Proactis issues interim results for the six months ended 31 January 2021
April 2021 - Proactis, the digital trade experts, today announced its unaudited interim results for the six-month period ended 31 January 2021.
The Group's progression over the period has been strategically significant with the first US deal signed on the Group's mid-market platform meaning that the single platform solution has now been sold under the revised go to market strategy in all targeted territories. The Group was also able to secure its first instance of the Proactis-funded model for bePayd in the UK.
New business deal intake for the period was strong, with 29 new name deals (H1 FY2020: 29; H2 FY2020: 32), 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 (H1 FY2020: £2.1m; H2 FY2020: £2.3m) was in line with the Board's expectations.
Annualised recurring revenue ("ARR"), excluding heightened risk accounts ("HRAs"), increased marginally to £40.1m (31 July 2020: £39.8m) and Adjusted EBITDA* increased to £6.2m (H1 FY2020: £5.6m; H2 FY2020: £6.2m), an increase of over 10%.
"It is encouraging to see the progression of the Group over recent periods. Churn has stabilised and is demonstrably back to normal,” Tim Sykes, CEO, commented. "We are now executing our commercial business processes well in France, Germany and North America and new business momentum is accelerating for those teams. I am delighted that we have also sold our bePayd solution into two early adopters, one under the buyer-funded model and one under the Proactis-funded model. We look forward to the continued execution of our growth strategy and exploring ways to create shareholder value whilst working toward our ambition of building a leading international business spend management company."
* 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.