Proactis delivers good revenue, earnings growth

Spend control and eprocurement solutions provider PROACTIS Holdings said it delivered “substantial commercial and transformational strategic progress” in its full year on Tuesday, with revenues rising 31% over the previous year to £25.4m.

The AIM-traded firm said in its trading update that, in the 12 months to 31 July, adjusted EBITDA was approximately £7.9m, up 43%, while adjusted profit before tax was up to £5.3m from £3.1m.

It confirmed all of those expected figures were in line with consensus expectations.

Deal volumes were also at expected levels, the board claimed, with 54 new name deals and 110 upsell and cross sell deals.

The board also highlighted the completion of the “transformational acquisition” of Perfect Commerce, which was announced on 7 August.

It said the group was focussing its energy on the integration process and synergy realisation, and the board was “pleased to report” that £1.4m of annualised cost savings had been realised to date.

The board said it remained confident that would increase to £5.0m by the end of the current financial year.

“Our core business has demonstrated strong organic growth and a solid rate of new business wins during the year,” said chief financial officer Tim Sykes.

“Furthermore, our capability to sell more into our existing customer base, which is a key element of our strategy going forward as we seek to leverage the customer bases that have been acquired historically, is performing well with upsell and cross-sell activity at new, record levels.”

Sykes said he was “pleased” that the company sustained its rate of growth alongside its strategic progress through the acquisitions of both Millstream Associates during November 2016 and of Perfect Commerce.

“I relish the opportunity that the Perfect Commerce acquisition provides the group and I look forward to realising the opportunities that the business combination provides.”

PROACTIS Holdings said it intended to release its preliminary results for the financial year ending 31 July on 11 October.

“PROACTIS has delivered an excellent performance during the year prior to its acquisition of Perfect Commerce,” commented CEO Hamp Wall.

“This gives me great confidence for the future prospects of the group as we look to combine two individually strong businesses and deliver our strategy over the coming months and years.

“I believe the acquisition positions us to exploit the high growth areas of the spend management market and enables the business to provide our customers with an even broader product offering.”  “