Proactis Share Discussion Threads

[oregano] 19/8/2016 10:31

17x for 22% growth is not expensive IMHO, given that has nothing in for invoice discounting and 90% of revenues are recurring.

Clearly the tip helps but Invesco appear happy to pay £1.40 to increase their holding.

That they are buying in such small units implies to me that Henderson is not selling atm.

[montyhedge] 19/8/2016 10:15

Up on tip, never a good idea. P.e even for 2017 looks expensive. Good luck boys.

[oregano] 19/8/2016 09:30

tungsten's costs are double their revenues. PHD could enter the invoice discounting market whilst having a very profitable core product set. the market is currently not valuing the core PHD business generously, the invoice discounting is all upside.

[p1nkfish] 18/8/2016 16:50

This has more legs on the table than tung.
If it takes a while to shine further that's OK
It is one of the few that have made additive acquisitions that make sense and that haven't shown through fully yet even before the supplier payments capability begins.

How it handles the 145-160p area will be telling but even if it falls back it's a solid hold for 3-5 as it should achieve 200p and higher in time.

[stocky] 18/8/2016 14:35

IMO, in comparison to Tungsten, this should be trading in the 200s.

[oregano] 18/8/2016 12:27

here is the link if you want it. Page 11. 200p target.

hxxps://www.beaufortsecurities.com/img/pdfs/shares/sharesmag180816.pdf

[hydrus] 18/8/2016 09:42

In shares magazine today as a buy

[nfs] 17/8/2016 08:50

I was using their product
Inherited from a previous Cfo
So unable to answer your question with any useful detail,sorry

[pj0077] 17/8/2016 08:48

Interesting nfs

How did you find them as a company - were they dynamic or sleepy?

(I've read that they lack a marketing edge)

[nfs] 16/8/2016 21:12

And lots of recurring revenues and good forward visibility

[nfs] 16/8/2016 21:03

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

[mfhmfh] 16/8/2016 12:11

230p target price implied here...

hxxps://indigo.bluematrix.com/indigo/Viewer.action?info=SNjC%2B7mBzO872b1PJTR8wQDE80uShr1U

[oregano] 16/8/2016 12:11

a nice turnaround, only EMS on offer at the offer. nice follow through from the trading statement.

[pj0077] 16/8/2016 11:34

N+1 Singer initiated coverage today:

"PROACTIS’ four-pronged growth strategy - new buy-side customers, increased up-selling and cross-selling, monetising supplier networks and additional M&A - should drive premium revenue growth and deliver substantially increased scale to the business. The Spend Control platform includes best-of-breed eProcurement solutions that deliver proven benefits and a Supplier Commerce offering that has secured early commitments to a business model that offers transformational revenue potential. Our forecasts for both are conservative, while potentially substantial upside from the fledgling Accelerated Payment Facility (APF) service is still to be modelled in our numbers. The prospect of accelerating revenue growth, coupled with increasing revenue visibility, suggests that the shares are significantly undervalued. We initiate coverage with a Buy recommendation and 153p target price."

[davr0s] 15/8/2016 19:26

I bought in early this morning. It was a real struggle to get any volume

[pj0077] 15/8/2016 18:53

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."

[oregano] 15/8/2016 14:27

has this been tipped somewhere? lots of small buys. encouraging to see Henderson not holding them down. Hopefully finished selling.

[mfhmfh] 11/8/2016 14:41

Finncap have today raised TP to 200p

[p1nkfish] 11/8/2016 12:56

Accelerated payments will need to be separated out in future results.
Possibly very revenue enhancing but lower margins.

Jones's words couldn't be more positive and the foundation of the business looks rock solid.

Would be pleased to see more NHS mentions in future and taking Basware on in their space. Perhaps they already are or the market so large they overlap little.

Pleasing to read the results.

Good luck everyone.

[mfhmfh] 11/8/2016 12:32

bought this morning as well. great price to get in at. Update was generally bullish.

All IMHO.

[eclair] 11/8/2016 11:50

Excellent update and I've also topped up this morning, as their core business is performing strongly.

I previously mentioned that I thought uptake in their Supplier Commerce activities may not be as rapid as some expected and I note the use of the word challenging with regard to this market. I don't think expectations from this are currently priced in, so if they do succeed, I expect the share price to start motoring.

[eagle eye] 11/8/2016 11:25

Good visibility here with 76% of 2017 forecast revenue already booked.

[oregano] 11/8/2016 09:42

it will only take a write up in the IC or SCSW to add 20% on this. Management are delivering and organic growth accelerated in H2. it is properly cheap down here. take advantage of Henderson's kindness. the accelerated payment facility could really accelerate growth.

[pj0077] 11/8/2016 09:21

The seller (Hendersons) still hold 4.46 million shares in Proactis, 10.7% of the total... could take a while to fully exit (if that is their goal)unless another institution buys them as a block.

[lewis winthorpe] 11/8/2016 08:53

If only the seller could be cleared it would be off to the races