6th Dec 2018 09:53
LONDON (Alliance News) - Gresham Technologies PLC shares plunged Thursday after the company said it expects its adjusted earnings for 2018 to be "materially" below current market expectations due to contract delays.
Shares in Gresham Technologies were down 36% in morning trading at 96.50 pence each.
The real-time transaction and enterprise data software company warned that due to some significant high-margin software licence deals being delayed into 2019, and the company's "ongoing" investments in product innovation and business development, its adjusted earnings before interest, taxation, depreciation and amortisation for 2018 will fall below expectations.
Gresham Technologies said it expects revenue for the year to be "broadly" in-line with expectations, due to continued strong growth for its flagship Clareti Transaction Control system, if its planned software deals are contracted and recognised as revenue in 2018.
Gresham Technologies said 80% of its planned revenue for the year has been contracted due to the "strong demand" for its Clareti Transaction Control.
The company has "very good visibility" for a further 15% of planned revenue, through a "small number" of high-value, incumbent-vendor-replacement software deals where Gresham achieved preferred-vendor status following successful competitive evaluations.
The company said: "In light of the complex data challenges and increasing regulatory burden faced by institutions operating in Gresham's target markets, the board remains fully confident in the group's prospects and its Clareti-led strategy to deliver sustainable and profitable growth over the long-term and will continue to make the appropriate investments in support of this strategy."
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