6th Oct 2014 07:46
LONDON (Alliance News) - PROACTIS Holdings PLC Monday posted a decline in pretax profit for the year to end-July, as two acquisitions during the year helped to boost revenue but added to costs.
The software provider proposed a total dividend of 1.1 pence per share, up from 1.0 pence.
PROACTIS posted a pretax profit of GBP146,000, down from GBP304,000 a year before, as a rise in revenue to GBP10.2 million from GBP8.0 million was offset by higher administrative expenses, and by exceptional administrative and amortisation expenses.
Revenue was boosted by acquisitions, which contributed GBP1.7 million in revenue during the year. PROACTIS acquired EGS Group Ltd in February and Intersource Inc in June. Following the year end, it bought Intelligent Capture Ltd August 1.
PROACTIS said each of its acquisitions is performing to its expectations. The company said its integration programmes are progressing well. It noted that its scope for cross-selling remains, but is "not essential for the acquisitions to be successful". The company is continuing to review further merger and acquisition opportunities.
PROACTIS signed 38 new deals, resulting in an order intake of GBP5.3 million, compared to GBP2.8 million on 35 new deals a year before. Order intake was buoyed by two large deals signed with Fifth Third Bank and the Blue Cross Blue Shield Association.
The company's client based rose to around 500, from 300 a year before.
PROACTIS said it had benefited from "substantial cost reductions" in the year before. It has made further cost reductions in its acquired businesses, it said, leading to a run rate of profitability that "is significantly ahead of that reported".
"We are very pleased with the group's increasing momentum and are confident that it is in a strong position for growth," the company said in a statement.
Shares in PROACTIS are trading up 13% at 90.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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