PHD.L Regulatory News (PHD)

8 Aug 2007 11:35

PROACTIS Holdings PLC08 August 2007 For immediate release 8 August 2007 PROACTIS Holdings PLC ("PROACTIS", the "Group" or the "Company") Pre-close trading update PROACTIS, the specialist Spend Control software provider, today provides apre-close trading update for the year ended 31 July 2007. The Group continued to grow the business during the year, winning over 40 newclients. These include some impressive names from the commercial world includingVirgin Active, CB Richard Ellis, the United Nations, and The Tote; and sevenlocal authorities, including Bristol City Council, London Borough of Newham andTorfaen CBC. The integration of the two acquisitions, Requisoft Plc and Alito UK Limited, isprogressing to plan and both are contributing in line with our expectations. TheGroup is anticipating a final earn out payment on Requisoft Plc, based on itstrading for the period from the date of acquisition to 31 July 2007, toward themid range of that indicated at the time of the acquisition. Whilst the Groupcontinues to manage Alito on a relatively stand alone basis, the integration ofRequisoft has resulted in the elimination of approximately £0.3 million ofannualised costs, the benefit of which should be realised in subsequentfinancial years. The Group has launched in North America and has signed new partners and severalend user deals including Pennsylvania State Treasury and City of Trenton. Morerecently it signed a potentially very exciting sponsored joint development andmarketing agreement with Microsoft to provide its core product to Microsoft andits partners in the North American market. PROACTIS' software will be tightlyintegrated into the MS Dynamics solution, a key Microsoft platform, initiallyfor the public sector. The faster than expected development of our position inNorth America has required greater investment than previously anticipated butthe Board is confident that it is a proper response to the size and timing ofthe opportunities available in that geography and sector. Revenues and gross margin will be in line with market expectations. The earlierthan expected investment in our US operations and the non-recurring costsarising from the integration of acquisitions, will result in an earningsshortfall against market expectations, but earnings will still be significantlyahead of the prior year before the exceptional costs of the Admission to AIM.The Board is confident that, having made this investment, the Group is wellpositioned to accelerate growth and the achievement of its longer termobjectives. PROACTIS expects to announce its Preliminary Results for the year ended 31 July2007 during October 2007. - ends - Enquiries: PROACTIS 01937 545 070Rod Jones, Chief Executive Officer 07867 521 982 Weber Shandwick Square Mile 020 7067 0700Nick Oborne / John Moriarty / James White Teather & Greenwood (Nomad) 020 7426 9000Gareth Price / Simon Brown Notes to Editors: PROACTIS creates, sells and maintains specialist software which enablesorganisations to streamline, control and monitor all internal and externalexpenditure, other than payroll. PROACTIS is already used in over 150organisations in the UK from the commercial, public and not-for-profit sectors. PROACTIS is a profitable, high growth business head-quartered in Wetherby, WestYorkshire. It develops its own software using an in-house team of developers andsells through both direct and indirect channels via a number of AccreditedChannel Partners. PROACTIS floated on the AIM market of the London Stock Exchange in June 2006 This information is provided by RNS The company news service from the London Stock Exchange