PROACTIS Holdings PLC (LON:PHD), a global Spend Control and eProcurement solution provider, today announced its interim results for the six month period ended 31 January 2017.
Trading performance
* Deal activity buoyant: 27 new name deals (31 January 2016: 23)
* Favourable revenue shift toward multi-year SaaS deals: 22 new names (31 January 2016: 14)
* Increased volumes from existing customers: 59 deals in the period (31 January 2016: 45)
* Early adopter programme for Supplier Commerce has progressed well during the period and overall supplier opportunity extended
Financial performance
* Reported revenue increased 35.6% to £11.8m (31 January 2016: £8.7m)
* Underlying revenue growth (excluding the benefit of acquisitions) was 13.4% (31 January 2016: 3.6%)
* Adjusted EBITDA1 increased 25% to £3.0m (31 January 2016: £2.4m)
* Strong balance sheet with net debt at £2.7m (31 July 2016: £0.5m)
Revenue visibility
* Order book2 was £27.1m (31 July 2016: £26.1m)
* Annualised3 contracted revenue increased to £22.9m (31 July 2016: £17.6m)
M&A
* Acquired Millstream Associates Limited (“Millstream”) for £15.5m, a provider of tender information services to suppliers and a provider of eProcurement systems to buyers
* Post-acquisition performance of Millstream is in line with management’s expectations with revenues for the ten week post acquisition period of £1.05m and EBITDA of £0.42m
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 to 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
Tim Sykes, Proactis Holdings Plc Chief Executive Officer Designate, commented: “The Group has once again illustrated its ability to drive growth, both organically and by acquisition. The core business has delivered significant growth and this has been bolstered by the contributions from recent acquisitions, which are performing in line with expectations.
“We have continued to execute on our M&A strategy in the period with the acquisition of Millstream, a business that complements the four acquisitions made since 2014. We are committed to further M&A activity and have established a robust platform for further acquisitions.
“Alongside the significant levels of new names signed during the period, the Group’s customer retention and increased deal flow from existing customers demonstrates the strength of the Group’s proposition and ability to successfully address the growing Spend and Procurement marketplace.
“We look forward to the coming period and are confident in our ability to drive further growth and continue to deliver against our ambitious strategy.”
