Acquisitions boost Proactis revenues

YORKSHIRE spend control software provider Proactis has reported an increase in revenues, bolstered by a string of acquisitions and new deals in what its chief executive described as a “transformational period” for the group.

In a trading statement for the year to July 31, the Wetherby-based business said its revenues are expected to be around £10.2m, up from £8m last time, while adjusted EBITDA is expected to rise from £1.2m to £1.8m.

The group completed three key acquisitions in the period – EGS Group, Intesource and Intelligent Capture, with £2.9m raised on equity markets and £2.5m raised through non-dilutive bank debt to support the group’s M&A strategy.

Chief executive Rod Jones said: “Trading across the group has been strong with some excellent deals being signed, especially in the US for PROACTIS’ core product.

“Bolstered by the acquisitions, the group’s reported revenues increased by 28% to £10.2m and its order book increased by 131% to £14.3m. The core business achieved record revenues of £8.5m, 6% up on the prior year, and its order book increased by 50% to £9.3m. We look forward to further expanding our global client base and the breadth of relationships with our existing clients in the coming year.

“This has been a transformational period for the group. It has seen the near completion of our transition to a blended SaaS/perpetual business model, commenced during 2010, and an aggressive start to our M&A strategy. The acquisitions have been additive to either technological or operational expertise but all have added client bases with long term relationships and predictable, if not contracted, revenues.”