For immediate release
18 October 2013
STATPRO GROUP PLC
(“StatPro” or the “Group”)
Q3 Trading Update
StatPro Group plc, (AIM:SOG), the AIM listed provider of portfolio analysis and asset pricing services for the global asset management industry, today provides a trading update for the nine months ended 30 September 2013.
- Trading in Q3 2013 in line with market expectations
- StatPro Revolution annualised recurring revenue increased by approximately 85% in the nine months to end September 2013 to £2.8 million (December 2012: £1.5 million*)
- StatPro Revolution client numbers increased to 251 as at end September 2013 (December 2012: 156)
- StatPro Revolution related recurring revenue** increased to £6.9 million and 27% of total software revenue (December 2012: £4.0 million /16%)
- Further progress in development of StatPro R+ (cloud replacement for StatPro Seven) since the successful beta launch in July 2013
* at constant currency
** defined as the total recurring revenue from clients whose subscription includes StatPro Revolution
Revenue and profits for the nine months ended 30 September 2013 are in line with market expectations for the year as a whole, with an increased rate of new business signed for StatPro Revolution.
Sales of StatPro Revolution, our cloud-based portfolio analysis service, continue to grow well. By the end of September 2013, client numbers had reached 251 and recurring revenue had grown by approximately 85% to £2.8 million. More existing clients of our traditional StatPro Seven software are also adopting StatPro Revolution in addition to the StatPro Seven service, contributing to an increase in StatPro Revolution related revenue to £6.9 million (December 2012: £4.0 million). This provides evidence that our clients support our cloud transition strategy. Our sales pipeline continues to grow and we look forward to building upon this success and momentum. We are pleased with progress on our implementation of a new sales training programme in the year and we are making good progress on client services and development initiatives.
Earlier in October 2013, we released enhanced user management for sharing, allowing clients to create any number of custom roles and profiles with specific access permissions within the platform. This centralised process enables quick yet controlled distribution of cloud-based portfolio analytics. Such control enables rapid deployment of business information to any user with a full audit trail and without the hassle and expense of managing local applications.
StatPro is set to expand on this new feature in the January 2014 release by providing the ability to share portfolios up to a compliance date instead of the latest date. This function is especially useful for fund companies sharing with their external distributors, outsourced fund managers or fund platforms. We believe that this feature will be a significant future driver of growth as the sharing effect will help in the marketing and promotion of the service.
StatPro now provides StatPro Revolution to 33 fund administrator partners around the world (December 2012: 21). Fund administrators represent a key market for StatPro as they can act as distributors of the StatPro Revolution service.
StatPro Seven and StatPro R+
In 2012 we made the transition to promote only our cloud service (StatPro Revolution). In line with expectations, there has been a lower level of new business for StatPro Seven during 2013, but renewal rates remain in line with market expectations. Development of StatPro R+, the cloud-based replacement for StatPro Seven clients, is progressing well with the launch of the first module as a beta in July 2013 and the second beta version due to be launched in November 2013 with additional important features.
Our continuing progress gives the Board confidence in a successful outcome for the year and confidence in the continued execution of our cloud-based strategy.
Justin Wheatley, Chief Executive, commented: “Having built a world leading, cloud-based analytics platform that has proven itself to over 250 clients in 32 countries, our next challenge is to scale up our sales force to tap into the undoubted potential of the global asset management market. Our disruptive business model which enables any asset manager or adviser to buy performance, risk and attribution for just $100 per portfolio per month, means that our addressable market is many times larger than it was with our traditional products. As the network effect of clients sharing with others creates new prospects for StatPro Revolution, so we will be able to grow faster. We are excited about our future prospects.”
– Ends –
For further information, please contact:
StatPro Group plc
|Justin Wheatley, Chief Executive||020 8410 9876|
|Andrew Fabian, Finance Director|
|Stephen Keys||020 7397 8926|
|Julian Morse (Sales)||020 7397 1931|
|Caroline Evans-Jones/Hilary Millar||020 7653 9850|
StatPro is a global provider of portfolio analytics for the investment community. Our cloud-based services provide vital analysis of portfolio performance, attribution and risk. Hundreds of investment professionals use our cloud services directly or through a fund administrator/partner to perform sophisticated analysis, reporting and distribution every day.
With nearly 20 years of experience and expertise, we believe analytics should be sophisticated yet simple and useful as well as secure. StatPro data coverage includes global equities, global bonds, global mutual funds, most families of benchmarks, FX rates, sector classifications and much else besides.
StatPro has grown its recurring revenue from less than £1 million in 1999 to around £30 million at 30 June 2013 and currently enjoys a renewal rate of approximately 91%. StatPro floated on the main market of the London Stock Exchange in May 2000 and transferred its listing to AIM in June 2003. The Group has operations in Europe, North America, South Africa, Asia and Australia and approximately 450 clients in 37 countries around the world. Approximately 80% of recurring revenues are generated outside the UK.