For immediate release
21 February 2008
STATPRO GROUP PLC
(“StatPro”, the “Company” or the “Group”)
- £7 million acquisition of Performa, provider of software to asset managers
- 25 client contracts with recurring annualised revenue of £2.1 million
- Value of recurring annualised contracts for Group now over £22 million
- Strong cross-selling opportunities to largely UK blue-chip client base
- Earnings enhancing in 2008
- Product market drivers are GIPS and MiFID
In line with its strategy of acquiring complementary businesses and consolidating the sector, StatPro, the AIM listed provider of portfolio analytics and data solutions for the global asset management industry, is pleased to announce the completion on 20 February 2008 of the acquisition of Performa Consultants UK Limited (‘Performa’), a supplier of software solutions to asset managers for complying with Global Investment Performance Standards (GIPS®).
StatPro is acquiring 100 per cent of Performa for a consideration (before expenses) of £7.0 million. The consideration will be increased by the value of Performa’s net current assets at completion above an agreed minimum level, currently estimated to be approximately £0.8 million. The total consideration will be satisfied by a combination of £6.6 million in cash and the issue to the vendors of 1,372,020 ordinary shares of 1p each at an effective price of 86.6p based on the average closing mid-price of StatPro’s ordinary shares for the ten day trading period prior to the date of completion. The cash element of the consideration is being financed by an increase to a total of £22.5 million in committed banking facilities from the Group’s existing bankers.
The Board is expecting the acquisition of Performa to be earnings enhancing in 2008.
Background to and reasons for the acquisition
StatPro’s strategy is to grow its product offerings and global reach. The acquisition of Performa brings new clients and a highly professional team, which will strengthen our product and service offering globally. Each of Performa’s clients represents significant cross-selling opportunities for StatPro’s broad range of products.
Performa was established by Anthony Howland and Dean Brown in 1999 to help asset managers meet the challenges of compliance with the Global Investment Performance Standards (GIPS(R)). Performa has 19 employees located in its London office. Anthony Howland has agreed to remain as a consultant and Dean Brown will become a director of StatPro Limited.
Performa now has 25 largely blue-chip clients based in the UK, Europe and North America. In the year ended 31 May 2007, Performa reported revenue of £1.66 million, an increase of 17% from the previous year, profit before tax of £0.58 million compared to £0.42 million in the previous year, and an operating margin increasing to 33.3 per cent. from 29.0 per cent. As at 31 May 2007 Performa had net assets of £0.96 million. Performa has grown its business in its current financial year and now has client contracts with a recurring annualised contract value of £2.1 million.
StatPro has an established track record of identifying and acquiring entrepreneurial businesses which have excellent products and technical skills. By combining these successful entrepreneurial teams into the expanding StatPro global distribution network, and providing the investment and support to take the products to the next stage of development, the Group has been able to generate enhanced shareholder value. StatPro has now completed ten acquisitions since March 2000 and expects to derive operational synergies from the acquisition of Performa consistent with the successful integration of all these businesses.
Application will be made for the admission of the 1,372,020 ordinary shares to trading on AIM. The new shares rank pari passu with StatPro’s existing issued ordinary shares and dealings are expected to commence on 27 February 2008.
Following Admission, the Company’s enlarged issued share capital will comprise 54,486,354 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 54,486,354 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA’s Disclosure and Transparency Rules.
As confirmed in the year end trading update issued on 18 January 2008, the Company expects to report its preliminary results for the year ended 31 December 2007 on Monday, 10 March 2008. As indicated in the update, trading for the year was in line with market expectations and significantly ahead of 2006.
Commenting on the acquisition, Justin Wheatley, Chief Executive of StatPro Group, said: ‘The team at Performa has built a strong profitable business focussed on delivering excellent value to clients. The combination of StatPro and Performa, both of whom have first class reputations for service, will be a strong force in the global composites market at a time when there is considerably more focus on reporting and compliance with regulations such as GIPS (R) and MiFID.’
Commenting on the acquisition, Dean Brown, CEO of Performa, said: ‘StatPro’s global coverage is an excellent fit with Performa’s specialist products and staff. The additional products that StatPro provide, along with their global support structure, will enhance our overall offering and service to our existing and potential customers.’
– Ends –
For further information, please contact:
StatPro Group plc
|Justin Wheatley, Chief Executive||020 8410 9876|
|Andrew Fabian, Finance Director|
Arbuthnot Securities Limited
|Tom Griffiths/Alasdair Younie||020 7012 2000|
|Reg Hoare/ Tania Wild||020 7360 4900|
Notes to Editors:
StatPro Group plc is a leading provider of portfolio analytics and data solutions for the global asset management industry. StatPro floated on the London Stock Exchange in May 2000 and transferred its listing in June 2003 to AIM. Through a combination of organic growth and by acquisitions, StatPro has grown its repeat annualised revenue from less than £1 million in 1999 to over £22 million today.