PROACTIS Holdings PLC – Interim Results

PROACTIS Holdings PLC, a global Spend Management and B2B commerce solution provider, today announces its interim results for the six-month period ended 31 January 2019.

Trading performance

• Total Contract Value signed was £6.1m (31 January 2018: £5.6m)
• New business deal activity solid: 34 new name deals (31 January 2018: 34)
• Strong upsell activity with existing customers: 54 deals in the period (31 January 2018: 49) 

Financial performance

• Reported revenue increased 5% to £27.7m (31 January 2018: £26.4m)
• Reported revenue (excluding the benefit of acquisitions) was £24.9m (31 January 2018: £26.4m)
• Adjusted EBITDA¹ decreased to £8.0m (31 January 2018: £8.4m)
• Adjusted EBITDA¹ (excluding the benefit of acquisitions) was £7.2m (31 January 2018: £8.4m)
• Adjusted EPS¹ decreased to 3.5p (31 January 2018: 5.4p)

Net debt

• Net bank debt² increased to £39.3m (31 July 2018: £29.8m) due largely to the acquisition of Esize Holdings BV (“Esize”)
• Net cash flow from operating activities was £4.4m (31 January 2018: £1.6m)
• A comprehensive programme is in place to reduce debt levels which includes the suspension of dividends for the foreseeable future

Revenue visibility

• Annualised recurring revenue³ (“ARR”) increased to £47.6m (31 July 2018: £45.1m)
• Order book⁴ was £44.6m (31 July 2018: £44.6m)

M&A

• Acquisition of Esize completed on 6 August 2018, a complementary provider of spend management solutions to buyers based in the Netherlands
• Post-acquisition performance of Esize has been encouraging and is in line with management’s expectations with reported revenues for the post acquisition period of £2.6m and Adjusted EBITDA of £0.8 

Post period end

• Operational review completed with strategic plan in place
• Appointment of new CFO announced today

 

1 – Adjusted EBITDA is stated before non-core net expenditure, amortisation of customer related intangible assets and share based payment charges and Adjusted EPS is stated after the equivalent post tax effects of Adjusted EBITDA
2 – Excludes unsecured convertible loan notes of £5.5m maturing during August 2022
3 – Annualised Recurring Revenue is the Group’s estimate of the annualised value of revenue of customers currently contracted with the Group
4 – Order Book is the Group’s current contracted revenue that is required to be recognised in future accounting periods 

Tim Sykes, Chief Executive Officer, commented: 

“This set of results is the culmination of a number of the previously reported issues facing the US, French and German parts of the Group, however much work has been undertaken and we are pleased to share the outcome of our review of operations with shareholders today.

“We are focused on executing on our plan and are confident that we have made significant steps in our journey to return the whole of the Group to its attractive core characteristics. We have a proven proposition to address a large and growing market, and we are confident that this will drive growth going forward after a period of stabilisation.” 

A video overview of the outcome of the review of the Group’s US, French and German operations from Chief Executive Officer Tim Sykes is available to watch here: http://bit.ly/phdh12019