Proxama PLC (LON:PROXP) ended the year with £1.1m in net cash, the cost base has been halved and the new management team has put the foundations in place to start scaling the Location Sciences division. In a short space of time, it has built a large footprint in terms of audience reach and during 2018 it will be working towards the commercialisation of its new product sets.
2017 business transformation
Proxama underwent a wholesale restructuring during 2017. The payments division was divested in November, enabling the group to focus on the more scalable location data and intelligence division – Location Sciences. A new board of directors was established to drive the group’s new strategy, Kelvin Harrison joined as chairman in February, Mark Slade took over as CEO in October 2017 and David Rae has today been appointed as CFO. The cost base has been aggressively streamlined, monthly opex decreased 50% over the course of the year and the £3.1m equity raise in July means the group ended the year with net cash of £1.1m.
A promising start
The resources released following the restructuring has enabled the new team to fully focus on Location Sciences. In a relatively short period of time, it has built its audience reach to over 7m customers and accumulated 14bn total data points, beating its year-end targets of 5m and 5bn respectively and positioning it with one of the largest trackable footprints in the UK. Importantly, during 2017 it overhauled its data infrastructure, products and team, which enabled it to start selling across its product range.
With the foundations in place, the year ahead will be more about scaling and developing its higher-value services: Audience Data and Verification, which provides analytics of a customer’s behaviour; Out of Home, which links billboard advertising to store visits; and Online to Offline, which analyses the impact of mobile advertising on physical store visits.
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