Proactis Holdings anticipates a 36% rise in H1 revenue
AIM-listed procurement solution provider Proactis Holdings anticipates that results for the first half of the year will be in line with expectations with a rise in revenue.
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Revenue is expected to increase 36.3% for the six months ended 31 January to £11.8m, compared to last year, including “strong” organic growth, and by 13.4% excluding the impact of acquisitions.
In November 2016, the company bought Millstream Associates for £15.5m, its fifth acquisition in four years, and is part of its aim to "consolidate the fragmented procurement technology market".
The company said that Millstream is an earnings enhancing acquisition that brings over 4,000 supply side customers, along with central government relationships. In about 10 weeks since the completion of the acquisition, Millstream has traded in line with expectations, delivering about £1.05m in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) of £420,000.
Chief executive Tim Sykes said: "Our revenue growth is strong and we are particularly encouraged by the underlying organic growth achieved in the current conditions.
"The group continues to develop its supplier networking solution. The realisation of this concept is on-going and the progress made has been substantial. … This, on the foundation of the group's organic growth and strategic mergers and acquisitions, positions the group well for the period ahead."
Shares in Proactis were down 1.49% to 165p at 0849 GMT.