24 Technologies Limited was fully completed during the year and has delivered the expected benefits.
The Group’s net contribution from non-Clareti revenues was in line with expectations with the Group’s Australian contracting services business performing strongly and off-setting an expected reduction in software partner revenues.
The Group closed the year with cash at £8.5 million, including £0.2 million of term deposits, and remains debt free. The Group’s financial position is expected to remain strong throughout 2018 and beyond.
The Group expects to announce the final results for FY 2017 on 13 March 2018.
Ian Manocha, CEO, commented:
“We are delighted with these record results stemming from our planned investment into Clareti and the hard work of our global team over a number of years.
We have firmly established Clareti as the new ‘de-facto standard’ enterprise-class solution to the industry’s endemic data quality problems. We will continue to invest in sales and marketing, as well as in partnerships and alliances, to capitalise on the opportunity ahead, and we remain confident in the profitable growth prospects of the Group.”
*Earnings Before Interest, Taxation, Depreciation and Amortisation, adjusted to add back share-based payment charges and exceptional items.