Proactis Sa · EURONEXT:PROAC
Proactis Sa — H1 FY2020 Earnings Presentation
27 slides from Proactis Sa's earnings presentation, Apr 29, 2020
Slide 1: Investor Presentation: Half year results to 31 January 2020
Investor Presentation Click to edit Master title Half year results for the period ended 31 January 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 2: Disclaimer
Disclaimer These presentation slides and the accompanying verbal presentation (the “Presentation Materials”) do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities in the PROACTIS Holdings PLC (the "Co
Slide 3: COVID-19
COVID-19 Operationally robust No disruption to customer service levels Click to edit Master title Team is all working from home, well connected and engaged Set up to continue to deliver effectively style SaaS business model is robust and resilient in the short-term Monitoring closely – short-term re
Slide 4: Key messages
Key messages Click to edit Master title Half year period ended 31 January 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 5: Key messages
Key messages Encouraging progress made in deployment of new growth Core financial value proposition strategy and significant mid-term opportunity to accelerate Click to edit Master title Significant improvement in new business performance and customer retention Revenue Forward style Step change in p
Slide 6: Highlights: six months ended January 2020
Highlights Six months ended 31 January 2020 Financial results: reflective of prior year new business/churn performance Click to edit Master title - Revenue £24.5m (2019: £27.7m); Adj. EBITDA £5.6m (2019: £8.0m) Net growth in ARR: 4% (ann. 7%) in core business, flat including HRAs New business accele
Slide 7: Financial update
Financial update Click to edit Master title Half year period ended 31 January 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 8: Financial highlights
Financial highlights H1 FY2020 H1 FY2019 FY 2019 H1 on H1 movement Revenue Adjusted EBITDA Click to edit Master title Adjusted Operating profit £24.5m £5.6m £1.7m £27.7m £8.0m £4.7m £54.1m £15.1m £8.8m -12% -30% -64% Adjusted basic EPS Adjusted net free cash flow style Value of new customer wins and
Slide 9: “Reported” to “Adjusted” analysis
“Reported” to “Adjusted” analysis £’m H1 FY2020 H1 FY2019 FY 2019 Comment Reported operating (loss) / profit (1.4) 1.1 (24.4) Non-core net expenditure Click to edit Master title Intangible impairment and amortization Share-based payment charges 0.7 2.2 0.1 1.3 2.2 0.2 1.2 131.5 0.5 Principally restr
Slide 10: Revenue analysis for H1 FY2020
Revenue analysis for H1 FY2020 H1 FY2020 Total Click to edit Master title UK segment ARR (opening) FR & DE segment ARR (opening) £m 18.3 11.5 US Segment ARR (opening) NL segment ARR (opening) style 9.9 4.6 Sub-total ARR Click to edit44.3 Master subtitle style Half year ARR delivery 22.2 Services 2.3
Slide 11: Growth strategy
Growth strategy Click to edit Master title Half year period ended 31 January 2020 style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 12: Encouraging progress against growth strategy
Encouraging progress against growth strategy Maximise existing customer and technology Click to edit Master title Accelerate new business spend management Drive adoption of existing supplier paid products Roll-out bePayd Extend supplier paid product portfolio style opportunity momentum Objective: Ob
Slide 13: Return to organic growth in ARR
Return to organic growth in ARR Flat organic underlying growth in UK (ann. 0%) H1 FY2020 ARR* Buyer Supplier Total (buyer -1%, Supplier +5%) Click to edit Master title - Strong retention but lower deal conversion in H1, caught up in February UK £14.4m £3.9m £18.3m - Strong pipeline for H2 FY2020 and
Slide 14: Improvement in customer retention
Improvement in customer retention UK £’m, including HRAs H1 FY2020 H2 FY2019 H1 FY2019 - Normal run rate churn, but improvement from prior year FR & DE - - Click to edit Master title £0.3m HRAs, better than planned £0.1m underlying, on plan UK (note 1) FR & DE US 0.4 0.4 1.2 1.8 1.0 1.3 0.6 1.7 0.9
Slide 15: bePayd now live with a growing pipeline
bePayd now live with a growing pipeline What is bePayd? Platform to help suppliers get paid more quickly than existing terms Click to edit Master title bePayd settles the approved invoice early in exchange for a discount Target market: SMEs in the tail of a buyer’s supply chain, complementary to mos
Slide 16: Summary & Outlook
Summary & Outlook Click to edit Master title style Click to edit Master subtitle style Tim Sykes, CEO Richard Hughes, CFO
Slide 17: Summary
Summary Encouraging progress made in deployment of new growth strategy with significant Click to edit Master title mid-term opportunity to accelerate Significant improvement in new business performance and customer retention style Step change in performance trajectory – return to organic growth in A
Slide 18: Outlook
Outlook A profitable, cash generative, SaaS based software company with growing ARR in an Click to edit Master title exciting growth market COVID-19 risks being monitored closely, but business model is resilient Maintaining guidance for FY20 style Reset of banking facilities is the essential foundat
Slide 19: Appendix
Appendix Click to edit Master title style Click to edit Master subtitle style
Slide 20: Organisational Structure
Organisational Structure Business Supplier Spend Paid Click to edit Master title Management Portfolio style Netherlands (Tim Schaefers: NL) Tenders Direct (Debbie Mackenzie: UK) Click toSlater: UK (Craig editUK)Master subtitle style Transactions (Nicole Vogler: DE) US (Craig Slater: UK) bePayd (Anth
Slide 21: Consolidated income statement (extracts)
Consolidated income statement (extracts) £’m H1 FY2020 H1 FY2019 FY 2019 Revenue 24.5 27.7 54.1 Direct cost of sale Click to edit Master title Staff and operating expenses Depreciation and amortization (2.9) (16.8) (6.2) (3.1) (18.0) (5.5) (6.7) (34.1) (10.7) Impairment of goodwill Operating (loss)
Slide 22: Consolidated cash flow statement (extracts)
Consolidated cash flow statement (extracts) £’m H1 FY2020 H1 FY2019 FY 2019 (Loss) / Profit after tax (1.9) - (26.5) Click to edit Master title Depreciation, impairment and amortization Other non-cash items (forward contract movement and share based payment charges) 6.2 0.1 5.5 0.3 37.7 0.5 Net work
Slide 23: Consolidated balance sheet (extracts)
Consolidated balance sheet (extracts) £’m H1 FY2020 H1 FY2019 FY 2019 Non-current assets 140.5 167.0 138.5 Cash Net working capital Income taxes Click to edit Master title 7.6 1.5 (0.3) 7.1 3.5 (0.7) 7.7 1.5 - Short-term finance obligations Net current assets style Deferred revenue (non-cash obligat
Slide 24: Consolidated net debt
Consolidated net debt £’m H1 FY2020 FY 2019 Secured bank loans Convertible loans Click to edit Master title Non-current 40.0 6.5 Current 3.2 - Total 43.2 6.5 Non-current 41.0 5.5 Current 3.2 - Total 44.2 5.5 Finance lease liabilities Total borrowings Less: style - 46.5 3.2 - 49.7 - - 46.6 - 3.3 0.1*
Slide 25: Consolidated goodwill and intangible assets
Consolidated goodwill and intangible assets France & £m United Kingdom Netherlands Germany United States Total H1 FY2020 Goodwill Click to edit Master title Other intangible assets 44.5 16.1 11.1 4.2 21.7 9.3 11.5 15.6 88.8 45.2 Total FY2019 style 60.6 15.3 31.0 27.1 134.0 Goodwill Click to edit Mas
Slide 26: Share register
Share register Holding Lombard Odier Investment Managers 28% Rodney Potts Click to edit Master title GVQ Investment Management 9% 6% GAM Chelverton Asset Managementstyle 5% 5% Click to edit Master subtitle style
Slide 27: Click to edit Master title style
Click to edit Master title style Click to edit Master subtitle style Tim Sykes – CEO +44 (0)1937 545 070 Richard Hughes – CFO AlmaPR Rebecca Sanders-Hewett Hilary Buchanan, Sam Modlin +44 (0)20 3405 0205 [email protected]