Two acquisitions in the period meant Losses grew to £2.6m from a Profit of £1.9m in FY16.
Companies: PROACTIS Holdings PLC
Spend control software company Proactis Holdings (LON: PHD) has announced its final results for FY17 today, which details the operating loss for the period due to the Group's acquisitions during the year.
Acquiring Perfect Commerce and Millstream Associates in FY17 has mean the Group has reported an Operating Loss of £2.6m compared to the Profit of £1.9m reported the previous year.
The news meant shares were trading down this morning at 162p from yesterday's closing price of 171p.
The Group did, however, report Revenue growth of 31% to £25m, while the Order Book grew by 7%. A final dividend of 1.4p per share will be issued, up slightly from the 1.3p issued in FY16.
A new CEO was also appointed during the year, with Hampton Wall filling the position following the acquisition of Perfect Commerce.
Looking forward, Management commented on its cost-savings forecasts, saying:
"Initial progress on cost savings related to the integration of the Group with Perfect are encouraging and the Group is on track to meet its objective of delivering annualised savings of £5.0m by 31 July 2018 with more than £2.5m being delivered at the date of this report."
Proactis currently trades at a PE ratio of 14x versus the industry median of 18x, and has a market cap of c. £159m. The share price grew more than 100% in the two years to July 2017, growing from a price of c. 83p in July 2015 to 196p in July 2017. Revenue for the Group is forecast to grow more than 200% in the two years to 2018.
