19th Mar 2014 10:23
LONDON (Alliance News) - Gresham Computing PLC Wednesday expressed confidence for 2014 as it saw pretax profit rise slightly on higher revenue, boosted by sales of its financial transaction technology platform.
The company posted a pretax profit of GBP1.7 million, up from GBP1.6 million, as revenue rose to GBP14.0 million from GBP10.3 million, damped by higher sales costs and administrative expenses, and an exceptional charge of GBP298,000 relating to the closure of the company's payables financing business.
Revenue was boosted by the company's flagship product Clareti Transaction Control software, which is the key focus of its strategy going forward. CTC revenue rose to GBP3.5 million from GBP0.2 million in the previous year.
Outside of CTC, Real-Time Finance Solutions revenue rose to GBP8.0 million from GBP6.9 million, as the company chose to undertake some lower margin consulting work for major customers. Revenues from the company's Software business dropped to GBP2.5 million from GBP3.2 million as licence sales in 2012 did not repeat.
In March, 2013, the company sold its Banking and Lending business as it was not aligned to its strategic plan due to its high cost base and low growth potential.
The company indicated its focus will be on CTC going forward to maximise the product's market potential, as well as investing in its sales capacity globally.
"We are confident that a combination of market demand, a clear strategic direction, and a responsive and distinctive solution will provide the platform for further progress in 2014 and beyond," said Chief Executive Chris Errington in a statement Wednesday.
Shares in Gresham were trading up 4.2% at 134.35 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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