eCommerce firm slips to big loss

Telford-based spend management firm Proactis has slipped dramatically into the red following a £27m write down during the last 12 months.

For the 12 months to 31 July, the company increased revenues by 4% to £54.1m but posted a loss of £25.8m – down from a profit of £3.8m a year earlier.

A statement from the firm said the £27m impairment was taken against US CGU “as a result of the challenges in that market identified and announced during the operational review”.

Tim Sykes, chief executive said: “The results for the period are in line with the Board’s expectations. Following the completion of the Operational review announced in April 2019, the management team has been working incredibly hard to assess and rectify the issues identified and that have impacted overall Group performance over the last two financial years. This has included managing leadership change throughout the regions affected as well as through the business as we build teams that are capable of executing the group’s new go to market strategy.

“The Board is confident that this capability is now in place and the whole team can execute efficiently to deliver a substantial and high growth company.

“We are seeing relevant progress already with pipeline starting to build and an encouraging level of order intake in the new financial year.

“The Group has been profitable and cash generative in the period under review, and the long-term prospects are exciting. With a strong ARR giving high levels of visibility, and a proven, highly relevant end-to-end offering, we begin the new financial year in line with management’s expectations and with optimism for the group’s potential.”