Data integrity services firm Gresham Technologies has issued a positive trading update for the financial year ended 31 December, 2023.
In December, contracts for initial deployments were signed with a “tier 1” global investment bank, and one of the world's largest sovereign wealth funds. In addition, an agreement has been reached with two recently merged tier 1 bank customers, providing a “high level of certainty over existing recurring revenues”.
Gresham expects group revenues of £49m, up 1% annually, or 3% on a constant currency basis over the previous year.
Its Clareti system revenues were £37.8m, up 6%, or 8% on a constant currency basis. Clareti recurring revenues were £29.6m - up 8%, or 10% in constant currency.
Group adjusted EBITDA and group cash EBITDA will be “at least in line with current market expectations”, with margins improving over the prior year.
And in line with plans announced in November 2023, at the end of FY23 the group exited the vast majority of its legacy Australian IT services sub-contracting business. “This further accelerates the group's transformation to a pure-play SaaS company, focussed on higher margin cash-generative Clareti solutions,” the firm said.
The North American business made a “particularly strong contribution” during the year, with Clareti growth from new customers and upsell and cross-sell into the existing installed base.
The European business was “slower than expected” during the first half of the year, with “momentum building” in the second half driving a “much-improved pipeline” into 2024.
The full audited results for FY23 will be posted on 16 April, 2024.
