25th Aug 2020 10:57
(Alliance News) - Proactis PLC said Tuesday it expects to report a performance for its recently ended financial year in line with market expectations, even as it signalled a decline in earnings and revenue.
For the year to the end of July, the spend management software firm expects to report adjusted earnings before interest, taxes, depreciation and amortisation at GBP11.8 million, down 22% from GBP15.1 million the year before.
This is on revenue that is set to drop by 9.1% to GBP49.2 million from GBP54.1 million.
Although Proactis reported a 29% year-on-year increase in total contract value for the year at GBP14.6 million from GBP11.3 million, the company did note the Covid-19 pandemic slowed down the conversion of the sales pipeline of its new supplier-paid product bePayd.
Looking ahead, Proactis said its outlook for its current financial year is encouraging, with expectations of further increases in the total contract value over the coming years.
However, the company remains cautious due to the economic backdrop and associated risk across new business trends, project implementation deferrals, and volume-based contracts.
"We delivered an encouraging new business performance in the period against a challenging macro-economic backdrop, demonstrating the effectiveness of our strategy, the resilience of our business model and the ability of our teams to deliver despite a change in working practices," said Chief Executive Officer Tim Sykes.
"There can be no certainty about the impact that the pandemic will have on our markets. Demand has been marginally subdued through this period and sales processes have been more challenging because of competing priorities but the group is well-positioned to continue to capitalise on the opportunities available to it," Sykes added.
Shares in Proactis were down 5.0% at 36.10 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
PHD.L