Chairman’s Statement

Asset managers continue to grapple with increased regulation, more complex investment strategies, cost reduction and demands for better communication.

Progress

I am pleased to report that your Company increased total annualised revenue by 4% to £29.4 million at constant currency (2013 actual: £28.7 million) including a 68% increased contribution from StatPro Revolution of £5.4 million (2013: £3.2 million). Total revenue increased by 6% at constant currency but was 1% lower at actual rates at £32.0 million (2013: £32.5 million). As a result of continued investment in StatPro Revolution, sales and client services, profit before tax decreased by 24% to £2.4 million (2013: £3.1 million). StatPro Revolution related recurring revenue now amounts to £12.0 million (2013: £9.1 million), representing 46% of total software recurring revenue (2013: 37%).

Dividend

Your Board is proposing a final dividend of 2.05p per share for 2014 payable on 27 May 2015 to all shareholders on the register at the close of business on 1 May 2015 taking the total dividend to 2.9p per share (2013: 2.8p per share).

Products

In 2014, total research and development expenditure increased by 12% to £5.0 million (2013: £4.4 million) representing 16% of Group revenue. The total cash expenditure in 2014 on StatPro Revolution, including marketing and other costs, amounted to £5.5 million (2013: £4.9 million).

Regulation continues to drive client requirements and hence product development. In November 2014, StatPro won the Waters Buy-Side Technology award for ‘Best Risk Initiative’ for our Risk Limits and Commitment Leverage Monitoring Module. This premium module, available as part of StatPro Revolution, is aimed at managers who need to report data for the UCITS and AIFMD regulations.

Carl Bacon

I look forward to leveraging your Company’s substantial investment in StatPro Revolution to assist asset managers achieve their objectives, reduce costs, meet complex regulations, improve data management and replace legacy systems with more flexible and scalable solutions delivered via the cloud.

Carl Bacon

People

I am delighted, once again, to congratulate our employees, our greatest asset, for their commitment to achieving your Company’s objectives, whilst they manage the transformation to a pure, cloud-based analytics provider.

Prospects

Asset managers continue to grapple with increased regulation, more complex investment strategies, cost reduction and demands for better communication. I look forward to leveraging your Company’s substantial investment in StatPro Revolution to assist asset managers achieve their objectives, reduce costs, meet complex regulations, improve data management and replace legacy systems with more flexible and scalable solutions delivered via the cloud.

Carl Bacon
Chairman
12 March 2015