PROACTIS Software plc
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Description
PROACTIS is the UK’s leading independent spend control software provider with over 800 customers. Its off-the-shelf software and managed services automate supplier interactions including procurement, purchasing and spend analysis.
Our view
PROACTIS is the UK’s leading independent spend control software provider with over 800 customers currently. Its off-the-shelf software and managed services aim to save its customers money by automating supplier interactions including procurement, purchasing and spend analysis. Through a combination of organic growth and acquisitions profits have grown fivefold over recent years. Assuming further excellent execution, it has the potential to sustain this momentum.
Financial Summary
Year end: July (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Revenue | 17.2 | 19.4 | 25.4 | 56.4 | 59.7 |
| Adj EBITDA | 4.7 | 5.3 | 7.9 | 16.5 | 19.3 |
| Fully Adj PBT | 2.8 | 3.1 | 5.2 | 10.2 | 13.2 |
| Fully Adj EPS (p) | 5.8 | 7.0 | 8.7 | 8.9 | 11.6 |
Profit & Loss
Year end: July (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Revenue | 17.2 | 19.4 | 25.4 | 56.4 | 59.7 |
| Adj EBITDA | 4.7 | 5.3 | 7.9 | 16.5 | 19.3 |
| Adj EBIT | 2.9 | 3.2 | 5.3 | 11.2 | 14.0 |
| Reported PBT | 1.5 | 1.8 | (2.7) | 5.7 | 11.2 |
| Fully Adj PBT | 2.8 | 3.1 | 5.2 | 10.2 | 13.2 |
| NOPAT | 3.4 | 3.9 | 6.4 | 13.4 | 16.9 |
| Reported EPS (p) | 4.9 | 5.9 | (5.6) | 5.0 | 9.8 |
| Fully Adj EPS (p) | 5.8 | 7.0 | 8.7 | 8.9 | 11.6 |
| Dividend per share (p) | 1.2 | 1.3 | 1.4 | 1.5 | 1.6 |
Cash Flow & Balance Sheet
Year end: July (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Operating cash flow | 3.4 | 5.4 | 5.6 | 14.3 | 18.1 |
| Free Cash flow | 0.8 | 2.2 | 1.4 | 7.2 | 9.4 |
| FCF per share (p) | 1.9 | 5.1 | 2.9 | 7.4 | 9.7 |
| Acquisitions | (1.1) | (4.4) | (14.3) | (97.6) | 0.0 |
| Disposals | (0.0) | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 0.2 | 0.2 | 12.7 | 65.0 | 0.0 |
| Net cash flow | (0.1) | (2.0) | (0.4) | (25.4) | 9.4 |
| Overdrafts / borrowings | (1.9) | (4.0) | (5.2) | (26.3) | (26.3) |
| Cash & equivalents | 3.4 | 3.6 | 4.3 | 0.0 | 9.4 |
| Net (Debt)/Cash | 1.5 | (0.5) | (0.9) | (26.3) | (16.9) |
Nav & Returns
Year end: July (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Net asset value | 11.5 | 13.0 | 22.5 | 26.7 | 35.5 |
| NAV/share (p) | 29.4 | 32.6 | 45.9 | 54.4 | 72.3 |
| Net Tangible Asset Value | (5.1) | (8.6) | (16.1) | (13.3) | (6.5) |
| NTAV/share (p) | (13.2) | (21.7) | (32.7) | (27.1) | (13.2) |
| Average equity | 10.5 | 12.2 | 17.8 | 24.6 | 31.1 |
| Post-tax ROE (%) | 19.2% | 20.3% | -15.3% | 19.7% | 30.7% |
Metrics
Year end: July (£m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Revenue growth | 69.6% | 12.5% | 31.1% | 122.0% | 5.9% |
| Adj EBITDA growth | 129.6% | 12.8% | 49.4% | 108.9% | 17.2% |
| Adj EBIT growth | 191.9% | 14.2% | 69.9% | 111.0% | 30.8% |
| Adj PBT growth | 153.2% | 11.8% | 64.6% | 97.8% | 29.8% |
| Adj EPS growth | 121.0% | 22.1% | 23.9% | 1.9% | 29.8% |
| Dividend growth | 9.1% | 8.3% | 7.7% | 7.1% | 6.7% |
| Adj EBIT margins | 16.6% | 16.6% | 20.9% | 19.9% | 23.5% |