Proactis Holdings PLC (LON:PHD), the business spend management solution provider, today issued a trading and financial update specifically noting the impact of COVID-19 on the Group.
The Group’s business is based primarily on a recurring revenue, long term, SaaS based contract business model which offers robustness and security in periods of short-term uncertainty and a high degree of visibility.
The Board wishes to emphasise that its priority has always been the health, safety and well-being of our people and our customers. The Board is pleased to report that all staff are working highly effectively from home after minimal disruption and are supporting our customers with no compromise on service levels.
The Group has been carefully monitoring the developments with respect to the COVID-19 outbreak and the impact, both actual and expected, on its business activities. Whilst the full impact on the general economy is not yet known, the Group has continued to trade well through the early stages of the COVID-19 crisis. Specifically:
– Total contract value (“TCV”), excluding the value of renewals, has increased from £7.5m (6 months to 31 January 2020) to £10.4m (8 months to 31 March 2020) against a comparator of £11.3m for the year ended 31 July 2019;
– Organic growth in annual recurring revenues (“ARR”) of buyer subscriptions in the period since 31 January 2020 has been maintained; and
– Revenues, profitability, cash flow and net debt remain in line with management’s expectations and have not been materially affected by the COVID-19 crisis.
Outlook
The Group has responded well to a period of significant disruption and uncertainty. Whilst mindful of potential delays to new customer contracts and the implementation of existing projects in the short-term during the early stages of the COVID-19 crisis, the Board remains confident of the opportunity to accelerate new business substantially in the medium term. Cash flow has been strong and the Group remains comfortably within its existing facilities.
Accordingly, at this stage, the Board maintains its guidance for the full year outcome and its confidence for the continued progression of the Group.
Notice of Results
The Group intends to release its interim results for the six-month period ended 31 January 2020 on 29 April 2020.
