PROACTIS Holdings PLC Trading Update & Notice of Results (1027Q)
February 24 2021 - 2:01AM
UK Regulatory
TIDMPHD
RNS Number : 1027Q
PROACTIS Holdings PLC
24 February 2021
24 February 2021
Proactis Holdings PLC
Trading Update & Notice of Results
Proactis Holdings PLC ("Proactis", the "Group" or the
"Company"), the global spend management solution provider, today
provides an update on trading ("Trading Update") for the six-month
period ended 31 January 2021.
Trading Update
The Group's progression over the period has been strategically
significant with encouraging commercial traction and growing
pipelines in each of its operations in France, Germany and the US
under the new go-to-market strategy. In addition, the Group signed
its first bePayd contracts under both the buyer-funded and the
Proactis-funded models.
The Board believes that delivering these milestones validates
the Group's strategy and provides confidence of sustainable
momentum and progression in the second half of the year and
beyond.
New business deal intake for the period was strong with total
contract value ("TCV") of GBP6.7m delivered, despite the
persistence of previously announced COVID-19 related headwinds (H1
2020: GBP7.5m; H2 2020: GBP7.1m). The Board expects to progress TCV
in the second half of the year as the Group accelerates pipeline
conversion in the US, France and Germany and as COVID-19 deferred
contracts from the first half come through.
Customer churn for the six-month period of GBP1.5m (31 January
2020: GBP2.1m) was in line with the Board's expectations and
included GBP0.3m from Heightened Risk Accounts ("HRAs") as defined
in previous announcements. Accordingly, the Board expects to be
able to report further modest progression in the Group's underlying
ARR, building on that reported for the year ended 31 July 2020.
The Board expects to report revenues for the six-month period of
GBP23.7m (H1 2020: GBP24.5m) and Adjusted EBITDA* of GBP6.2m (H1
2020: GBP5.6m), against a comparative period unaffected by
COVID-19. Operating margins have improved following the
restructuring of the Group's management team and operating cost
base.
Net bank debt as at 31 January 2021 was GBP39.7m (31 July 2020:
GBP37.1m). The position has been impacted by lower cash levels in
the Group's outsourced sourcing business resulting from lower
trading volumes impacted by COVID-19 as previously reported, and
cash flow from upfront costs of the restructuring of its management
team and operating cost base.
Outlook
The Group expects to be able to report performance in line with
Board's expectations for the period. Whilst the Board is conscious
of the ongoing impact that COVID-19 is having across the business,
its confidence in the Group's prospects for the mid-term has been
strengthened further through the strategic milestones that have
been achieved during the period. The Board looks forward to
continued progression.
Notice of Results
The Group currently intends to release its interim results for
the six-month period ending 31 January 2021 on 29 April 2021.
Tim Sykes, CEO, commented:
"I am encouraged by the progress the Group has made during the
period as our strategy becomes embedded within our teams across the
Group. We have met every milestone that we needed to in order to
validate our strategy for mid-market business spend management
solutions and for bePayd and we can now push forward with
confidence to pursue the market opportunity we have."
* Adjusted EBITDA is calculated by adjusting profit before
taxation to exclude the impact of net finance costs, depreciation,
amortisation, share based payment charges and non-core net
expenditure.
Financial expectations noted above are unaudited.
The information contained within this announcement is deemed to
constitute inside information for the purposes of article 7 of the
market abuse regulation (EU) no. 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
For further information, please contact:
Proactis Holdings PLC 01937 545070 x1115
Tim Sykes, Chief Executive Officer investorcontact@proactis.com
Richard Hughes, Chief Financial Officer
finnCap Ltd
Carl Holmes/Emily Watts/Matthew Radley - Corporate
Finance
Andrew Burdis/Richard Chambers - ECM 0207 220 0500
Alma PR
Sam Modlin/David Ison/Molly Gretton 020 3405 0205
proactis@almapr.co.uk
Notes to Editors:
Proactis creates, sells and maintains software and services
which enable organisations to streamline, control and monitor all
indirect expenditure. Its solutions are used in approximately 1,100
buying organisations around the world from the commercial, public
and not-for-profit sectors.
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