28th Aug 2019 12:26
(Alliance News) - Proactis Holdings PLC on Wednesday said it has performed as expected in financial 2019 and has received several approaches following launch of a formal sale process.
London-listed shares in Proactis were down 5.1% at 48.39 pence in afternoon trade.
The procurement software developer expects to report revenue of GBP54.1 million for the year ended July 31, up from GBP52.2 million the year before. Adjusted earnings before interest, depreciation, taxation, and amortisation for the year is predicted to total GBP15.0 million, down from GBP17.3 million.
This performance aligns with what Proactis's board was expecting when it completed an operational review. The review was triggered by the fact that the company was not expecting to meet growth targets and resulted in a number of changes to the company, including the intention to reduce debt.
Net bank debt at the end of financial 2019 is forecast to have been GBP36.5 million, down from GBP39.3 million.
Total contract value secured in the period was GBP11.3 million, down from GBP12.1 million but more deals are expected to arise from the realisation of the company's go to market strategy in its US, French, and German teams.
Proactis acquired Esize Holdings BV in August and the post-acquisition contribution from Esize is in line with revenue and adjusted Ebitda expectations - GBP5.3 million and GBP1.9 million, respectively.
At present, Proactis is undertaking a formal sales process and " has received a number of expressions of interest".
The company's final results for its year will be published on October 31, subject to the sales process.
Proactis Chief Executive Tim Sykes said: "We are encouraged by the group's performance and especially the level of cash generation in the second half of the year. This has reduced net debt substantially and we expect this level of cash flow performance to continue as the group delivers on the benefits identified during the operational review.
"We have also made significant changes to our management team and processes - the combination of this, along with our current financial performance, offers a stable platform on which the group can build in order to exploit the considerable opportunities open to it.
Sykes added: "We approach 2020 with confidence and energy and I am confident that we will be able to demonstrate substantial progress in our business."
Related Shares:
PHD.L