Proactis enjoys big revenue rise thanks to organic growth

Rod Jones, CEO of Proactis
Rod Jones, CEO of Proactis
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Software firm Proactis said revenues have risen an impressive 69 per cent at £17.2m in the year to July 31, reflecting strong organic growth and the three acquisitions it made last year.

The W​etherby-based firm, which signed 19 new deals in the second half and 39 over the full year, said full-year results will be in line with expectations.

Adjusted earnings rose 130 per cent to £4.6m and the group said it is very encouraged by initial contract values, the order book and the pipeline for further new deals.

​​Chief executive ​Rod Jones​ said: “I am delighted to be able to report the substantial progress over the past six months, both operationally and financially.

​“​The ​g​roup’s scale and growth rate have been transformed during 2015 through both organic growth and three acquisitions, with profitability increasing substantially.

​“​The levels of new deal intake and renewal rates remaining strong illustrating that our solutions and services remain attractive in the marketplace.​“​

Proactis has completed the integration of its three acquisitions, EGS Group Limited, Intesource Inc and Intelligent Capture Limited, and said all are performing well in their first full year within the group.

It added that the acquired software and service offerings provide a rich cross-selling opportunity in the future.

​“​The ​g​roup remains committed to its programme of delivering value added services to its customers’ suppliers and I look forward to being able to report commercial progress on this in the near future​,” said Mr Jones.​

The firm is still looking at further merger and acquisition opportunities and said it has a healthy pipeline.

​​Analyst Andrew Darley at FinnCap said: “In keeping with the first half, full-year EBITDA of £4.6m demonstrates that margins have significantly improved to 27 per cent, which we expect to be maintained.”

Mr Darley said other notable achievements were the integration of the three acquisitions and the development for Proactis’s electronic trading platform, Activate.

The group has signed deals with 20 new names including telecoms firm BT, The Crown Estate and law firm Irwin Mitchell.

“Why are we winning clients? Because we’re the best. We’re solid and reliable and innovative,” said Mr Jones.