PROACTIS Holdings PLC, a global Spend Control and eProcurement solution provider, issues its interim results for the six month period ended 31 January 2013.
Post period highlight
- Reported revenue increased by 7% to £3.9m (31 January 2012: £3.7m)
- Total contracted, deferred multi-year revenue increased to £5.9m (31 July 2012: £5.7m)
- Underlying operating profit £143,000 (31 January 2012: £196,000)
- Strong balance sheet with cash balances of £2.0m (31 January 2012: £2.3m)
- Total Initial Contract Value signed on new deals was £1.5m (31 January 2012: £1.8m) with £0.8m recognised in the period (31 January 2012: £0.5m)
- Annualised contracted revenue maintained at £5.1m (31 July 2012: £5.1m)
- Deal activity is buoyant with 15 new name deals (31 January 2012: 15) and continued strong customer loyalty with 29 upgrades in the period (31 January 2012: 34)
- Uptake of multi-year, transactional priced Cloud/SaaS solutions is in line with expectations - six new customers (31 January 2012: five)
- Greater visibility of forward revenue and a more predictable cash flow profile
- Entry into the Indian Market through new Joint Venture
Rod Jones, Chief Executive Officer, commented:
"I am pleased with the progress of the Group as it continues to grow revenue and to generate profit. The Group's revenue growth has been generated from its fixed income long term Cloud/SaaS contracts signed in prior years and, in line with the Group's stated strategy, it has continued to build a greater level of visibility over its future revenue. This is a particularly important performance indicator and the mix of Cloud/SaaS based deals to perpetual licence deals remains extremely significant to short term profitability for the foreseeable future.
"I am excited about the progress of the Group's operation in India, albeit at this early stage. The proposition of providing procurement services using the Group's software as a platform is significant, and the signing of an early pilot client that was delivered by our Joint Venture partners through their network is very encouraging. I look forward to reporting on the development of this business.
"New deal closure remains challenging, as ever, but sales and marketing activity is high and the Group has good visibility of new deal opportunities, through both its direct and its indirect channels, and a solid forward order book for its consultancy services."