Software chief executive from Proactis praises growth following acquisition

The chief executive of spend control software firm Proactis has said he is “delighted” with growth at the company following its acquisition of a bolt-on business last year.

CEO designate Tim Sykes said that Proactis’ acquisition Millstream, which cost £15.5m last year, has contributed to strong revenue growth. He said that revenues for the six months ended 31 January 2017 were up 36% to £11.6m.

The group signed 27 new names and the initial contract value, order book and pipeline “remain encouraging”.

Millstream has traded in line with expectations, delivering approximately £1.05m revenue.

Tim Sykes, CEO Designate of the Wetherby-based company said: “We are very pleased to report an excellent trading performance during the period. Our revenue growth is strong and we are particularly encouraged by the underlying organic growth achieved in the current conditions.

“We are pleased to have completed the acquisition of Millstream in November, and we are delighted with its financial performance and contribution thus far. Millstream is the Group’s fifth acquisition in four years and continues the strategic objective of consolidating the fragmented procurement technology market.

“The Group continues to develop its supplier networking solution. The realisation of this concept is on-going and the progress made has been substantial. We believe there is great value in the solution and I look forward to providing an update on further progress in due course. This, on the foundation of the Group’s organic growth and strategic M&A, positions the Group well for the period ahead and we look forward to continuing to deliver growth and shareholder value.”