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Gresham Technologies (GHT) Shares Up On “Major” Contract Extension

Sam Boughedda trader
Updated 24 Sep 2021

Software and services firm Gresham Technologies (LON: GHT) has seen its shares gain on Friday after it confirmed its largest customer has signed contracts that renew and materially increase its investment in the company's software and services.

Australia and New Zealand Banking Group have executed contracts totalling over A$21 million covering October 1 to September 30, 2022.

The deals combine with existing agreements to provide certainty over all existing Clareti (Gresham's technology platform) and non-Clareti licences. 

It also secures new incremental revenues for Gresham from recurring software, recurring managed services, consulting services and contracting services. 

Clareti revenues from ANZ for the contract year are expected to exceed A$14 million, an increase of more than 35%. Recurring revenues are up nearly 40% on the prior contract year.

Non-Clareti revenues, including the sub-contracting business, for the new contract year are expected to exceed the current contract year's A$16 million forecast.

Overall, the new deals mean Gresham expects to benefit from revenues over A$30 million.

“These contracted account revenues provide significantly increased confidence over the Group's planned revenues and earnings in FY21, and an important contribution to FY22,” stated Gresham.

The company's shares have gained 3.22% on Friday, trading at 173p, after initially climbing to a high of 178p earlier in the session.

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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.