Proactis Holdings PLC (LON:PHD), the business spend management solution provider, has announced its audited results for the financial year ended 31 July 2020.
Financial highlights:
| · | Record year in new business total contract value (“TCV”) signed up 29% to £14.6m (2019: £11.3m) |
| · | Annualised recurring revenue (“ARR”), excluding heightened risk accounts (“HRAs”), increased by 1.3% to £39.8m (31 July 2019: £39.3m) |
| · | Excluding the impact of the COVID-19 global pandemic (“COVID-19”) on volume-related contracts, underlying ARR grew by 8.0% |
| · | ARR including HRAs was £41.2m (2019: £44.3m) |
| · | Reported revenues of £49.6m (2019: £54.1m) reflective of prior year new business / churn performance |
| · | Adjusted EBITDA of £11.8m (2019: £15.1m), in line with market expectations |
| · | Adjusted EPS 2.9p (2019: 6.6p) |
| · | Impairment of £14.8m taken against French and German Cash Generating Units (“CGUs”) as a result of changes in the Group’s reporting structure and in the US CGU as a result of the impact of COVID-19 in volume related businesses. |
| · | Reported loss before tax £19.3m (2019: £25.8m) |
| · | Net bank debt of £37.1m (31 January 2020: £35.6m) |
| · | Reset banking facilities with HSBC in order to support the Group’s current business plan for the mid-term |
Post period end highlights:
| · | Strategic new business wins in DE and FR |
| · | Early adopters identified for bePayd platform |
Tim Sykes, Proactis Holdings CEO commented:
“Despite the challenging macro-economic environment, we have executed our strategy well as we drive the Group toward a return to growth in FY21 and beyond. Our strategy is to replicate the go-to-market strategy of the UK and Netherlands in each of the US, France and Germany and we have made substantial headway with first sales of our mid-market single platform solution in Germany and France.
Although we are encouraged by the progress that we have made, we are also mindful of the impact of COVID-19 which is slowing the rate of commercial progress – whilst our pipeline is strong, demand continues to be marginally subdued through this period and sales processes are more challenging because of competing priorities. Despite these challenging market conditions, we are prudently managing our costs such that the Board continues to expect to meet our earnings forecast for FY21.
Notwithstanding this, the Group’s new business performance is encouraging and combined with our return to organic growth in underlying ARR are material indicators of our progress. Our business has proved to be robust through this extraordinary period and our pipeline and forward revenue visibility positions us well for the future. We’re in an exciting growth market and are poised to accelerate our growth, earnings and cash flow over the coming years.”
