Proactis benefits from firms' cost-cutting drives

The Wetherby-based firm licences its software to firms to help them the cut cost of procurement. It signed up 16 new customers in the six

months to the end of January. "Very strong customer loyalty" saw another 42 existing clients upgrade their software.

Chief executive Rod Jones said the firm is well placed to benefit from the economic climate.

"Spend control will be a key focus for the foreseeable future and our products are well placed to help our clients drive efficiencies into their organisations and enable their cost saving initiatives," he said. "We remain confident that we will deliver results for the year in line with market expectations."

Proactis grew revenues ten per cent to 3.47m. Pre-tax profit edged up to 384,000. The company generated 589,000 of cash, compared to 361,000 a year earlier.

"People keep telling me we are counter-cyclical," said Mr Jones. "When you are not growing your top line you should be managing your cost line.

"We are good for all seasons and we are good for a recovering economy."

The AIM-listed firm now works with more than 350 organisations around the world. New customers signed up during the period include Yorkshire Dales National Park, law firm Hill Dickinson, South African Express Airways and the Chartered Institute of Management Accountants.

Its software is used by organisations to streamline procurement and reduce budget over-spend, "making sure the right contracts are in place with the right suppliers".

Mr Jones said Proactis's software has proved attractive because it offers between 15 and 20 per cent savings on procurement costs.

"We give a payback in any financial period," he said. "It would be rare if we did not give a return on investment in six months."

The company's software aims to be "universally applicable, anywhere in the world". Currently it is used in 70 countries and in 14 languages. While the proportion of overseas revenues it earns slipped to 15 per cent compared to 22 per cent a year ago, Mr Jones said overseas customers are increasingly using its software and it recently signed three new US customers.

The group's net cash of 2.35m was broadly flat on a year earlier.