UK market delivers bright spot in Proact IT half yearly results
Revenues were up 31.5 per cent in the UK for the Swedish MSP
Swedish reseller Proact IT has released its half yearly report showing 9.2 per cent growth in revenues to SEK 2,422m (£181.45m).
Recurring revenues jumped to SEK 818.9m (£61.36m), an increase of 17.1 per cent.
The UK market played a key role in this growth during the April-June 2023 period with overall revenues increasing by 31.5 per cent in the region.
UK system revenues also increased in the UK by 56.9 per cent and organically by 47.9 per cent, compared to a weak second quarter 2022.
Service revenues increased by 15.4 per cent and organically by 8.8 per cent, with cloud services delivering the largest chunk of this off the back of previously won contracts.
Currency rate effects also had a positive effect delivering 4.1 per cent growth, whilst acquisitions and divestments delivered 2.2 per cent. Organically, revenues increased by 2.9 per cent.
The company's adjusted EBITA ticked up 3 per cent to SEK 138.6m (£10.38m) during the January-June 2023 period, corresponding to an adjusted EBITA margin of 5.7 per cent.
New contracts in cloud services, however, dropped by 11.7 per cent to SEK 232.2m (£17.39m).
"During the second quarter of 2023 we have generally seen good demand in several markets, although a few countries have seen a somewhat slower sales pace connected to the macroeconomic uncertainties," commented Proact IT CEO Jonas Hasselberg.
"Revenues in the quarter increased overall by 4 per cent to SEK 1,202m (£90.09m) and decreased organically by 2 per cent.
"After several quarters of high organic growth in the systems business, the second quarter ended with a decrease of 6 per cent and an organic decrease of 9 per cent compared to a record quarter last year.
"All business units except UK showed an organic decline, to a large extent because of a strong comparison quarter, and primarily in Germany also weaker demand connected to the uncertain macroeconomic situation."
The results are released just as Proact's CFO and VP investor relations resigned from her position for external opportunities.