Gresham Computing, the specialist provider of software for transaction reconciliation and management, today reported half-year revenues up 23% to £6.44m, continued good news on the contract front and a significant increase in annuity revenues going forward. As we suggested last month, this is proving to be an interesting year for Gresham.
Gresham has now announced the fifth contract for its new Clareti Transaction Control (CTC) platform, these new deals generating over £7m in total over the next 3 years. CTC delivered £1.3m in the first half. Currently 43% of group revenues were driven by annuity maintenance and SaaS contracts and this proportion is expected to increase. There are high levels of professional services revenue currently as a result of pre-sales and implementation work for CTC. Other software operations continued to generate revenue and cash are continuing to support the CTC growth.
EBITDA was up 17% with the increase in selling effort and there was a cash drain of £0.9m, to leave cash reserves at around £2m.
A pipeline of new opportunities is being pursued as companies increasingly focus on the back office to generate efficiency improvements and cost savings, at the same time being required to comply with ever-more stringent regulation and oversight. Gresham’s new CTC system has made initial wins in both buy- and sell-side investment businesses as well as in property management. This wide appeal and the bridgehead made so far should result in a steady flow of new contract wins.
TechMarketView is meeting the company’s management today to discuss the results, understand more of their ambitions and debate how they can maximise the potential of the CTC platform.