- Gresham Technologies swung to a loss Tuesday owing to delays in software licence deals and on-going investments in product innovation and business development.

For the year ended 31 December 2018, the company reported a loss of £1.4m compared with a profit of £3.8m a year earlier. Revenues fell 8% to £20.0m.

Group financial performance for the year fell below expectations due principally to two significant contract awards slipping from fourth quarter 2018, one of which was now concluded with the other expected to close shortly, the company said.

'Whilst this was clearly disappointing and resulted in the Group recording an operating loss in the year, the Board remains confident in the strength of the underlying business and the Group's prospects,' the company said.

'Whilst 2018 experienced a reduction of the Clareti growth rate as a result of delays to a small number of high value contracts, the Group continues to deliver consistent Clareti growth. However, to drive more predictability into the business, the Group intends to increase its focus on generating higher levels of Clareti recurring revenues rather than initial licence fees.'

'The contribution from our non-Clareti business, which provides good quality, stable cash flow to support Clareti investments, will reduce in 2019 as a result of the sale of our VME software business to Fujitsu for more than 2.5 times FY2018 revenue, as announced in January 2019. We are planning for further declines in the residual portfolio as customers migrate to newer or alternative platforms.'

The company said 2019 was off to a positive start, as it had divested its ageing VME business, touting good momentum behind its plan to 'build a more predictable subscription-based business.'

'We remain confident in the opportunity for our market leading Clareti technology and in the profitable growth prospects of the Group.'

At 10:01am: [LON:GHT] Gresham Technologies PLC share price was -2p at 87.5p

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