Software provider dials up 123% revenue rise

Proactis Holdings, the global specialist speed control software provider, has this morning reported an expected 123% increase in revenues to £26.3m for its interim results. 

The Wetherby-based firm, which is AIM-listed, published a trading update this morning which showed that it had delivered significant revenue and EBITDA growth during the period for the six months ended 31 January 2018. 

The Board expects to report its interim results on 24 April 2018, at which point it anticipates reporting a 123% increase in revenues to approximately £26.3m, up from £11.8m in 2017, and a 183% increase in adjusted EBITDA to around £8.5m – an increase from £3m in 2017.

It said trading currently remains in line to meet management expectations for the financial year ending 31 July 2018.

Proactis said the strong growth had been achieved following the acquisition of Perfect Commerce which, having traded in line with expectations since the completion of the acquisition on 4 August 2017, contributed approximately £13.5m revenue and £3.7m of adjusted EBITDA.

In addition, the Board has made strong progress in terms of delivering on the significant cost synergies that it identified at the time of the acquisition. The net annualised value of those cost synergies made to date is £3.3m and the Board confirms that it remains on track to deliver the target of £5.0m by 31 July 2018.

The rate and value of new customer wins and cross-selling activity has been strong in comparison with the prior year on a like for like basis and there was also a healthy contribution of new customer wins from Perfect.  The Group’s order book and pipeline remain encouraging for the remainder of the year. 

Hamp Wall, CEO, said: “The completion of the acquisition of Perfect at the beginning of the period under review was transformational for the Group and created a significant global player. Our strong trading performance during the period, which includes encouraging traction in terms of new business across the entire Group, endorses the transaction and highlights the significant growth potential.

“In particular, I am delighted with the Group’s progress in terms of its realisation of cost synergies so far, which points to the excellent progress we are making in significantly restructuring the Group’s operations and delivery capability.

“We are extremely excited about the next six months and beyond. Not only are we confident in our continued ability to execute the integration effectively, but I believe there is a substantial value creation opportunity for the Group generally but, more specifically, within the supplier community of our customer base through both networking and our accelerated payment facility.”