Software company Proactis signs £11m in new contracts

Proactis creates, sells and maintains specialist software | other

Software firm Proactis has signed new contracts with a total contract value of over £11m in the year to date, which equals the equivalent performance for the whole of the previous financial year.

The Wetherby-based firm, whose customers include Grant Thornton, Marshalls, Air France, Chelsea FC and Savills, said the improved new business performance was driven by the group’s refreshed, go-to-market strategy.

In tandem with improved retention performance, annual recurring revenue from the group’s buyer subscription business has returned to organic growth for the year to date.

Proactis said it is carefully monitoring developments with respect to the Covid-19 outbreak and is not immune from its impact, particularly with regard to its supplier-paid business and its implementation services. However, at this stage, the group said its business model as a whole is proving resilient.

Analyst Andrew Darley at FinnCap said: “Total contract value has reached £11.3m, equalling the 2019 total, with more than two months of the financial year left to run.

“The rewards of the refreshed go-to-market strategy, improved retention which turns gross new business growth into net new business growth, and a growing base of ARR from subscription revenue are evident. Even with restraint to prospects due to Covid-19, the model is robust and management’s clarity of focus on refining the model is delivering rewards and enhancing achievability of forecasts.