Proactis revenues rise but post-acquisition costs lead to losses

By Iain Gilbert

Date: Wednesday 11 Oct 2017

Proactis revenues rise but post-acquisition costs lead to losses

(ShareCast News) - Software company Proactis announced on Wednesday that it had seen earnings and revenues increase over the financial year leading to 31 July, but still posted an operating loss due to administrative expenses related to recent acquisitions.
The AIM-listed firm increased its revenue 31% to £25.4m over the year as it posted an underlying growth of 9% for the same period and had bumped EBITDA up 49% from the same time twelve months ago to £7.9m.

However, it reported a statutory operating loss of £2.6m, after having made a profit of £1.9m in 2016, due to non-recurring administrative expenses related to acquisitions.

Earnings per share increased 25% to 9.0p.

After acquiring e-procurement business Millstream Associates in November 2016, it had also agreed to acquire US-based spend management solutions company Perfect Commerce for more than £100m.

The group's order book increased 7% to £28m helping it raise cash balances to £4.3m from £3.6m.

Confident of the outlook, chairman Alan Aubrey said, "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," he added.

As of 0930 BST, shares had dropped 5.26% to 162.00p.


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