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 Shares Traded Last Trade
  -91.50p -48.16% 98.50p 3,075,719 11:38:38
Bid Price Offer Price High Price Low Price Open Price
95.00p 102.00p 167.50p 97.50p 167.50p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 25.4 -2.7 -5.9 - 91.54

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Date Time Title Posts
24/4/201811:51PROACTIS Holdings PLC1,439
03/11/200817:39Proactis, Major product upgrade3

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10:40:28102.002,4632,512.26O
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Proactis (PHD) Top Chat Posts

DateSubject
24/4/2018
09:20
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 190p.
Proactis Holdings has a 4 week average price of 100.50p and a 12 week average price of 100.50p.
The 1 year high share price is 212p while the 1 year low share price is currently 100.50p.
There are currently 92,936,123 shares in issue and the average daily traded volume is 64,505 shares. The market capitalisation of Proactis Holdings is £106,179,520.53.
24/4/2018
10:38
thefartingcommie: oh dearie me................and.....another one bites the dust...(luce..upgs....idp.....etc etc etc) March 2018 Proactis - Mouthwatering margins.(yum yum) 187.5p Epic code: PHD (Sharewatch) Before Christmas, I spent a couple of hours meeting with Hogg Robinson (HRG; 117p), a specialist that helps manage business travel expenses. I was considering writing but was beaten to the punch with a bid for the business from American Express, which is obviously involved in corporate purchasing. Whilst I was naturally miffed, it was a light bulb moment. Travel is one business buying category but I have realised just how much consolidation is taking place across the whole gamut of companies that help corporates procure products and services. E-procurement software offers an obvious way for companies to cut costs and save money and this is creating a favourable climate for businesses like Proactis to prosper. It seems a really sweet spot. In August, Wetherby-based Proactis agreed a reverse takeover by US-based Perfect Commerce to become the sixth largest cloud-based e-procurement company globally. The share price chart on page two is already demonstrating a perfect bottom left top right trajectory reflecting the fact that in the past three years Proactis has almost tripled its sales and grown profit five-fold but Hamp Wall, who was Perfect’s chief executive, has become the chief executive for the enlarged group and he’s optimistic that the company can double sales and triple profits again in the next two. History Proactis floated back in 2006 as a software start-up, developing a set of e-procurement tools. Unless you work in procurement, the jargon like “source to spend” or “procure to pay” can make this a bewildering subject but put simply, the systems are basically used by companies to manage the purchasing of all their non payroll goods and services that are required to run their business. This could be electricity, office supplies, store room inventory and so on. What Proactis’ solution does is to help an employee find the things that they want to buy, identify who their employer’s preferred suppliers are, get approval for those purchases before the commitment is made, and then communicate those orders to the supplier in an electronic format. Overall the market for this software is worth US$5bn and is growing 10% annually, says Wall, making it roughly the same size as the travel procurement market. System to order indirect supplies A local authority customer, for example, can use the software to efficiently manage their suppliers and payments. It might sound simple but it can be fiendishly complex because a local authority can easily have annual spending of £50m-£100m. There will also be many users of the system, for instance the system could be being used by dozens of schools, who might be using it to order their supplies. So the system has to incorporate sophisticated workflow and business rules to ensure purchasing is only from approved suppliers (where pre-negotiated contracts have been made or where quotes are required). Many local authorities will have put a lot of time into picking their suppliers, qualifying them, making sure they’re able to do a good job and negotiating excellent pricing but what often happens in the absence of an e-procurement system is that when a school bursar wants to buy something, they don’t know where to go. They don’t know who the preferred supplier is or what the negotiated price is. Instead, they just use credit cards to buy from elsewhere with no authorisation. The benefits of pre-negotiated contracts therefore fail to emerge. Proactis’ software solves this and other problems and is winning it many customers. Once a supplier has been connected to the system, they can put their catalogues and agreed pricing on line. When an item has been bought suppliers can then upload all their invoices electronically as an alternative to paper-based invoices. This also then allows invoice matching to go smoothly. An e-procurement system will give the person who placed the order the ability to log in and say “I got this service”... “I got this laptop”... or “it was not ok and please don’t pay the bill.” So instead of having to go off and search to figure out whether an invoice is acceptable to be paid, Accounts Payable then knows what to do and it streamlines their job. Proactis’ software also seamlessly integrates with all the major business applications like ERP. If you assume an average public sector customer has up to 5,000 suppliers, not only are errors cut down but the administrative burden of managing invoices is significantly reduced. Once all the data is in place, it can be interrogated. For example, comparisons of smaller ticket items that are often bought (eg. "I want to know how much my local schools spent on pencils in the first week of December”) and that kind of information can be used to consolidate the supplier base. Very high and demonstrable ROIs By doing all that, Proactis offers the ability to save 15-20% on indirect spend and this gives a quick payback on the cost of the software. Obviously, anything that is going to save money is a great idea for customers but as history shows, the early days of selling the e-procurement software under a traditional “perpetual licence” model proved to be inherently fragile because it called for a large capital outlay from local authorities, who were the prime users of the system. If your customers have intense budgetary pressures and no money to buy your software, it doesn’t matter how good the product is at saving money and this resulted in Proactis sometimes missing its profit targets. Move to software-as-a-service (SaaS) Back in 2010, Proactis began changing its business model from selling software licenses outright to renting, a process sometimes described as Software as a Service (SaaS). Under the new model, Proactis lets its customers access the software as a service on demand for a monthly fee, without a lumpy capital outlay. Under SaaS, Proactis obviously recognises a lower level of stated profit initially (as it moves to a more evenly spread revenue model) but since a customer typically signs up for three years, it defers income into future years. It took a few years to make this transition but this now means it generates 85% of sales from recurring income, which gives a tremendous underlying strength to the business. Considerable M&A Proactis’ approach has literally been a breath of fresh air. Customers can now take just the software or they can take some of the services or the full managed service. This flexibility has enabled the group to make huge inroads into the middle tier 2 market and local authorities. At one end, Screwfix, for example, takes just a basic service to allow suppliers to facilitate e-invoicing in order to streamline paper intensive processing and at the other end, some large local authority customers take the comprehensive solution sets. Although Proactis has been winning 40-45 new name customers under SaaS contracts in the past couple of years, the phased revenue recognition can give the impression of slower growth and this is why Proactis has supplemented that growth with acquisitions. The caterpillar has blossomed / metamorphosed into a butterfly and I suspect it still has its best years ahead of it. In 2014, there were three small deals, paying reasonable prices to add to its skills base: EGS (e-procurement, mostly public sector), Intesource (reverse e-auction functionality in North America) and Intelligent Capture (document scanning and optical character reading services). This was followed with the acquisitions of Millstream (software for handling tenders in the public sector) and Due North (a rival vendor of e-procurement systems in the public sector). Transformational acquisition Whilst its hands should have been full with all the earlier deals, last August Proactis then completed its largest acquisition of Perfect Commerce, a US-based spend management solution provider, which itself had been highly acquisitive. The £99m acquisition (£3.9m of which is deferred) is funded by a £70m placing at 165p alongside debt facilities. The deal is transformational. Firstly, it has significantly expanded Proactis into the US and France. Post the deal, the split becomes 35:35:30 for US:UK:Europe. Second, whereas Proactis had hitherto sold the system to c.600 UK local authority customers and to 250 tier 2 firms, the deal adds 150 new customers, many of which are tier 1. This is shown in the average revenue per customer of £30,000 for ‘old’ Proactis versus £171,000 for Perfect. Thirdly it throws up a number of cross selling opportunities. Whereas Proactis’ approach has been to buy businesses that are operating well but lack scale, Perfect had been buying distressed businesses (eight deals including four big ones). Its historical profitability therefore makes it look like a rag bag at first glance but as Wall notes, all but one of the businesses (Hubwoo) have been integrated and are trading strongly. Hubwoo is still 20% minority listed in France but the business is “bottoming out” and fully factored into future forecasts. Bringing Perfect together with Proactis should generate at least £5m-£8m of synergies from removing duplicated overheads and restructuring the sales team, and achieving £3.2m of this in FY18 means it has been acquired for 8.6x operating profits. Apart from synergies, there are other fish to fry. Historically, Proactis has not charged suppliers, instead deploying a “buyer only pays” model where the suppliers all connect to the system for free. Both Proactis and Perfect each have a network of 1m suppliers across their customer base and could charge them for value added services. It could also introduce “accelerated payments” or dynamic discounting so that a supplier for Proactis’ customers can request that an invoice be paid sooner than the set term if it agrees to give the buyer a discount on the invoice. The size of the discount varies according to when the supplier wants to get paid. No contribution from this just yet but it will come. 85% recurring revenue & 30% ebitda margin On a proforma basis, sales in the year to end July are expected to be £61.5m with £68.3m sales forecast next year. Including £3.2m synergies, Proactis should generate £14.6m pretax profit for eps of 11.4p (18% tax rate) this year. Next year’s target is £17.4m pretax and 13.7p eps. Ebitda margin is a mouthwatering 30%. The excitement for e-procurement isn’t company specific; look at listed US rivals Basware and Coupa, which are seeing sensational organic growth and like many Californian tech firms they aren’t even profitable. Wall adds that UK investors might not like the fact he is American for this reason and so he is upping sticks and moving to London. I suspect that with quoted paper he will be active on the acquisition front. I am a buyer.
24/4/2018
08:54
ernestsyngen: Way, way , way overdone on the share price drop. Well worth entry here and so I have for just shy of 10 Grand. What is it with shares being oversold lately after an RNS? Anyway, this will bounce back in the short term IMO
24/4/2018
08:44
melody9999: Nurdin - dunno but the impact is: "Underlying revenue growth (excluding the benefit of acquisitions and currency translation related factors) was 3% (31 January 2017: 12%)" So I read that as organic growth to be 3% - so we may be flat after currency impact. And we are still gaining new customers: "Order book2 was £47.8m (31 July 2017: £28.0m)" So hardly a disaster reflecting a 30% share price fall?
20/2/2018
09:41
eagle eye: traveltheworld, Your PER figures look a bit low. Here are my calculations. Based on current forecasts, consensus earnings for the year to July 2018 and 2019 are 11.4p and 14.5p. With a share price of 190p, that puts the PER on x 16.7 and x 13.1 respectively. Calculated on a on a rolling forward 12 month basis: 11.4p divided by 12 x 7 months = 6.65p 14.5p divided by 12 x 5 months = 6.04p = 12.69p 190p / 12.69 = 12 month forward PER x 14.97 H1 results on Tues 24th April will give us a better picture. One to tuck away unless the story changes IMHO.
11/10/2017
19:48
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.
15/9/2017
20:06
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
07/7/2017
07:46
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.
27/11/2016
14:16
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 ?
10/11/2016
09:45
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
16/8/2016
21:03
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
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