PROACTIS Holdings PLC LON:PHD a global Spend Control and eProcurement solution provider, today gave DirectorsTalk its interim results for the six month period ended 31 January 2016.
Trading performance
w Deal activity is buoyant with 23 new name deals (31 January 2015: 20)
w Total Initial Contract Value signed on new deals was GBP3.7m (31 January 2015: GBP2.6m) with GBP0.4m recognised in the period (31 January 2015: GBP0.5m)
w Favourable revenue shift toward multi-year SaaS deals – 14 new customers (31 January 2015: 11)
w Continued strong customer commitment with 45 upsell and cross sell deals in the period (31 January 2015: 43)
w Significant investment on Supplier Network and Accelerated Payment Facility opportunities and enlarged account management functions
Financial performance
w Reported revenue increased to GBP8.7m (31 January 2015: GBP8.4m)
w Adjusted EBITDA(1) increased to GBP2.4m (31 January 2015: GBP2.3m)
w Reported statutory PBT increased to GBP1.0m (31 January 2015: GBP0.9m)
w Strong balance sheet with gross cash balances increasing to GBP4.6m (31 July 2015: GBP3.4m)
Revenue visibility
w Order book(2) significantly increased to GBP23.7m (31 July 2015: GBP19.7m)
w Annualised(3) contracted revenue increased to GBP14.5m (31 July 2015: GBP14.3m)
Post period highlights
w Successful completion of the Due North Limited acquisition, adding more than 300 UK public sector customers with substantial cross-sell and operational synergy opportunities
w Agreement with Flintshire County Council for the provision of Supplier Network (“SN”) and Accelerated Payment Facility (“APF”) over an extended five year term
1 – Adjusted EBITDA is stated before non-recurring administrative expenses, amortisation of customer related intangible assets and share based payment charges
2 – Order Book is the Group’s current contracted revenue that is required o be recognised in future accounting periods
3 – Annualised contracted revenue is the Group’s estimate of the annualised value of revenue of customers currently contracted with the Group
Rod Jones, Chief Executive Officer, commented: “I am delighted with the Group’s trading performance with significant increases in year on year deal numbers and order intake. Most of these deals were SaaS based contracts which deliver revenue visibility, a more predictable cash flow and enhanced customer value for the long term.
“We continue to invest ahead of the curve in several areas, especially Supplier Network, Accelerated Payment Facility and an enlarged account management effort whilst retaining good levels of profitability.
“The acquisitions of EGS Group Limited, Intesource Inc and Intelligent Capture Limited are trading at expected levels and are well integrated into the Group. We are starting to see the benefits of the enhanced solution portfolio with cross selling adding to our continued high rate of up selling. The longer term aspects of the integration, product alignment and development, are now underway.
“Post-period we completed the acquisition of Due North Limited, which brings over 300 new contracted customers and will be immediately earnings enhancing. In addition, we have a substantial opportunity to build account value through an enhanced customer experience. M&A activity remains a core element of the Group’s growth strategy and there are a number of potentially attractive opportunities in the pipeline.
“The Group’s commercialisation of the Supplier Network and Accelerated Payment Facility opportunities has already shown traction with Screwfix and Flintshire County Council both committing to the programmes. The scale of the opportunity has the potential to be transformational for the Group. We look forward to announcing further early adopter commitments in the coming months along with a substantial contribution to revenues anticipated for the next financial year.
“I have many reasons to be confident in the growth opportunities that the Group has available to it and I am confident that the Group will deliver against its ambitious plans.”
