Proactis sees revenues rise

SOFTWARE firm Proactis Holdings said today it expects to report annual revenues of £7.5m and be “marginally” profitable before tax.

The Wetherby-based company, which designs software to help businesses cut costs, said in a trading update for the year ending July 31, 2012, that revenues had “advanced significantly” from £6.2m in 2011.

The company said it anticipates reporting EBITDA (earnings before interest, taxes, depreciation, and amortization) of about £1m, up from £0.2m in 2011, and being “marginally” profitable before tax. Last year, it recorded a loss of £0.6m.

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The firm said in the year 10 cloud-based subscription deals have been signed out of the total of 28 new deals.

Rod Jones, chief executive, said: “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.”

Proactis Holdings said its 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”.

The company generated £0.6m of cash during the year leaving the group with “a strong balance sheet” including £2.7m of cash.