Further good news from Gresham

A brief management statement from Gresham Computing, a provider of specialist software-based solutions to support trading and the back office, has confirmed the progress that we anticipated in our August 14^th UKHotView following their half year results. These showed revenues up 23% and increasing momentum for their order book.

Since these results, we have had the opportunity to meet the management, who in our view took a considered approach to the problems of the back office. Three years ago it set about understanding how innovations in technology could be used in addressing the problems of a specific back/middle office function, that of reconciliations. Many institutions are using in-house systems for this activity which is becoming increasingly important as trading becomes more complex and as the requirement for risk management and tight financial control increases. The resultant Clareti Transaction Control (CTC) platform incorporates an in-memory matching engine supported by intelligent data mapping and learning capabilities. The Gresham management suggests that the shorter set-up times, higher speed and lower costs of the CTC places them in a good position.

Gresham have since succeeded in winning orders from insurance companies, investment managers and investment banks. In addition, they have started a project with a global investment bank where their CTC is made available to the clients of the bank, thereby broadening Gresham’s access to potential customers.

We share the management’s confidence of continued growth. They now have reference customers and good visibility as to medium term advances in annuity and SaaS revenue. 2013 is turning out to be a pivotal year for Gresham, as forecast by the management in their 2012 annual report, since when the share price has risen by nearly 60%.

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Posted by Peter Roe at '08:55' - Tagged: trading   backoffice