PROACTIS Holdings PLC (LON:PHD), the global specialist Spend Control and eProcurement solution provider, has this morning updated DirectorsTalk on its trading for the six months ended 31 January 2016.
The Group confirms that results are expected to be in line with expectations, with revenues for the six months ended 31 January 2016 of approximately GBP8.7m (2015: GBP8.4m). The Group signed 23 new logos (2015: 20) delivering GBP3.7m (2015: GBP2.6m) of initial contract value. Both the order book and the pipeline for new deals remain strong.
In addition, the Group continues to progress its strategy of automating trade and relationships between its customers and their suppliers through its supplier networking technology. The Group is able to offer value added services to those suppliers, including an Accelerated Payment Facility (“APF”). The Group has a contracted commitment from Screwfix to deploy this technology across its supplier network and a pipeline of further potential early adopters.
Post the period end, the Group completed the acquisition of Due North Limited (“Due North”) as part of its strategic objective to consolidate the fragmented procurement technology market. Due North brings over 300 new customers to the Group, is an earnings enhancing acquisition and offers cross-sell opportunities and operational synergies in both the short and medium terms.
The Company expects to report its interim results on 27 April 2016.
Rod Jones, Chief Executive commented: “We are very pleased to be reporting another period of strong trading. The rate of new logo intake and Initial Contract Value is very encouraging and I look forward to those contracts contributing substantially to revenue in the second half of the year and beyond.
“I am pleased to have completed the acquisition of Due North, a respected competitor in our space, and I look forward to working with the Due North team to deliver even better solutions to our customers and enhanced value across the enlarged group. Due North is the Group’s fourth acquisition in two years and continues the strategy of consolidating the fragmented procurement technology market.
“Alongside the Group’s organic growth and strategic M&A, the Group remains committed to its supplier networking strategy. The progress made is in line with our expectations with Screwfix currently in the process of deploying the technology. I look forward to providing an update on further progress in due course.”
