PROACTIS sees sell-off after warnings

AIM-listed B2B e-commerce specialist PROACTIS (LON:PHD) watched its share price plummet 50.44% to 56p (as of 14:22 GMT) after management warned that the firm was unlikely to deliver significant growth this year. The company said that retention levels had worsened and the sales pipeline in the US and Europe was not as strong as it had been previously.

Chief executive officer Tim Sykes said: “Whilst the outlook for the next few months is disappointing, I am confident in our ability to deliver an improved level of performance in the mid to long-term. Our core markets remain attractive and our core technologies and team are competitive. I look forward to completing my review for the Board and focussing the Group on a growth strategy that should be successful in all of its territories and returning the Group to the qualities it has demonstrated historically.

“I am delighted with the renewed rate of progress with the APF after investing in additional capacity to move it forward. There remains much work to do before revenues can be expected but the commitment from HSBC UK is strong validation of the significance of the opportunity and their support for our business“.