Proactis earnings slip despite revenue growth

Procurement software outfit Proactis saw earnings slip despite reporting improved revenues for the first half of its trading year.

Proactis turned in sales of £27.7m for the six months ended 31 January, up 5% year-on-year, but adjusted EBITDA dipped to £8m from the £8.4m recorded twelve months earlier.

Total contract values increased 8.9% to £6.1m, while Proactis recorded 34 new business deals in the half - up from the 31 recorded one year ago.

Net debt meanwhile increased 31.8% to £39.3m, largely due to its acquisition of Esize Holdings.

Chief executive Tim Sykes said: "This set of results is the culmination of a number of the previously reported issues facing the US, French and German parts of the group, however much work has been undertaken and we are pleased to share the outcome of our review of operations with shareholders today.

"We are focused on executing on our plan and are confident that we have made significant steps in our journey to return the whole of the group to its attractive core characteristics. We have a proven proposition to address a large and growing market, and we are confident that this will drive growth going forward after a period of stabilisation."

Elsewhere, Proactis revealed it had appointed former ARRIS director Richard Hughes to the board as chief financial officer, effective 20 May.

Discussing the addition of Hughes to the group, Sykes said: "We are confident that his appointment will bring immediate value to our board and the company as a whole and we look forward to working alongside Richard to re-focus the group and drive growth in what continues to be an attractive market."

As of 0950 BST, Proactis shares had picked up 1.71% to 29.75p.