‘Solid’ deals intake for software provider
Proactis Holdings, the global spend management and B2B eCommerce solution provider, saw a “solid” deal intake during its latest financial year – with contract values totalling £11.3m.
Publishing a trading update for the year ended 31 July 2019, the Wetherby-based listed firm said its deal intake for the year saw the group secure a total contract value of £11.3m – down from £12.1m in 2018.
It said the deals were generated from 60 new names (2018: 64) and 127 upsell deals (2018: 120).
Proactis said: “The Board expects to see an increase in both the number of new name and upsell deals, along with the associated TCV, as benefits of moving toward a consistent go to market strategy for the Group’s US, French and German teams are realised.”
The firm – which announced a formal sale process in July after receiving a number of unsolicited approaches – said its annual performance was at the Board’s expected levels.
It expects to report an increase in revenue to £54.1m (2018: £52.2m) with Adjusted EBITDA at £15m (2018: £17.3m).
Net bank debt as at 31 July 2019 reduced following the generation of £5.1m of adjusted net free cash flow in the second half of the year and is expected to be £36.5m (31 January 2019: £39.3m).
Proactis said that following the acquisition of Esize Holdings on 6 August 2018, the board is pleased that the post-acquisition contribution of Esize is in line with expectations with revenue of £5.3m and Adjusted EBITDA1 of £1.9m.
The firm added: “This level of performance is sufficient to crystallise the full payment of Deferred Consideration as described within the announcement on 7 August 2018 and that is fully provided for within the Group’s balance sheet.”
Of the formal sale process, Proatis said: “The Board has received a number of expressions of interest following the Company’s announcement of the FSP on 29 July 2019 and intends to update shareholders following a careful review of these. As previously expressed, at this early stage, the Board reiterates that there can be no certainty that any offer will be forthcoming or the terms of any such offer. “
The Group currently intends to release its final full-year results on 31 October 2019, but this date is subject to change in light of any requirements arising from the FSP.
Tim Sykes, CEO said: “We are encouraged by the Group’s performance and especially the level of cash generation in the second half of the year. This has reduced net debt substantially and we expect this level of cash flow performance to continue as the Group delivers on the benefits identified during the operational review.
“We have also made significant changes to our management team and processes – the combination of this, along with our current financial performance, offers a stable platform on which the Group can build in order to exploit the considerable opportunities open to it.
“With these opportunities fully determined following our operational review, our teams are deploying their go-to-market and product plans to deliver them on a sustainable and long-term basis. We are excited about the opportunity to replicate our strong performance in the UK and the Netherlands across all of the Group’s territories.
“It is extremely pleasing to be able to provide such a positive update on the progress of our APF which is now close to market.
“We approach 2020 with confidence and energy and I am confident that we will be able to demonstrate substantial progress in our business.”
