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Proactis keeps buying

Proactis keeps buying

Investors are often sceptical of companies that rely on hefty acquisitions to grow, as it’s rare that this provides the same consistency in returns as organic growth. Proactis (PHD) is a case in point. After spending $133m (£104m) on eProcurement solutions company Perfect in August last year, the group’s return on capital employed (ROCE) fell to 3.3 per cent during the year ended July 2018, from 11 per cent and 10 per cent in 2016 and in 2015, respectively (these being the last two years the group reported operating profits). 

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