Gresham Technologies plc

Software and services for data integrity and control

Visit the Gresham Technologies website
Status Current
Period Dec 10 – Current
Headquarters London, UK

During the course of Kestrel’s Investment:

Market Cap Increased

13x to £118m

Revenue Up

2.7x to £25m

Clareti ARR Up

£nil to £15.6m

Sources: Market cap LSE at 30 Sep 21, company financials AFR FY20, Trading Update Nov 21


Gresham is a leading software and services company that specialises in providing solutions for data integrity and control, banking integration, payments and cash management. It’s customers include some of the world’s largest financial institutions and corporates, all of whom are served locally from offices located in the UK, Europe, North America and Asia Pacific.

Investment rationale

  • Established software business with a range of highly profitable legacy software revenues
  • Opportunity to build a new business in the reconciliations / data integrity space where market growth is being driven by regulatory imperatives
  • High levels of repeat business and software licence contract renewal (>90%)
  • Potential for significantly increase software revenues to scale up operating margins

Kestrel involvement, actions and impact

Max Royde was appointed as a non-executive director in 2009, when Chris Errington was CFO of the Company.  Together, they worked with the rest of the Board to formulate a new strategy for Gresham which was centred on the development of a new Clareti software product. Funding for this development was to come from a combination of cash flows from the legacy software base, non-core disposals and equity placings.

Kestrel acquired an initial 5% stake in 2010, and has since increased its stake, acquiring shares in the market and participating in fund-raisings to support the Company’s growth strategy. As at 30 September 2021, Kestrel had a c.23% interest in the Company.

Over the course of Kestrel’s involvement with Gresham, we led a wide ranging board restructure and were instrumental in the appointment of a very experienced Chairman with significant domain expertise. Changes to the board, including the appointment of Chris Errington as CEO,  were supplemented by senior management hires, including a high-quality development team taken from a market competitor.  Kestrel also led the creation of a management and senior staff incentive scheme, which established strong shareholder alignment.

Chris stepped down as CEO in 2015 but remained as a non-executive director until 2017. Max stepped down from the Board in 2016. They both helped oversee the Company’s transition from a collection of disparate businesses into a cohesive entity clearly focussed on delivering software solutions for data integrity and control, reconciliation and matching.

More recently, Kestrel has contributed to the funding of several acquisitions and also supported management’s decision to move from one-off license sales to a recurring revenue model, which has significantly increased future revenue visibility.

The team’s wide experience and background gave us another way of looking at things – an invaluable broader perspective.

Ian Manocha, CEO, Gresham Technologies plc