Proactis says it has adapted to the disruption and uncertainty

Proactis creates, sells and maintains specialist softwareProactis creates, sells and maintains specialist software
Proactis creates, sells and maintains specialist software | other
Software firm Proactis said it has continued to trade well through the early stages of the Covid-19 crisis.

The Wetherby-based firm, whose customers include Grant Thornton, Marshalls, Air France, Chelsea FC and Savills, said it has responded well to a period of significant disruption and uncertainty.

Whilst mindful of potential delays to new customer contracts and the implementation of existing projects in the short-term during the early stages of the Covid-19 crisis, the group said it is confident about its ability to accelerate new business substantially in the medium term.

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Proactis said it works primarily on a recurring revenue, long term, SaaS based contract business model, which offers robustness and security in periods of short-term uncertainty and a high degree of visibility.

The firm said that its priority has always been the health, safety and well-being of its people and customers.

“The board is pleased to report that all staff are working highly effectively from home after minimal disruption and are supporting our customers with no compromise on service levels,” the group said in a trading update.

The company said it has been carefully monitoring the developments with respect to the Covid-19 outbreak and the impact, both actual and expected, on its business activities.

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Total contract value, excluding the value of renewals, has increased from £7.5m to £10.4m.

Organic growth in annual recurring revenues of buyer subscriptions has been maintained and revenues, profitability, cash flow and net debt remain in line with management’s expectations and have not been materially affected by the Covid-19 crisis.

It added that cash flow has been strong and the group remains comfortably within its existing facilities.

The group has maintained its guidance for the full year outcome and its confidence about continued progression.

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Proactis intends to release its interim results for the six month period to January 31 on April 29.

Analyst Andrew Darley at FinnCap said: “Proactis has released a positive trading update for the year to July 2020, reiterating performance in line with unchanged pre-Coronavirus management expectations and reinstated forecasts.

“Despite Covid-19, the recurring revenue model, based on long-term contracts, typically with both public and private sector organisations, offers visibility and a defence against uncertainty. As with listed enterprise software peers, there is a risk new sales may be challenging, but churn is expected to be reduced.”

Mr Darley said the trading update shows confidence in unchanged forecasts for 2020, with continuing positive growth.