Gresham Technologies plc
Interim Report Announcement
Gresham Technologies plc (LSE: “GHT”, “Gresham”, “Company” or the “Group”), the leading software and services company that specialises in providing solutions for data integrity and control, banking integration, payments and cash management, announces its unaudited half year results for the six months ended 30 June 2022.
The Group is pleased to report 66% growth in Clareti revenues, driving 55% growth in total Group revenues and 125% growth in Group cash EBITDA against the first half of 2021. Forward-looking Clareti ARR growth of 18% driven by new customer wins, growth within the installed base, and favourable currency movements.
Financial highlights
|
|
HY 2022 £m |
HY 2021 £m |
Growth % |
Like for like growth(i) % |
|
Clareti annualised recurring revenues |
26.1 |
22.1 |
18% |
N/a(ii) |
|
Group annualised recurring revenues |
29.4 |
25.7 |
14% |
N/a(ii) |
|
Group revenues |
23.0 |
14.8 |
55% |
19% |
|
Clareti revenues |
16.4 |
9.9 |
66% |
8% |
|
Clareti recurring revenues |
12.5 |
6.9 |
81% |
8% |
|
Group Adjusted EBITDA |
4.5 |
2.8 |
61% |
N/a(iii) |
|
Group cash EBITDA |
1 .8 |
0.8 |
125% |
N/a(iii) |
|
Cash |
6.5 |
8.1 |
(20)% |
N/a |
Operational highlights
· Six new name Clareti customers in H1, with a seventh signed early in H2
· Incremental contract win with tier 1 banking customer, lifting customer ARR from £0.6m to £1.1m with further increase to £1.4m expected as project progresses
· 20+ other contract wins with existing customers driving incremental ARR
· Net Clareti ARR retention rate of 105% (on a constant currency basis)
· Transformative Electra acquisition of June 2021 now creating new opportunities
· Other (non-Clareti) portfolio continuing to prove resilient and has outperformed original expectations
Outlook
· Management confident in the strategy and outlook for the Group
· Demand remains robust, with a strong Clareti pipeline, supported by a structurally growing addressable market
· On track to comfortably meet full year market expectations
Adjusted EBITDA refers to earnings before interest, tax, depreciation and amortisation, adjusted for one-off exceptional items and share-based payments. Cash EBITDA refers to adjusted EBITDA less capitalised development spend and any IFRS 16 lease related cash payments.
(i) Growth rates stated on a like-for-like basis have been adjusted to remove the contribution from both periods of the Electra business, acquired on 22 June 2021.
(ii) By their nature, forward looking annualised recurring revenue metrics included 12 months impact in both reported periods.
(iii) Post-acquisition, the integration of the Electra business into the Clareti business does not allow for meaningful standalone EBITDA measures to be reported.
Ian Manocha, Gresham CEO, commented:
“This has been another strong period of growth driven by a combination of new customer wins and growth within our installed base. The acquisition of Electra a year ago has been transformational in building operating scale and a more complete and competitive solution set for our joint customers, and we are clearly seeing the benefits in the market.”
“Looking to the second half, we see a substantial opportunity to take further market share in our core financial services segments. We now have excellent visibility into full year revenues and are focussed on continuing the significant progress made building recurring revenues in line with our aspirations to create a global financial technology company of substantial scale.”