PROACTIS Holdings PLC Trading Update and Notice of Results (5179E)

TIDMPHD

RNS Number : 5179E

PROACTIS Holdings PLC

12 February 2018

 
 Date:              12 February 2018 
 On behalf of:      PROACTIS Holdings PLC ("Proactis" 
                     the "Company" or the "Group") 
 Embargoed until:   0700hrs 
 

PROACTIS Holdings PLC

Trading Update and Notice of Results

PROACTIS Holdings PLC, the global Spend Control and eProcurement solution provider, is pleased to announce that it has delivered significant revenue and EBITDA growth during the period for the six months ended 31 January 2018 and trading currently remains in line to meet management expectations for the financial year ending 31 July 2018.

The Board expects to report its interim results on 24 April 2018, at which point it anticipates reporting a 123% increase in revenues to approximately GBP26.3m(1) (2017: GBP11.8m) and a 183% increase in Adjusted EBITDA(2) to approximately GBP8.5m(1) (2017: GBP3.0m).

This strong growth has been achieved following the acquisition of Perfect Commerce LLC ("Perfect") which, having traded in line with expectations since the completion of the acquisition on 4 August 2017, contributed approximately GBP13.5m revenue and GBP3.7m of Adjusted EBITDA(2) .

In addition, the Board has made strong progress in terms of delivering on the significant cost synergies that it identified at the time of the acquisition. The net annualised value of those cost synergies made to date is GBP3.3m and the Board confirms that it remains on track to deliver the target of GBP5.0m by 31 July 2018.

The rate and value of new customer wins and cross-selling activity has been strong in comparison with the prior year on a like for like basis and there was also a healthy contribution of new customer wins from Perfect. The Group's order book and pipeline remain encouraging for the remainder of the year.

1 - As a result of the acquisition of Perfect the majority of the Group's activities are denominated in either the US Dollar or the Euro currencies. Whilst constant currency performance remains in line with expectations, the translation of the trading performance denominated in those currencies has been and may be further impacted by weakening in those currencies against Sterling.

2 - Adjusted EBITDA is stated before non-recurring administrative expenses, amortisation of customer related intangible assets and share based payment charges.

Hamp Wall, CEO, commented:

"The completion of the acquisition of Perfect at the beginning of the period under review was transformational for the Group and created a significant global player. Our strong trading performance during the period, which includes encouraging traction in terms of new business across the entire Group, endorses the transaction and highlights the significant growth potential.

In particular, I am delighted with the Group's progress in terms of its realisation of cost synergies so far, which points to the excellent progress we are making in significantly restructuring the Group's operations and delivery capability.

We are extremely excited about the next six months and beyond. Not only are we confident in our continued ability to execute the integration effectively, but I believe there is a substantial value creation opportunity for the Group generally but, more specifically, within the supplier community of our customer base through both networking and our accelerated payment facility."

End

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further information, please contact:

 
 PROACTIS Holdings PLC 
 Hamp Wall, Chief Executive     Via Redleaf Communications 
  Officer 
  Tim Sykes, Chief Financial 
  Officer 
 Redleaf Communications 
 Elisabeth Cowell 
  Fiona Norman                  020 3757 6880 
 
 finnCap Limited 
  Corporate Finance 
  Stuart Andrews                0207 220 0500 
 Carl Holmes 
  Emily Watts 
 
  Corporate Broking 
  Stephen Norcross 
 

Notes to Editors:

PROACTIS creates, sells and maintains software and services which enable organisations to streamline, control and monitor all internal and external expenditure other than payroll. Its solutions are used in approximately 1,000 buying organisations around the world from the commercial, public and not-for-profit sectors.

PROACTIS is head quartered in London and floated on the AIM market of the London Stock Exchange in June 2006.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 12, 2018 02:00 ET (07:00 GMT)