Whilst markets remain volatile, the prospects for the asset management industry look brighter than last year.
ProgressI am pleased to report that the Group increased total annualised recurring revenue by 1% to £28.7 million (2012: £28.5 million at constant currency) including a 114% increased contribution from StatPro Revolution of £3.2 million (2012: £1.5 million). Total revenue increased by 2% to £32.5 million (2012: £32.0 million). Owing to increased investment primarily in sales, client services and infrastructure related to StatPro Revolution, adjusted profit before tax decreased by 20% to £4.1 million (2012: £5.0 million). StatPro Revolution related recurring revenue now amounts to £9.2 million (2012: £3.9 million), representing 37% of total software recurring revenue (2012: 16%).
DividendYour Board is proposing a final dividend of 1.95p per share for 2013 payable on 21 May 2014 to all shareholders on the register at the close of business on 25 April 2014, taking the total dividend to 2.8p per share (2012: 2.7p per share) an increase of 4%. We intend to maintain a progressive dividend policy.
In 2013, total research and development expenditure increased by 6% to £4.4 million (2012: £4.2 million) representing 14% of Group revenue. The total cash expenditure on StatPro Revolution including marketing and other costs incurred in 2013 amounted to £4.9 million (2012: £3.7 million).
During the year, we launched the beta version of StatPro R+, the cloud replacement for StatPro Seven. Simplification will be our motto for 2014; we will continue to develop valuable features to help our clients tackle increased regulation, the refocusing of the performance analytics function and, uniquely, our clients will be able to share their analysis with all the stakeholders in the investment decision process.
As your Company is transformed to a pure, cloud-based analytics provider, our employees have continued to excel and again I take this opportunity to thank them for their enthusiasm, resourcefulness and sheer determination to meet your Company’s objectives.
Whilst markets remain volatile, the prospects for the asset management industry look brighter than last year. Asset managers are reviewing their investment in technology with regulation, reducing costs and communication remaining key drivers: your Company is well placed as asset managers seek to eliminate complexity and update their processes.
14 March 2013