Hungry Proactis on the acquisition trail with opportunities in the pipeline

Software firm Proactis is on the hunt for acquisitions and said it has a number of “potentially attractive opportunities” in the pipeline.

In half year results, the Wetherby-based firm said the group’s core business is performing well while the three recent acquisitions it made last year are bolstering growth.

Proactis said mergers and acquisitions will be a core element of future growth.

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Rod Jones, P​roactis’ CEO, ​said:​ “We have access to good bank debt.

“We would probably have to do a fundraise if we bought anything chunky.

“We looked at five acquisitions last year. We did three – the other two were silly valua- tions.

“It doesn’t make sense for us to do sub £1m.

“It will probably be £3m to £7m or £8m to make it worthwhile. I’m looking at two or three at the moment.

“I don’t know if we’ll go ahead.”

He was speaking as the group reported a 155 per cent increase in adjusted earnings to £2.3m in the six months to January 31 and a 110 per cent rise in revenue to £8.4m.

The group said it signed deals with 20 new names including BT, The Crown Estate, insurance firm Simplyhealth 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.

Analyst Andrew Darley at FinnCap said: “Not only have the three 2014 acquisitions delivered growth from current business lines, but they also open up the opportunity for development of the electronic trading platform and accelerated payment facility, with revenue generation opportunities.

“With very strong visibility from a contracted multi-year order book of £15.5m, and integration of the acquisitions now complete, we look forward to further strong execution.”