Strong profits and order book secure growth opportunties for Proactis
RECORD forward order book levels and a rise in profits are helping Yorkshire spend control software provider Proactis remain confident it has substantial opportunities for growth.
In its interim results for the six months ended January 31, the Wetherby-based group today reported a 3% increase in revenue to £4m, a rise in adjusted operating profit by 217% to £454,000 and an increase in reported operating profit to £316,000, from £3,000 in the same period last year. Pre-tax profits climbed up to £321,000 from £16,000. Proactis has seen strong order book growth to £7.1m, compared to £6.2m last year.
Rod Jones, chief executive officer, said: “It has been a transformational period for the group, and I am pleased to report a strong set of results with very encouraging levels of profit. The group’s forward order book has reached record levels at £7.1m and, with a solid increase in reported revenue for the period, this firmly endorses our strategy of moving to a mixed SaaS and perpetual licence model and provides a platform on which to drive further growth.
“Our core UK business is growing well. New deal volumes are positive and sales and marketing activity is high. Complementing that growth, overseas, the group’s Indian operation has made further progress; two new deals were signed with Mittal network companies in the period, with more in the pipeline.
“We are pleased to confirm the group’s commitment to M&A as a core element of its growth strategy following the acquisition of EGS, which will impact our numbers positively in the coming months. The group has a number of attractive opportunities available to it and will look to exploit these over the year ahead.
“I am confident that the group is now at an inflection point and the opportunities for growth are substantial. Further M&A opportunities are being reviewed and I am confident that the group will continue its organic growth and impressive win rate, and that this, combined with an excellent product and strong pipeline, will continue to drive value for stakeholders.”
The group added that Proactis remains in a strong financial position with cash balances of £2.4m after payment of a £0.3m dividend. It also said the board is confident that the group has strengthened its position to continue to exploit the growing Spend and Procurement marketplace and the evolving strategic growth opportunities.
