Gresham Computing delivers rise in revenue and profits

Gresham Computing, which provides software solutions to financial institutions, has reported a rise in both revenue and profit and told investors it is feeling confident in its outlook.

In the period between July 1st and November 6th, revenue rose 6% from £8.5m to £8.9m, with annuity income up 15% over the same period, while pre-tax profit leapt 19% to £1.1m (2011: £0.9m).

In a statement the company said: "We continue to make good progress in our core Real-time Financial Solutions (RTFS) business with revenues from our bank partner-led cash and transaction management solutions remaining strong.

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"In line with our strategy to achieve profitable revenue growth, we continued a planned reduction in those RTFS revenues that fall outside of the core cash and transaction focus; leading to an overall revenue reduction for Q3 2012 of 6% but delivering higher profitability and annuity revenues in Q3 2012 compared to Q3 2011.

"Our investment in the CTC technology is on plan and we are making good sales progress across bank and non-bank markets, which have long and short sales cycles respectively. We are currently scoping the implementation of CTC with a number of customers for deployment in Q4 2012."

The group also stressed that its financial position, confirmed order book and pipeline remain strong and said it feels confident in its outlook for 2012 and beyond.

Shares in the company are up 21.50% over the past year, equal to 11.50p.

NR