PROACTIS Holdings PLC (LON:PHD), the global specialist Spend Control and eProcurement solution provider, has today provided the following update to the market on trading for the six months ended 31 January 2017.
The Group confirms that results are expected to be in line with expectations, with revenues for the six months ended 31 January 2017 up 36.3% to approximately £11.8m (2016: £8.66m). This includes strong organic growth (excluding the part period impact of the Group’s acquisitions) of 13.4%. The Group signed 27 new names (2016: 23) and the initial contract value, order book and pipeline remain encouraging.
The Group continues to progress its strategy of automating trade and relationships between its customers and their suppliers through its supplier networking technology. The early adopter programme is progressing well and providing informative data together with commercial and operational know-how that will be invaluable as the concept evolves to product.
On 16 November 2016, the Group completed the acquisition of Millstream Associates Limited (“Millstream”) for £15.5m as part of its strategic objective to consolidate the fragmented procurement technology market. Millstream is an earnings enhancing acquisition that brings over 4,000 supply side customers to the Group, along with strategically important central government relationships on the buy side. Further to this, it offers excellent cross-sell opportunities in both the short and medium terms. In the c.10 week period since the completion of the acquisition, Millstream has traded in line with expectations, delivering approximately £1.05m revenue and £0.42m EBITDA.
The Company expects to report its interim results on 26 April 2017.
Tim Sykes, PROACTIS Holdings PLC CEO Designate, commented: “We are very pleased to report an excellent trading performance during the period. Our revenue growth is strong and we are particularly encouraged by the underlying organic growth achieved in the current conditions.
“We are pleased to have completed the acquisition of Millstream in November, and we are delighted with its financial performance and contribution thus far. Millstream is the Group’s fifth acquisition in four years and continues the strategic objective of consolidating the fragmented procurement technology market.
“The Group continues to develop its supplier networking solution. The realisation of this concept is on-going and the progress made has been substantial. We believe there is great value in the solution and I look forward to providing an update on further progress in due course. This, on the foundation of the Group’s organic growth and strategic M&A, positions the Group well for the period ahead and we look forward to continuing to deliver growth and shareholder value.”
