In May Gresham Computing, the specialist provider of software for transaction reconciliation and management, that 2013 would be a pivotal year as its new Clareti Transaction Control (CTC) product is rolled out. Gresham had invested in this new capability and a global sales and support operation to renew the annuity revenue base and provide the foundation for profitable growth.
Today Gresham announced the third contract win for the CTC product. A “Tier 1 bank” has signed a 20 year contract to use CTC across its global wholesale banking business. The contract is expected to generate revenues of approximately US$15m over that period. This is the third, and largest, contract win, following on from one in Asia-Pac and another with a global Tier 1 investment bank. Margins on these contracts should be substantial and these contracts represent a good start to the current financial year and the strategy of building additional annuity revenue.
With the continued increase in the complexity and speed of trading, along with higher standards for audit trails, risk management and KYC, demand for leading-edge transaction management software will be at high levels. If, as may well be the case, Gresham has succeeded in gaining a beachhead in this focused market, more orders are likely to follow. This could be an interesting year.