The Group said its growth has clearly been fuelled by its breadth of capability and support for blended perpetual and subscription license models. During that period, it has also increased its global presence and established new business partners to offer PROACTIS' software as a platform for managed services. The company said significant new customer wins and competitive displacements over the course of the year continue to demonstrate the strength of its broad Spend Control suite and product leadership.
"Companies clearly have a need for a very capable integrated Source-to-Contract
software suite to support their Spend Control initiatives," said Rod Jones, CEO of PROACTIS. "Our growth was fuelled by having an industry-leading suite of modular, integrated applications that support all key aspects of the procurement cycle and ultimately enable customers to manage all spend and all suppliers on a single platform."
Integrated Suite Leadership
The Group's position as a leading "best in class" Spend Control and eProcurement organisation has been further enhanced by the addition of major new modules, many new features and the introduction of mobile applications. The Source-to-Contract element of the product suite was independently rated by CapGemini as one of the markets most compelling offerings and significantly ahead of some 20 other vendors.
The Group's continued investment has enabled it to move ahead of the competition by offering a truly "end-to-end" suite of software that is required to make Spend Control processes feasible on a large scale. This puts the Group in a very strong competitive position.
PROACTIS capitalised on the high demand for Spend Control and eProcurement software, regardless of how customers choose to deploy the software. PROACTIS can deploy its solutions as a Software as a Service or on-premise, and offers the ability for customers to implement applications individually or as a complete end-to-end suite.
Capturing Greater Market Share
The Group continues to offer true multi-company, multi-currency and multi-language functionality and this remains an essential differentiator as the Group continues to win new business across more sectors worldwide. During 2013 the Group sold deals into five continents across many different sectors:
- Public Sector formed a significant proportion of the Group's new name deals this year with three Midlands Police Forces, the Government of Barbados, Bedfordshire Council and Westminster Kingsway College.
- Not-for-Profit and Charities Sector continues to be challenging because of the need to balance fundraising and expenditure but it remains a significant market with new names including Christian Aid and St John's Ambulance Service.
- Commercial Services Sector comprises many vertical sectors; all of them with different pressures and issues. New names include intu, Virgin Care, Carillion, Wilmington Holdings, Ruspetro and Euro Car Parks.
The existing customer base continues to offer the Group significant opportunity. Support revenue continues to grow and, alone, represented some 48% of total revenue for year end 31 July 2013. In addition, and just importantly, clients continue to buy additional software and extra users and are capitalising on their existing investment.
Software as a Platform for BPO Managed Services
The application of the Group's software as a platform on which BPO-based business partners can provide managed services is gaining momentum. TATA TCS selected the Group's platform and has secured its first deal with Mother Dairy. In addition, the Group's own joint venture with the Mittal family network in India, PROACTIS Total Procure, is now established from a start-up position and has secured Hope Construction and GPI as its first deals during 2013.
During the last year, the Group has successfully trialled several new managed service-based offerings to compliment its software, including supplier on-boarding and enablement, helpdesk for supplier registration process, managed auctions and electronic invoicing. Many clients have a skills or resource shortage and the Group's procurement domain expertise provides them with an added value solution.
The US and Asia Pacific teams continue to make progress and have contributed to new deal count. The most significant win was the Government of Barbados which is now live and using the Group's suite of software over an initial three-year subscription term.
Routes to Market and Market Outlook
The Group's traditional reseller business partners made a tremendous contribution this year and their adoption of the subscription license model is encouraging. This will extend their reach into the Group's Source-to-Contract product suite and offers incremental opportunities within their existing and new accounts. The Group's new BPO business partners should progress significantly in the next 1-2 years.