Proact's UK revenues slump as systems sales sharply decline

The systems integrator saw revenues dip during the quarter

Proact's UK business endured a sharp drop in revenues in Q3, after so-called "systems" sales sharply declined.

UK revenues, which include its acquisition of Cetus from last year, fell by 20 per cent year on year during the three months until 30 September to SEK 141m.

Without the Cetus acquisition, organic revenues fell by 42 per cent year on year.

The storage integrator's so-called "systems" business almost halved year on year during the quarter, falling by 46 per cent to SEK 59m. Discounting its Cetus acquisition systems revenues fell by an even steeper 70 per cent.

Proact's services arm fared somewhat better, growing revenues by 21 per cent to SEK 83m.

But profits also went south in Q3, with adjusted EBITA falling by six per cent to SEK 9m.

Proact's UK arm acquired Cetus Solutions for £7.7m in 2020, adding £13m to its UK revenues.

CEO Jonas Hasselberg said that a large project delivered during the same quarter in 2020 with the NHS Blood and Transplant, made for a difficult compare for its UK business this year.

The firm adds that long decision cycles are still having a negative impact on sales in the UK.

The UK was the outlier in an otherwise positive quarter for Sweden-based Proact. Group revenues decreased by only one per cent in Q3 to SEK 810m. Sales in the Nordics and Baltics markets grew by six per cent to SEK 421, while its "Central" region grew sales by 14 per cent to SEK 88m while its "West" segement suffered a one per cent dip in sales to SEK 175m.