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Gresham Technologies shares tank as 2018 earnings dented by order delays

The software and services firm said delayed orders and significant investment during the year would hit 2018 earnings
Gresham Technologies shares tank as 2018 earnings dented by order delays
Gresham remains confident it can deliver sustainable and profitable growth over the long-term

Gresham Technologies plc (LON:GHT) said it expects its 2018 earnings to fall materially below current market expectations after some software deals were pushed back to 2019, hammering its shares.

The software and services group on Thursday said the impact of its continued investments in product innovation and business development had also negatively impacted earnings during the year.

READ: Gresham Technologies slumps as it cuts half-year revenue guidance

However, the group said it remained confident that it would deliver sustainable and profitable growth over the long-term and would continue to make the appropriate investments in support of its strategy.

Gresham said its legacy software businesses had performed as planned during 2018, and that the group's Australian sub-contracting business had delivered a stronger performance in the second half.

Its new cash management solutions business is performing broadly as planned, with an additional new Clareti Multi Bank client win in recent weeks, bringing the total to three since the company's acquisition of B2 Group in July 2018.

The tech group said it continues to see strong demand in the market for its Clareti transaction control offering and that some 80% of the unit’s planned revenues for the year were now booked.

Gresham said it had “very good visibility” of a further 15% of planned revenues, based on a small number of high-value, incumbent vendor replacement software deals where it has achieved preferred vendor status following successful competitive evaluations.

Shares in Gresham were 36.3% down at 96.50p in early trade.

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