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Gresham Technologies, a London-listed tech firm, has announced robust full-year results ahead of a crucial vote on a recent take-private offer. The company reported a significant increase in pre-tax profit, rising by £1.6 million to £3.1 million in 2023, attributed to the profitability of its high-margin Clareti business, which turned a profit for the first time the previous year.
Earlier in the year, Gresham secured a contract valued at $1.5 million (£1.2 million) for its Clareti Control platform, aimed at assisting financial institutions in data management. Despite challenging market conditions, the company saw a two per cent increase in total revenue to £49 million last year and maintains a cash reserve of £4.8 million with no debt.
In 2023, Gresham expanded its client base by adding 12 new clients, bringing its total direct customers to 270 across 30 countries. CEO Ian Manocha attributed the company’s success to the efforts of its talented team, highlighting strategic wins, improved customer ARR net retention, and enhanced margins in the Clareti business and across the entire Group.
Manocha emphasized Gresham’s transformation into a modern subscription software and cloud services business, reducing dependency on legacy revenues by discontinuing low-margin sub-contracting activities at the end of the year. Despite challenging market conditions and elongated sales cycles, Gresham made a positive start to 2024.
The announcement comes in the wake of Gresham’s agreement to be acquired by STG Partners, an American private equity firm, for just under £150 million. Shareholders are set to vote on the proposed acquisition on May 16. Gresham’s board cited the “low level of liquidity” on the London Stock Exchange as a key factor in the decision to transition away from public markets. The news of the impending acquisition propelled Gresham’s shares, with the stock witnessing nearly a 40 per cent increase year-to-date.
