Gresham has won an extension and expansion deal with a long-standing Tier 1 investment bank customer as it continues to standardise on the Clareti platform. Including this and other deals, current ARR rises to £23.3m, a 5% organic uplift from end June. Clareti/Electra are trading in line, though Gresham flags potential for further new business in FY21 and an “encouraging pipeline” for FY22. Non-Clareti revenues are performing ahead of expectations leading us to upgrade FY21 revenues and adj. EBITDA by 5%, leading to a cash EBITDA upgrade of 25% to £1.5m. Today’s deal underpins our FY22 estimates, which we leave unchanged, though suspect the risk is to the upside. The stock remains firmly in the “best ideas” stable.
