RNS Number:2670O
Statpro Group PLC
04 August 2003




                                           Monday, 4 August 2003



                        STATPRO GROUP PLC
           ("StatPro", the "Group", or the "Company")

      Interim results for the six months ended 30 June 2003


StatPro  Group plc, a leading AIM listed provider of  performance
measurement  solutions for the global asset management  industry,
announces its results for the six months ended 30 June 2003.

Highlights
>  Turnover up 18% to #4.06 million (2002 - #3.43 million)
>  Annual value of continuing recurring revenues increased to
   #7.55 million (2002 - #6.62 million)
>  Operating profit of #0.01m (2002 - loss of #1.63m),
   benefiting from revenue growth and last year's reorganisation
>  Generated an operating cash inflow of #0.83 million (2002 -
   outflow #0.63 million) - cash positive for last twelve months
>  Successful transfer of listing to AIM to allow greater
   flexibility

Commenting on the results, Carl Bacon, Chairman of StatPro  said:
"Whilst we retain a cautious outlook for the second half of 2003,
there  are  some  signs of an improvement in  our  market  as  IT
projects  that have been delayed are being reactivated.   In  the
meantime,  our key financial objectives are to build  further  on
the progress made in the first half, to continue to generate cash
from operations and to put the Company firmly into profit for the
year as a whole."

                            - Ends -

For further information, please contact:
StatPro Group plc                                www.statpro.com
Justin Wheatley, Chief Executive    On 4 August: (020) 7067 0700
Andrew Fabian, Finance Director      Thereafter: (020) 8410 9876

Weber Shandwick Square Mile
Reg Hoare/Rachel Taylor                          (020) 7067 0700

A briefing for analysts will be held at 9.15 for 9.30am today at
the offices of Weber Shandwick Square Mile, Fox Court, 14 Gray's
Inn Road, London, WC1X 8WS.

Notes  to  Editors:  StatPro Group plc is a leading  provider  of
performance measurement solutions for the global asset management
industry, which floated on the London Stock Exchange in May 2000.
StatPro has grown its annual recurring software revenue base from
less  than #1.0 million on flotation to #7.0 million at  30  June
2003. StatPro transferred its listing to AIM on 16 June 2003.


CHIEF EXECUTIVE'S REVIEW

Highlights

2003  started under difficult circumstances with a very uncertain
political and economic situation globally, which has resulted  in
asset  managers continuing to be cautious about their investments
in  IT  projects.  Although there are  some  limited  signs  that
conditions may improve as markets stabilise, the outlook  remains
tough.  Despite  these troubled times, it is pleasing  to  report
that  StatPro  has continued to grow with turnover  for  the  six
months  to  30  June 2003 up 18% to #4.06 million (2002  -  #3.43
million). We have also made an operating profit of #0.01 million,
which,  while modest, is a significant improvement on  the  #1.63
million loss for the first six months of last year.

This  improvement in the Company's performance is most  evidenced
by  the  fact  that we have generated a positive  operating  cash
inflow of #0.83 million compared to an operating cash outflow  of
#0.63 million for the same period last year. Since we generated a
positive operating cash flow for the second half of last year, we
have  now  been  operationally cash flow positive  for  the  last
twelve  months. We will continue to focus on cash generation  for
the rest of the year as our main financial objective.

Regional performance and sales

In  the  first six months of 2003 we made 19 sales of which  nine
were to existing clients. For the first time, we have won clients
in  California and we have found that activity in the  US  (apart
from  New York) is generally picking up. We have also signed  new
contracts  in France, Italy, Norway, Singapore, South Africa  and
the  UK.  We have focused on multi-year contracts, both  for  new
clients and converting existing clients to longer term contracts.
At the start of the year, #1.1 million of our annualised software
licence fee revenue was contracted for more than one year and its
value  had  risen  to  nearly  #2.0  million  by  30  June   2003
(representing approximately 29% of our current recurring software
licence  revenue). We aim to continue to increase  the  level  of
multi-year contracts. Our total annualised recurring revenues now
stand  at  #7.55  million  and covers  our  current  annual  cash
operating expenses.

Whilst  the  prime  objective of StatPro is  to  build  recurring
revenues  from  software sales, we have put  considerable  effort
into  building up our consulting sales over the last  12  months.
The  result  is that we have increased consulting  sales  by  53%
compared  to the same period last year to #0.58 million  (2002  -
#0.38  million). With asset managers making cutbacks in  staffing
levels,  we  have  seen  a rise in demand for  our  expertise  in
performance measurement. Reviews of implementations undertaken by
our  consultants  have also helped clients use our  systems  more
productively.  This  in  turn  has helped  us  achieve  sales  of
additional  software modules to existing clients. We expect  this
trend  to  continue and are actively seeking to  increase  system
usage with all our clients as this will lead to further and  more
profitable sales.

Product development

Our  product development continues to be vital to maintaining the
performance  advantage and deeper analysis  capabilities  of  our
systems and to ensure that they remain core applications for  our
clients.

In  pursuit of these objectives, we will be releasing several new
modules  over the next few months, which we have been  developing
during  the  first  half  of  2003.  Our  main  project  is   the
integration  of our Fixed Income system with our Performance  and
Attribution system. These will form a new "Data Hub" to which  we
will  be  able to add an increasing number of portfolio  analysis
products.  It  will still be possible, however,  for  clients  to
subscribe  for  each  product individually  and  then  add  other
modules  as  they require. We believe that this flexibility  will
allow  us to target an even wider market. It will also facilitate
our   product   alliances  with  other  companies   that   supply
complementary  products to our target market.  Many  clients  are
thus seeking an integrated solution without necessarily acquiring
all systems from one provider.

Strategy

StatPro's strategy has always been to expand its product range to
enable  cross selling of products to existing clients. We  intend
to continue to pursue this approach by seeking to acquire further
complementary products. We believe that current market conditions
are  likely  to  yield  a  number of opportunities  and  we  will
continue to review these as appropriate.

AIM

In  line  with this strategy and as previously announced,  on  16
June   2003  the  Company's  listing  was  transferred   to   the
Alternative  Investment  Market  of  the  London  Stock  Exchange
("AIM")  from the Official List of the UK Listing Authority  (the
"Official List").  The principal reason for the transfer was that
the  Directors believe that this will allow the Company  to  take
advantage of the greater degree of flexibility afforded by AIM in
implementing its strategy of acquiring additional products, given
the  lower  costs of complying with the AIM listing  rules.   The
transfer  to  AIM  will enable the Company to  act  quickly  when
opportunities  do  arise without incurring the disproportionately
large  expenses of being a fully listed company.  In addition  to
lower  costs,  StatPro should also benefit from  AIM's  focus  on
smaller, fast growing companies.

Outlook

Although we remain cautious about the outlook for the second half
of  2003,  there  are signs that our market will  improve  as  IT
projects  that  have been held back for several years  are  being
reactivated.  In  the meantime our financial  objectives  are  to
build further on the progress made in the first half of 2003,  to
continue to generate cash from operations and to put the  Company
firmly into profit for the year as a whole.

Justin Wheatley
Chief Executive


OPERATING AND FINANCIAL REVIEW

Overview

Our  revenue  has  grown  for the seventh  consecutive  half-year
period  since  flotation and the business has made  an  operating
profit of #0.01 million in the six months to the end of June 2003
compared  with  an  operating  loss  of  #1.63  million  in   the
comparable period.  Following the operating cash inflow  achieved
in  the  second  half  of  2002 of #0.15  million,  the  business
generated  an operating cash inflow of #0.83 million in  the  six
months  to  the end of June 2003, resulting in a total  operating
cash inflow of #0.98 million over the past twelve months.

Turnover

Turnover  increased  by  18%  to  #4.06  million  (2002  -  #3.43
million).   Software licence revenue grew by 25%, and  consulting
revenue  grew  by  53%.   This was offset  by  a  fall  in  other
recurring revenues of 41% primarily due to the absence of revenue
from  the Swiss agency agreement, which was terminated in  August
2002.  The split of revenue by type was as follows:

                              Six months to       Six months to            Year to
                                    30 June             30 June        31 December
                                       2003                2002               2002
                                  # million           # million          # million
Turnover
Software licences                      3.19                2.56               5.52
Other recurring revenue                0.29                0.49               0.75
Other revenue                          0.58                0.38               0.96
                                     -------------------------------------------------
                                       4.06                3.43               7.23
                                     -------------------------------------------------

We  made 19 sales in the first half of 2003 (2002 - 15), of which
9  (2002  -  5)  were  additional modules or  users  to  existing
contracts.  The total number of contracts increased from  136  at
the  start  of  the year to 146 at the end of June 2003  (2002  -
135);  taking into account three notified cancellations, of which
only  one  is expected to affect revenue in 2003, the  number  of
continuing  contracts  is 143 (2002 - 130).   The  proportion  of
recurring revenue on multi-year contracts increased from  18%  at
the end of December 2002 to 29% at the end of June 2003.

The  annual  value  of  continuing recurring  revenue,  which  is
analysed  below, increased to #7.55 million at 30 June 2003  from
#6.62  million  at  30  June  2002 (excluding  revenue  from  the
terminated Swiss agency agreement) and from #6.85 million  at  31
December 2002.

                                    At 30 June       At 30 June         At 31 December
                                          2003             2002                   2002
                                    Annualised       Annualised             Annualised
                                         value            value                  value
                                     # million        # million              # million
Recurring revenues
Software licences                         7.00             5.98                   6.28
Other recurring revenue                   0.55             0.64                   0.57
                                      -----------------------------------------------------
Continuing recurring revenue              7.55             6.62                   6.85
Recurring revenue from Swiss agency *        -             0.35                      -
                                      -----------------------------------------------------
Total recurring revenue                   7.55             6.97                   6.85
                                      -----------------------------------------------------

* Terminated on 1 August 2002

Operating expenses

The  restructuring implemented in July 2002 has reduced operating
expenses (before goodwill amortisation) by #1.02 million (21%) to
#3.90  million (2002 - #4.92 million) in the first half of  2003.
The  average number of employees during the first six  months  of
2003 was 77 (2002 - 107).   The increase in turnover coupled with
tight  control over our cost base has enabled StatPro to  achieve
an  operating profit in the first half of 2003, as shown  in  the
following table:

                              Six months to       Six months to            Year to
                                    30 June             30 June        31 December
                                       2003                2002               2002
                                  # million           # million          # million

Revenue                                4.06                3.43               7.23
Operating expenses *                  (3.90)              (4.92)             (8.83)
                                  -----------------------------------------------------
Operating profit/(loss) *              0.16               (1.49)             (1.60)
Goodwill amortisation                 (0.15)              (0.14)             (0.29)
                                  -----------------------------------------------------
Operating profit/(loss)
(before exceptional items)             0.01               (1.63)             (1.89)
Exceptional items                         -                   -              (0.31)
                                  -----------------------------------------------------
Operating profit/(loss)                0.01               (1.63)             (2.20)
                                  -----------------------------------------------------

* before goodwill amortisation and exceptional items

Goodwill amortisation

The  goodwill amortised during the six months to 30 June 2003  of
#0.15 million (2002 - #0.14 million), which predominantly relates
to  the  goodwill  arising on the acquisition  of  AMS  in  2000,
continues  to be amortised over five years. The operating  profit
before  goodwill amortisation amounted to #0.16 million  (2002  -
loss of #1.49 million).

Interest

Net interest expense, which results from interest accrued on bank
loans,  the  convertible loan and finance leases,  less  interest
earned  on  cash and deposits, was #0.09 million (2002  -   #0.05
million).

Taxation and Loss per share

Loss  before  taxation reduced by 95% to #0.08  million  (2002  -
#1.68 million). A provision has been made for corporation tax for
an  overseas  subsidiary.  Earnings  per  share  before  goodwill
amortisation amounted to 0.2p (2002 - loss per share of 4.8p) and
loss  per  share  after goodwill amortisation decreased  to  0.3p
(2002 - 5.2p).

Cash flow

In  line with the Directors' commitment to the previously  stated
goals  of  generating cash, the business had  an  operating  cash
inflow during the first 6 months of #0.83 million (2002 - outflow
of  #0.63 million).  The business has therefore generated a total
operating  cash  inflow  of #0.98 million over  the  twelve-month
period  to the end of June 2003.  This has allowed the  Group  to
repay  #0.50 million of its bank loan facility during  the  first
half of the year.

Balance sheet

The  Group's net liabilities increased to #2.90 million  (2002  -
#2.15 million) from #2.81 million at 31 December 2002.  The level
of  debtors,  of  which  the major component  is  trade  debtors,
decreased  to #2.73 million (2002 - #3.08 million).   The  short-
term  creditors of #6.84 million (2002 - #5.52 million)  includes
deferred income, a non-cash liability, of #4.34 million  (2002  -
#3.82 million).

The  Group's  net debt at 30 June 2003 amounted to #0.75  million
compared  to #1.43 million at 31 December 2002 and #1.51  million
at the end of June 2002.  The unsecured convertible loan of #1.00
million  nominal  value issued in July 2002  is  repayable  on  2
January 2004 and is therefore now shown on the balance sheet as a
current  creditor at its carrying value of #0.99  million.    The
cash  balance at the end of June 2003 was #1.71 million  (2002  -
#0.25 million).

Dividends

The  Directors currently propose continued investment in  growing
the  business  and are therefore not proposing to  recommend  any
dividend at present.

Andrew Fabian
Finance Director


Consolidated Profit and Loss Account

                                              Notes            Unaudited       Unaudited       Audited
                                                           Six months to   Six months to       Year to
                                                                 30 June         30 June   31 December
                                                                    2003            2002          2002
                                                                   #'000           #'000         #'000

Turnover - continuing operations                                   4,065           3,432         7,229

Operating expenses before
goodwill amortisation                                             (3,900)         (4,917)       (8,832)
Amortisation of goodwill                                            (152)           (146)         (294)
Exceptional items                                1                     -               -          (306)

Operating expenses                                                (4,052)         (5,063)       (9,432)
                                                           ----------------------------------------------

Operating profit/(loss) - continuing operations                       13          (1,631)       (2,203)

Net interest payable                                                 (91)            (52)         (170)
                                                           ----------------------------------------------

Loss on ordinary activities before taxation                          (78)         (1,683)       (2,373)

Taxation                                          2                  (12)              -             -
                                                           ----------------------------------------------

Loss after taxation                                                  (90)         (1,683)       (2,373)
                                                           ==============================================

Loss per share - basic                            3                 (0.3)p          (5.2)p        (7.3)p
Earnings/(loss) per share -
before amortisation of goodwill and
exceptional items                                                     0.2p          (4.8)p        (5.5)p


Statement of Group Total Recognised Gains and Losses
                                                                 Unaudited       Unaudited       Audited
                                                             Six months to   Six months to       Year to
                                                                   30 June         30 June   31 December
                                                                      2003            2002          2002
                                                                     #'000           #'000         #'000


Loss for the financial period                                          (90)         (1,683)       (2,373)
Exchange differences offset in reserves                                (22)            (20)          (19)
                                                              ---------------------------------------------
Total recognised gains and losses for the period                      (112)         (1,703)       (2,392)
                                                              =============================================


Consolidated Balance Sheet

                                              Notes            Unaudited       Unaudited       Audited
                                                                   As at           As at         As at
                                                                 30 June         30 June   31 December
                                                                    2003            2002          2002
                                                                   #'000           #'000         #'000

Fixed assets
Intangible assets                                                    564             803           716
Tangible assets                                                      595             798           674
                                                              ---------------------------------------------
                                                                   1,159           1,601         1,390

Current assets
Debtors - amount falling due after one year                          280             313           308
Debtors - amount falling due within one year                       2,449           2,769         3,087
Cash at bank and in hand                                           1,709             246         1,486
                                                              ---------------------------------------------
                                                                   4,438           3,328         4,881
Creditors - amounts falling due within one year
Convertible loan                                  4                 (986)              -             -
Others                                                            (5,850)         (5,517)       (6,269)
                                                              ---------------------------------------------
                                                  5               (6,836)         (5,517)       (6,269)


Net current liabilities                                           (2,398)         (2,189)       (1,388)


Total assets less current liabilities                             (1,239)           (588)            2


Creditors - amounts falling due after more
than one year
Deferred income                                                     (196)              -          (213)
Convertible loan                                   4                   -               -          (971)
Bank loans                                                        (1,441)         (1,562)       (1,602)
Finance lease obligations                                            (28)              -           (26)
                                                              ---------------------------------------------
                                                                  (1,665)         (1,562)       (2,812)


Net liabilities                                                   (2,904)         (2,150)       (2,810)
                                                              ==============================================

Capital and reserves
Called up share capital                                              329             325           328
Share premium account                                              8,558           8,515         8,541
Warrant reserve                                                      424             424           424
Profit and loss account                                          (12,215)        (11,414)      (12,103)
                                                              ---------------------------------------------
Equity shareholders' deficit                                      (2,904)         (2,150)       (2,810)
                                                              =============================================



Consolidated Cash Flow Statement

                                                               Unaudited       Unaudited       Audited
                                                           Six months to   Six months to       Year to
                                                                 30 June         30 June   31 December
                                                                    2003            2002          2002
                                                                   #'000           #'000         #'000

Net cash inflow/(outflow) from
operating activities                                                 827            (631)         (476)

Returns on investments and servicing of finance
Interest received                                                     22              10            22
Interest paid                                                        (82)            (54)         (143)
Issue costs in respect of bank loan                                    -               -           (27)
Issue costs in respect of convertible loan                             -               -           (43)
                                                           --------------------------------------------------
Net cash outflow from returns on investments and
servicing of finance                                                 (60)            (44)         (191)

Taxation
Tax received                                                           -               1             -

Capital expenditure and financial investment
Purchase of tangible fixed assets                                    (61)           (119)         (162)
                                                           --------------------------------------------------
Net cash outflow for capital expenditure                             (61)           (119)         (162)

Acquisitions and disposals
Deferred consideration proceeds
from disposal of subsidiary undertaking                                -               -            89
Cash subscription on acquisition of subsidiary undertaking             -               -           (53)
Costs incurred on acquisition of subsidiary undertaking                -               -           (12)
Cash acquired on acquisition of subsidiary undertaking                 -               -            55
                                                           --------------------------------------------------
Net cash inflow from acquisitions and disposals                        -               -            79

Net cash inflow/(outflow) before management of liquid
resources and financing                                              706            (793)         (750)

Management of liquid resources
Movement in short-term deposits                                     (149)            600          (151)

Financing
Proceeds from bank loan                                                -               -           250
Repayment of bank loan                                              (499)              -           (51)
Proceeds from issue of ordinary shares                                18              19            48
Capital element of finance lease payments                             (2)            (30)          (61)
Proceeds from issue of convertible loan                                -               -         1,000
                                                           --------------------------------------------------
Net cash (outflow)/inflow from financing                            (483)            (11)        1,186
                                                           --------------------------------------------------


Increase/(decrease) in cash in the period                             74            (204)          285
                                                           ==================================================



Reconciliation of net cash flow to movement in net debt

                                                               Unaudited       Unaudited       Audited
                                                           Six months to   Six months to       Year to
                                                                 30 June         30 June   31 December
                                                                    2003            2002          2002
                                                                   #'000           #'000         #'000


Increase/(decrease) in cash in the period                             74            (204)          285
Movement in short-term deposits                                      149            (600)          151
Issue of convertible loan (net of issue costs)                         -               -          (957)
Repayment on finance leases                                            2              30            61
Bank loan (net of issue costs)                                         -               -          (223)
Bank loan repayment                                                  499               -            51
Other non-cash movements                                             (47)             (9)          (67)
                                                           --------------------------------------------------
Movement in net debt                                                 677            (783)         (699)
Net debt at beginning of period                                   (1,428)           (729)         (729)
                                                           --------------------------------------------------
Net debt at end of period                                           (751)         (1,512)       (1,428)
                                                           ==================================================

Reconciliation of operating profit/(loss) to net cash flow from
operating activities


                                                               Unaudited       Unaudited       Audited
                                                           Six months to   Six months to       Year to
                                                                 30 June         30 June   31 December
                                                                    2003            2002          2002
                                                                   #'000           #'000         #'000


Operating profit/(loss)                                               13          (1,631)       (2,203)
Depreciation of tangible fixed assets                                126             160           301
Amortisation of goodwill                                             152             146           294
Decrease in debtors                                                  666             456            58
Increase/(decrease) in creditors
(excluding deferred income)                                          162              67          (151)
Movement in deferred income                                         (288)            187         1,186
Loss on disposal of fixed assets                                       -               -            58
Exchange differences                                                  (4)            (16)          (19)
                                                           --------------------------------------------------
Net cash inflow/(outflow) from operating activities                  827            (631)         (476)
                                                           ==================================================

Notes to the interim financial statements

1. Exceptional items.  The operating exceptional item of #0.31
   million  included in total operating expenses  relates  to  the
   expenses  of  the  restructuring undertaken in  2002  including
   redundancy costs, onerous leases and asset write offs.

2. Taxation.  A provision has been made for corporation tax for
   an overseas subsidiary.

3. Loss per share.  Loss per share has been calculated based on
   the  loss  after taxation of #0.09 million (June 2002  -  #1.68
   million) and the weighted average number of shares of 32,869,135
   (June 2002 - 32,322,284).  The diluted loss per share is the same
   as the basic loss per share since the Group is making losses.

4. Convertible loan. The convertible loan is repayable at  par
   on  2  January  2004 and is therefore now shown  as  a  current
   liability.  The loan can be converted into ordinary shares at the
   rate of 60p per share.

5. Creditors  -  amounts  falling due within  one  year.   The
   largest  component of short-term creditors relates to  deferred
   income, which is a non-cash liability, as shown in the following
   analysis:

                                                               Unaudited       Unaudited       Audited
                                                                   As at           As at         As at
                                                                 30 June         30 June   31 December
                                                                    2003            2002          2002
                                                                   #'000           #'000         #'000

   Bank loans and finance leases                                       5             196           315
   Convertible loan                                                  986               -             -
   Trade creditors                                                   379             588           240
   Corporation tax                                                    12               -             -
   Other tax and social security                                     292             213           418
   Other creditors and accruals                                      827             705           690
   Deferred income                                                 4,335           3,815         4,606
                                                             ---------------------------------------------
                                                                   6,836           5,517         6,269
                                                             =============================================

6. The  financial information set out in this interim statement
   has been prepared on the basis of the accounting policies set out
   in the statutory accounts of StatPro Group plc for the year ended
   31 December 2002. 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 2002, on which the auditors gave  an
   unqualified opinion, have been delivered to the Registrar of
   Companies.

7. 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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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