3rd Mar 2014 10:48
LONDON (Alliance News) - Proactis Holdings PLC Monday said it pretax profit multiply in the half year ended January 31, 2013, as revenue was boosted by new customer deals and administrative costs declined.
Proactis posted a pretax profit of GBP321,000, up from GBP16,000 in the previous year, benefiting from a rise in revenue to GBP4.02 million from GBP3.92 million in the previous year and lower administrative costs.
Proactis signed 15 new deals during the period, flat on the previous year, and 39 upgrade deals, up from 29 upgrade deals in the previous year.
Proactis said that revenue from the new and upgrade deals shifted towards higher margin direct deals, and this alongside a reduced cost base had led to the improvement in profitability.
The business software company previously offered only perpetual deals to customers, but in 2010 decided to offer both subscription and perpetual licenses. Proactis said this meant that revenue from deals is recognised in future periods, not the current period, and forward visibility is increased.
Proactis confirmed its commitment to mergers and acquisition as part of its growth strategy, following its acquisition of EGS Group Ltd in February. The company is reviewing other merger and acquisition opportunities, it said.
"I am confident that the group is now at an inflection point and the opportunities for growth are substantial," said Chief Executive Officer Rod Jones in a statement.
Shares in Proactis were trading up 7.8% at 59.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PHD.L