PROACTIS Holdings PLC Collaboration Agreement with Inspired Capital (6596F)
February 24 2015 - 2:01AM
UK Regulatory
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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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