Revenue delays see Proactis make loss

SOFTWARE firm Proactis slipped to a first-half loss as it warned revenues from its remotely-hosted technology will take longer than expected to feed through.

The Wetherby-based firm, which designs and licenses software for businesses and organisations to cut the cost of procurement, said a greater proportion of revenues from its ‘cloud’ software will be deferred to future periods.

As a result, Proactis reported a pre-tax loss of £204,000 for the six months to the end of January, compared with £332,000 profits for the same period a year earlier. Revenues were 13 per cent lower at £3m, compared with £3.5m in 2010.

But Proactis said its bank of contracted but unrecognised future revenues has doubled from £600,000 to £1.2m.

The company added deal activity was buoyant over the six months, and it won 38 upgrades.

New customers included UTC, DLA Piper and Ahli Bank.

Chief executive Rod Jones said: “I am delighted with the uptake of our multi-year, transactional-priced cloud solutions, specifically in the US where we have signed three new global customers.”