TIDMPHD

RNS Number : 1027Q

PROACTIS Holdings PLC

24 February 2021

24 February 2021

Proactis Holdings PLC

Trading Update & Notice of Results

Proactis Holdings PLC ("Proactis", the "Group" or the "Company"), the global spend management solution provider, today provides an update on trading ("Trading Update") for the six-month period ended 31 January 2021.

Trading Update

The Group's progression over the period has been strategically significant with encouraging commercial traction and growing pipelines in each of its operations in France, Germany and the US under the new go-to-market strategy. In addition, the Group signed its first bePayd contracts under both the buyer-funded and the Proactis-funded models.

The Board believes that delivering these milestones validates the Group's strategy and provides confidence of sustainable momentum and progression in the second half of the year and beyond.

New business deal intake for the period was strong with total contract value ("TCV") of GBP6.7m delivered, despite the persistence of previously announced COVID-19 related headwinds (H1 2020: GBP7.5m; H2 2020: GBP7.1m). The Board expects to progress TCV in the second half of the year as the Group accelerates pipeline conversion in the US, France and Germany and as COVID-19 deferred contracts from the first half come through.

Customer churn for the six-month period of GBP1.5m (31 January 2020: GBP2.1m) was in line with the Board's expectations and included GBP0.3m from Heightened Risk Accounts ("HRAs") as defined in previous announcements. Accordingly, the Board expects to be able to report further modest progression in the Group's underlying ARR, building on that reported for the year ended 31 July 2020.

The Board expects to report revenues for the six-month period of GBP23.7m (H1 2020: GBP24.5m) and Adjusted EBITDA* of GBP6.2m (H1 2020: GBP5.6m), against a comparative period unaffected by COVID-19. Operating margins have improved following the restructuring of the Group's management team and operating cost base.

Net bank debt as at 31 January 2021 was GBP39.7m (31 July 2020: GBP37.1m). The position has been impacted by lower cash levels in the Group's outsourced sourcing business resulting from lower trading volumes impacted by COVID-19 as previously reported, and cash flow from upfront costs of the restructuring of its management team and operating cost base.

Outlook

The Group expects to be able to report performance in line with Board's expectations for the period. Whilst the Board is conscious of the ongoing impact that COVID-19 is having across the business, its confidence in the Group's prospects for the mid-term has been strengthened further through the strategic milestones that have been achieved during the period. The Board looks forward to continued progression.

Notice of Results

The Group currently intends to release its interim results for the six-month period ending 31 January 2021 on 29 April 2021.

Tim Sykes, CEO, commented:

"I am encouraged by the progress the Group has made during the period as our strategy becomes embedded within our teams across the Group. We have met every milestone that we needed to in order to validate our strategy for mid-market business spend management solutions and for bePayd and we can now push forward with confidence to pursue the market opportunity we have."

* Adjusted EBITDA is calculated by adjusting profit before taxation to exclude the impact of net finance costs, depreciation, amortisation, share based payment charges and non-core net expenditure.

Financial expectations noted above are unaudited.

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                                   01937 545070 x1115 
  Tim Sykes, Chief Executive Officer                      investorcontact@proactis.com 
   Richard Hughes, Chief Financial Officer 
  finnCap Ltd 
   Carl Holmes/Emily Watts/Matthew Radley - Corporate 
   Finance 
   Andrew Burdis/Richard Chambers - ECM                     0207 220 0500 
  Alma PR 
  Sam Modlin/David Ison/Molly Gretton                     020 3405 0205 
                                                           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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCDKNBQOBKDKBB

(END) Dow Jones Newswires

February 24, 2021 02:01 ET (07:01 GMT)

Proactis (LSE:PHD)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Proactis Charts.
Proactis (LSE:PHD)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Proactis Charts.