PHD Proactis Holdings Plc

RNS Number:7304B
PROACTIS Holdings PLC
08 August 2007



For immediate release                                              8 August 2007

                             PROACTIS Holdings PLC
                   ("PROACTIS", the "Group" or the "Company")

                            Pre-close trading update

PROACTIS, the specialist Spend Control software provider, today provides a
pre-close trading update for the year ended 31 July 2007.

The Group continued to grow the business during the year, winning over 40 new
clients. These include some impressive names from the commercial world including
Virgin Active, CB Richard Ellis, the United Nations, and The Tote; and seven
local authorities, including Bristol City Council, London Borough of Newham and
Torfaen CBC.

The integration of the two acquisitions, Requisoft Plc and Alito UK Limited, is
progressing to plan and both are contributing in line with our expectations. The
Group is anticipating a final earn out payment on Requisoft Plc, based on its
trading for the period from the date of acquisition to 31 July 2007, toward the
mid range of that indicated at the time of the acquisition. Whilst the Group
continues to manage Alito on a relatively stand alone basis, the integration of
Requisoft has resulted in the elimination of approximately #0.3 million of
annualised costs, the benefit of which should be realised in subsequent
financial years.

The Group has launched in North America and has signed new partners and several
end user deals including Pennsylvania State Treasury and City of Trenton. More
recently it signed a potentially very exciting sponsored joint development and
marketing agreement with Microsoft to provide its core product to Microsoft and
its partners in the North American market. PROACTIS' software will be tightly
integrated into the MS Dynamics solution, a key Microsoft platform, initially
for the public sector. The faster than expected development of our position in
North America has required greater investment than previously anticipated but
the Board is confident that it is a proper response to the size and timing of
the opportunities available in that geography and sector.

Revenues and gross margin will be in line with market expectations. The earlier
than expected investment in our US operations and the non-recurring costs
arising from the integration of acquisitions, will result in an earnings
shortfall against market expectations, but earnings will still be significantly
ahead of the prior year before the exceptional costs of the Admission to AIM.
The Board is confident that, having made this investment, the Group is well
positioned to accelerate growth and the achievement of its longer term
objectives.

PROACTIS expects to announce its Preliminary Results for the year ended 31 July
2007 during October 2007.

                                    - ends -


Enquiries:

PROACTIS                                                           01937 545 070
Rod Jones, Chief Executive Officer                                 07867 521 982

Weber Shandwick Square Mile                                        020 7067 0700
Nick Oborne / John Moriarty / James White

Teather & Greenwood (Nomad)                                        020 7426 9000
Gareth Price / Simon Brown

Notes to Editors:

PROACTIS creates, sells and maintains specialist software which enables
organisations to streamline, control and monitor all internal and external
expenditure, other than payroll. PROACTIS is already used in over 150
organisations in the UK from the commercial, public and not-for-profit sectors.

PROACTIS is a profitable, high growth business head-quartered in Wetherby, West
Yorkshire. It develops its own software using an in-house team of developers and
sells through both direct and indirect channels via a number of Accredited
Channel Partners.

PROACTIS 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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