Share Name Share Symbol Market Type Share ISIN Share Description
Proactis Holdings LSE:PHD London Ordinary Share GB00B13GSS58 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 173.50p 172.00p 175.00p 173.50p 173.50p 173.50p 405,138 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 25.4 -2.7 -5.9 - 161.11

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Date Time Title Posts
19/1/201822:40PROACTIS Holdings PLC1,329
03/11/200817:39Proactis, Major product upgrade3

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Proactis (PHD) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2018-01-19 15:20:56174.002,2883,981.12O
2018-01-19 13:10:04173.503,4505,985.75O
2018-01-19 11:54:03174.5019,40033,853.00O
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Proactis (PHD) Top Chat Posts

Proactis Daily Update: Proactis Holdings is listed in the Software & Computer Services sector of the London Stock Exchange with ticker PHD. The last closing price for Proactis was 173.50p.
Proactis Holdings has a 4 week average price of 167.50p and a 12 week average price of 162.50p.
The 1 year high share price is 201.50p while the 1 year low share price is currently 151.50p.
There are currently 92,861,456 shares in issue and the average daily traded volume is 176,928 shares. The market capitalisation of Proactis Holdings is £161,114,626.16.
martinthebrave: Pauly Pilot take on todays results - He is cautious but gives an share price range of 205p to 274p as fair value. Proactis Holdings (LON:PHD) Share price: 163.5p (down 4.4% today) No. shares: 92.7m Market cap: £151.6m Preliminary results - for the year ended 31 Jul 2017. This is an acquisitive group of companies focused on spend control software and services. The problem we have in analysing the figures, is that a significant acquisition (Millstream) was made during the year. Then a huge acquisition was made just after the year end (Perfect Commerce LLC) - which was classified as a reverse takeover due to its size (involving a £70m placing at 165p, and £45m of new debt facilities). Therefore the composition of the group as things stand today, is very different to how it was during the year end 31 Jul 2017 - rendering the historic figures to be almost meaningless. I can't even rely on EPS calculations, as this is obviously based on the average number of shares in issue during the year, being 48.8m on a fully diluted basis. Here we are, just a few months later, and the share count has almost doubled to 92.7m. Therefore earnings have to almost double this year, to achieve the same EPS. The acquisition of Perfect was justified by the expectation of £5.0m in group cost savings. Balance sheet - looks very weak. Although substantial new equity was raised after the year end, in a £70m placing at 165p, this was used to part fund the Perfect acquisition. So the next set of accounts will probably also look weak - with intangibles getting larger with every acquisition. FinnCap has published a new note today (available on Research Tree), in which it forecasts balance sheet NAV of £99.4m at 07/2018. However, intangible assets is £138.7m within that, meaning that NTAV would be negative at -£39.3m. Personally I don't normally invest in any company with negative NTAV. So for me, the balance sheet is a deal-breaker here, hence I wouldn't invest. Earnings forecasts - FinnCap forecasts adjusted EPS of 11.4p in the current year 07/2018, and an increase to 13.7p in 07/19. Assuming we can rely on those figures, the next question is what level of PER does the group deserve? I would have thought a PER of 15-20 would make sense. Therefore that targets a share price of 205p to 274p. This compares with the current share price of 163.5p - so there's some upside if things proceed according to plan, but it doesn't look madly exciting to me. Plenty could go wrong along the way, as the growth is nearly all coming from acquisitions & restructuring - fraught with risk. My opinion - I tend to steer clear of highly acquisitive groups - there's just too much scope for something to go wrong. Also, I don't like the weak balance sheet here - with significantly negative NTAV forecast. So overall it's not for me, but I wish shareholders well, and hope things work out for the company. I note that a highly-regarded tech analyst has raised question marks over the wisdom of the Perfect acquisition. That's another reason which is adding to my caution here. I think I'd like to revisit this in a year's time, once we have a full year's trading of the enlarged group.
eagle eye: A few notes from the Proative Investors event held on Wednesday: The new CEO Hamp Wall presented for 20mins and took 10mins of questions. There was also a good opportunity to speak to management and staff after the event. Many senior managers were attending, so a good chance to speak to the Proactis team. Hamp commented there were very good synergies between the two companies, with little product overlap. In the UK the company will be able to tender for Tier 1 opportunities with Perfect Commerce's products. In the US there appears to be a big opportunity for the Proactis Tier 2 products and Hamp commented that this is a '90% green field opportunity'. The model is to achieve organic growth of approx 10% and boost top line growth to 20 - 25% via acquisitions. Going forward, M&A will be a big part of the growth strategy. I got the impression the intention is to bed the new enlarged business down as fast as possible. With revenue split approx equally between the US/UK/Europe the objective is to operate internationally with scale and build a platform so acquisitions can be integrated as fast and efficiently as possible. One interesting bit I gleamed from the evening was that Perfect Commerce owns specialist software that speeds up the process of network integration. It's called Hubwoo and was acquired by Perfect Commerce in November 2015. Management consider it a key strategic asset. Consenus earnings expectations are approx 8.6p for the year to July just ended, and with 11.4p pencilled in for 2018. With the current share price at 176p, that puts the prospective PER on about x15.4. Hamp Wall said there is a real momentum within the company and I didn't see that as a cheap throwaway comment. The next couple of reporting periods will be critical as the companies morph into a single entity, but it looks like interesting times lie ahead IMHO. Eagle Eye
p1nkfish: Question - where does this open today? 5.6% discount was it? Might that be because they expect the share price to perk up on increased scale? I don't see this necessarily settling back to the placing price. I was thinking small & looking in the wrong place. Proactis have always been a consolidator and low hanging fruit and the easy targets close to home largely taken. It didn't come to mind that they might taken such a jump up in size and scale. Very impressive. Strong Hold for another 3-5 years. Bet ISIS are kicking themselves for their exit to Henderson. Has cost them a few bob. Good luck everyone.
davidosh: The company are doing well and the share price at an all time high so why do the directors not want to meet and share the good news with investors and shareholders ? Spot the difference.... 28 November 2015 To the Shareholders of PROACTIS Holdings PLC Notice of Annual General Meeting Dear Shareholder, I am pleased to be writing to you with details of our Annual General Meeting (AGM) which we are holding at the offices of Redleaf Communications at First Floor, 4 London Wall Buildings, London EC2M 5NT on Monday 21 December 2015 at 10.00 a.m. This year just three working days before Christmas... Notice of Annual General Meeting Dear Shareholder, I am pleased to be writing to you with details of our Annual General Meeting ("AGM") which we are holding at Riverview Court, Castle Gate, Wetherby, LS22 6LE on Monday 19 December 2016 at 9.30 am. I actually think it is difficult to complain about Agms being held at or near company HQs but are the directors really encouraging engagement and attendance at the members one and only meeting each year if held at such an early time. If in north Yorkshire which takes four or five hours travel from the south East (where 75% of shareholders in any companies tend to be) I think noon or 2pm are sensible times to start an AGM. It is strange that they think an earlier start is possible for Wetherby than London in any event ? London is very good for transport links not so Wetherby. Will they be having a dial in facility ?
carcosa: If the institutions wanted to buy £12.5m of existing shares then the shareprice would go up substantially higher than 135p; so this is a chance for them to gain a worthwhile holding at a small premium The company requires fresh capital so if the institutions bought within the market as you suggest then that would already be existing equity and no new equity would be created for the company. result for retail shareholders is a dilution of the % of the company held but compensated for by an increase in the share price and a nice warm fuzzy feeling
lewis winthorpe: The negotiation on the placing price with investors didn't happen yesterday, The share price was £1.40+ when this started so it was a discount. It says conditional placing but IMHO its done deal You have seen how quickly PIs have swallowed these up this morning. £25mill revenue and more or less doubled EBITDA, this was a good deal. Easily on track for £50million revenue over next 3 years IMHO and most of that recurring. This has a target of £2 but expect that to increas now. L.
ramridge: Two large sells this morning 222,000 shares is keeping the lid on the share price. Interesting to see what happens by close of play.
nfs: 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
pj0077: 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."
gargleblaster: Thought I would show the full article, for those who don't have full access! Procuring growth I noted with interest the pre-close trading statement from PROACTIS (PHD:93p), a Wetherby-based company that creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. The company's products and platforms are used by over 500 organisations globally, including commercial, public and not-for-profit sectors, and it is now the largest independent eProcurement solution provider to the UK public sector. PROACTIS develops its own proprietary software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners. It's a company that has been on my radar for quite some time after my interest was sparked when it signed a collaboration agreement with one of the constituents of my 2015 Bargain share portfolio, finance lender Inspired Capital (INSC:20p). Specifically, PROACTIS is developing an accelerated payment facility (APF) for UK small and medium-sized enterprises (SMEs) which will enable Inspired to accelerate the settlement of suppliers' pre-qualified invoices. PROACTIS estimates that its own 500-plus blue-chip clients are spending between £60-80bn each year across one million SME suppliers, so offering a significant market opportunity to tap into. Indeed, research conducted by the Federation of Small Businesses highlights that one in five UK SMEs are being impacted by a 'serious deterioration of payment practices' and buying organisations are increasingly exerting power on their supply chain with SMEs experiencing the adverse effects of extended terms of trade. This trend presents an opportunity for the provision of supply chain finance for SMEs, while allowing buyers to maintain their working capital position. The boards of both PROACTIS and Inspired believe that by offering a solution to cash-pressurised companies the APF will have a high level of take-up within UK SMEs. This is good example of how the company is monetising its proprietary electronic trading platform, Activate, by offering value added services to its customers' suppliers. Activate increases transparency within the payment cycle for vendors by clearly showing where their purchase invoice is in the invoice processing cycle. Acquisitions create cross selling opportunities In order to accelerate the development of Activate, PROACTIS acquired Intelligent Capture, one of the UK's leading providers of document scanning and optical character recognition services, a year ago. Priced on 8 times operating profit, and with recurring revenue accounting for 85 per cent of annual revenue of £1.5m, the £1.55m bolt-on acquisition has proved a shrewd strategic buy. That's because PROACTIS saw potential to cross-sell its existing services to Intelligent Capture's 40 clients. It's been successful too. For instance, Denbighshire County Council, an organisation that has been using PROACTIS own 'purchase-to-pay' solutions that automate and streamline the entire day-to-day buying process, from request through authorisation, ordering, invoice processing, and payment via accounts payable, has just implemented a managed service using Intelligent Capture. The Council has implemented a hybrid approach to invoice processing, with paper invoices being scanned and the resultant electronic images being uploaded to the PROACTIS managed service. Once uploaded, the relevant invoice information can be extracted and checked for accuracy, and any information not automatically located can then be resolved by a service clerk. The same managed service process is used for imported PDF invoices that are received by e-mail and a dedicated query desk process is provided that will allow the Council to resolve invoices with queries around data that is missing or invalid, including the ability to easily engage the supplier into the process. The hybrid service adopted has two significant benefits: the first is that it drives the efficiency and cost reduction agenda; the second is that it opens the door to aspects such as the supplier network and accelerated payments once benefits of the first step have been realised. PROACTIS is also cross-selling its own complementary product suite to clients of another acquisition, Intesource, an established provider of e-auction services using its own proprietary service delivery and software platform. PROACTIS paid a sensible price too (around five times operating profit on cash-free, debt free basis). The business has more than 25 clients delivering over £3m of recurring annual income and operating profit in excess of £400,000. The third strategic acquisition the company made in the past 18 months, that of EGS, strengthens its position as the largest independent eProcurement solution provider to the UK public sector, a segment of the market covering 200 organisations controlling over £15bn of public spending across 150,000 suppliers. More than 90 per cent of EGS' clients follow a subscription business model based on three or four year contract terms. At the time of acquisition, EGS was generating annual recurring revenue of more than £1.6m and operating profit of £400,000 from around 70 clients that use its hosted software to control more than £2.5bn of spend through 40,000 active suppliers. Importantly, all these bolt-on acquisitions have delivered which is why PROACTIS will report a surge in profits and revenues when it releases its full-year results on Tuesday, 13 October 2015. Last week's pre-close trading update confirmed that revenues increased by 69 per cent to £17.2m in the 12 months to end July 2015 to lift cash profits by 130 per cent to £4.6m. After deducting a non-cash charge of £1.7m for amortisation and depreciation, this means that PROACTIS' adjusted pre-tax profit is set to rise from £1.1m to £2.9m. On this basis, expect underlying EPS to more than double from 2.6p to 6.1p and support a 9 per cent rise in the payout per share to 1.2p. Strong organic growth story Of course, it's important that there is organic growth coming through too rather than just the profit uplift from some well-timed strategic acquisitions. On this score there are no concerns at all. In the first half to end January 2015, PROACTIS increased its like-for-like revenues by 18 per cent and reported 20 contracts with new customers which had an initial contract value of £2.6m. The company also enjoyed continued strong support from its existing client base with no fewer than 43 client product upgrades in the six month period. The pre-close trading update reveals that it signed a further 19 deals with new customers in the second half and I would expect the closing order book, which increased by 20 per cent on a like-for-like basis to £15.5m in the six months to end January 2015, to have risen sharply since then. This order backlog is important beacuse PROACTIS is focused on increasing the lifetime value of a customer relationship and improving the visibility of future revenue. As a consequence subscription (or managed service, which have similar characteristics) deals have become an increasing large proportion of the new business across all channels to market. For instance, of the £2.6m of orders placed with new clients in the first half to end January 2015, about £500,000 was booked as revenue in the period. This means that as new contracts are won the amount of deferred contract revenue is increasing significantly as can be seen by the £6.6m of deferred income on the company's balance sheet at the end of January 2015, up 21 per cent since July 2014. In turn, this improves the quality of PROACTIS' income stream and the earnings multiple investors are willing to value its shares on. The increasing size of the client base, and scope for cross selling, is playing its part too which explains why the number of subscription based deals has exceeded the number of licences in every six month period since the second half of fiscal 2013. Moreover, investors are far more likely to attribute greater value to recurring revenues than one-off licence fees especially as renewal rates across all PROACTIS' business segments remain robust high. This high contract retention rate also highlights the value to potential customers of the product and service offering in terms of the savings and efficiencies they generate. Another step change in profits It's worth flagging up too that there is potential upside to analyst earnings estimates for the current financial year to end July 2016. Head of research Andrew Darley at broking house finnCap expects PROACTIS to deliver a 11 per cent increase in revenues to £18.9m, a third rise in cash profits to £6m and pre-tax profits of £3.3m in the 12 month period. On this basis, expect EPS of 6.6p and another hike in the dividend to 1.3p a share. So after accounting for forecast net funds of £2.2m, worth 5.5p a share, at the end of July 2015, this means that the shares are being priced on 13 times cash adjusted earnings estimates and offer a prospective dividend yield of 1.4 per cent. But these forecasts don't include any contribution from the Inspired collaboration agreement, a conservative assumption in my view. There is scope for uplifts from further bolt-on deals too. That's because the board outlined at the time of the interim results in March that "it remains committed to further M&A activity and is in an excellent position to provide a platform for further complementary bolt-on acquisitions." I would agree because having run through my cashflow model I reckon that after factoring in anticipated capital expenditure of £2m this fiscal year, then analysts' cash profit forecasts of £5m should result in free cashflow of somewhere between £2m and £2.3m and lead to a doubling of net funds to £4m, or 10p a share, by the end of July 2016. So given the record of PROACTIS' board of making earnings accretive acquisitions, then if only half that cash pile is deployed on sensibly priced bolt-on deals, I reckon there could be scope for 10 per cent earnings upgrades from acquisitions alone. Importantly, the interests of the insiders are clearly aligned with outside shareholders because chief executive Rod Jones owns 4.96 per cent of the shares, finance director Tim Sykes owns 0.5 per cent and operator officer Sean McDonough has 0.8 per cent. Founder and non-executive director Rodney Potts owns 22.5 per cent of the shares and non-executive chairman Alan Aubrey, who is also the chief executive of FTSE 250 technology fund IP Group (IP:212p), has a 2.6 per cent stake. This adds some comfort that the directors will continue to use the company's cash pile wisely. Chart break-out imminent Admittedly, I have been monitoring PROACTIS for quite some time with a view to initiating coverage, but have been holding off until a chart break-out through the 97p share price high, which halted prior rallies in November and May this year, is imminent. I feel that time has come. Techical analysts will note that a confirmed close at 98p or above will clearly signal a triple top break-out on the point-&-figure chart and, in my opinion, pave the way for a return to the 2007 bull market high of 117p. Furthermore, with a bumper set of full-year results set to be released in a few months time, I can see the shares re-rating in the interim period as investors' cotton onto the organic and acquisitive growth story PROACTIS offers. Trading on a bid-offer spread of 91p to 93p, valuing the company at £36.6m, I rate the Aim-traded shares a strong buy with potentially 25 per cent share price upside on offer to my fair value target price of 117p. At that level they would be rated on a more reasonable rating of 16 times fiscal 2016 cash adjusted earnings estimates. Buy.
Proactis share price data is direct from the London Stock Exchange
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