For immediate release
15 July 2010
STATPRO GROUP PLC
(“StatPro” or the “Group”)
Half Year Trading Update
Notice of results
StatPro Group plc (AIM:SOG), the AIM listed provider of portfolio analytics and data solutions for the global asset management industry, today provides a half year trading update for the six months ended 30 June 2010.
- Trading in H1 in line with expectations
- Paid integration test for StatPro Revolution with major global custodian bank
- Increasing investment in StatPro Revolution
- Net debt reduced to £6.3 million (£8.9 million at 31 December 2009)
- Confident of successful outcome to the year
Trading in the first six months of 2010 is in line with expectations. New business signed in H1 has been satisfactory but given recent events in the markets we caution that new business may be affected in H2 by lengthening sales cycles, in particular for new data services contracts. Nevertheless, renewal rates remain at a similar level to last year (approximately 90% renewal rate) and the momentum of the recurring revenue business model means that the Board remains confident of delivering market expectations, having regard to the additional investment in StatPro Revolution described below. The continued focus on operating cash generation has resulted in further reduction in net debt to approximately £6.3 million at 30 June 2010 compared with £8.9 million at 31 December 2009.
We continue to invest in new product development including StatPro Seven and StatPro Revolution, with the release of the public beta of StatPro Revolution due on 21 July 2010. There has been a positive reception to the private beta version of StatPro Revolution and more importantly, we have signed an initial contract with a major global custodian bank to perform integration tests with a view to offering the service to all their clients.
The Board is now confident that StatPro Revolution will begin to generate revenue in 2011 from both smaller asset managers and custodian clients. In order to maximise this opportunity the Board has sanctioned increased investment in 2010 of £0.7 million (in addition to the £1.3 million previously planned). The Group will need no further external financing to achieve its objectives given the strong positive cash generation of the existing business.
At present the economic situation for many asset management companies remains uncertain and we expect that this may have some impact on new business levels but our strong business model means that we are confident of a successful outcome for the year as a whole. In particular, such uncertainty means that both StatPro Seven and StatPro Revolution should prove popular as we are able to deliver excellent functionality in a cost effective manner.
Justin Wheatley, Chief Executive, commented: “This is a period of technological change and StatPro Revolution is the right solution at the right time for our market. We have seen strong levels of interest in the service from a diverse range of clients and prospects and are particularly pleased to have signed our first integration test. We believe that now is the time to increase our investment in StatPro Revolution so that we can maintain our competitive advantage. With high levels of recurring revenue and a market leading product set, we continue to believe the future for StatPro to be extremely exciting.”
Notice of results
The Group expects to report its interim results for the six months ended 30 June 2010 on Wednesday, 4 August 2010.
– Ends –
For further information, please contact:
StatPro Group plc
|Justin Wheatley, Chief Executive||020 8410 9876|
|Andrew Fabian, Finance Director|
|Ken Fleming||0131 220 6939|
|Jon Fitzpatrick||0207 397 8900|
|Julian Morse||020 7397 1931|
|Caroline Evans-Jones/ Tom Moriarty/ Hilary Millar||020 7653 9850|
StatPro is a leading provider of portfolio analytics and data solutions for the global asset management industry. The Company sells a SaaS-based Analytics and Data platform on a rental basis to investment management companies allowing them to analyse portfolio performance, attribution, risk and GIPS® compliance. StatPro also provides market data and valuation feeds including a Complex Asset Pricing service.
StatPro has grown its recurring revenue from less than GBP 1 million in 1999 to GBP 28.4 million at end December 2009. StatPro floated on the London Stock Exchange in May 2000 and transferred its listing in June 2003 to AIM. The Group has operations in Europe, North America, South Africa and Australia, with approximately 75% of recurring revenues being generated outside the UK.