Two weeks after a positive trading statement, see here, we can now see some of the reasons underpinning the management’s confidence. Today Gresham announced another contract with a blue-blooded London investment house and a placing with institutional shareholders to raise £3m.
The contract creates another large reference customer for Gresham’s CTC matching and reconciliation engine, used in many areas of settlement and liquidity and risk management. Gresham's innovative approach is now paying dividends in terms of a good pipeline of orders and a growing annuity revenue stream from insurance companies, investment banks and fund managers.
The company's priorities are now to build a strong market presence and exploit their recent success. The placing enables them to boost development of the CTC proposition and importantly to expand the sales and support operation to strengthen their position in overseas markets, particularly the US and Asia-Pac.
The management remain confident about progress and meeting expectations, as do we.
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