Proactis Holdings PLC (LON: PHD), the global spend management and B2B eCommerce solution provider, today announced its audited results for the year ended 31 July 2018.
These results reflect the first full year of ownership of Perfect Commerce, LLC. This report does not include any contribution from or impact of the acquisition of Esize Holdings BV which was described within the Group’s announcement on 7 August 2018.
Financial highlights:
Reported revenue increased by 106% to £52.2m (2017: £25.4m)
Annualised Recurring Revenue1 has increased by 100% to £45.1m (2017: £22.6m)
Adjusted2 EBITDA increased by 119% to £17.3m (2017: £7.9m)
Adjusted2 operating profit increased by 205% to £13.1m (2017: £4.3m)
Statutory operating profit was £4.9m (2017: loss £2.6m)
Adjusted2 profit before tax increased by 186% to £12.0m (2017: £4.2m)
Adjusted2 earnings per share increased by 18% to 10.6p (2017: 9.0p)
Statutory earnings per share was 5.4p (2017: loss per share 5.9p)
Adjusted2 Group net free cash flow increased by 166% to £8.5m (2017: £3.2m)
Net bank debt3 of £29.3m (2017: net bank debt £0.9m)
Increased proposed final dividend of 1.5p per share (2017: 1.4p)
Commercial highlights:
Total contract value (‘TCV’) signed increased by 75% to £12.1m (2017: £6.9m)
New name volumes increased by 19% to 64 (2017: 54)
Upselling volumes increased by 3% to 113 (2017: 110)
Operational highlights:
Integration plan complete
Net annualised cost savings of £5.1m realised
Buy side growth teams for US and EU market segments in place
Strategic highlights:
Strategic acquisition of Perfect, completed 4 August 2017
Three-year revenue CAGR accelerated to 45% (2017: 36%)
Proactis is now fifth largest procurement solutions business by revenue, globally
Post period end highlights:
Strategic acquisition of Esize, completed 6 August 2018 consolidating its position in Northern Europe
Supplier finance product re-started
Appointment of a new Senior Independent Non-Executive Director, Sophie Tomkins
Note 1: Annualised Recurring Revenue is the Group’s estimate of the annualised run rate of subscription, managed service, support and hosting revenues currently contracted with the Group (“ARR”) as at 31 July 2018.
Note 2: Before the impact of non-core net expenditure (primarily related to the Group’s acquisition during the year and the post-acquisition integration programmes), amortisation of customer related intangible assets and share based payment charges. See Additional information – Reconciliation of alternative performance measures.
Note 3: Following the acquisition of Esize Holdings BV on 6 August 2018, which was financed in part by new debt facilities provided by HSBC Bank plc, net debt has increased to approximately £38m.
Hamp wall, Chief Executive Officer of Proactis, commented:
“I remain encouraged by the progress the Group has made during the year and the results of the substantial effort of our team. This has been the first full year of ownership of Perfect which has dramatically changed the Group’s profile and has accelerated its strategy.
“The Group’s new business performance is as strong as we had planned for and our retention performance has recovered to more normalised levels after a disappointing period. The new name and upsell performance was strong in both volume and value and this gives me confidence that we will see a return to sustainable organic growth with a significant opportunity for enhancement in the United States and North West Europe. We have added to this opportunity following our acquisition of Esize shortly after the year end.
“The Group’s profitability and cash flow generation was impressive with £13.1m of Adjusted operating profit converting to £8.5m of Adjusted net free cash flow and an Adjusted EPS of 10.6p. We should see this as a sustainable level of performance going forward. We also met our strategic objective by making £5.1m of annualised cost savings through the integration with Perfect by 31 July 2018.
“The new Group is a substantial global player with excellent potential to exploit its strong geographic reach and its technologies in this growing marketplace. The Group has a platform that can deliver sustainable organic growth on the buy side applications and our organisational structure is now set for the Group to realise those opportunities.
“In addition, and for the longer term, we are starting to move forward with our supply side strategy, incorporating our supplier finance product, which will require some adaptation of our existing technologies but remains a very exciting prospect.
“The Group is well positioned for the coming year, is currently trading in line with management expectations and the Board looks forward to driving value for its shareholders.”
The Company’s final results are available on its website www.proactis.com.
A presentation for analysts will be held today at 9.30am at Redleaf Communications, Sky Light City Tower, 50 Basinghall Street, London, EC2V 5DE. Click the link below to see a video of our CEO discussing our highlights for the year: http://bit.ly/PHD_FY18
