Still a tiny company, but with big growth forecast in turnover and profits this year.

Proactis specialises in spend-control software.

Website: www.proactis.com

NEWS this morning:

'Under the Referral Agreement, the resultant software will be marketed jointly with Fifth Third to other regional US banks. The Directors believe that the top 150 US banks have approximately $7 trillion in assets, indicating the size of the potential market.'

Very nice news, regarding the widening of an existing contract with a US bank. The share price has already climbed by 66.66% over the past 12 months up more than fourfold from its Aug 2013 low) and I can see it breaking past the recent 95p peak soon



It is barely a week since they won an NHS contract:
NHS Order

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From this morning's trading update:


Rod Jones, Chief Executive commented:

"I am delighted to be able to report the Group's continued progress. The Group's growth rate and scale have been transformed through the positive impact of the three acquisitions completed during 2014 and profitability has substantially increased. Trading is strong, new deal count has increased and M&A activity is delivering incremental rates of growth..."

Proactis in fresh rally
By Harriet Mann | Tue, 31st March 2015 - 16:29

A year of rapid growth is behind a significant rerating at Proactis (PHD). The spend control and eProcurement firm has been trading sideways since registering an all-time high last November, but a cracking set of half-year numbers has proved the catalyst for another shift higher.
Buying ESG, Intersource and Intelligent Capture helped first-half revenues more than double from £4 million to £8.4 million. On a life-for-like basis, they rose 18% to £4.7 million. Adjusted cash profit soared by 155% to £2.3 million and adjusted operating profit grew three-fold to £1.4 million.

Proactis had a strong order book worth £15.5 million at the end of January, which certainly improves revenue visibility for the full-year. Underlying like-for-like growth was 20%. The switch to include subscription-based deals in its business model also reduces the opportunity for the firm to "slip" on sales.

The group managed to up its game when it came to securing deals, too, with 20 new name contracts signed worth £2.6 million. Keeping up its 100% renewal rate was always going to be a struggle for the procurement business, and while 43 contracts were upgraded during the period, four expired. However, three are from the EGS acquisition and were companies that hadn't implemented the software, so were anticipated.

Completing its Activate technology platform after the period end could be "transformational" for the business and will charge its "supplier" clients who use the company’s software, instead of just the "buyers". Chief executive Rod Jones hopes the first client will be signed up within three-six months. And the three acquisitions give Proactis access to the accelerated payments market, though Jones told interactive Investor the company has adopted the "crawl, walk, run" approach to implementation.

"The financials are pretty much wall-to-wall positive news," Jones told us. "We have transitioned this group now from something that was inherently sensitive (with 0-£1 million of operating profit) to something that is running near £3 million of operating profit. We are fairly substantial in that sense now."

Finance chief Tim Sykes, who has been at the firm since its IPO in June 2006, will step down once a replacement has been found.

Reiterating its 115p price target, house broker finnCap is confident Proactis can generate sales of £17 million, giving adjusted cash profit of £4.6 million and pre-tax profit of £2.9 million. It says:

With forecasts increasingly underwritten by persistently improving visibility, and evident growth opportunities, we reiterate our 115p target, equivalent to 18.8x July 2015 P/E falling to 17.3x.
Proactis's share price rose 5% to 92p Tuesday, putting the shares on a forward P/E of 15 times.

http://www.iii.co.uk/articles/233279/proactis-fresh-rally

16:48 Tuesday 31 March 2015


Software firm Proactis is on the hunt for acquisitions and said it has a number of “potentially attractive opportunities” in the pipeline.

In half year results, the Wetherby-based firm said the group’s core business is performing well while the three recent acquisitions it made last year are bolstering growth.

Proactis said mergers and acquisitions will be a core element of future growth.

Rod Jones, P​roactis’ CEO, ​said:​ “We have access to good bank debt.

“We would probably have to do a fundraise if we bought anything chunky.

“We looked at five acquisitions last year. We did three – the other two were silly valua- tions.

“It doesn’t make sense for us to do sub £1m.

“It will probably be £3m to £7m or £8m to make it worthwhile. I’m looking at two or three at the moment.

“I don’t know if we’ll go ahead.”

He was speaking as the group reported a 155 per cent increase in adjusted earnings to £2.3m in the six months to January 31 and a 110 per cent rise in revenue to £8.4m.

The group said it signed deals with 20 new names including BT, The Crown Estate, insurance firm Simplyhealth and law firm Irwin Mitchell.

“Why are we winning clients? Because we’re the best. We’re solid and reliable and innovative,” said Mr Jones.

Analyst Andrew Darley at FinnCap said: “Not only have the three 2014 acquisitions delivered growth from current business lines, but they also open up the opportunity for development of the electronic trading platform and accelerated payment facility, with revenue generation opportunities.

“With very strong visibility from a contracted multi-year order book of £15.5m, and integration of the acquisitions now complete, we look forward to further strong execution.”


http://www.yorkshirepost.co.uk/business/business-news/hungry-proactis-on-the-acquisition-trail-with-opportunities-in-the-pipeline-1-7186206

Quite like this one, just watching for now but may tuck some away.

Bought in here recently. Finncap (31/3) target price 115p

Big jump today - tipped somewhere over the weekend?

Midas tip in Mail on Sunday

cheers Partridge.

AIM-listed Proactis Holdings helps companies and public sector organisations to cut costs painlessly. The shares are 83½p and should increase considerably over the next three to five years.

The company, based in Wetherby, West Yorkshire, uses clever software that enables businesses to drive down the cost of goods and services ranging from light bulbs to plastic cups and from electricity to garden maintenance.

The group’s main product centres on e-procurement, where suppliers bid against each other online to work for particular customers. Like an eBay auction in reverse, the winner is generally the supplier offering the lowest price.

Now chief executive Rod Jones and finance director Tim Sykes are introducing software to help suppliers, too.

The duo estimates that Proactis customers have between one and two million suppliers, including hundreds of thousands of small firms. Many of these have been particularly hard hit by the financial crisis, since when banks have reined in their horns and firms have struggled to borrow money.

Proactis has developed a system enabling suppliers to be paid early in return for a small discount on the amount they are owed.

Proactis’s financial year ended on Friday and a trading statement should be out this week or next with the full results due in the autumn. Analysts expect a 66 per cent increase in sales to £17million and a more than doubling of pre-tax profit from £1.1million to £2.9million. Encouragingly, Proactis pays a dividend, expected to rise from 1.1p last year to 1.2p this.

Midas verdict: Proactis is a fast-growing business and the management is determined to make a success of it. At 83½p, the shares should go far. Buy.


Read more: http://www.thisismoney.co.uk/money/investing/article-3182925/SUNDAY-NEWSPAPER-SHARE-TIPS-Proactis-Holdings-Aggreko.html#ixzz3hlNbmILM
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ST of IC today - Furthermore, with a bumper set of full-year results set to be released in a few months time, I can see the shares re-rating in the interim period as investors' cotton onto the organic and acquisitive growth story PROACTIS offers. Trading on a bid-offer spread of 91p to 93p, valuing the company at £36.6m, I rate the Aim-traded shares a strong buy with potentially 25 per cent share price upside on offer to my fair value target price of 117p

Thanks, I wondered what was driving this today and hadn't checked IC

Good luck Greyhound. :-))

N+1 Singer today reaffirms its buy investment rating on PROACTIS Holdings PLC (LON:PHD) and raised its price target to 201p (from 189p).