PROACTIS Holdings PLC Trading Update and Notice of Results (5179E)
February 12 2018 - 2:00AM
UK Regulatory
TIDMPHD
RNS Number : 5179E
PROACTIS Holdings PLC
12 February 2018
Date: 12 February 2018
On behalf of: PROACTIS Holdings PLC ("Proactis"
the "Company" or the "Group")
Embargoed until: 0700hrs
PROACTIS Holdings PLC
Trading Update and Notice of Results
PROACTIS Holdings PLC, the global Spend Control and eProcurement
solution provider, is pleased to announce that it has delivered
significant revenue and EBITDA growth during the period for the six
months ended 31 January 2018 and trading currently remains in line
to meet management expectations for the financial year ending 31
July 2018.
The Board expects to report its interim results on 24 April
2018, at which point it anticipates reporting a 123% increase in
revenues to approximately GBP26.3m(1) (2017: GBP11.8m) and a 183%
increase in Adjusted EBITDA(2) to approximately GBP8.5m(1) (2017:
GBP3.0m).
This strong growth has been achieved following the acquisition
of Perfect Commerce LLC ("Perfect") which, having traded in line
with expectations since the completion of the acquisition on 4
August 2017, contributed approximately GBP13.5m revenue and GBP3.7m
of Adjusted EBITDA(2) .
In addition, the Board has made strong progress in terms of
delivering on the significant cost synergies that it identified at
the time of the acquisition. The net annualised value of those cost
synergies made to date is GBP3.3m and the Board confirms that it
remains on track to deliver the target of GBP5.0m by 31 July
2018.
The rate and value of new customer wins and cross-selling
activity has been strong in comparison with the prior year on a
like for like basis and there was also a healthy contribution of
new customer wins from Perfect. The Group's order book and pipeline
remain encouraging for the remainder of the year.
1 - As a result of the acquisition of Perfect the majority of
the Group's activities are denominated in either the US Dollar or
the Euro currencies. Whilst constant currency performance remains
in line with expectations, the translation of the trading
performance denominated in those currencies has been and may be
further impacted by weakening in those currencies against
Sterling.
2 - Adjusted EBITDA is stated before non-recurring
administrative expenses, amortisation of customer related
intangible assets and share based payment charges.
Hamp Wall, CEO, commented:
"The completion of the acquisition of Perfect at the beginning
of the period under review was transformational for the Group and
created a significant global player. Our strong trading performance
during the period, which includes encouraging traction in terms of
new business across the entire Group, endorses the transaction and
highlights the significant growth potential.
In particular, I am delighted with the Group's progress in terms
of its realisation of cost synergies so far, which points to the
excellent progress we are making in significantly restructuring the
Group's operations and delivery capability.
We are extremely excited about the next six months and beyond.
Not only are we confident in our continued ability to execute the
integration effectively, but I believe there is a substantial value
creation opportunity for the Group generally but, more
specifically, within the supplier community of our customer base
through both networking and our accelerated payment facility."
End
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
PROACTIS Holdings PLC
Hamp Wall, Chief Executive Via Redleaf Communications
Officer
Tim Sykes, Chief Financial
Officer
Redleaf Communications
Elisabeth Cowell
Fiona Norman 020 3757 6880
finnCap Limited
Corporate Finance
Stuart Andrews 0207 220 0500
Carl Holmes
Emily Watts
Corporate Broking
Stephen Norcross
Notes to Editors:
PROACTIS creates, sells and maintains software and services
which enable organisations to streamline, control and monitor all
internal and external expenditure other than payroll. Its solutions
are used in approximately 1,000 buying organisations around the
world from the commercial, public and not-for-profit sectors.
PROACTIS is head quartered in London and 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
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