LONDON (ShareCast) - Software and services company Gresham Computing saw its shares slump by a third on Thursday after it warned 2014 revenues will be 10-15% lower than current market expectations.
As a result, earnings for the 2014 full year are expected to be "materially" lower than previously anticipated.

The newly revised drop is due to the fact a number of contracts for its matching and reconciliation product, Clareti transaction control (CTC), are now due to come into effect in 2015 instead of in the current year.

At the half-year point, the company reported a 67% rise in CTC revenues to £2m, with total revenues up 10% at constant currency at £6.4m.

The group, which provides real-time financial transaction control software to the global matching and reconciliation market, said it had otherwise continued to make progress in commercialising CTC, which have seen revenues for the nine months to 30 September increase on the comparative period. Other, non-CTC, parts of the business continued to perform in line with plan.

Chief executive Chris Errington said: "We continue to win CTC customers and grow our CTC recurring revenues in line with our strategy. Clearly the delays in signing new contracts are disappointing however, we remain confident that the investments we have made will support further progress in 2015.

"We have a strong pipeline of CTC business and are currently engaged in a number of CTC proof-of-concept engagements, which will enhance our CTC customer base and recurring revenue streams. We continue to see increased use of CTC at existing customers, leading to increased recurring revenues."

Gresham's financial position remained strong and it expects to remain so through 2014 into 2015 and beyond.

Shares had dropped 31.7% to 66.25p by 11:15.

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