Gresham Computing sells Banking and Lending business

Gresham Computing has completed an agreement to sell its 100 per cent equity share interest in Gresham Computing Inc (Canada) (GCIC) to BITSS Global Inc. (Bevertec) for a total consideration of 0.5m pounds.

GCIC is registered in Ontario and is a provider of banking and lending solutions predominantly to the Caribbean banking and financial institution market.

The consideration represents a settlement of the inter-company debt owed by GCIC to Gresham and a nominal amount for the shares of GCIC.

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Gresham Computing said that the consideration was satisfied in cash in full on closing and that the proceeds from the disposal would be used for general corporate purposes.

The unaudited gross assets of GCIC as of December 31st were £0.4m and its unaudited revenue was £1.8m. Gresham reported that the group loss on disposal of GCIC was approximately £0.3m with a net cash inflow of approximately £0.3m and the disposal is expected to have little impact on the group's ongoing profitability at an operating level.

Chris Errington, Chief Executive Officer of Gresham Computing, said: "We are pleased to announce the disposal of our Banking and Lending business, whose employees and customers will benefit from being owned by a company that has a strong presence in the Caribbean market with existing core strengths in financial markets.

"This transaction represents the final step in the restructuring and refocusing of Gresham's activities, which to date has resulted in a transition to stability, profitability and growth."

Gresham Computing's share price was unchanged at 85.88p at 13:12 on Monday.

MF