TIDMPHD
RNS Number : 8715G
PROACTIS Holdings PLC
11 August 2016
Date: 11 August 2016
On behalf of: PROACTIS Holdings PLC ("Proactis"
the "Company" or "the Group")
Embargoed until: 0700hrs
PROACTIS Holdings PLC
Trading Update & Notice of Results
PROACTIS Holdings PLC, the global Spend Control and eProcurement
solution provider, is pleased to update the market on trading for
the year ended 31 July 2016.
The Group has delivered substantial progress in all of its
growth opportunities and expects to report revenues of
approximately GBP19.4m (2015: GBP17.2m), an increase of 13%, with
adjusted(1) EBITDA of approximately GBP5.3m (2015: GBP4.8m), an
increase of 10%, in line with expectations.
New names and product penetration
-- 46 new name deals (2015: 39), an increase of 18%, including
29 (2015: 20) on long term subscription contracts
-- GBP6.9m Initial Contract Value(2) (2015: GBP5.2m), an
increase of 33%
-- 95 up-sell deals (2015: 82), an increase of 16%
-- 8 cross-sell(3) deals (2015: Nil)
In addition, the Group has added a further 17 new names through
Due North Limited, following completion of the acquisition on 2
February 2016.
Forward revenue visibility
The above performance, allied to the Group's strong performance
in customer contract renewals, has contributed to a substantially
strengthened forward revenue visibility:
-- Order book(4) of GBP26.1m (2015: GBP19.7m), an increase of
32%
-- Annualised contracted revenue(5) of GBP17.7m (2015:
GBP14.3m), an increase of 30%
M&A activity
Following the completion of the acquisition of Due North
Limited, the integration is progressing in line with expectations
and, as part of this process, the Group has initiated a detailed
customer engagement programme and made GBP0.4m of annualised cost
savings. The acquisition delivers more than 300 customers and
offers a rich cross sell opportunity through the Group's wider
solution set.
The Group is continuing its search for value in further M&A
opportunities in this extremely active market.
Supplier Commerce (formerly known as Activate)
The Group has delivered on its objectives in this exciting and
substantial new growth opportunity with three customer commitments
from Screwfix, Flintshire County Council and P&O Ferrymasters.
These customers bring an aggregate of approximately 15,000
suppliers to the Group's network with an annual spend estimated to
be over GBP1 billion. The Group has taken its first revenues from
this source, which were nominal in this financial year, and it is
well placed to accelerate this substantially to material levels
during the coming financial years through networking fees and an
innovative Accelerated Payment Facility.
The Group intends to release its preliminary results on 12
October 2016.
Note 1: Adjusted for non-recurring administrative expenses and
share based payment charges.
Note 2: Initial Contract Value is the total initial value
contracted with the new name customer on the first contract with
that customer.
Note 3: A cross sell deal is where the Group sells a solution of
an acquired business into its existing customer base or vice
versa.
Note 4: Order book is the total value of contracted forward
revenues, deliverable over multiple years.
Note 5: Annualised contracted income is the estimated annual
value of revenue contracted with customers as at 31 July 2016, to
be recognised during the year ending 31 July 2017.
Rod Jones, Chief Executive commented:
"Our core business is growing strongly and I am particularly
pleased with the high levels of new deal intake and retention
rates. Further, our capability to sell more into our current
customer base, a key element of our strategy going forward, is
starting to deliver with up-sell and cross-sell activity at record
levels.
"I relish the opportunity that the Due North Limited acquisition
provides the Group and I am encouraged by the level of new names
post acquisition. With a number of initiatives underway to build
the customer experience and drive operational efficiency, we
believe we will unlock significant opportunities for the Group.
"The transformational opportunity provided by the Group's
Supplier Commerce solution is gaining traction. We have taken first
revenues and have a major opportunity with Screwfix, Flintshire
County Council and P&O Ferrymasters to prove concept in this
challenging and exciting area. We are building a quality pipeline
to roll out the solution into the wider customer base.
"I am delighted to be able to report the substantial progress in
all areas of the Group's business over the past year. Our revenue
visibility indicators have advanced substantially and this
underpins my confidence in the Group's future prospects."
End
For further information, please contact:
PROACTIS Holdings PLC
Rod Jones, Chief Executive Via Redleaf Communications
Officer
Tim Sykes, Chief Financial
Officer
Redleaf Communications
Rebecca Sanders-Hewett 0207 382 4730
Sarah Fabietti-Dallison proactis@redleafpr.com
Sam Modlin
finnCap Limited
Stuart Andrews / Carl Holmes
- Corporate Finance 0207 220 0500
Stephen Norcross - Corporate
Broking
The information communicated in this announcement is inside
information for the purposes of Article 7 of the Market Abuse
Regulation 9EU) No. 596/2014.
The financial information contained in this announcement is
unaudited and has been extracted from the Group's unaudited
management accounts, which are prepared in accordance with IFRS,
and other internal sources.
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 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
TSTURVWRNAAWAAR
(END) Dow Jones Newswires
August 11, 2016 02:00 ET (06:00 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