New deal signings signal return to growth for software firm

Tim Sykes, CEO, Proactis
X The Business Desk

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Proactis, a business spend management software company, says momentum is accelerating again as it releases its interim results for the six months ended 31 January 2021.

It has recorded revenue of £23.8m (2020: £24.5m) and pre-tax losses of £3m (2020: £2.2m).

Adjusted EBITDA increased to £6.2m (H1 FY2020: £5.6m; H2 FY2020: £6.2m), an increase of over 10%.

Total Contract Value, excluding renewals, signed was £6.7m (H1 FY2020: £7.5m; H2 FY2020: £7.1m) which was delivered against backdrop of challenging COVID-19 headwinds.

And the listed Wetherby-based company highlighted consistent new business deal activity, with a total of 29 new name deals signed (H1 FY2020: 29; H2 FY2020: 32).

Proactis, which sells and maintains software and services enabling organisations to streamline, control and monitor indirect expenditure, says it is now looking forward to returning to substantial growth.

Tim Sykes, the firm’s chief executive officer, said: “It is encouraging to see the progression of the Group over recent periods. 

“Churn has stabilised and is demonstrably back to normal. Despite the impact of COVID-19 on new business intake, we are continuing to grow the business again.

“We are now executing our commercial business processes well in each of France, Germany and North America and new business momentum is accelerating for those teams. As this continues to progress, the Group’s forward momentum will start to reflect market rates of growth.

“I am delighted that we have also sold our bePayd solution into two early adopters, one under the buyer-funded model and one under the Proactis-funded model. 

“We look forward to working with our customers to deliver a great service to their suppliers and the necessary returns to our customers and Proactis.

“We have also made good progress in addressing some of the inefficiencies in our operating expenditure and this has improved our margins.”

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