PROACTIS Holdings PLC (LON:PHD), the global Spend Control and eProcurement solution provider, has today updated the market on trading for the year ended 31 July 2017.
The Group has delivered substantial commercial and transformational strategic progress during the year and expects to report:
* Revenues of approximately £25.4m (2016: £19.4m), an increase of 31%;
* Adjusted1 EBITDA of approximately £7.9m (2016: £5.3m), an increase of 43%; and
* Adjusted1 Profit before tax of approximately £5.3m (2016: £3.1m)
which are in line with consensus expectations.
Deal volumes have been at expected levels with 54 new name deals and 110 up-sell and cross sell2 deals.
Perfect Commerce LLC
The completion of the transformational acquisition of Perfect Commerce LLC was announced on 7 August 2017. The Group is focussing its energy on the integration process and synergy realisation and the Board is pleased to report that £1.4m of annualised cost savings have been realised to date. The Board remains confident that this will increase to £5.0m by the end of the current financial year.
Notice of Results
The Group intends to release its preliminary results for the financial year ending 31 July 2017 on 11 October 2017.
Note 1: Adjusted for non-recurring administrative expenses and share based payment charges.
Note 2: A cross sell deal is where the Group sells a solution of an acquired business into its existing customer base or vice versa.
Tim Sykes, Chief Financial Officer commented: “Our core business has demonstrated strong organic growth and a solid rate of new business wins during the year. Furthermore, our capability to sell more into our existing customer base, which is a key element of our strategy going forward as we seek to leverage the customer bases that have been acquired historically, is performing well with up-sell and cross-sell activity at new, record levels.
I am pleased that we have sustained this rate of growth alongside the Group’s strategic progress through the acquisitions of both Millstream Associates Limited during November 2016 and, more recently, the transformational acquisition of Perfect Commerce LLC, which completed during August 2017.
I relish the opportunity that the Perfect Commerce LLC acquisition provides the Group and I look forward to realising the opportunities that the business combination provides.”
Hamp Wall, Chief Executive Officer commented: “PROACTIS has delivered an excellent performance during the year prior to its acquisition of Perfect Commerce LLC. This gives me great confidence for the future prospects of the Group as we look to combine two individually strong businesses and deliver our strategy over the coming months and years. I believe the acquisition positions us to exploit the high growth areas of the spend management market and enables the business to provide our customers with an even broader product offering.”