Acquisition strategy pays off for Proactis as revenues rise

SPEND control software provider Proactis has seen revenues rise 13% as it said acquisition opportunities remain a “fundamental part” of the group’s growth strategy.

For the year to July 31, the Wetherby-based group reported revenue of £19.4m, up from £17.2m in 2015, while adjusted EBITDA increased by 10% to £5.3m.

Over the coming year, the group said it will continue to drive organic growth while pursuing its M&A strategy, revealing it has a “healthy pipeline of opportunities under review” which fit within its acquisition criteria.

The business remained proactive in the deals market by spending £4.5m on eProcurement business Due North earlier this year. It also made two acquisitions in 2014 and three last year as it continues to bolster its organic growth with bolt-on purchases .

Chief executive Rod Jones said: “The results demonstrate the group’s successful execution of its strategy, the result of which is strong growth, both organically and through M&A, underpinned by high levels of forward visibility through recurring contracted income and strong operating margins.  Commercial progress has been strong and this is a record year for number of new names and order intake during the year.

“Due North was the group’s fourth acquisition in a two-year timeframe and its post-acquisition performance has been encouraging.  M&A remains a fundamental part of the group’s growth strategy, with a pipeline of opportunities under review, and I look forward to further activity in this area.”

He added: “I am also pleased to report that the group has met its objectives with its exciting new supplier commerce initiative.  We have three early adopter sites; Screwfix, Flintshire County Council and P&O Ferrymasters, and first revenues have been recognised.  There remains a high level of interest from our customer base in realising the substantial efficiencies available to them and their suppliers through the supplier commerce capability that the group has built and I look forward to reporting further progress with the early adopters and new commitments from customers during the coming year.

“The group is well positioned for the coming year and I look forward to driving further value for our shareholders.”

The company’s proposed final dividend increased to 1.3p per share (2015: 1.2p).