Gresham remains in the red as contract delays hit results

Source: Gresham

Gresham Technologies plc (LSE: "GHT", "Gresham" or the "Group"), the leading software and services company that specialises in providing real-time data integrity and control solutions, announces its results for the year ended 31 December 2018.

Financial

· Group revenues down 8% to £20.0m (2017: £21.7m) including discontinued operations (statutory: down 7% to £19.3m).

· Clareti revenues up 6% to £11.8m (2017: £11.1m), including £0.7m from B2 Group.

· Clareti software revenues down 3% to £7.9m (2017: £8.2m).

· Clareti Annualised Recurring Revenues ("ARR") as at 31 December 2018 up 30% to £7.4m (2017: £5.7m).

· Other revenues as planned and consistent year on year.

· Adjusted EBITDA* down 78% to £1.1m (2017: £5.1m).

· Statutory (loss)/profit before tax as reported down 137% to (£1.4m) (2017: £3.8m).

· Adjusted diluted earnings per share** down 108% to (0.5) pence (2017: 6.5 pence) including discontinued operations (statutory: down 138% to (2.1) pence).

· Cash (including deposits and restricted cash) at 31 December 2018 of £5.6m and no debt (2017: £8.5m and no debt).

· Final dividend proposed at 0.5 pence per share (2017: 0.5 pence).

Operational

· Continued investment in 2018 to increase sales and distribution capacity.

· 15 new Clareti clients added in 2018, including a further Tier 1 global bank.

· B2 Group acquired in July 2018, adding cloud-based cash management technology and 15 clients to the Group.

· Queen's Award for Enterprise: International Trade awarded in recognition of outstanding overseas growth and sales.

· Strategic fintech partnership announced with Australia and New Zealand Banking Group.

· Management confident about the prospects for the Group.



* Earnings before interest, tax, depreciation and amortisation, adjusted to add back share-based payment charges and exceptional items (see note 10 of Group Financial Statements).

** Diluted earnings per share, adjusted to add back share-based payment charges, exceptional items and amortisation from acquired intangible assets.

Ian Manocha, CEO, commented:

"Whilst contract timing issues impacted our full year reported results, the business made significant progress during the year. We won fifteen new Clareti customers and closed an important acquisition, which gives us a platform into continental Europe. As a result, we finished 2018 with a stronger base of Clareti recurring revenues.

2019 has already started positively: we have successfully divested our ageing VME business, one strategic new Clareti contract has been closed and another to follow shortly, and there is good momentum behind our plan to build a more predictable subscription-based business. We remain confident in the opportunity for our market leading Clareti technology and in the profitable growth prospects of the Group."

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