Proactis’ share price jumped 11p to 69p following publication of its maiden annual results since flotation in June last year. That rise helped to reverse a steady decline in the share price since the beginning of June 2007 which was blamed in part on over-ambitious brokers expectations.
And there’s no doubt that the figures in the table below are impressive with two acquisitions contributing sales of £1.56m and profits of £210,000. In November 2006 Proactis bought Requisoft for up to £1.1m and in March this year paid up to £3.25m for Alito. Requisoft was a competitor with a blue chip client list while Alito provides e-procurement solutions and, with over 40 local authority clients, opened up the public sector for Proactis.
The company's software controls and monitors all expenditure other than payrolls. Revenue is a combination of licence fees topped up with maintenance and consultancy income. In 2006-07 licences brought in £3m in sales, maintenance brought in £1.5m and services the balance. The target market is between the FTSE 100-listed companies serviced by Oracle and SAP and small to medium size employers using Sage and Sage-type software. Its client base now includes 75 public sector accounts. In August broker Landsbanki downgraded previous expectations and forecast 2006-07 profits of £1.1m and earnings of 3.5p. For this year it was then forecasting profits of £2.5m and earnings of 5.6p.
Proactis (PHD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 69p | MARKET VALUE: | £ 20.8m | |
| TOUCH: | 65-75p | 12-MONTH HIGH: | 107p | LOW: 55.5p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 20 | |
| NET ASSET VALUE: | 17p | NET CASH: | £1.27m | |
| Year to 31 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 2.91 | -0.08 | -0.50 | nil |
| 2007 | 5.34 | 1.09 | 3.50 | nil |
| % change | +84 | – | – | – |
| Aim: Software | ||||
Click for a guide to the terms used in IC results tables
