TIDMSOG
RNS Number : 7914C
Statpro Group PLC
22 January 2015
For Release at 07.00 Thursday, 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 pricingservices for the
global asset management industry, today announces a trading update
for the year ended 31 December 2014.
Highlights
-- Trading in the year in line with market expectations
-- StatPro Revolution annualised recurring revenue increased by
68% to GBP5.4 million at 31 December 2014 (2013: GBP3.2
million*)
-- StatPro Revolution related recurring revenue** increased to
GBP11.9 million at 31 December 2014 (2013: GBP9.2 million*),
representing approximately 46% of total software recurring revenue
(2013: 37%*)
-- Strategic contract win worth almost EUR4 million (GBP3.1
million) with major European asset manager to upgrade its existing
StatPro Seven platform to StatPro Revolution and StatPro R+
o Three year contract includes professional services and
represents 55% conversion premium***
-- Average revenue for StatPro Revolution clients increased by
around 38% to over GBP17k p.a. (2013: GBP12.5k) 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 GBP2.7 million at 31 December 2014 (2013: GBP4.0 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
StatPro Revolution
Annualised recurring revenue for StatPro Revolution increased by
68% during the year to GBP5.4 million at 31 December 2014 (2013:
GBP3.2 million*).
Our new pricing policy, introduced in June 2014, of a minimum
client relationship fee of GBP12k (US$18k) p.a. has resulted in a
significant increase in average subscription value by around 38%
from GBP12.5k to over GBP17k. 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 GBP0.9 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 EUR4 million (GBP3.1 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 GBP1.0
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 GBP4.0 million to GBP2.7 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 GBP0.3 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 www.statpro.com
Justin Wheatley, Chief Executive 020 8410 9876
Andrew Fabian, Finance Director
Cenkos Securities
Stephen Keys / Dr Christopher
Golden 020 7397 8900
Julian Morse (Sales)
Newgate Threadneedle
Hilary Buchanan/ Adam Lloyd/
Jasper Randall 020 7653 9850
About StatPro
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 GBP1
million in 1999 to around GBP28 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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