13 Aug 2012 07:00
13 August 2012
PROACTIS Holdings PLC
Trading update
PROACTIS Holdings PLC ("PROACTIS" or the "Company") the specialist Spend Control software provider, is pleased to announce a trading update for the year ended 31 July 2012.
PROACTIS' strategy to increase the visibility of its revenues through its offer of a cloud based subscription business model to complement its traditional perpetual licence business model has continued apace. In the second year of this blended model, 10 cloud based subscription deals have been signed out of the total of 28 new name deals (2011: 14 deals from a total of 30 new deals). Revenues have advanced significantly and the Company anticipates reporting revenues of approximately £7.5m for the year ended 31 July 2012 (2011: £6.2m) with annualised contracted revenues to be recognised during the year ending 31 July 2013 of £5.1m (2011: £4.3m). This growth in revenues has delivered a strong improvement in profitability with the Company anticipating reporting EBITDA of approximately £1.0m (2011: £0.2m) and being marginally profitable before tax (2011: loss £0.6m). Cash generation has been very encouraging with the Company generating £0.6m of cash during the year leaving the Group with a strong balance sheet including £2.7m of cash (2011: £2.1m).
Rod Jones, Chief Executive Officer, commented:
"The number of new name deals is encouraging in the current climate which remains tough. Our progression toward a blended business model is going well and strong revenue growth, increasing visibility on forward revenues, improving profitability and strong cash flow generation are all extremely encouraging indicators of the good work that the Group is doing."
Enquiries:
PROACTIS Holdings PLC | Tel: 01937 545 070 |
Rod Jones, Chief Executive Officer Tim Sykes, Chief Financial Officer | |
finnCap Limited | Tel: 020 7220 0500 |
Marc Young Charlotte Stranner |
Notes to editors:
PROACTIS creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. PROACTIS is already used in over 350 organisations around the world from the commercial, public and not-for-profit sectors.
PROACTIS is head quartered in Wetherby, West Yorkshire. It develops its own software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners.
PROACTIS floated on the AIM market of the London Stock Exchange in June 2006.
CLOUD COMPUTING is defined as location-independent computing, whereby shared servers provide resources, software, and data to computers and other devices on demand, as with the electricity grid.