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The fortunes of veteran financial software (plus) player Gresham Computing have continued to improve in Q2 (see Gresham marches on). Its first half results (to 30 June) are considerably better than the previous period, with revenue up 27% to £5.4m and pre-tax profits of £0.6m (H1 2010: £0.1m).
The improvement is wholly attributable to the ‘real-time financial solutions’ business. Strong demand for professional services at a number of major bank customers drove growth in this area up 52% to £3.8m. This should flow through to growth in usage-based SaaS revenues as the solutions are rolled out. In contrast, the Software business was flat overall in the first half with revenue of £1.6m.
The outlook for this ‘old soldier’ is rosier than it has been for a long time. A significant new contract win this month (£3m over 5 years), a new ‘major bank customer’ and a strong pipeline for the remainder of 2011 bode well for the future. Indeed, Gresham expects trading in the second half to be slightly ahead of H1, buoyed by a general increase in bank spending on transaction and cash based solutions that add value to their core businesses.
