Proactis Share Discussion Threads

[hydrus] 14/10/2015 19:34

I do think there is room for short term price appreciation as its broken out and looking at current year forecasts, which are conservative in my view and will likely be beaten, PE drops to about 14 to 15.

[hydrus] 14/10/2015 18:49

Thanks Paul very helpful.

[paulypilot] 14/10/2015 18:43

Had a meeting with CEO & FD today - very interesting company (I've held for a while).

My personal view - I think it stacks up at the current valuation, based on what they've already got - something like 17 times earnings - so not a bargain, but reasonable for the quality of company.

The 3 acquisitions in recent years have clearly been very successful - small, but profitability has risen a lot since joining PHD - some might be capitalising Dev spend possibly, but still good deals.

The interesting stuff is what they are planning wrt the supplier network - and accelerated payments.

I see ambitious management here, doing good things, with a very high % of contracted, recurring revenues, and the growth areas in for free.

Am not saying the price should be higher now, but I'm looking forward 1-3 years, and seeing a significantly bigger business.

Regards, Paul.

[p1nkfish] 14/10/2015 18:03

Also depends if management want to raise cash for a larger acquisition. Henderson might not want to take a large part or see substantial dilution if new shares issued to fund it so running down their percentage now, prior.

[hydrus] 14/10/2015 15:57

With a 20% stake perhaps not surprising they are reducing a bit

[oregano] 14/10/2015 15:46

Henderson just don't feel the love on PHD. or rather having made 4x their money they are taking some off the table.

[tromso1] 14/10/2015 14:13

"It sounds to me as if this company is likely to grow very substantially over the next few years, so certainly an interesting situation."

[zoa] 13/10/2015 18:07

Impressive results. Wickes is under the TPK umbrella.

[p1nkfish] 13/10/2015 17:16

look at the client base for intelligent capture.

convert a couple of those names to other products and it would do no harm.

intesource performing well etc.

insc collaboration will kick in.

bank work in US quietly moving forward.

push into apac.

etc. a lot to go at with a solid product offering.

[brancho] 13/10/2015 16:39

Imp - correct

[pinkcopernicus] 13/10/2015 16:02

I think it is about to pop?

[qs99] 13/10/2015 15:57

Interesting and have taken a first position on this...

[impvesta] 13/10/2015 15:36

oregano and Brancho - presume your comments relate to this:

hxxp://www.investegate.co.uk/proactis-holdings--phd-/rns/screwfix-adopts-the-proactis-supplier-network/201510130701050302C/

[brancho] 13/10/2015 14:59

Interesting - screwfix is part of the Kingfisher group as is B&Q and wickes(?). Could lead to more?

[oregano] 13/10/2015 14:44

the first of many. it wouldn't surprise me if SCSW latched onto this. they are not averse to coming late to a good story, like Redcentric for example.

[oregano] 13/10/2015 11:28

£1 bid. they are surely going to pop.

[p1nkfish] 13/10/2015 10:58

Presentation in Asia Pac soon, in Philippines.
Would like to see more NHS work.

[oregano] 13/10/2015 09:59

i think they will get some interest when marketing these numbers and clear out Hendersons. 12% organic growth is good enough in this environment, but the supplier side could accelerate things.

Echo trades on 30x with similarly high levels of recurring income and their growth rate is similar.

[p1nkfish] 13/10/2015 08:26

breakout in progress.

[hydrus] 13/10/2015 08:08

Good progress being made

[bluerunner] 13/10/2015 08:05

Wow - all good news

[oregano] 13/10/2015 07:58

8% upgrades to EBITDA this year and a new 150p target price from Fincap.

[togglebrush] 13/10/2015 07:37

FY results summary
'
Financial highlights:
'
-- Reported revenue increased by 69% to GBP17.2m (2014: GBP10.2m)
-- Underlying organic(1) growth of 12%
-- Adjusted(2) EBITDA increased by 140% to GBP4.8m (2014: GBP2.0m)
-- Statutory operating profit increased 700% to GBP1.6m (2014: GBP0.2m)
-- Recurring Annualised Revenue(3) has increased by 22% to GBP14.3m (2014: GBP11.7m)
-- Order Book(4) increased by 39% to GBP19.7m (2014: GBP14.2m)
-- Adjusted(2) earnings per share increased by 126% to 6.1p (2014: 2.7p)
-- Proposed final dividend of 1.2p per share (2014: 1.1p)
'
Operational highlights:
'
-- Order intake of GBP5.2m from 39 new logos (2014: GBP5.3m on 38 new logos)
-- Continued high levels of upsell and client retention
-- Three key strategic acquisitions fully integrated and realising benefits in their first full year
-- New Spend Analytics solution launched incorporating new, user-defined, alert generating and notification mobile application
-- Supplier networking opportunity and accelerated payment facility now at early adopter stage
-- Appointment of Tim Sykes as full-time Chief Financial Officer, to support the Company through its next phase of growth

[eclair] 21/9/2015 08:32

If so, good that there's a willing buyer for that much stock. I can see why Henderson want to take some profit, but I wouldn't think they'd want to reduce their stake much more - they clearly saw the potential when they bought in and hopefully they believe there's a lot more to come.