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Proactis Warns On Second Half Growth Due To Pipeline "Deterioration"

LONDON (Alliance News) - Proactis Holdings PLC on Thursday warned it does not expect any ...

Alliance News 28 February, 2019 | 10:45AM
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LONDON (Alliance News) - Proactis Holdings PLC on Thursday warned it does not expect any "significant" annual growth due to a weakening of its pipeline in both the US and Europe.

Shares were down 47% on Thursday at a price of 60 pence each.

Proactis does expect revenue growth in its first half ended January, seeing revenue at GBP27.7 million from GBP26.4 million a year prior. The order intake is guided to be GBP5.8 million from GBP5.5 million.

Adjusted earnings before interest, taxes, depreciation, and amortisation for the first half are guided to fall slightly to GBP8.0 million from GBP8.5 million the year before.

"During January and February, the group has experienced a lower level of retention and a deterioration of the pipeline in the group's US and European operations," Proactis said, however.

"Accordingly, whilst trading in the group's UK operations and the Esize Group are expected to remain robust, the board now considers it is unlikely the group as a whole will deliver significant growth for the remainder of the current financial year ending July."

New Chief Executive Tim Sykes, who joined mid-January, has started a review of US and European operations, and an update on this will be provided in half year results, to be released April 29.

"Whilst the outlook for the next few months is disappointing, I am confident in our ability to deliver an improved level of performance in the mid to long-term," said Sykes.

"Our core markets remain attractive and our core technologies and team are competitive. I look forward to completing my review for the board and focussing the group on a growth strategy that should be successful in all of its territories and returning the group to the qualities it has demonstrated historically."

Proactis also said Thursday it has signed a new facility from HSBC UK worth GBP20 million for its accelerated payment product, which is current in development, and will allow Proactis to fund early payments against approved invoices for supplies for byside customers.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
PROACTIS Holdings PLC 51.35 GBX 2.70 -

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Alliance News

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