finnCap published a note this morning: "Proactis has announced a contract win with P&O FerryMasters, extending the existing relationship a further five years and implementing the Supplier Network. The new platform will streamline electronic communication across the supply chain, and incorporates the potential of the Accelerated Payment Facility to the supplier base of 7,850, with a total spend environment of c£350m. While the uplift to our forecasts is minimal, the significance is material, again demonstrating the extension of an existing relationship and the..." taken from Research Tree
Still expect this to get through 142p then on to 150p. Before year end.
This can still double from here and growth is just starting as they gain penetration, traction, increased geographical reach, cross sell and offer more services. This is all before the work with Inspired Capital kicks in.
This is quite a fall in sp especially taking into consideration the contract that have been won recently. Although if you look at the chart since I purchased in September 2015 it has had interesting time, there has not been any big sell off if you look at the trades. Still think this could be good long term?
In the trading update on 11 February they said they would report interims on 27 April. Based on that trading update the results themselves will be unspectacular, and what will be of interest is the outlook and the roll out of the supplier services such as via Screwfix..
Procserve bigger than Due North.
Procserve + Basware massive.
Procserve looks like having been a cheaper buy than Due North.
Hence, possible sign low hanging fruit will be hard to find as acquisitions.
I think Proactis will acquire once more possibly by equity issuance as part of the deal but not until the share price is higher.
Where are you getting those numbers from though? Procserve 'with £1.8 billion worth of transactions...today used by over 13,500 buyers and 30,000 suppliers' is a tiny fraction of PROACTIS Group user base (http://goo.gl/QrCQsm) . (FYI when they say 'Buyers' they are referring to users.)
CDI, thanks for that, thought that was the point you were making. I bought these @0.88 when recommended by Simon Thompson back in Sept edition of IC. Am prepared to run with these at present as they seem to be in a good growth market,
"Proactis's (PHD) visibility from recurring revenue provides "high-quality earnings at sub-industry multiples", says finnCap.
Acquisitions have complemented organic growth and the group now has over 500 customers, with around 200 being UK local authorities. The group's already proving itself and finnCap reckons the shares are worth a fifth more at 150p."
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