Proactis sees strong uptake as new customers sign up

Proactis signed up 23 new customers in the six months to January 31, including  foreign exchange firm Travelex and insurer Legal & General.
Proactis signed up 23 new customers in the six months to January 31, including foreign exchange firm Travelex and insurer Legal & General.

Software firm Proactis is aiming to sign up 30 to 40 new customers this year following strong uptake of its products, which monitor company expenditure.

The Wetherby based firm signed up 23 new customers in the six months to January 31, including big names such as foreign exchange firm Travelex and insurer Legal & General.

In addition it signed 45 new deals with existing customers as they take up other software products.

Proactis CEO Rod Jones said he looks forward to announcing more deals in the coming months.

“We’re looking at signing up 30 to 40 new names a year. 23 new name deals is very high for the half year. We’re seeing very healthy momentum,” he said.

He said the group is winning more customers as it offers good value.

“We offer an end to end solution that is extremely reliable. it’s a really healthy, robust piece of software and it’s great value for money,” he said.

The company is eyeing up more acquisitions following the acquisition of e-procurement solutions provider Due North for £4.5m earlier this year.

“We’ve been very active over the last two years, but there’s still more for us to go for. Historically we’ve been doing £5m revenue deals. We would like to look at bigger companies,” said Mr Jones.

Revenue rose four per cent to £8.7m and earnings rose four per cent to £2.4m in the six months to January 31.

Analysts at FinnCap said in a note: “With visibility from annualised recurring revenue of £14.5m, the second half will be further supported by the February acquisition of Due North, while opportunities in the Supplier Network and Accelerated Payment Facility are demonstrated by the Flintshire County Council win in April.

“Strong momentum generated 23 new deals and 45 extensions and upgrades, further encouraged into the second half by opportunities from within the customer base, which has grown from 500 to 800 with the acquisition.

“We reiterate our target price of 155p.”