PROACTIS Holdings PLC LON:PHD the specialist Spend Control solution provider, this morning announced its audited results for the year ended 31 July 2017.
Following the period under review, the Company acquired Perfect Commerce Group LLC which completed on 4 August 2017 and has since positioned PROACTIS as the sixth largest global ePurchasing pure-player by revenue.
Financial highlights:
— Reported revenue increased by 31% to GBP25.4m (2016: GBP19.4m)
— Underlying organic(1) growth of 9% (2016: 7%)
— Annualised Contracted Revenue(2) has increased by 28% to GBP22.6m (2016: GBP17.6m)
— Order Book(3) increased by 7% to GBP28.0m (2016: GBP26.1m)
— Adjusted(4) EBITDA increased by 49% to GBP7.9m (2016: GBP5.3m)
— Statutory operating loss was GBP2.6m (2016: profit GBP1.9m) due to non-recurring administrative expenses related to the acquisitions
— Adjusted(4) earnings per share increased by 25% to 9.0p (2016: 7.2p)
— Strong cash balances of GBP4.3m (2016: GBP3.6m)
— Net debt of GBP0.9m(5) (2016: net debt GBP0.5m)
— Increased proposed final dividend increased to 1.4p per share (2016: 1.3p)
Strategic highlights:
— Strategic acquisition of Millstream Associates Limited, completed 16 November 2016
— Appointment of new CEO, Hampton Wall, following acquisition of Perfect
Note 1: Weighted average growth of all the companies within the Proactis Group at 1 August 2016, ie. excluding Millstream and Perfect (the “Existing Group”).
Note 2: Annualised Contracted Revenue is the Group’s estimate of the annualised run rate of subscription, managed service, support and hosting revenues currently contracted with the Group (“ACR”) as at 31 July 2017.
Note 3: Order Book is the Group’s current contracted revenue as at 31 July 2017 to be recognised in future accounting periods.
Note 4: Before the impact of non-recurring administrative expenses (related to the Group’s acquisition during the year and the post-acquisition integration and re-organisation programmes), amortisation of customer related intangible assets and share based payment charges.
Note 5: Following the acquisition of Perfect Commerce LLC on 4 August 2017, which was financed in part by new debt facilities provided by HSBC Bank plc, net debt has increased substantially to approximately GBP30m.
Alan Aubrey, Chairman, commented: “The strong trading and financial performance has set a positive tone for what is set to be an exciting year ahead following the Group’s transformational acquisition of Perfect Commerce post period end.
“Commercial progress was at normalised levels during the year with a strong performance in terms of new names, upselling and customer retention and future performance underpinned with high levels of forward visibility through recurring contracted income. There was a substantial improvement in the rate of profitability, both organically and as a result of the inclusion of the higher margin Millstream business. The acquisition of Millstream was the fifth acquisition in a three-year timeframe and, given the encouraging post-acquisition performance, the Group has, once again, demonstrated its ability to implement optimal integration strategies.
“The Group is now engaged heavily in the integration process with Perfect as it looks to realise the synergistic benefits of the acquisition, with its track record holding the Group in good stead. The Board is encouraged by the early stage progress it has achieved and also by trading in the first months within the Group, which has been in line with its expectations. M&A remains a fundamental part of the Group’s growth strategy with a pipeline of opportunities under review.
“We are also pleased to welcome Hamp Wall to the business as Chief Executive Officer and are confident in his ability to lead the business forward at this exciting time in order to help the Group realise its growth strategy.
“The Group is well positioned for the coming year and the Board looks forward to driving further value for its shareholders.”
