PROACTIS Holdings PLC (LON:PHD), the global Spend Control and eProcurement solution provider, has today announced 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 £26.3m1 (2017: £11.8m) and a 183% increase in Adjusted EBITDA2 to approximately £8.5m1 (2017: £3.0m).
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 £13.5m revenue and £3.7m of Adjusted EBITDA2.
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 £3.3m and the Board confirms that it remains on track to deliver the target of £5.0m 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, PROACTIS Holdings PLC 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.”