For immediate release
22 January 2015
STATPRO GROUP PLC
(“StatPro”, “the company” or “the Group”)
Year End Trading Update – Notice of Results
StatPro Group plc, (AIM:SOG), the AIM listed provider of cloud-based portfolio analysis and asset pricing services for the global asset management industry, today announces a trading update for the year ended 31 December 2014.
- Trading in the year in line with market expectations
- StatPro Revolution annualised recurring revenue increased by 68% to £5.4 million at 31 December 2014 (2013: £3.2 million*)
- StatPro Revolution related recurring revenue** increased to £11.9 million at 31 December 2014 (2013: £9.2 million*), representing approximately 46% of total software recurring revenue (2013: 37%*)
- Strategic contract win worth almost €4 million (£3.1 million) with major European asset manager to upgrade its existing StatPro Seven platform to StatPro Revolution and StatPro R+
- Three year contract includes professional services and represents 55% conversion premium***
- Average revenue for StatPro Revolution clients increased by around 38% to over £17k p.a. (2013: £12.5k) as a result of focus on increasing revenue per client
- StatPro Seven recurring revenue was resilient with net cancellation rate of around 4% (2013: 5%) and excluding the impact of conversions to StatPro Revolution, the recurring revenue for StatPro Seven was flat year on year (2013: 2% reduction)
- Total annualised recurring revenue increased by 4% at constant currency (2013: 1%)
- Net cash of approximately £2.7 million at 31 December 2014 (2013: £4.0 million)
* at constant currency
** defined as the total recurring revenue from clients whose subscription includes StatPro Revolution
*** defined as the percentage increase in total recurring revenue for StatPro Revolution compared to total recurring revenue for StatPro Seven from that client
Annualised recurring revenue for StatPro Revolution increased by 68% during the year to £5.4 million at 31 December 2014 (2013: £3.2 million*).
Our new pricing policy, introduced in June 2014, of a minimum client relationship fee of £12k (US$18k) p.a. has resulted in a significant increase in average subscription value by around 38% from £12.5k to over £17k. This new minimum fee still represents outstanding value for our clients, but it also ensures that each new relationship can be profitable from the start.
Key new features added to StatPro Revolution in 2014 included the compliance feature enabling users to comply with the AIFMD (Alternative Investment Fund Managers Directive) in time for the enforcement of these regulations in July 2014. As at end December 2014 around £0.9 million of recurring revenue had been contracted for this service, as part of the StatPro Revolution solution.
As announced on 6 January, we signed a strategic contract with a major European asset manager with total value of the new contract at almost €4 million (£3.1 million) over the three years including professional services. Under the new contract the customer is upgrading its existing StatPro Seven platform to the StatPro Revolution platform. They have initially subscribed for StatPro Revolution and will add StatPro R+ on its release. The recurring element of this new contract represents a 55% conversion premium to the original StatPro Seven contract. Total recurring revenue per annum from this client globally is now over £1.0 million. This contract is a significant milestone for StatPro Revolution and StatPro R+ as the service will be used worldwide by potentially hundreds of users for day-to-day access to portfolio analysis and reporting. The client has replaced several other solutions by using the StatPro Revolution platform, making substantial savings and has already acknowledged significant increased productivity as a result. This achievement helps reaffirm that our cloud strategy is on track and the significant efficiency gains offered by this new technology are understood by clients and prospects alike.
The Group generated positive operating cash flow although net cash reduced from £4.0 million to £2.7 million as a result of continued investment, increases in capex and dividend payments.
The focus of StatPro Revolution development in 2015 is on Advanced Risk Management, which is due for release in H1 2015.
Following a project to streamline core internal services (primarily IT, finance and HR), we decided to re-locate our Toronto team to a smaller office. As a result, we expect to report an additional one-off charge in our 2014 accounts relating to the office lease of around £0.3 million related to this decision.
StatPro Seven and StatPro R+
StatPro Seven recurring revenue was resilient with net cancellation rate of around 4% (2013: 5%). Excluding the impact of conversions to StatPro Revolution, the recurring revenue for StatPro Seven was flat year on year (2013: 2% reduction).
The development of StatPro R+, the replacement for StatPro Seven, remains on track with the next release schedule for mid-2015 and as noted above, we have already received forward orders for StatPro R+.
Outlook & Notice of Results
The Board will provide an update on the outlook for trading in 2015 with the Company’s preliminary results which will be announced on Tuesday, 10 March 2015.
Justin Wheatley, Chief Executive, commented: “2014 has been a good year for StatPro. We continue to experience high levels of growth for StatPro Revolution and at the same time StatPro Seven continues to prove a resilient and stable source of recurring revenue. As we enter 2015, we expect to see this momentum continue and to start marketing StatPro R+ in the second half of the year. Acceptance of cloud-based solutions is now mainstream and we are beginning to see that some of our competitors are talking about developing a cloud-based solution of their own. As we started this process in 2007, we believe that we are well placed to reap the benefits of our early investment.”
– Ends –
For further information, please contact:
StatPro Group plc
|Justin Wheatley, Chief Executive
Andrew Fabian, Finance Director
|020 8410 9876|
|Stephen Keys/Dr Chris Golden
Julian Morse (Sales)
|020 7397 8900|
|Hilary Buchanan/Adam Lloyd/Jasper Randall||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, risk and compliance. Hundreds of investment professionals use our services directly or through a fund administrator/partner to perform sophisticated analysis, reporting and distribution every day.
With over 20 years of experience and expertise, we believe analytics should be sophisticated yet simple and useful as well as secure. StatPro data coverage includes over 3.2 million securities such as 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 £28 million at 30 June 2014. 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 500 clients in 36 countries around the world. Approximately 80% of recurring revenues are generated outside the UK.