PROACTIS Holdings PLC Trading Update (0171X)
August 25 2020 - 2:00AM
UK Regulatory
TIDMPHD
RNS Number : 0171X
PROACTIS Holdings PLC
25 August 2020
25 August 2020
Proactis Holdings PLC
Trading Update
Proactis Holdings PLC, the business spend management solution
provider, provides an update on trading for the financial year
ended 31 July 2020.
Trading Update
The Group's performance was in line with board and market
expectations for the year despite the emergence of the COVID-19
global pandemic during the period, demonstrating the resilience of
the Group's business model.
New business deal intake for the year was at a record high as
the Group secured a 29% increase in total contract value ("TCV") of
GBP14.6m (2019: GBP11.3m). The Board maintains its expectation of
increased levels of TCV over the coming years, with a growing
pipeline and momentum building following the roll-out of the
Group's new go-to-market strategy.
The Board expects to report revenues of GBP49.2m for the year
and adjusted EBITDA of GBP11.8m.
Net bank debt as at 31 July 2020 was GBP37.1m (31 July 2019:
GBP36.5m) with the year-end position impacted by the timing of
settlement in certain accounts receivable balances as well as lower
transaction volumes due to COVID-19 in the Group's outsourced
services business. If volumes had been at the same level as prior
period reporting dates, net debt would have been approximately
GBP36.0m.
This encouraging performance has been achieved despite the
impact of COVID-19 which has caused slower pipeline conversion of
the Group's new supplier-paid solution, bePayd, with prospects
temporarily shifting priorities. The Board remains encouraged by
the levels of interest in this solution and anticipates progress in
the near term.
Overall, the outlook for the new financial year remains
encouraging, although the Board remains cautious given the
macro-economic backdrop and associated risk across new business
trends, project implementation deferrals, volume-based contracts
and customer solvency. The Board looks forward to the next 12
months and is confident of delivering significant value with the
business now well positioned and with a pipeline that is
building.
Tim Sykes, CEO commented:
"We delivered an encouraging new business performance in the
period against a challenging macro-economic backdrop, demonstrating
the effectiveness of our strategy, the resilience of our business
model and the ability of our teams to deliver despite a change in
working practices.
"Moving forwards, we expect to make further progress in growing
the rate of new business intake and we will continue to focus on
retention and margin improvement to drive cash flow, whilst
maintaining a measured level of investment to support our long-term
growth ambitions.
"There can be no certainty about the impact that the pandemic
will have on our markets. Demand has been marginally subdued
through this period and sales processes have been more challenging
because of competing priorities but the Group is well-positioned to
continue to capitalise on the opportunities available to it.
Accordingly, we expect to continue to make further progress and we
remain confident in our ability to accelerate growth whilst further
improving profitability and cash flow."
Financial expectations noted above are unaudited and are subject
to the completion of year-end financial close and audit
processes.
The information contained within this announcement is deemed to
constitute inside information for the purposes of article 7 of the
market abuse regulation (EU) no. 596/2014. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
For further information, please contact:
Proactis Holdings PLC
Tim Sykes, Chief Executive Officer 01937 545070 x1115 investorcontact@proactis.com
finnCap Ltd
Carl Holmes/Matthew Radley - Corporate Finance
Andrew Burdis/Richard Chambers - ECM 0207 220 0500
Alma PR 020 3405 0205
Rebecca Sanders-Hewett, Sam Modlin, David Ison Proactis@almapr.co.uk
Notes to Editors:
Proactis creates, sells and maintains software and services
which enable organisations to streamline, control and monitor all
indirect expenditure. Its solutions are used in approximately 1,100
buying organisations around the world from the commercial, public
and not-for-profit sectors.
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END
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