24th Jul 2018 10:44
LONDON (Alliance News) - Software services firm Gresham Technologies PLC said Tuesday it sunk to a half-year loss as administrative expenses jumped and revenue dipped despite strong growth from its core unit.
For the six months ended June, Gresham sunk to a GBP791,000 pretax loss from a GBP1.1 million profit the year prior.
This was amid revenue falling 4.6% to GBP9.3 million from GBP9.8 million the year before. Despite this, revenue from its core Clareti data processing platform saw revenue rise 13% to GBP5.5 million from GBP4.8 million the year before.
Profit performance was hurt by a rise in administrative expenses to GBP8.8 million from GBP7.4 million the year prior.
"We won six new Clareti customers in the first half of 2018 and have just completed the acquisition of the B2 Group, bringing a further fifteen customers into the group," Gresham Chief Executive Officer Ian Manocha said. "Our recent investments in direct sales, marketing and alliances have contributed to a strengthening Clareti pipeline. We are expecting a strong second half of the year, and we have made a positive start with three new Clareti wins so far in July."
In early July, Gresham acquired cash management and payments software firm B2 Group Sarl for up to EUR8.5 million. In the second half of 2018, Gresham expects B2 - now known as Gresham Cash Management Solutions - to contribute GBP1.1 million in revenue.
Gresham does not pay an interim dividend.
"For the remainder of 2018, our focus for new business will continue to be in Europe and North America, with our Asia Pacific team focusing on major account management," Manocha added. "In Europe we are aggressively targeting the legacy reconciliation vendor installed base as well as seeking regulatory driven opportunities with banks and with their financial markets service providers."
Shares in Gresham were 1.6% higher at 160.00 pence on Tuesday.
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