Proactis Share Discussion Threads

[euclid5] 24/9/2018 10:26

Below taken from the N1 Singer 22/08 BN:

We have revisited valuation and made the following amendments to our assumptions: a) we have updated peergroup multiples within the peer-based component of our valuation; b) we have increased the discount to the peer group average FY 2018 EV/EBITDA multiple from 30% to 50% to reflect ongoing earnings risk; and c) we have increased the WACC in our DCF analysis from 7% to 10% to reflect the revised debt profile. This generates a new target price of 115p. Given the multiple changes in outlook in recent months, we believe that earnings risk remains to the downside ending reassurance that deal intake levels will translate into the revenues and margin expected. We therefore reinstate our recommendation with a Hold. Full year results will be released on 30 October.

[euclid5] 24/9/2018 09:56

PROACTIS Holdings PLC ("PROACTIS", the "Group" or the "Company"), the global spend management and B2B eCommerce solution provider, announces that it has received unconditional and irrevocable notices from Hampton Wall, Chief Executive Officer and Tripp Shannon exercising the conversion rights over the 2.0 per cent. convertible unsecured loan notes due 2022 (the "Convertible Acquisition Loan Notes") issued as part consideration in connection with the acquisition of Perfect Commerce, LLC on 4 August 2017.

The respective conversions of the Convertible Acquisition Loan Notes will take place after 1 January 2019 but on or before 10 January 2019. This will result in the issue of a total of 2,360,728 ordinary shares of 10 pence each ("Ordinary Shares") at that time and application will be made for the Ordinary Shares to be admitted to trading on AIM no later than 10 January 2019. A further announcement will be made at that time.



Hampton Wall has given notice to the Company to exercise the conversion rights of the Convertible Acquisition Loan Notes into 1,770,546 Ordinary Shares, being the principal amount of $3.75 million plus all accrued interest up to the date of conversion at a conversion price of 165 pence per Ordinary Share.

Tripp Shannon has also given notice to the Company to exercise the conversion rights of the balance of the Convertible Acquisition Loan Notes into 590,182 Ordinary Shares, being $1.25 million plus all accrued interest up to the date of conversion at a conversion price of 165 pence per Ordinary Share.



Mr Wall and Mr Shannon have both entered into orderly marketing agreements which govern the circumstances in which the Ordinary Shares issued to them can be disposed of during the 12 months following the issue, the terms of which are set out in the Company's admission document dated 7 July 2017 and which is available from the Company's website.



The foreign exchange rate used for the USD denominated Convertible Acquisition Loan Notes was 1.32 USD/1 GBP.



Hampton Wall, Chief Executive Officer, commented:

"Over the last year we have made significant progress in integrating the businesses that we put together in August 2017 and I am delighted to demonstrate my confidence in the prospects for the Group by committing to convert at a price of £1.65, a significant premium to today's price."

[its the oxman] 21/9/2018 11:42

Wish I bought more at 100p. High risk. But must admit, its seems to be shaping up nicely now.

[p1nkfish] 21/9/2018 09:35

A game changer that I don't believe is in the price yet until it's proven.

[p1nkfish] 21/9/2018 09:34

Yes. Has been oversold & there is demand. A sweet combination of offerings from PHD now.

Interested to see first 6 months of APF results just as an indicator. Expect slow take off then towards parabolic (at much lower margin) as take-up occurs.

Even in a less than exuberant market people will sit up and take note if/when APF gets traction. A game changer.

[rivaldo] 21/9/2018 08:24

Cheers p1nkfish.

Say it quietly, but the share price is on a bit of a roll at present. Above 136p or so and it's clear blue sky back to 190p if you believe the chart :o))

[p1nkfish] 19/9/2018 00:40

Useful, taking other services too and interfaces to/through Unit4.

[rivaldo] 17/9/2018 13:37

It does seem that an overhang's been cleared, though I suspect the 1.387m trade at 111p appearing twice means it's just a rollover/straight transfer.

[eagle eye] 17/9/2018 12:52

Not sure if it cleared an overhang, but 1.387m shares went through this morning.
Currently there is no online buy quote and you can sell in quantity at 114p (spread 112-117p).
A 75K buyer appears at auction, so someone is interested while the share price remains in the doldrums.

[red ninja] 15/9/2018 11:39

Artemis VCT IT : August Comment :-

"Although August was a quieter month for news, it did bring updates from two of our recent underperformers. Proactis has struggled to digest Perfect Commerce, a business it acquired last year. Unexpected customer attrition has been hitting sales. A trading update in August showed that these difficulties continue. Revenue and profits for the year came in below expectations, and the company downgraded forecasts for future profits. The board highlighted a healthy sales pipeline and indicated its confidence that there would be a return to stronger rates of growth – but the credibility of the management will need to be re-established. The valuation looks very attractive and that the share price was stable despite the poor news added weight to our view that poor trading was already ‘in the price’."

[p1nkfish] 15/9/2018 09:01

A game changer -

[gargleblaster] 15/9/2018 01:20

Perhaps the bottom is in - good move today!

[pj0077] 13/9/2018 15:49

Cheers Dave

[davebowler] 13/9/2018 13:01

In reasonable depth as an update.

[pj0077] 12/9/2018 15:27

As an 'update', or in greater depth?

[davebowler] 12/9/2018 13:11

Small Company Sharewatch tips this in its Sept issue.

[p1nkfish] 12/9/2018 00:19

11th Sept 2018

[p1nkfish] 03/9/2018 22:06

News today.

[p1nkfish] 29/8/2018 21:08

Proactis website used for bidding on £1Bn of work, just released.
Just goes to show how useful it is.

[p1nkfish] 28/8/2018 12:26

Soros stake is on p/e about 70, p/s about 19, p/b about 16.
Losing money but signed some interesting stuff.
Probably bought as a momentum trade as see little other reason.

[p1nkfish] 28/8/2018 08:55

Soros fund upped stake in Coups. Not massive in terms of holding vs total market cap but interesting.

[p1nkfish] 25/8/2018 11:13

Some of it came across post acquisition as the Hubwoo network is software heavy.

[pj0077] 25/8/2018 10:55

Spot on WilmavI'd expect software development capitalisation to be greater than amortization for any company in a growth phase.... with the two amounts equalising as the business reaches maturity.120 upsell deals in the last period suggests that this investment is reaping rewards.In addition they are making software investments in the Supplier Network which will boost revenue growth in the years ahead.

[wilmdav] 24/8/2018 21:53

No accountancy exams here but it might be relevant to mention that of the £3.322m intangibles amortised only £1.754m was product development. The remainder was £0.632m software for own use and £0.936m for 'customer related assets'. I assume customer related assets are what most other companies call 'acquired intangible assets'

£2.765m development expenditure was capitalised, which is £1.011m more than the amount of development amortised.