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RNS Number : 6596F

PROACTIS Holdings PLC

24 February 2015

 
 Date:              24 February 2015 
 On behalf of:      PROACTIS Holdings PLC ("PROACTIS" the "Company" 
                     or "the Group") 
 Embargoed until:   0700hrs

PROACTIS Holdings PLC

Collaboration Agreement with Inspired Capital

PROACTIS Holdings PLC (AIM: PHD) ("PROACTIS"), a global spend control and eProcurement solution provider, is pleased to announce that it has signed an exclusive collaboration agreement with Inspired Capital plc (AIM: INSC) ("Inspired"), a leading provider of customer-focused financial solutions to SMEs to develop an accelerated payment facility ("APF") for UK SMEs.

PROACTIS's eProcurement Platform, a Global Trading Network ("GTN") that enables collaborative electronic trading between buyers and suppliers, will underpin the newly developed APF and Inspired will accelerate the settlement of suppliers' pre-qualified invoices. PROACTIS estimates that its c. 500 blue-chip buying organisations is spending GBP60-80 billion per annum across c. 1million SME suppliers, thus representing a significant market opportunity.

Research conducted by the Federation of Small Businesses (FSB Dec 2014) suggests that almost one in five UK SMEs are affected by a 'serious deterioration of payment practices'. The research suggests that buying organisations are increasingly exerting power on their supply chain with SMEs experiencing the adverse effects of extended terms of trade. This trend presents a significant opportunity for the provision of supply chain finance for SMEs, whilst allowing buyers to maintain their working capital position. The APF is an effective counter to this growing pressure on SMEs and will offer a solution to cash-pressurised companies at an affordable price. As a result, PROACTIS and Inspired believe that the APF will have a high level of take-up within UK SMEs.

The APF is expected to be launched to potential customers later this year. A commercial agreement, with a minimum term of 12 months, will be finalised ahead of market launch.

Rod Jones, Proactis' CEO commented:

"The market place is rapidly changing. Whilst our core principle of driving efficiencies in the procurement and settlement processes remains the same, the PROACTIS business is evolving from a buyer led software author to now include supply chain finance enablement. We are particularly pleased to be working with Inspired and believe it is a high quality partner for this collaboration. We are enthused by the value creation opportunity and look forward to realising that over the coming months and years."

Brian Cole, Inspired's CEO commented:

"We are pleased to announce our collaboration with PROACTIS and it is an important step in our ambition to achieve scale in the UK market. More than ever, UK SMEs are being squeezed by larger players in the supply chain. This new product will provide a powerful cash-flow management tool for companies in the UK and form a key part of our financing proposition for SMEs, further supporting a heavily underserved market."

Pierre Decote, Inspired's CMO commented:

"We are delighted to announce our collaboration with PROACTIS which will give us instant access to a large portion of the fast-growing Single Invoice Finance market. This also represents a significant step in Inspired bolstering its product offering and is a testament to our ongoing commitment to develop innovative financing solutions for UK SMEs".

For further information, please contact:

 
 PROACTIS Holdings PLC                 Via Redleaf Polhill 
 Rod Jones, Chief Executive Officer 
  Tim Sykes, Chief Financial 
  Officer 
 Redleaf Polhill                       020 7382 4730 
 Rebecca Sanders-Hewitt 
  Jenny Bahr 
 finnCap Limited                       020 7220 0500 
 Charlotte Stranner 
  Stuart Andrews

Notes to Editors:

PROACTIS creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. It is used in over 400 organisations around the world from the commercial, public and not-for-profit sectors. It is the largest independent eProcurement solution provider to the UK Public Sector.

PROACTIS is head quartered in Wetherby, West Yorkshire. It develops its own software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners.

PROACTIS floated on the AIM market of the London Stock Exchange in June 2006.

CLOUD COMPUTING is defined as location-independent computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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