LONDON (Alliance News) - Proactis Holdings PLC said on Tuesday it swung to a profit in its recently ended financial year, due to a doubling in revenue.
Proactis provides sales and procurement management software tools to companies.
Pretax profit for the year to the end of July was GBP3.7 million, swinging from a loss of GBP2.7 million the year before, on revenue that doubled to GBP52.2 million from GBP25.4 million.
Revenue growth was due to a GBP16.0 million contribution from the region of mainland Europe, as well as increases in the UK and the US, with the full integration of spend management products developer Perfect Commerce LLC.
In August 2017, Proactis acquired Perfect in a reverse takeover for USD123.5 million, leading to a increase of the group's presence in the US market.
Proactis raised its final dividend for the recent year to 1.5 pence per share from 1.4p the prior year. Proactis doesn't pay an interim dividend, so its final dividend is its total dividend for the year.
For the future, Proactis said it plans to accelerate organic growth in the US and mainland Europe, by catering to a new customer group, the suppliers of its buy-side customers.
This followed Proactis's purchase, also last year, of Esize Holdings BV, a Netherlands based procurement software business for buy side organisations, for up to EUR15.2 million.
"The group's new business performance is as strong as we had planned for and our retention performance has recovered to more normalised levels after a disappointing period. The new name and upsell performance was strong in both volume and value and this gives me confidence that we will see a return to sustainable organic growth with a significant opportunity for enhancement in the United States and North West Europe. We have added to this opportunity following our acquisition of Esize shortly after the year end," said Chief Executive Officer Hamp Wall.
Shares in Proactis were up 6.3% at 140.80 pence on Tuesday.
