Acquisitive software provider confirms revenue and deal growth
Proactis Holdings, the global specialist speed control software provider, has this morning reported a 124% revenue rise, up from £11.8m in 2016 to £26.4m for the year to December 31 2017.
The Wetherby-based firm, which is AIM-listed, said its deal activity was buoyant, with 35 new name deals (31 January 2017: 27). Its order book was £47.8m (31 July 2017: £28m) and pre-tax profits rose to £2.4m – up from £878,000 in 2016.
Proactis acquired Perfect Commerce LLC for £94.3m, a complementary provider of spend management systems to buyers and networking services to suppliers, during the year. It said that post-acquisition performance of Perfect was in line with management’s expectations with five new names being signed, reported revenues for the post acquisition period of £13.4m and Adjusted EBITDA of £3.7m.
Following the acquisition of Perfect in August 2017, the Group started its restructuring plan and the leadership team is looking to make an estimated £4.2m of annualised cost savings to date. The Board said it was confident that it will meet its target of £5m by end of this financial year.
Hamp Wall, chief executive, said: “The Board has dramatically enhanced the scale and financial performance of PROACTIS as well as its medium-term growth opportunity through its successful and focussed M&A strategy.
“Further, the Group has performed extremely well with a strong momentum in new names signed during the period delivering substantially improved initial contract value. Up-selling and cross-selling activity with existing customers has also been positive.
“However, this performance is not fully reflected by reported revenue which has been slower to build principally due to a strengthening Sterling which is reducing the impact of the Group’s performance in the United States and in Europe and, latterly, a loss of a number of customers which the Board does not expect to continue.”
“The Group has been introduced to a high level of good quality M&A opportunities and the Board is keen to move forward with this element of the Group’s strategy when it is prudent to do so,” added Wall.
