Proactis weighs up potential bidders

The Wetherby-based firm, whose customers include Grant Thornton, Marshalls, Air France, Chelsea FC and Savills, said it is holding more advanced discussions with some of its suitors.

Proactis said the process remains ongoing and there can be no certainty that an offer will be forthcoming.

The update was given alongside annual results which showed a 4 per cent increase in revenue to £54m in the year to July 31 and a pre-tax loss of £26m.

During late 2017 and 2018, the group experienced a significant level of customer churn and a lack of new customers in its French, German and US spend management businesses. This culminated in leadership change and an operational review.

Chief executive Tim Sykes said: "The results for the period are in line with the board's expectations.

"Following the completion of the operational review announced in April 2019, the management team has been working incredibly hard to assess and rectify the issues identified that have impacted overall group performance over the last two financial years.

"This has included managing leadership change throughout the regions affected as well as through the business as we build teams that are capable of executing the group's new go to market strategy."

He said the board is confident that this capability is now in place and the whole team can deliver a "substantial and high growth company".

"We are seeing relevant progress already with pipeline starting to build and an encouraging level of order intake in the new financial year," he added.