24 February 2021
- Proactis, the digital trade experts, today issued a trading update for the six-month period ended 31 January 2021.
The Group's progression over the period has been strategically significant with encouraging commercial traction and growing pipelines in each of its operations in France, Germany and the US under the new go-to-market strategy. In addition, the Group signed its first bePayd contracts. Delivering these milestones validates the Group's strategy and provides confidence of sustainable momentum and progression in the second half of the year and beyond.
New business deal intake for the period was strong with total contract value ("TCV") of £6.7m delivered, despite the persistence of previously announced COVID-19 related headwinds (H1 2020: £7.5m; H2 2020: £7.1m). Customer churn for the six-month period of £1.5m (31 January 2020: £2.1m) was in line with the Board's expectations and included £0.3m from Heightened Risk Accounts ("HRAs") as defined in previous announcements.
Operating margins have improved following the restructuring of the Group's management team and operating cost base and it is expected to report revenues for the six-month period of £23.7m (H1 2020: £24.5m) and Adjusted EBITDA* of £6.2m (H1 2020: £5.6m), against a comparative period unaffected by COVID-19.
Tim Sykes, CEO, commented, "I am encouraged by the progress the Group has made during the period as our strategy becomes embedded within our teams across the Group. We have met every milestone that we needed to in order to validate our strategy for mid-market business spend management solutions and for bePayd and we can now push forward with confidence to pursue the market opportunity we have."
View the full trading results
* Adjusted EBITDA is calculated by adjusting profit before taxation to exclude the impact of net finance costs, depreciation, amortisation, share based payment charges and non-core net expenditure.