StatPro Group PLC – Interim Results

For immediate release
30 July 2007

STATPRO GROUP PLC

(“StatPro”, the “Group” or the “Company”)

Interim results for the six months ended 30 June 2007

StatPro Group plc, the AIM listed provider of portfolio analytics and data solutions for the global asset management industry, announces its interim results for the six months ended 30 June 2007.

Six months ended            Six months ended    Change
                            30 June 2007                30 June 2006

Turnover                  £11.32 million                £6.33 million      +79%
Profit before tax          £1.86 million                £0.82 million     +126%
Operating margin                    20.2%                        12.4%     +63%
Earnings per share                   3.0p                         2.0p     +50%
- basic
- diluted                           2.9p                         2.0p     +45%
Dividend per share
(proposed interim)                  0.45p                        0.3p     +50%

FRI integration completed:

  • Agreement signed for additional revenue with Accenture on major systems project amounting to US$1.8 million (£0.90 million)
  • Agreement on working capital balance on FRI acquisition resulting in C$1.0 million (£0.47 million) benefit
  • Transfer of non-core real time data business to Tenfore Systems Limited for consideration of up to US$2.5 million (£1.25 million) expected to be completed by year end
  • Acquisition of Initram Data Inc. completed in July 2007 for C$3.0 million (£1.41 million) payable over two years to consolidate strong Canadian bond data market position
  • Automation of data feed into StatPro product suite achieved on target

Financial highlights:

  • Operating margin target of 20% achieved
  • Recurring annualised revenue increased to £18.8 million (Dec 2006: £17.7 million)
  • Significant increase in professional services revenue to £2.00 million (2006: £0.96 million)
  • Continued strong cash generated from operations amounting to £2.89 million (2006: £1.95 million)

Commenting on the results, Justin Wheatley, Chief Executive of StatPro said: ‘Given the transformation of our product set we are very confident about our prospects. We remain focused on maintaining the strong financial discipline that has helped us grow so successfully whilst balancing the needs for investment to sustain long term growth. We aim to maintain our recent rate of organic growth and our strong cash generation will help us systematically pay down our debt thus strengthening our balance sheet, providing us with the flexibility to respond to any opportunities that may arise. We look forward to the second half of 2007 and beyond.’

– 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

Smithfield

Reg Hoare/Tania Wild 020 7360 4900

A briefing for analysts will be held at 9.15 for 9.30am today at the offices of Smithfield, 10 Aldersgate Street, London, EC1A 4HJ

High resolution images are available for the media to view and download free of charge from www.vismedia.co.uk

About StatPro

StatPro Group plc is a leading provider of portfolio analytics and data solutions for the global asset management industry. Over the past 13 years, StatPro has developed its products in close collaboration with international asset managers and can offer sophisticated portfolio analytics tools for risk management, fixed income analysis, performance measurement, attribution analysis, GIPS compliance and reporting. StatPro has over 400 client contracts in 25 countries, with 11 offices worldwide. StatPro has grown its recurring revenue from less than £1.0 million in 1999 to £18.8 million in 2007.

CHIEF EXECUTIVE’S REVIEW

Highlights

The first half of 2007 has been an extremely active and successful period for StatPro. Our financial results are significantly ahead of last year and FRI Corporation (‘FRI’, now StatPro Canada Inc.) is now fully integrated with StatPro. This means that we are now ready to launch new products starting in September 2007 through to January 2008, representing an exciting opportunity to increase sales.

Performance

Revenue for the first half of 2007 was up 79% to £11.32 million (2006: £6.33 million), profit before tax was up 126% to £1.86 million (2006: £0.82 million) and basic earnings per share were up 50% to 3.0p (2006: 2.0p). We have also achieved our objective of delivering an operating margin of over 20% (2007: 20.2% versus 2006: 12.4%). This performance is the result of our business model that is based upon recurring revenues from software and data contracts.

Sales have remained strong in Europe, UK, North America and South Africa with the current focus on our existing product set being sold to existing and new clients. Our organic growth rate was 20% for the first half of 2007 and the proportion of sales made to existing clients versus new clients was 68% to 32%. From September 2007, our offering will be augmented with our enhanced data products for analytics. The demand for our core analytics products is likely to remain strong as many asset managers look to replace legacy systems implemented in the late 1990s and there are a number of consolidation opportunities available.

As a sign of our confidence we are pleased to declare an increased interim dividend to 0.45p per share up 50% from 0.3p paid last year.

FRI Integration

During the first half of 2007 we were very much focused on continuing to sell our existing products and on successfully concluding the integration process of FRI.

Johannesburg Stock Exchange

A key project is the contract between FRI and Accenture to deliver a new back office system for the Johannesburg Stock Exchange (‘JSE’), where we have now clarified how much more development was required over and above the original schedule. As a result, we have negotiated an additional US$1.8 million fee for the work required through to the end of January 2008 and we have already established a new development team for the project, based in South Africa and part of our existing business there, to take over the work currently being managed by our Toronto team. It is likely that further development contracts will be awarded for this project as the software will be used for the back office not only of the JSE, but also as the record keeping system for the sixty or so brokers that are members of the JSE.

Working Capital Agreement

Under the acquisition agreement with FRI, there was a process to resolve differences in the valuation of the working capital balance of FRI at the acquisition date, most of which relates to the fair value of work in progress on a number of projects. We have achieved a successful resolution with the FRI shareholders and this has resulted in a credit in our favour of approximately C$1.0 million (£0.47 million).

FRI Corporate Activity

On acquisition, FRI had a number of business units, and our intention has been to integrate and build up those that were core to our business and dispose of those that were not. Accordingly we have disposed of FRI’s real time data business, which provided the end of day valuation division with snap shot prices and acquired a Canadian bond price business.

In respect of the former, we have entered into an agreement with Tenfore Systems Ltd. (‘Tenfore’) to transfer our real time clients to them and in turn to receive a real time data feed from Tenfore to replace our own feed. This has several advantages: we will receive up to US$2.5 million (£1.25 million) in the transfer process (dependent on how many clients transfer), receive a real time feed that covers worldwide equities rather than just North American equities and reduce our supply costs for data for our valuation service. This business was non-core as the clients operate in a different market from StatPro’s traditional clients (including a number of small internet dealing sites and some retail customers) and are extremely unlikely to buy any of our other products.

In contrast, we recently acquired Initram Data Inc, based in Montreal, for a total cash consideration of C$3.0 million (£1.42 million), with C$2.1 million (£0.99 million) payable on signature and the balance over a two year period.

Initram Data Inc is a small competitor that also produces Canadian Bond Prices. We believe that the consolidation of the two business units will enable us to benefit from greater scale and also allow us to expand into other data services more easily. The Initram team brings a number of important data clients and we are confident that we will be able to offer these clients additional services from our much broader coverage of data.

FRI – New Data Services

With the acquisition of FRI we had several objectives in terms of feeding data to our analytics systems. One of these involves computing and then feeding risk parameters for fixed income instruments into SFI (StatPro Fixed Income). This has now been completed and means that we will be able to offer SFI clients full coverage of the assets in their portfolios when we launch this service from September 2007.

Another project has been to supply an index data feed through our systems into SPA (StatPro Performance Attribution) and SFI. This has also been completed with the first family of indices and now we will start adding more indices according to demand. This service will also be launched in September 2007.

The third key project is to offer Complex Asset Pricing by linking together our specialised risk valuation services in Milan with our efficient data operations in Montreal. Progress on developing this service is going well for the planned launch in January 2008.

Strategy

The heart of our strategy remains providing a coherent suite of products that we can cross-sell to all our clients. We have developed our product set by acquiring new products and we have enhanced our client list by our acquisition of FRI in North America. We will now seek to supplement this strategy with further acquisitions either to consolidate certain product categories or to enhance our product range.

In addition, we are now able to broaden our product set by combining our existing products. The most interesting and exciting opportunity is with Complex Asset Pricing. The proliferation of derivatives and the inventiveness of the financial markets have resulted in many complex and illiquid assets being held by almost all asset managers. Whilst these derivatives have undoubtedly improved the flexibility of asset managers they have also brought problems, the greatest of which is accurate valuation of the underlying assets. A proliferation of regulations in Europe and North America stress the importance of pricing risk and require that asset managers and custodians obtain multiple independent sources to value all assets. The market for suppliers of such valuations remains very fragmented and most services are extremely expensive due to the customised nature of many derivatives.We believe that StatPro has the expertise and systems to offer a broad range of valuations for complex assets at a competitive price and we intend to launch this service in January 2008 as part of our End of Day Valuation Service. Surveys of our existing clients show that most of them are using large teams of employees with spreadsheets to value these assets and they would all welcome a more cost-effective solution.

We also wish to improve the solutions we offer our software clients by offering as much data as we can with the software service and thus minimise implementation time and cost. We believe this will also accelerate our sales cycles. In addition, we plan to launch our first analytics services via the internet early next year as SaaS (Software as a Service) with the added benefit of DaaS (Data as a Service). We believe that such services will be very popular with smaller asset managers such as pension funds and hedge funds who do not need or want to invest in complex IT solutions.

As a result of the integration of FRI with StatPro and the combination of our respective product sets, the enlarged group has transformed its product positioning. We now have a high quality, high value-added price evaluation service alongside a broad set of analytics solutions that combine highly functional software with essential data.

Staff

None of this would be possible without the tireless efforts of the employees of StatPro who have all been selected for their high levels of competence in their respective fields.

Outlook

Given the transformation of our product set we are very confident about our prospects. We remain focused on maintaining the strong financial discipline that has helped us grow so successfully whilst balancing the needs for investment to sustain long term growth. We aim to maintain our recent rate of organic growth and our strong cash generation will help us systematically pay down our debt thus strengthening our balance sheet, providing us with the flexibility to respond to any opportunities that may arise. We look forward to the second half of 2007 and beyond.

Justin Wheatley
Chief Executive

FINANCIAL REVIEW

Overview

The integration phase of the major acquisition of FRI has now been successfully completed and the combined business is beginning to reap the benefits. As a result there has been a substantial step change in the scale of the business operations that has resulted in a 79% increase in revenue and 126% increase in profit before tax in the first half of 2007. The Group increased its operating profit by 190% to £2.28 million (2006: £0.79 million). We have achieved our short term target of generating an operating margin of over 20%. We continue to generate strong operating cash flow and this has allowed us to repay £0.93 million of our debt.

Key business integration projects

Prior to its acquisition by StatPro, FRI was working on a major systems project with Accenture for the Johannesburg Stock Exchange. We have now successfully resolved a number of key project risk issues on this major development and as a result, we signed a new agreement for additional consulting with Accenture amounting to US$1.8 million, the bulk of which is expected to be completed during 2007. Progress is going well and we believe that a successful conclusion to this phase of the project would lead to further work for our expanding South African operations.

During the period we achieved an agreement on the fair value of the working capital balance relating to the FRI acquisition completed in October 2006 and this has led to a benefit of approximately C$1.0 million (£0.47 million).

We entered into a commercial agreement with Tenfore Systems Limited (‘Tenfore’), a specialist in the provision of real time data, to transfer the non-core real time data business for a consideration of up to US$2.5 million (£1.25 million). The transfer is expected to be completed by year end. The real time division has annual revenue of around US$1.5 million (£0.75 million) and is marginally loss making.

StatPro Canada has expanded its operations following the acquisition in July 2007 of Initram Data Inc. (‘Initram’), a Montreal based data provider, for a total cash consideration of C$3.0 million (£1.41 million) with C$2.1 million (£0.99 million) payable on signature and the balance payable over two years. Through this acquisition we have acquired further data clients and prospects and an excellent team of five who will help us accelerate the growth of our global data business. Initram was established in 2002 and whilst it has been operating at break-even, it has grown its recurring revenue to approximately C$0.7 million (£0.33 million) as at 30 June 2007.

These key business integration projects, coupled with the excellent progress made on the integration of the data and analytics products, means that the integration phase of FRI is now complete.

Turnover

Turnover increased by 79% to £11.32 million (2006: £6.33 million) of which 20% relates to underlying growth and 59% to acquisitions completed in 2006. Adjusting for the impact of exchange rate movements, turnover and operating profit would have increased by a further 4% and 3% respectively. Recurring software licence revenue grew by 36% and the level of professional services and other revenue increased by 108%. Data revenue, which is a new line of business following the FRI acquisition, amounted to £2.04 million for the six month period.

The split of revenue by type was as follows:

           Six months to    Six months to       Year to
                                        30 June          30 June   31 December
                                           2007             2006          2006
                                      £ million        £ million     £ million
Turnover
Software licences                          7.28             5.37         11.66
Data fees                                  2.04                -          0.82
                                      -----------      -----------   -----------
Total recurring revenue                    9.32             5.37         12.48

Professional services and other
revenue                                    2.00             0.96          2.12
                                      -----------      -----------   -----------
                                          11.32             6.33         14.60

A good level of new business was achieved in the first half of 2007 in all the markets in which we operate and the cross selling effect of having more products and more clients is beginning to bear fruit. Our fixed income (SFI) and portfolio compliance (SPC) systems achieved the fastest growth rate during the period. The pipeline of new business is also at its highest level.

The proportion by value of recurring software licences on multi-year contracts (licence agreements with more than one year remaining contractually committed) was 56% at the end of June 2007 compared to 57% at the end of December 2006 and 53% at the end of June 2006. New business from existing clients was 68% (2006: 65%) and our top 30 clients have an average of 3.9 products per client.

The annual value of continuing recurring revenue, increased to £18.81 million from £17.66 million at 31 December 2006, a growth of 7% (6% at constant exchange rates) in the six month period.

Annualised    At 31     New contracted     Net impact of          At     Growth
value      December    revenue (net of          exchange     30 June  (at
constant
               2006      cancellations)            rates        2007   exchange
          £ million           £ million        £ million                  rates)
                                                                              %
Recurring
revenues
Software
licences     17.66                  1.05          0.10         18.81         +6

Operating expenses

Operating expenses (before amortisation of intangibles) amounted to £8.00 million in the first half of 2007 (2006: £4.75 million). The growth in expenses arose mainly from the impact of the three acquisitions completed in 2006 leading to an increased number of employees and a larger infrastructure. Other costs for the business which have increased in the period relate to data acquired from third parties, exchange fees and other costs such as telecommunications required to deliver an integrated data and software service.

Employees

The average number of employees during the first six months of 2007 increased to 238 (2006: 114). The number of employees has increased from 233 at the start of the period to a total of 243 employees, situated in eleven offices in Europe, North America, South Africa and Australia at the end of June 2007. Five employees joined with the Initram acquisition completed in July 2007.

Development costs

The Group continues to increase its investment in research and development to ensure we remain at the forefront of performance and risk analytics technology. The key projects we are currently investing in relate to integrating our data offering in an innovative way and the development of our SaaS (Software as a Service) solution. We have made excellent progress on key projects to integrate data into our analytics products and to develop an innovative web-based data interactive query service (StatPro Data Direct).

Development costs incurred in the period amounted to £1.64 million (2006: £1.13 million) of which £1.10 million (2006: £0.97 million) have been capitalised under IFRS where recognition criteria are met. The amortisation of intangibles including development costs and acquired intangibles amounted to £1.04 million (2006: £0.79 million). The carrying value of intangibles (including acquired intangibles) recognised amounted to £4.61 million (Dec 2006: £4.55 million).

Interest

Net interest expense amounted to £0.42 million (2006: net interest income £0.04 million) arising mainly on the bank loan used to finance the FRI acquisition. Included within interest expense is £0.08 million relating to the unwinding of discounts on deferred consideration.

Profit before tax

The profit before tax increased by 126% to £1.86 million from £0.82 million.

Taxation

Tax charged amounted to £0.28 million (2006: £0.08 million). The level of deferred tax asset amounted to £2.04 million (Dec 2006 – £2.27 million). Deferred tax amounting to £0.43 million at end June 2006 has been reclassified from current deferred tax for comparability purposes.

Earnings per share

Basic earnings per share increased by 50% to 3.0p (2006: 2.0p). The average number of shares in issue in the period increased by 44% to 52,579,651 (2006: 36,393,436) mainly as a result of shares issued in 2006 to finance the FRI acquisition. The diluted earnings per share were 2.9p (2006: 2.0p) based on potentially dilutive shares outstanding amounting to 1,791,131 (2006: 1,201,501).

Minority interest

In March 2007, StatPro acquired the 49% of StatPro Italia that was not already owned by the Company for £1.16 million.

Cash flow

There was an improved cash inflow from operations before investment in development activities during the first six months of 2007 amounting to £2.89 million (2006: £1.95 million). The investment in development activities was £1.10 million (2006: £0.97 million). As a result, the cash inflow from operations after investment in development activities increased to £1.78 million (2006: £0.98 million) in the first six months of 2007 (see note 3). Net proceeds from the shares issued in the first half of 2007 amounted to a total of £0.50 million.

Balance sheet

The Group’s net assets increased to £20.32 million at June 2007 (June 2006: £6.92 million) from £17.97 million at 31 December 2006. The level of trade and other receivables amounting to £4.61 million, of which the major component is trade debtors, was lower than at the end of December 2006 (£5.35 million) but higher than the comparable figure at the end of June 2006 (£3.60 million). The cash balance at the end of June 2007 was £2.22 million (June 2006: £4.25 million) and the Group’s net debt at 30 June 2007 amounted to £8.39 million compared with £7.68 million at 31 December 2006 and net funds of £4.22 million at 30 June 2006. The increase in net debt in the period was mainly due to net payments for acquisitions including deferred consideration of £1.08 million, an exchange movement on the currency loans of £0.53 million, offset by £0.50 million raised on issue of equity.

The major component of creditors is deferred income, a non-cash liability, which amounted to £8.04 million (June 2006: £6.76 million) compared to £8.67 million at 31 December 2006. The level of deferred contingent consideration is estimated at £3.41 million at the end of June 2007 (June 2006: £3.50 million).

Post balance sheet event

StatPro Canada completed the acquisition in July 2007 of Initram Data Inc, as outlined above, for a cash consideration of C$3.0 million (approximately £1.41 million) payable over two years, financed from StatPro’s existing bank facilities.

Interim dividend

The directors intend to pay an increased interim dividend of 0.45 pence per ordinary share (2006: 0.3p) on 31 October 2007 to shareholders on the register at the close of business on 5 October 2007, reflecting the strong first half results and the Board’s confidence in the business prospects. The Board intends to maintain a progressive dividend policy reflecting the balance between the investment needs of the business and the growth in underlying cash and earnings per share.

Andrew Fabian
Finance Director

Group Income Statement

Notes      Unaudited      Unaudited       Audited
                                       Six months     Six months          Year
                                               to             to            to
                                          30 June        30 June   31 December
                                             2007           2006          2006
                                            £'000          £'000         £'000
Group Revenue
Continuing operations                      11,319          6,330        14,604
   ------------------------- -------     ----------      ---------    ----------
Operating expenses before
amortisation of intangibles                (7,999)        (4,751)      (10,288)
Amortisation of intangibles                (1,039)          (793)       (1,669)
Exceptional items                               -              -        (1,421)
-------------------------    -------     ----------      ---------    ----------

Operating expenses                         (9,038)        (5,544)      (13,378)
                                         ----------      ---------    ----------

Operating profit                            2,281            786         1,226

Interest receivable                            49             44           106
Interest payable                             (473)            (8)         (195)
                                         ----------      ---------    ----------

Profit before taxation                      1,857            822         1,137

Taxation                                     (279)           (84)           77
                                         ----------      ---------    ----------

Profit for the period                       1,578            738         1,214
                                         ----------      ---------    ----------

Profit/(loss) attributable
to                                             19             (7)         (110)
minority interests
Profit attributable to
equity                                      1,559            745         1,324
shareholders
                                            1,578            738         1,214
                                         ----------      ---------    ----------

Earnings per share from
continuing operations -          2            3.0p           2.0p          3.3p
basic
- diluted                        2            2.9p           2.0p          3.2p

Statement of Recognised Income and Expense

                                   Audited
                                      Unaudited        Unaudited       Year to
                                  Six months to    Six months to   31 December
                                        30 June          30 June          2006
                                           2007             2006
                                          £'000            £'000         £'000
Profit for the period                     1,578              738         1,214
Net exchange differences offset
in reserves net of tax                      608               28          (970)
Total recognised gains and
losses for the period                     2,186              766           244
                                       ----------        ---------    ----------

Attributable to:
Minority interests                            3               (7)          (91)
Equity shareholders                       2,183              773           335

Consolidated Balance Sheet

          Notes   Unaudited   Unaudited       Audited
                                               As at       As at         As at
                                             30 June     30 June   31 December
                                                2007        2006          2006
                                               £'000       £'000         £'000

Non current assets
Goodwill                                      31,473       6,632        29,869
Intangible assets                              4,614       2,931         4,550
Property, plant and equipment                    935         528           846
Other receivables                                320         250           316
Deferred tax assets                            2,043       1,462         2,269
                                              --------    --------     ---------
                                              39,385      11,803        37,850

Current assets
Trade and other receivables                    4,611       3,597         5,352
Cash and cash equivalents                      2,218       4,254         3,327
                                              --------    --------     ---------
                                               6,829       7,851         8,679

Liabilities
Current liabilities
Financial liabilities - borrowings            (1,857)        (35)       (1,857)
Trade and other payables                      (3,794)     (2,397)       (4,767)
Current tax liabilities                          (47)        (46)          (53)
Deferred income                               (7,939)     (6,668)       (8,562)
Provisions - contingent
consideration                                   (862)     (1,096)       (1,484)
                                              --------    --------     ---------
                                             (14,499)    (10,242)      (16,723)

Net current liabilities                       (7,670)     (2,391)       (8,044)

Non-current liabilities
Financial liabilities - borrowings            (8,748)          -        (9,145)
Deferred income                                  (98)        (87)         (109)
Provisions - contingent
consideration                                 (2,552)     (2,404)       (2,581)
                                              --------    --------     ---------
                                             (11,398)     (2,491)      (11,835)

Net assets                                    20,317       6,921        17,971
                                              --------    --------     ---------

Shareholders' equity
Ordinary shares                                  528         393           522
Share premium                                 14,084       3,362        13,570
Shares to be issued                              875           -           896
Other reserves                                   740         698           116
Retained earnings                              4,228       2,525         3,008
                                              --------    --------     ---------

Total shareholders' equity                    20,455       6,978        18,112
Minority interest in equity                     (138)        (57)         (141)
                                              --------    --------     ---------
Total equity                                  20,317       6,921        17,971
                                              --------    --------     ---------

Consolidated Cash Flow

Unaudited    Unaudited    Audited
                                            Six months   Six months       Year
                                                    to           to         to
                                               30 June      30 June         31
                                                                      December
                                                  2007         2006       2006
                                                 £'000        £'000      £'000
Cash flows from operating activities
Cash generated from operations                   2,886        1,949      3,889
Interest received                                   49           42        106
Interest paid                                     (552)          (9)       (12)
Tax paid                                           (35)         (34)      (105)
                                               ---------    ---------  ---------
Net cash from operating activities               2,348        1,948      3,878

Cash flows from investing activities
Acquisition of subsidiaries (net of
cash acquired)                                  (1,081)        (790)   (24,517)
Investment in intangible assets -
development costs                               (1,104)        (966)    (1,939)
Proceeds from sale of property, plant and
equipment                                            -            -          -
Purchase of property, plant and
equipment                                         (268)        (108)      (302)
                                               ---------    ---------  ---------
Net cash used in investing
activities                                      (2,453)      (1,864)   (26,758)

Cash flows from financing activities
Repayment of bank loan                            (934)           -          -
Net proceeds from bank loan                          -            -     11,788
Proceeds from issue of ordinary
shares                                             499        2,499     12,836
Dividends paid to shareholders                    (376)        (180)      (298)
Net cash (used in)/from financing
activities                                        (811)       2,319     24,326
                                               ---------    ---------  ---------

Effects of exchange rate changes                  (193)          (2)        28

Net (decrease)/increase in cash and
cash equivalents                                (1,109)       2,401      1,474
                                               ---------    ---------  ---------

Cash and cash equivalents at start
of period                                        3,327        1,853      1,853

Cash and cash equivalents at end of
period                                           2,218        4,254      3,327
                                               ---------    ---------  ---------

Reconciliation of operating profit to net cash flow from operating activities

   Unaudited       Unaudited            Audited
                              Six months to   Six months to            Year to
                               30 June 2007    30 June 2006   31 December 2006
                                      £'000           £'000              £'000

Operating profit                      2,281             786              1,226
Depreciation of tangible
fixed assets                            197             110                261
Amortisation of intangibles           1,039             793              1,669
Decrease/(increase) in
debtors                                 717             289               (490)
(Decrease)/increase in
creditors (excluding deferred
income)                                (751)            112                898
(Decrease)/increase in
deferred income                        (634)           (177)               232
Share based payments                     37              36                 58
Loss on disposal of fixed
asset                                     -               -                 35
Net cash generated from
operating activities                  2,886           1,949              3,889
                                     --------        --------          ---------

Reconciliation of net cash flow to movement in net (debt)/funds

 Unaudited       Unaudited            Audited
                              Six months to   Six months to            Year to
                               30 June 2007    30 June 2006   31 December 2006
                                      £'000           £'000              £'000

(Decrease)/increase in cash
and cash equivalents in the
period                               (1,109)          2,401              1,474
Movement on bank loan                   934               -            (11,788)
Exchange differences on bank
loan                                   (525)              -                825
Other non-cash movements                (12)              -                 (4)
                                     --------        --------          ---------
Movement in net (debt)/funds           (712)          2,401             (9,493)
Net (debt)/funds at beginning
of period                            (7,675)          1,818              1,818
Net (debt)/funds at end of
period                               (8,387)          4,219             (7,675)
                                     --------        --------          ---------

Analysis of changes in net debt

       At 1      Cash       Non-Cash          Exchange    At 30 June
              January      flow        changes       differences          2007
                 2007
                £'000     £'000          £'000             £'000         £'000
Cash and
cash            3,327    (1,109)             -                 -         2,218
equivalents
Bank loans
(net of
issue
costs         (10,967)      934            (12)             (525)      (10,570)
deferred)
Other             (35)        -              -                 -           (35)
loans           -------   -------        -------         ---------      --------
Net debt       (7,675)     (175)           (12)             (525)       (8,387)
                -------   -------        -------         ---------      --------

Statement of changes in shareholders’ equity

Share     Share  Shares    Retained    Other    Minority    Total
            capital   premium   to be    earnings reserves   interests
                      account   issued                   *
              £'000     £'000    £'000      £'000    £'000       £'000    £'000
At 1
January 2007    522    13,570      896      3,008      116        (141)  17,971
Shares issued     6       514      (21)         -        -           -      499
Profit for the
period            -         -        -      1,559        -          19    1,578
Dividend          -         -        -       (376)       -           -     (376)
Share based
payments          -                  -         37        -           -       37
Exchange
differences
offset in
reserves          -                  -          -      624         (16)     608
              -------   -------  -------    -------  -------     ------- --------
At 30 June
2007            528    14,084      875      4,228      740        (138)  20,317
              -------   -------  -------    -------  -------     ------- --------

* Other reserves includes warrant reserve, merger reserve, and translation reserve. Notes to the interim accounts

1. This announcement was approved by the Board of directors on 27 July 2007. The financial information set out in this interim statement has been prepared under IFRS on the basis of the accounting policies set out in the statutory accounts of StatPro Group plc for the year ended 31 December 2006. This report is not prepared in accordance with IAS34 which is currently not mandatory. This interim statement has not been audited but has been reviewed by the Company’s auditors PricewaterhouseCoopers LLP. The financial information does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. Statutory accounts for StatPro Group plc for the year ended 31 December 2006 reported under IFRS, on which the auditors gave an unqualified opinion, have been delivered to the Registrar of Companies. Copies of this statement will be posted to shareholders. Further copies are available free of charge on request from the Company Secretary at the Company’s registered office, StatPro House, 81-87 Hartfield Road, London SW19 3TJ.

2. Basic earnings per share. Basic earnings per share has been calculated based on the profit after taxation and minority interests of £1.56 million (2006: £0.74 million) and the weighted average number of shares of 52 ,579,651 (2006: 36,393,436). The diluted earnings per share were 2.9p (2006: 2.0p) based on potentially dilutive shares outstanding amounting to 1,791,131 (2006: 1,201,501).

Analysis of recurring revenue by type

Type     Sterling    Percentage    Sterling   Percentage   Sterling   Percentage
       value at 30              value at 30                value at
         June 2007                June 2006                      31
                                                           December
                                                               2006
         Unaudited                Unaudited                 Audited
                 £                        £                        £
          millions                 millions                 millions
Software
licences     14.87         79.1%      12.00        100.0%     13.87         78.5%
Data          3.94         20.9%          -            -       3.79         21.5%
fees       ---------    ---------   ---------    ---------   --------   
---------
             18.81        100.0%      12.00        100.0%     17.66        100.0%

Analysis of recurring revenue by region

Region          Sterling   Percentage    Sterling   Percentage   Sterling  
Percentage

             value at 30              value at 30                value at
               June 2007                June 2006                      31
                                                                 December
                                                                     2006
               Unaudited                Unaudited                 Audited
                       £                        £                        £
                millions                 millions                 millions

United Kingdom      2.94         15.6%       2.77         23.1%      2.86         16.2%
Continental
Europe              5.96         31.7%       5.78         48.2%      5.63         31.9%
North               8.01         42.6%       2.27         18.9%      7.54         42.7%
America
Rest of             1.90         10.1%       1.18          9.8%      1.63          9.2%
World            ---------    ---------   ---------    ---------   --------    ---------
                   18.81        100.0%      12.00        100.0%     17.66        100.0%

Analysis of recurring revenue by currency

As at 30 June      Currency            Exchange       Sterling value    Percentage
2007                  value                rate                   at
Currency           millions        30 June 2007         30 June 2007
                                                           Unaudited
                                                          £ millions
Pounds
sterling             £3.29                1.000              3.29         17.5%
Euro                 Euro8.84                1.486              5.95         31.6%
US Dollar          US$8.86                2.006              4.42         23.5%
Canadian
Dollar             C$7.98                 2.134              3.74         19.9%
Other
currencies                                                   1.41          7.5%
                                                         ----------    ---------
                                                            18.81        100.0%

As at 30 June     Currency            Exchange      Sterling value    Percentage
2006                 value                rate                  at
Currency          millions        30 June 2006        30 June 2006
                                                         Unaudited
                                                        £ millions
Pounds
sterling             £3.07                1.000              3.07         25.6%
Euro                 Euro7.95                1.447              5.49         45.7%
US Dollar          US$3.89                1.850              2.10         17.5%
Canadian
Dollar             C$0.35                 2.005              0.17          1.4%
Other
currencies                                                   1.17          9.8%
                                                         ----------    ---------
                                                            12.00        100.0%

As at 31 December    Currency      Exchange rate   Sterling value   Percentage
2006                 value                                     at
Currency             millions        31 December      31 December
                                            2006             2006
                                                          Audited
                                                       £ millions
Pounds
sterling               £3.20               1.000             3.20         18.1%
Euro                   Euro8.33               1.484             5.61         31.8%
US Dollar            US$8.56               1.957             4.38         24.8%
Canadian
Dollar               C$7.41                2.278             3.25         18.4%
Other
currencies                                                   1.22          6.9%
                                                            17.66        100.0%

 

3. Cash generated from operations – reconciliation from statutory heading to business performance measure

    Unaudited      Unaudited           Audited
                        Six months to 30 June     Six months              Year
                                         2007             to                to
                                                30 June 2006       31 December
                                                                          2006
                                        £'000          £'000             £'000

Cash generated from
operations                              2,886          1,949             3,889
Investment in
intangible assets -
development costs                      (1,104)          (966)           (1,939)
                                       --------       --------        ----------
Cash generated from
operations less
internally
generated                               1,782            983             1,950
intangible assets                      --------       --------        ----------

4. Dividend. An interim dividend for 2007 amounting to 0.45 pence per ordinary share (2006: 0.3p) will be paid on 31 October 2007 to shareholders on the register on 5 October 2007. A final dividend for 2006 amounting to 0.7 pence per ordinary share was paid on 30 May 2007 to shareholders on the register on 27 April 2007. Under IFRS dividends are accounted for when paid and not when proposed or declared.

Independent review report to StatPro Group plc

Introduction

We have been instructed by the company to review the financial information for the six months ended 30 June 2007 which comprises the interim consolidated balance sheet as at 30 June 2007 and the related consolidated interim statements of income, cash flows and changes in shareholders’ equity for the six months then ended and related notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

Directors’ responsibilities

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.

This interim report has been prepared in accordance with the basis set out in Note 1.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the disclosed accounting policies have been applied. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit and therefore provides a lower level of assurance. Accordingly we do not express an audit opinion on the financial information. This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM rules of the London Stock Exchange and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Review conclusion

On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2007.

PricewaterhouseCoopers LLP
Chartered Accountants
London
27 July 2007

Notes:

(a) The maintenance and integrity of the StatPro Group plc web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the interim report since it was initially presented on the web site.

(b) Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

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