Today 14 January 2014
PROACTIS the software company focused on spend control services has this morning announced what seems to be a decent acquisition.
The company will be snapping up EGS Group Ltd for £2.9m in cash, although given that EGS has some £700k on its books, the net consideration should be £2.2m.
EGS is very much focused on the areas of Local Government along with Higher Education, so there should be some decent synergies.
I have taken a look at PROACTIS here on a couple of occasions and the shares have done reasonably well since then and are up a touch today at 37p.
- The enlarged Group will be the largest eProcurement solution provider to the UK Public Sector.
- More than 90% of clients follow a subscription business model with 3 or 4 year term contracts, while EGS has 70 clients in the Public Sector
- Acquired annual revenue is anticipated to be £1.6m.
The acquisition should be well received by holders and will probably appease major shareholders who expressed concern over the lack of share price and business progress some time back.
The market cap remains pretty modest here around £11m and although Broker forecasts only imply EPS of 2.3p for this year, PROACTIS may be worth keeping an eye on for possible growth further ahead.
Shares in MOSS BROS have jumped this morning, up 14p to 89p after the company delivered a really solid trading update.
- Like for like sales for the 5 weeks to January 2014 are up 12.9% on the corresponding period, while to the 24 weeks to the 11 January like for sales were 7.3% higher than the previous year.
- An improved performance was put down to tight cost control which has resulted in the company announcing that expectations for the 2013/2014 financial year, will now be exceeded.
- Additionally the business is proving highly cash generative with anticipated net cash of £28m. The result of which sees the board keen to pursue an accelerated dividend policy.