| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.44 | -100 |
| Graham Formula | 0.32 | -100 |
Gresham Technologies plc (LSE: GHT) is a UK-based software company specializing in reconciliation, regulatory reporting, connectivity, and data aggregation solutions for financial institutions and enterprises. Operating through its Clareti Solutions, Other Solutions, and Contracting Services segments, the company serves capital markets, banking, investment management, energy, insurance, and corporate sectors globally. Gresham's flagship Clareti platform provides end-to-end automation, intelligent data matching, and cloud deployment, helping clients streamline operations and ensure regulatory compliance. With a strong presence in the UK, Europe, the Middle East, and the Asia-Pacific region, Gresham Technologies has established itself as a trusted provider of financial control and data integrity solutions since its founding in 1969. The company's innovative approach to financial data management positions it well in the growing regulatory technology (RegTech) and financial software markets.
Gresham Technologies presents a niche investment opportunity in the financial software and RegTech space, with a market cap of £135.7 million and stable financials. The company reported £49 million in revenue and £3.1 million net income for FY2023, with positive operating cash flow of £9.9 million. While its beta of 0.464 suggests lower volatility than the broader market, investors should note the company's relatively small scale compared to global competitors. The dividend yield of 1p per share provides modest income, but growth potential lies in expanding its Clareti platform adoption and capitalizing on increasing regulatory demands in financial services. The main risks include competition from larger software vendors and potential budget constraints among financial institution clients.
Gresham Technologies competes in the specialized financial control and regulatory reporting software market, differentiating itself through its Clareti platform's focus on data integrity and reconciliation. The company's competitive advantage lies in its deep domain expertise in financial services and its ability to provide tailored solutions for complex regulatory requirements. While larger enterprise software vendors offer broader platforms, Gresham's niche focus allows for more specialized functionality in areas like trade reconciliation and regulatory reporting. The company's cloud deployment options and managed services provide flexibility that appeals to mid-sized financial institutions. However, Gresham faces challenges in competing with better-funded global competitors in terms of sales and marketing reach. Its UK-centric revenue base (though it operates internationally) may limit growth compared to competitors with stronger North American or Asian presence. The company's relatively small size could be both an advantage (agility, specialization) and disadvantage (limited R&D budget) in competing against both large enterprise software providers and emerging fintech startups.