Proactis Share Discussion Threads

[p1nkfish] 29/4/2019 08:10

The Interims were better than I expected and they haven't dodged ditching the divi to address debt and a new CFO who has some decent background internationally and most likely stress tested at Pace.

Good tight knit northern management team in the offing to clear out under performance, US BS & get German and French operations in line with UK & Netherlands.

Recovery has started.

[cynical sid] 29/4/2019 08:08

It's generating cash It has ARR of £47m which is loads of headroom to drive bottom line and improve cashBlue Prism is loss making and valued at 50x PHD

[p1nkfish] 29/4/2019 08:06

Of course they can & will.

[eezymunny] 29/4/2019 08:05

The 7m cash is totally drowned by the debt FFS. The balance sheet is an a desperate desperate state IMO. Working cap deficit grown to 11m (that's a short term problem, hence likely placing IMO, 20-40m?), and they have deferred income 18m - that's cash they've already received for work to be done in future!).

It is IMO absolutely teetering, but who knows maybe they can turn it around.

[p1nkfish] 29/4/2019 08:03

CS, totally agree.
One to put in bottom draw and forget whilst the storm passes.

New CFO, X-Pace, must know a thing or two about coping with turbulence.

Hope whomever wants to sell does so this week to finally clear the decks.

[cynical sid] 29/4/2019 08:00

This is good, no nasty surprises. We can rebuild from hereARR of £47m is great, almost same as Blue Prism which is £1.4bnAnd then for the APF and an emerging fintech story...

[buywell3] 29/4/2019 07:58

The market will decide what this is

Is it a company in trouble

Does it need a new CEO that can spot a bargain buy and not overpay

Mr Market will now decide

[74tom] 29/4/2019 07:58

Hahah, battle of the shorters vs those with a bit of faith, Eezy, you did read the balance sheet that stated they had £7m of cash? Why would a placing be required at a 66% discount to the current price?

[eagle eye] 29/4/2019 07:57

The outcome of the review looks sensible, but cash collection as a % of revenue has deteriorated over the last year.
Account receivables to Jan 19 are £26.5m, or 95.6% of the £27.7m revenue.
The corresponding figure for H1 last year was £18.9m and £26.3m or 71.8%.
I like the underlying business, but there appears to be a lot of work to do here.

[p1nkfish] 29/4/2019 07:54

It's a solid business that will survive and prosper after over-reaching on a big acquisition.

A big acquisition BTW that has offered acceleration of a supplier side offering it would have taken even longer for PHD to achieve using their own tech. Read up on that.

This is an investment, not a speculation.

Speculators kindly b*gger off.

[buywell3] 29/4/2019 07:54

20p chartwise repeat now looks very likely IMO, possibly today


This chart pattern has become a 'waterfall pattern'' . I kid you not


Hope you guys don't get wet


buywell3
27 Apr '19 - 09:35 - 3067 of 3085 Edit

You don't get a chart like this without reasons






If the news is terrible then 20p is doable ..... again

[buywell3] 29/4/2019 07:50

This is why Charts are so good … they saw this coming

No dividends for the foreseeable future

Big debt problem to solve and cash raising with a new CFO looks assured

The acquisition/s have not done the trick … therefore IMO they overspent buying them and offloading them will be at a big loss

Rampers here of late should be ashamed of what they have posted

[eezymunny] 29/4/2019 07:46

Debt has increased. Working cap deficit has increased (and it was already scary as hell), revenues falling (ex acquisitions), only 1.5m free cash flow (abysmal IMO and yet they continue to highlight results with all these useless and (IMO) irrelevant adjusted EDITDA numbers.

Suddenly this narrative says "we have a lot of debt" (18xannualised FCF? ouch). We're going to have to slash expenditure to try to make some money. Gawd knows what that will do to already tumbling lfl revenues.

A placing I'd say now looks very likely. 10p anyone?

[tomps2] 29/4/2019 07:43

Thanks p1nkfish, you beat me to it.

Video: A results overview and strategy update by Tim Sykes, CEO. Link above works, or watch on piworld:

[p1nkfish] 29/4/2019 07:41

Eggbird, it's not over yet but even the negative will become a positive. Debt will be addressed, ship tidied and after stabilisation it will motor.

It's an investment. Like the look of the new CFO, just the type this needed.

GLA.

[p1nkfish] 29/4/2019 07:36

§ A comprehensive programme is in place to reduce debt levels Good to address debt, people holding 3-5 should be richly rewarded imho.

"which includes the suspension of dividends for the foreseeable future."

 

[eggbird] 29/4/2019 07:36

As you've stated time and time again it was all just a growth warning..

Well oversold imho

[eggbird] 29/4/2019 07:34

Hmm, that doesn't make for bad reading at all in my opinion. The dividend suspension is no real surprise and exactly the right move to help sort things out as quickly as possible.

[p1nkfish] 29/4/2019 07:34

Quick read suggests Perfect is £1.5M down at Interims. Overall sell-off looks overdone by quite a margin.

"§ Reported revenue (excluding the benefit of acquisitions) was £24.9m (31 January 2018: £26.4m)"

[p1nkfish] 29/4/2019 07:31

Good Yorkshire based CFO hire. Pleased to see.
Nice one.

[74tom] 28/4/2019 22:38

Kirk 6, only 13 days ago you said the following;

“Finally starting to move this is just stupidly slow. Roll on 60-70p post results”

Now you’ve gone manic depressive...my guess is that you sold last week rather than hold through results? If yes then fine, but to change your stance so much in a couple of weeks is a bit embarrassing?

[kirk 6] 28/4/2019 21:20

Agreed this could be a huge recovery story but there won't be a turnaround in tomorrow's statement. It will be more likely end of Q4 into 2020 if there is one

[p1nkfish] 28/4/2019 20:48

Hope so 74. They stated they will address the strategy and that suggests a change of some sort compared to the approach Perfect took and the initial approach Proactis took under Hamp Wall.

Changing what hasn't delivered into something that's more likely to. My eyes will be focussed on that.