PHD Proactis Holdings Plc

TIDMPHD

RNS Number : 2526X

PROACTIS Holdings PLC

20 February 2017

 
 Date:              20 February 2017 
 On behalf of:      PROACTIS Holdings PLC ("Proactis" 
                     the "Company" or "the Group") 
 Embargoed until:   0700hrs 
 

PROACTIS Holdings PLC

Trading Update

PROACTIS Holdings PLC, the global specialist Spend Control and eProcurement solution provider, is pleased to update the market on trading for the six months ended 31 January 2017.

The Group confirms that results are expected to be in line with expectations, with revenues for the six months ended 31 January 2017 up 36.3% to approximately GBP11.8m (2016: GBP8.66m). This includes strong organic growth (excluding the part period impact of the Group's acquisitions) of 13.4%. The Group signed 27 new names (2016: 23) and the initial contract value, order book and pipeline remain encouraging.

The Group continues to progress its strategy of automating trade and relationships between its customers and their suppliers through its supplier networking technology. The early adopter programme is progressing well and providing informative data together with commercial and operational know-how that will be invaluable as the concept evolves to product.

On 16 November 2016, the Group completed the acquisition of Millstream Associates Limited ("Millstream") for GBP15.5m as part of its strategic objective to consolidate the fragmented procurement technology market. Millstream is an earnings enhancing acquisition that brings over 4,000 supply side customers to the Group, along with strategically important central government relationships on the buy side. Further to this, it offers excellent cross-sell opportunities in both the short and medium terms. In the c.10 week period since the completion of the acquisition, Millstream has traded in line with expectations, delivering approximately GBP1.05m revenue and GBP0.42m EBITDA.

The Company expects to report its interim results on 26 April 2017.

Tim Sykes, CEO Designate, commented:

"We are very pleased to report an excellent trading performance during the period. Our revenue growth is strong and we are particularly encouraged by the underlying organic growth achieved in the current conditions.

"We are pleased to have completed the acquisition of Millstream in November, and we are delighted with its financial performance and contribution thus far. Millstream is the Group's fifth acquisition in four years and continues the strategic objective of consolidating the fragmented procurement technology market.

"The Group continues to develop its supplier networking solution. The realisation of this concept is on-going and the progress made has been substantial. We believe there is great value in the solution and I look forward to providing an update on further progress in due course. This, on the foundation of the Group's organic growth and strategic M&A, positions the Group well for the period ahead and we look forward to continuing to deliver growth and shareholder value."

End

For further information, please contact:

 
 PROACTIS Holdings PLC 
 Rod Jones, Chief Executive     Via Redleaf Communications 
  Officer 
  Tim Sykes, Chief Executive 
  Officer Designate 
 Redleaf Communications 
 Rebecca Sanders-Hewett 
  Sam Modlin                    0207 382 4730 
 
 finnCap Limited 
  Stuart Andrews                0207 220 0500 
 Carl Holmes 
  Emily Watts 
 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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. PROACTIS' solutions are used in over 800 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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTLIFLEFSIIFID

(END) Dow Jones Newswires

February 20, 2017 02:00 ET (07:00 GMT)

Proactis (LSE:PHD)
Historical Stock Chart
From Mar 2024 to Apr 2024

Proactis (LSE:PHD)
Historical Stock Chart
From Apr 2023 to Apr 2024