Share Name Share Symbol Market Type Share ISIN Share Description
Proactis Holdings LSE:PHD London Ordinary Share GB00B13GSS58 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +1.50p +1.08% 140.00p 138.00p 142.00p 140.00p 138.50p 138.50p 32,453 15:01:58
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 19.4 1.8 6.3 22.2 55.77

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Date Time Title Posts
21/10/201622:32PROACTIS Holdings PLC1,053
03/11/200817:39Proactis, Major product upgrade3

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Proactis Daily Update: Proactis Holdings is listed in the Software & Computer Services sector of the London Stock Exchange with ticker PHD. The last closing price for Proactis was 138.50p.
Proactis Holdings has a 4 week average price of 138.10p and a 12 week average price of 136.95p.
The 1 year high share price is 157p while the 1 year low share price is currently 105.25p.
There are currently 39,835,159 shares in issue and the average daily traded volume is 38,974 shares. The market capitalisation of Proactis Holdings is £55,769,222.60.
pj0077: Henderson's holding now down to 3.56million (8.94% of the company) A year ago (7th Sep 15) it was 8.7million (21.98% of the company) So that's over 5million of selling pressure that the share price has withstood!
nfs: I joined in today, though I am not responsible for the share price movements !Several years ago I was a Cfo using proactis products and bought some shares, they went nowhere so I sold but I now see that the product is getting traction now in a much more material wayIt's growing with good margins, lots to go for and pays a dividendAnd I like the share price to buyLots to like
pj0077: Proactis is covered by only two brokers: Finncap & Progressive Equity Research. The latter initiated coverage on the company last Friday. Here's their take on stock valuation: "Valuation. At 2.3x FY17 Sales (12.1x adjusted EBIT) PROACTIS’ valuation sits in the middle of its peer group range despite its superior growth and margins. Its multiples do not appear to reflect the prospect of M&A either. In May 2016 Accel-KKR paid 3.9x sales for a less profitable, slower growing US spend management firm SciQuest (an EV/adjusted EBIT multiple of 78x). While we do not produce target prices, applying a similar revenue multiple to PROACTIS would imply a share price of 230p, nearly double the current price."
pj0077: The ongoing share price weakness is due to nothing more than a persistent seller (Hendersons?) who daily appears at the mid-price repeatedly offering a lot-size of 15,000 shares.
lewis winthorpe: Trading statement historically this week. Looking forward to the update and a correction against the recent unjust share price fall.
eclair: Pink and Lewis, I hope you're right and I'm wrong. I look forward to some news about levels of uptake from Screwfix and other early adopters. If those numbers are good, then the share price could fly, as there would be no reason why it couldn't be replicated across all Proactis customers.
p1nkfish: All management have one eye on the exit unless a family firm looking to keep it that way. My money has been on an approach by Basware but they bought Procserve. I would be quite sure others are eyeing PHD but don't expect management to roll-over for 40% above todays share price. 2x-3x is my thinking and that won't be for a while. If the market place, factoring, paperless, data analytics/science all take off along with an acquisition or 2 more it will be 3x-5x in 5 yrs imho.
gargleblaster: Thought I would show the full article, for those who don't have full access! Procuring growth I noted with interest the pre-close trading statement from PROACTIS (PHD:93p), a Wetherby-based company that creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. The company's products and platforms are used by over 500 organisations globally, including commercial, public and not-for-profit sectors, and it is now the largest independent eProcurement solution provider to the UK public sector. PROACTIS develops its own proprietary software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners. It's a company that has been on my radar for quite some time after my interest was sparked when it signed a collaboration agreement with one of the constituents of my 2015 Bargain share portfolio, finance lender Inspired Capital (INSC:20p). Specifically, PROACTIS is developing an accelerated payment facility (APF) for UK small and medium-sized enterprises (SMEs) which will enable Inspired to accelerate the settlement of suppliers' pre-qualified invoices. PROACTIS estimates that its own 500-plus blue-chip clients are spending between £60-80bn each year across one million SME suppliers, so offering a significant market opportunity to tap into. Indeed, research conducted by the Federation of Small Businesses highlights that one in five UK SMEs are being impacted by a 'serious deterioration of payment practices' and buying organisations are increasingly exerting power on their supply chain with SMEs experiencing the adverse effects of extended terms of trade. This trend presents an opportunity for the provision of supply chain finance for SMEs, while allowing buyers to maintain their working capital position. The boards of both PROACTIS and Inspired believe that by offering a solution to cash-pressurised companies the APF will have a high level of take-up within UK SMEs. This is good example of how the company is monetising its proprietary electronic trading platform, Activate, by offering value added services to its customers' suppliers. Activate increases transparency within the payment cycle for vendors by clearly showing where their purchase invoice is in the invoice processing cycle. Acquisitions create cross selling opportunities In order to accelerate the development of Activate, PROACTIS acquired Intelligent Capture, one of the UK's leading providers of document scanning and optical character recognition services, a year ago. Priced on 8 times operating profit, and with recurring revenue accounting for 85 per cent of annual revenue of £1.5m, the £1.55m bolt-on acquisition has proved a shrewd strategic buy. That's because PROACTIS saw potential to cross-sell its existing services to Intelligent Capture's 40 clients. It's been successful too. For instance, Denbighshire County Council, an organisation that has been using PROACTIS own 'purchase-to-pay' solutions that automate and streamline the entire day-to-day buying process, from request through authorisation, ordering, invoice processing, and payment via accounts payable, has just implemented a managed service using Intelligent Capture. The Council has implemented a hybrid approach to invoice processing, with paper invoices being scanned and the resultant electronic images being uploaded to the PROACTIS managed service. Once uploaded, the relevant invoice information can be extracted and checked for accuracy, and any information not automatically located can then be resolved by a service clerk. The same managed service process is used for imported PDF invoices that are received by e-mail and a dedicated query desk process is provided that will allow the Council to resolve invoices with queries around data that is missing or invalid, including the ability to easily engage the supplier into the process. The hybrid service adopted has two significant benefits: the first is that it drives the efficiency and cost reduction agenda; the second is that it opens the door to aspects such as the supplier network and accelerated payments once benefits of the first step have been realised. PROACTIS is also cross-selling its own complementary product suite to clients of another acquisition, Intesource, an established provider of e-auction services using its own proprietary service delivery and software platform. PROACTIS paid a sensible price too (around five times operating profit on cash-free, debt free basis). The business has more than 25 clients delivering over £3m of recurring annual income and operating profit in excess of £400,000. The third strategic acquisition the company made in the past 18 months, that of EGS, strengthens its position as the largest independent eProcurement solution provider to the UK public sector, a segment of the market covering 200 organisations controlling over £15bn of public spending across 150,000 suppliers. More than 90 per cent of EGS' clients follow a subscription business model based on three or four year contract terms. At the time of acquisition, EGS was generating annual recurring revenue of more than £1.6m and operating profit of £400,000 from around 70 clients that use its hosted software to control more than £2.5bn of spend through 40,000 active suppliers. Importantly, all these bolt-on acquisitions have delivered which is why PROACTIS will report a surge in profits and revenues when it releases its full-year results on Tuesday, 13 October 2015. Last week's pre-close trading update confirmed that revenues increased by 69 per cent to £17.2m in the 12 months to end July 2015 to lift cash profits by 130 per cent to £4.6m. After deducting a non-cash charge of £1.7m for amortisation and depreciation, this means that PROACTIS' adjusted pre-tax profit is set to rise from £1.1m to £2.9m. On this basis, expect underlying EPS to more than double from 2.6p to 6.1p and support a 9 per cent rise in the payout per share to 1.2p. Strong organic growth story Of course, it's important that there is organic growth coming through too rather than just the profit uplift from some well-timed strategic acquisitions. On this score there are no concerns at all. In the first half to end January 2015, PROACTIS increased its like-for-like revenues by 18 per cent and reported 20 contracts with new customers which had an initial contract value of £2.6m. The company also enjoyed continued strong support from its existing client base with no fewer than 43 client product upgrades in the six month period. The pre-close trading update reveals that it signed a further 19 deals with new customers in the second half and I would expect the closing order book, which increased by 20 per cent on a like-for-like basis to £15.5m in the six months to end January 2015, to have risen sharply since then. This order backlog is important beacuse PROACTIS is focused on increasing the lifetime value of a customer relationship and improving the visibility of future revenue. As a consequence subscription (or managed service, which have similar characteristics) deals have become an increasing large proportion of the new business across all channels to market. For instance, of the £2.6m of orders placed with new clients in the first half to end January 2015, about £500,000 was booked as revenue in the period. This means that as new contracts are won the amount of deferred contract revenue is increasing significantly as can be seen by the £6.6m of deferred income on the company's balance sheet at the end of January 2015, up 21 per cent since July 2014. In turn, this improves the quality of PROACTIS' income stream and the earnings multiple investors are willing to value its shares on. The increasing size of the client base, and scope for cross selling, is playing its part too which explains why the number of subscription based deals has exceeded the number of licences in every six month period since the second half of fiscal 2013. Moreover, investors are far more likely to attribute greater value to recurring revenues than one-off licence fees especially as renewal rates across all PROACTIS' business segments remain robust high. This high contract retention rate also highlights the value to potential customers of the product and service offering in terms of the savings and efficiencies they generate. Another step change in profits It's worth flagging up too that there is potential upside to analyst earnings estimates for the current financial year to end July 2016. Head of research Andrew Darley at broking house finnCap expects PROACTIS to deliver a 11 per cent increase in revenues to £18.9m, a third rise in cash profits to £6m and pre-tax profits of £3.3m in the 12 month period. On this basis, expect EPS of 6.6p and another hike in the dividend to 1.3p a share. So after accounting for forecast net funds of £2.2m, worth 5.5p a share, at the end of July 2015, this means that the shares are being priced on 13 times cash adjusted earnings estimates and offer a prospective dividend yield of 1.4 per cent. But these forecasts don't include any contribution from the Inspired collaboration agreement, a conservative assumption in my view. There is scope for uplifts from further bolt-on deals too. That's because the board outlined at the time of the interim results in March that "it remains committed to further M&A activity and is in an excellent position to provide a platform for further complementary bolt-on acquisitions." I would agree because having run through my cashflow model I reckon that after factoring in anticipated capital expenditure of £2m this fiscal year, then analysts' cash profit forecasts of £5m should result in free cashflow of somewhere between £2m and £2.3m and lead to a doubling of net funds to £4m, or 10p a share, by the end of July 2016. So given the record of PROACTIS' board of making earnings accretive acquisitions, then if only half that cash pile is deployed on sensibly priced bolt-on deals, I reckon there could be scope for 10 per cent earnings upgrades from acquisitions alone. Importantly, the interests of the insiders are clearly aligned with outside shareholders because chief executive Rod Jones owns 4.96 per cent of the shares, finance director Tim Sykes owns 0.5 per cent and operator officer Sean McDonough has 0.8 per cent. Founder and non-executive director Rodney Potts owns 22.5 per cent of the shares and non-executive chairman Alan Aubrey, who is also the chief executive of FTSE 250 technology fund IP Group (IP:212p), has a 2.6 per cent stake. This adds some comfort that the directors will continue to use the company's cash pile wisely. Chart break-out imminent Admittedly, I have been monitoring PROACTIS for quite some time with a view to initiating coverage, but have been holding off until a chart break-out through the 97p share price high, which halted prior rallies in November and May this year, is imminent. I feel that time has come. Techical analysts will note that a confirmed close at 98p or above will clearly signal a triple top break-out on the point-&-figure chart and, in my opinion, pave the way for a return to the 2007 bull market high of 117p. Furthermore, with a bumper set of full-year results set to be released in a few months time, I can see the shares re-rating in the interim period as investors' cotton onto the organic and acquisitive growth story PROACTIS offers. Trading on a bid-offer spread of 91p to 93p, valuing the company at £36.6m, I rate the Aim-traded shares a strong buy with potentially 25 per cent share price upside on offer to my fair value target price of 117p. At that level they would be rated on a more reasonable rating of 16 times fiscal 2016 cash adjusted earnings estimates. Buy.
07:59 Very nice news. The share price has already climbed by 66.66% over the past 12 months up more than fourfold from its Aug 2013 low) and I can see it breaking past the recent 95p peak soon. Still a tiny company, but with big growth forecast in turnover and profits this year bringing p/e ratio down.
16:15 Share price now 140% up since beginning of 2014. 196.6% up on a year ago. Highest level since June 2007.
Proactis share price data is direct from the London Stock Exchange
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