Investors

Annual Financial Report Announcement

Gresham, the specialist provider of real-time financial solutions reports its results for the financial year ended 31 December 2009. Trading results were in line with the Board's expectations where, following a difficult period, we have now seen the results of our comprehensive restructuring coming through in a profitable and cash generative Q1 2010.

Highlights are set out below:

• Sales £9.9m (2008: £13.9m) with planned reduction from:

  • Restructuring of the businesses

  • Disposal of two non-core businesses

• Trading loss £2.4m full year (2008: £0.4m loss) but with a much improved H2 2009 and Q1 2010

  • Restructuring completed with £2.6m cost savings per annum realised for 2010

  • Small Q1 2010 profit

• Loss after tax £7.4m (2008: £0.03m profit)

• Cash £0.7m (2008: £1.2m)

  • Increased to £1.0m by end of Q1 2010

  • £0.8m (net of expenses) to be raised through a placing of new shares, announced today

  • £0.4m deferred cash proceeds receivable Q2 2010 from 2009 non-core business disposals

• Board and advisor changes

  • Andrew Walton-Green steps down as CEO

  • Chris Errington (currently FD) becomes interim CEO

  • Rob Grubb (currently group financial controller and company secretary) becomes interim FD

  • Singer Capital Markets appointed as broker and financial advisor

• Outlook

  • Significantly improved trading in 2010 from a stronger and more visible financial base, building on the result from the first quarter.

Chris Errington, interim CEO of Gresham, commented:

"In 2009, we aligned our cost base with visible revenues whilst at the same time re-setting our balance sheet to focus on growth. We successfully completed a major cost reduction exercise whilst preserving our ability to service customers and grow the business in core areas. As a result, we incurred a large loss in 2009. However, we entered 2010 far stronger as a result of these changes and, importantly, I am pleased to report both a profit and cash generation in Q1 2010.

Today, with the support of our major shareholders, we announce a proposed new issue of shares to raise an additional £0.8m (net of expenses) of cash to further strengthen our balance sheet, subject to AGM approval.

We are now confident that the restructuring completed in 2009 and the customer interest in our market-ready products will see us delivering significantly improved trading in 2010, building on the result from the first quarter."

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RNS: 29 Apr 2010