TIDMSOG
RNS Number : 9675G
StatPro Group PLC
10 March 2015
10 March 2015
StatPro Group PLC
Preliminary Results for the Year ended 31 December 2014
StatPro Group plc, (AIM:SOG, "StatPro", "the Group"), the AIM
listed provider of cloud-based portfolio analysis and asset pricing
services for the global asset management industry, today announces
its unaudited preliminary results for the year ended 31 December
2014.
2014 2013 Change Constant
currency
GBP32.02 GBP32.49
Revenue m m (1%) +6%
Annualised recurring GBP29.39 GBP28.72
contract revenue (1) m m +2% +4%
Forward order book of GBP38.74 GBP36.86
contracted revenue (2) m m +5% +7%
GBP2.37 GBP3.11
Profit before tax m m (24%) (9%)
GBP4.36 GBP5.46
Adjusted EBITDA (3) m m (20%) (10%)
Earnings per share -
basic 2.4p 3.1p (23%)
- adjusted (3) 2.7p 4.5p (40%)
Dividend per share -
total for year 2.9p 2.8p +4%
-------------------------- --------- --------- ------- ----------
Financial highlights:
-- Additional investment in people, product development, data
and IT resulted in lower adjusted EBITDA, down 10% at constant
currency to GBP4.36 million (2013 at constant currency: GBP4.87
million)
-- Annualised recurring contract revenue (1) up 4% to GBP29.39
million at 31 December 2014 (2013 at constant currency: GBP28.30
million)
-- StatPro Revolution annualised recurring contract revenue (1)
up 68% to GBP5.42 million at 31 December 2014 (2013 at constant
currency: GBP3.22 million)
-- Recurring revenue from StatPro Revolution accounted for 18%
of Group recurring revenue (2013: 11%)
-- 46% of our software clients by value (2013: 37%) now have
contracted for StatPro Revolution, marking an inflexion point in
the cloud strategy
-- Forward order book of contracted revenue (2) up 7% to
GBP38.74 million at 31 December 2014 (2013 at constant currency:
GBP36.36 million) of which 25% is StatPro Revolution
-- Dividend increased by 4% to 2.9p (2013: 2.8p)
Operating highlights:
-- Strategic contract win worth almost EUR4 million (GBP3.1
million) with major European asset manager to transition its
existing StatPro Seven software to the StatPro Revolution platform;
three year contractincludes professional services and represents
55% conversion premium (4)
-- Increased focus on revenue per client; average revenue for
StatPro Revolution clients rose 37% to GBP17.2k p.a. (2013:
GBP12.5k)
-- Good progress on the StatPro Revolution platform development,
including launch of AIFMD module
(1) Annualised recurring contract revenue is the annual value of
revenue contractually committed at year end.
(2) Forward order book of contracted revenue is the total amount
of software and professional services revenue that is contractually
committed at year end.
(3) Adjusted EBITDA and adjusted earnings per share are EBITDA
and earnings per share after adjustment for amortisation of
acquired intangible assets, share based payments and exceptional
items (notes 5 and 7)
(4) Defined as the percentage increase in total recurring
revenue for StatPro Revolution compared to total recurring revenue
for StatPro Seven from that client
Justin Wheatley, Chief Executive of StatPro, commented:
"We have reached an inflexion point in the roll out of our
cloud-based product StatPro Revolution. Its annualised recurring
revenue jumped by 68% and now contributes some 18% of the Group's
total recurring revenue - up from 11%. 46% (by value of recurring
software contracts) of our client base now use StatPro
Revolution.
"As expected, the roll out of StatPro Revolution has opened up a
number of new markets and opportunities - both geographically and
by type of customer, including hedge funds and private wealth asset
managers.
"Our recently signed three year EUR4 million contract with a
large European asset manager to transition its StatPro Seven
platform to StatPro Revolution clearly demonstrates the upsell,
conversion potential, and value uplift in StatPro Revolution.
"The current financial year has started well and is in line with
our expectations. With some GBP38.7 million of contracts secured,
of which GBP9.7 million is for StatPro Revolution, and the momentum
building in cloud revenues, we are focused on further implementing
our strategy to transition to a pure-cloud business."
- Ends -
For further information, please contact:
www.statpro.com
StatPro Group plc
Justin Wheatley, Chief Executive 020 8410 9876
Andrew Fabian, Finance Director
Cenkos Securities
Stephen Keys / Dr Christopher
Golden 020 7397 8900
Julian Morse (Sales)
Instinctif Partners
Adrian Duffield/ Kay Larsen 020 7457 2020
A briefing for analysts on the results will be held at 9.45am
today at the offices of
Instinctif Partners, 65 Gresham Street, London, EC2V 7NQ
About StatPro
StatPro is a global provider of award winning portfolio
analytics solutions for the investment community. The Group's
cloud-based platform provides vital analysis of portfolio
performance, attribution, risk and compliance. Thousands of
investment professionals use StatPro's premium services directly or
through a fund administrator or partner to perform advanced
portfolio analysis, data management, reporting and online
distribution every day. This multi asset-class, analytics platform
helps StatPro's clients increase assets under management, improve
client service, meet tough regulations and reduce costs.
With over 20 years' experience combining technology and industry
expertise, StatPro believes portfolio analytics should add value,
insight and competitive advantage while being flexible, scalable
and cost effective. The Group's integrated and global data coverage
includes over 3.2 million securities such as equities, bonds,
mutual funds, FX rates, futures, options, OTCs, sector
classifications and much else besides. StatPro also covers most
families of benchmarks including MSCI, FTSE, Russell, NASDAQ and
the licence free Freedom Index.
StatPro has grown its recurring revenue from less than GBP1
million in 1999 to around GBP29 million at 31 December 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 37 countries around the
world. Approximately 80% of recurring revenues are generated
outside the UK.
Overview
StatPro has a 15 year track record of growing sustained long
term revenue streams - with an average renewal rate of 94% over
that period.
The Group has reached an inflexion point in the roll out of its
cloud-based product StatPro Revolution. Its annualised revenue
jumped by 68% and now contributes some 18% of the Group's total
annualised recurring revenue ("ARR") - up from 11%.
The Group anticipates that it will continue the process of
converting its clients from its StatPro Seven product to StatPro
Revolution. The timing for converting a client will largely depend
on the client's own requirements but StatPro expects the bulk will
convert over the next three to four years.
In 2014, approximately 78% of new sales were upsells to existing
clients.
At the start of 2014, StatPro launched its AIFMD module which,
together with the UCITS module, has sold very well.
At the same time, as expected, the roll out of StatPro
Revolution has opened up a number of new markets and opportunities
- both geographically and by types of customers, including hedge
funds and private wealth asset managers.
Total Group revenues grew 6% on a constant currency basis to
GBP32.02 million, (2013 actual: GBP32.49 million) and the Group's
ARR as a whole also grew 4% on a constant currency basis to
GBP29.39 million (2013 at constant currency: GBP28.30 million).
Profits were reduced as expected as StatPro continued its
investment programme to underpin future revenues and growth
potential. The forward order book of contracted revenue grew by 7%
to GBP38.74 million (2013 at constant currency: GBP36.36 million).
Revenues were up 8% in EMEAA and up 2% in North America on a
constant currency basis.
The Board is recommending that the dividend increases by 4% to
2.9p (2013: 2.8p)
Strategy
StatPro provides portfolio analysis and data for the
international asset management industry, a highly regulated and
expanding sector. Its sophisticated solutions address the
complexity of investment processes driven by a number of industry
factors including multi-jurisdictional compliance, regulatory
change and rising demand for cloud-based reporting and
analysis.
Globally, the total figure for assets under management is
estimated at over $87 trillion with significant compound growth
over the past 20 years (source: Bank of England/StatPro). At the
same time, demand from the asset management industry for StatPro
products is being driven by the increasing requirement for more
types of analysis, as well as the need for greater levels of
accuracy and faster delivery of analysis and data.
StatPro achieves high client retention through a combination of
long term contracts and deeply embedded systems, underpinned by
superior levels of expertise and service and continuous
innovation.
In early 2011, StatPro introduced StatPro Revolution, its
cloud-based highly centralised platform with extensive data and
portfolio capabilities. Over the past four years, StatPro has
continued to service its existing client base whilst upselling the
cloud capabilities that StatPro Revolution offers.
At the same time, StatPro Revolution has opened a range of new
addressable markets to StatPro within the asset management sector,
including hedge funds, private wealth businesses and fund
administrators wishing to offer portfolio analytics as a service to
their clients.
At the end of 2014, recurring revenue from StatPro Revolution
accounted for 18% of Group recurring revenues, marking an inflexion
point in the revenue mix for StatPro on the path to becoming a pure
cloud services provider.
This has resulted both from upselling StatPro Revolution to
existing clients as well as new sales resulting from the enlarged
market opportunity that StatPro Revolution addresses. At the end of
2014, 46% of recurring software contract value was derived from
customers who have signed up for StatPro Revolution, as StatPro
migrates its stable cash generative customer base onto this lower
cost, higher-margin cloud-based solution with international
scalability.
Current trading and outlook
In 2015, StatPro has continued to maintain high levels of
recurring revenue whilst driving growth in sales of StatPro
Revolution to both its existing customer base and to new types of
customers, including hedge funds and private wealth managers.
The Group's recently signed three year EUR4 million (GBP3.1
million) contract with a large European asset manager to transition
its StatPro Seven platform to StatPro Revolution clearly
demonstrates the upsell, conversion potential and value uplift in
StatPro Revolution.
The current financial year has started well and is in line with
the Board's expectations. The Group has some GBP38.7 million in
contracted revenue secured over the next few years, of which GBP9.7
million is for StatPro Revolution. With this level of momentum, the
Group believes it will continue to see further growth in StatPro
Revolution revenues.
Operational review
Strategy implementation
2014 has been a successful year; StatPro has seen strong growth
in StatPro Revolution ARR, up 68% to GBP5.42 million (2013: GBP3.22
million) and continued stability for the StatPro Seven platform
with total ARR of GBP20.28 million at end December 2014 (GBP21.21
million before impact of StatPro Revolution conversions) (2013:
GBP21.20 million).
The Group has made good progress in implementing a strategy to
convert clients from the StatPro Seven Platform to the StatPro
Revolution Platform with 46% by value of software clients using
StatPro Revolution. StatPro has a growing list of clients that it
expects to convert to StatPro Revolution in due course as it rolls
out further functionality.
In June 2014, StatPro implemented a new pricing policy,
requiring a minimum relationship fee from new clients of $18,000 pa
(up from $1,200 pa). This has increased new revenue per client
although the numbers of new clients being added has slowed. By
focusing attention and resources on more profitable clients,
StatPro has also improved its basic operating cost model. In 2015,
the Group will focus on migrating those clients that pay less than
$18,000 pa to the new minimum subscription level.
In 2014, senior management visited over 150 of StatPro's largest
clients (representing approximately 80% by value of our
subscription base), spanning Europe, North America, Australia, Asia
and South Africa, to gauge their clients' perspectives on their
businesses and how StatPro's new technology is supporting them.
Acceptance of cloud-based services is now almost universal. The
economic case for the cloud now looks irresistible and, even where
there is still some doubt, it is likely that these fears will be
overcome. The greatest common worry for StatPro's clients is to
meet an ever growing list of regulations, whilst keeping IT budgets
at a reasonable level. For many clients, there is also the threat
of competitors being able to use technology to deliver a far better
service at a lower cost point.
The Group anticipates that it will continue the process of
converting its clients from StatPro Seven to StatPro Revolution
over the next few years. The timing for converting a client will
largely depend on the client's own requirements but StatPro expects
the bulk will convert over the next three to four years.
Approximately 78% of new sales in 2014 were upsells to existing
clients. The Group believes that StatPro Revolution is particularly
well adapted for repeat sales to clients and that existing clients
will continue to be a rich source of new business.
With a large base of approximately 500 clients, StatPro has a
readymade market to sell additional services, portfolios and
modules.
Product development
Cloud
Development of the StatPro Revolution cloud platform has gone
well in 2014 with some very significant new functionality being
delivered. At the start of 2014 StatPro launched its AIFMD module
which, together with the UCITS module, has sold very well and now
accounts for approximately 18% of StatPro Revolution recurring
revenue. StatPro was proud to receive an award for this module for
the Best Risk Initiative 2014 from Waters Buy Side Technology
Magazine.
Additionally, StatPro launched Advanced Equity Attribution,
which means that StatPro Revolution offers the very latest and most
sophisticated functionality available for equity attribution. The
Group believes this will encourage the conversion of clients on
StatPro Seven to StatPro Revolution in order to access the improved
functionality.
During the course of 2015, StatPro will launch the Advanced Risk
Module withinStatPro Revolution, which offers significantly more
functionality than the risk module in StatPro Seven. The Group
anticipates that many of its risk clients using StatPro Seven will
convert to this product in due course.
The Group is also building a new high volume calculation
platform using Apache(TM) Hadoop(R) technology which will enable it
to offer StatPro Revolution to clients with extremely large
portfolios and benchmarks. This will form an integral part of
StatPro's advanced fixed income attribution module planned for
release in 2016.
StatPro has decided to rebrand StatPro R+ as the performance
module within StatPro Revolution, thus simplifying the naming
convention for all new products on the StatPro Revolution platform.
The StatPro Revolution performance module is progressing as planned
and StatPro will be releasing the full replacement of StatPro Seven
to several clients on a beta basis in the second half of the year
and go live in 2016.
StatPro markets its data services in StatPro Revolution as part
of a bundled service, and continues to expand the depth and quality
of data for StatPro Revolution. To make the user experience as
smooth as possible, StatPro has woven together raw data with its
very large pricing library to produce further data for risk and
fixed income analysis.
Each market has different conventions and habits and StatPro
Revolution is able to cater for hundreds of methodologies to give
users the view of their portfolio to suit their specific
requirements. This is one of the ways that StatPro Revolution is a
considerable improvement on StatPro Seven. StatPro Revolution
provides software, IT and data in a combined service that enables
StatPro to offer a significantly enhanced service.
StatPro Seven
Repeat revenue from StatPro Seven was very solid in 2014 with
new sales largely offsetting reductions. New sales tend to come
from existing clients buying additional modules and user licences
as well as new sales of StatPro Composites.
StatPro continues to support its clients on the StatPro Seven
platform, offering upgrades and maintenance. StatPro Seven provides
essential services for the Group's clients by delivering accurate
and comprehensive analysis for reporting to their clients.
Client feedback indicates that the operators of StatPro Seven
want greater control over their data so that they have higher
confidence that they will always publish accurate analysis. Whereas
in the past, sending out approximately correct performance numbers
was common practice, the new regulatory environment makes this
unacceptable. This in turn has led to clients expanding the use of
accurate systems like StatPro Seven to a broader range of
portfolios such as private wealth mandates. This is where StatPro
Revolution will offer the crucial solution: complete control of
data and huge scale and speed compared to StatPro Seven and other
systems using older technology.
Financial Review
Revenue
Overall, Group revenue increased by 6% at constant currency but
fell by 1% at actual rates to GBP32.02 million (2013: GBP32.49
million).
Contracted revenue
The forward order book of contracted revenue increased by 7% at
constant currency (5% at actual rates) to GBP38.74 million at 31
December 2014 (2013 at constant currency: GBP36.36 million). The
proportion by value of recurring software licences and data clients
at the end of 2014 secured to the end of 2015 or beyond amounted to
77% (2013: 78%); the weighted average length of contracts committed
remained unchanged at 16 months.
New contracted revenue
New sales of recurring software and data contracts were up 19%
to GBP3.87 million (2013: GBP3.24 million). Professional services
revenue increased by 33% to GBP2.76 million (2013: GBP2.07
million). Approximately 78% of new recurring contracted revenue
came from existing clients (2013: 77%).
Recurring revenue
The Group's business model of Software as a Service (SaaS) and
recurring revenue contracts continues to provide excellent
visibility of revenue. The annualised recurring revenue from
software licences and data fees at the end of December 2014
increased by 4% at constant currency to GBP29.39 million (2013:
GBP28.30 million). The net growth rate for StatPro Revolution was
68% (2013: 114%).
StatPro Seven annualised recurring revenue was resilient at
GBP20.28 million (2013: GBP21.20 million) with net cancellation
rate of 4% (2013: 5%). Excluding the impact of conversions to
StatPro Revolution, the recurring revenue for StatPro Seven (at
GBP21.21 million) was flat year on year (2013: 2% reduction).
Software licences and data fees Annualised Annualised
recurring recurring
contract contract
revenue revenue
2014 2013
GBP million GBP million
As at 31 December 2013 28.72 29.52
Net impact of exchange rates (0.42) (1.05)
------------- -------------
At 1 January 2014 (at Dec 2014
rates) 28.30 28.47
New contracted revenue 3.87 3.24
Cancellations / reductions (2.78) (2.99)
------------- -------------
Net increase 1.09 0.25
Recurring licence fees as at 31
December 2014 29.39 28.72
============= =============
Revenue by segment
Revenue increased in the EMEAA region by 8% at constant currency
to GBP20.82 million (2013 at constant currency: GBP19.36 million).
In the North American region, revenue increased by 2% at constant
currency to GBP11.20 million (2013 at constant currency: GBP10.94
million), as shown below.
2014 2013* Change
GBP million GBP million %
Revenue
EMEAA 20.82 19.36 8%
North America 11.20 10.94 2%
------------ ------------
32.02 30.30 6%
FX - 2.19
------------ ------------
Group revenue 32.02 32.49 (1%)
============ ============
* At constant currency
Revenue by service
Cloud revenues (incorporating StatPro Revolution, Risk and Data)
grew by 28% as shown in the table below:
Revenue
2014 2013* Change
GBP million GBP million %
StatPro Revolution and cloud-related 11.16 8.72 28%
StatPro Seven and non-cloud-related 20.86 21.58 (3%)
------------ ------------
32.02 30.30 6%
FX - 2.19
------------ ------------
Group revenue 32.02 32.49 (1%)
============ ============
* At constant currency
StatPro Revolution revenue profile
StatPro Revolution recurring revenue is now 18% of the Group
total (2013: 11%) and has grown at a higher rate than other
revenues as the service is developed on a highly scalable
technology platform.
The total recurring revenue from clients whose subscription
includes StatPro Revolution was GBP11.95 million (2013: GBP9.12
million) representing 46% (2013: 37%) of total software recurring
revenue.
Following the decision in 2014 to raise the minimum client fee,
the average revenue per StatPro Revolution client has increased by
37% and the revenue distribution profile for StatPro Revolution is
as follows:
Average
Average revenue
StatPro Annualised Number revenue Annualised Number per
Revolution revenue of clients per client revenue* of clients client
Annualised
revenue
bands 2014 2014 2014 2013 2013 2013
GBP'000s Number GBP'000s GBP'000s Number GBP'000s
<GBP2k 139 127 1.1 143 136 1.1
GBP2k -
GBP10k 414 97 4.3 277 68 4.1
GBP10k-GBP50k 1,419 62 22.9 884 34 26.0
GBP50k-GBP100k 1,328 19 69.9 952 13 73.2
>GBP100k 2,122 10 212.2 967 6 161.2
----------- ------------ ----------- ------------
Total 5,422 315 17.2 3,223 257 12.5
---------------- ----------- ------------ ------------ ----------- ------------ ---------
*At constant currency
Operating expenses
Operating expenses (before amortisation of intangible assets and
exceptional items) as expected increased by 3% (10% at constant
currency) to GBP25.53 million (2013: GBP24.71 million). The
increase in expenditure related to several areas of the business as
part of the investment in cloud technology. This included
additional employee costs in client services, sales and
development, data costs and cloud infrastructure. The average
number of employees was 251 (2013: 249).
Exceptional items
There were no exceptional items in 2014. Following a project to
streamline core internal services (IT, finance and HR), the Group
decided to re-locate the Toronto team to a smaller office. Whilst
not treated as an exceptional item, there was a one-off charge
relating to the office lease of around GBP0.35 million.
The exceptional charge of GBP0.35 million in 2013 related to
additional contingent consideration for the SiSoft acquisition (see
notes 3 and 14).
Profitability
As a result of the planned increase in investment in cloud
technology, the adjusted EBITDA was GBP4.36 million (2013: GBP5.46
million).
Adjusted EBITDA
2014 2013* Change
GBP million GBP million %
StatPro Revolution and cloud-related (6.24) (6.91) 10%
StatPro Seven and non-cloud-related 10.60 11.78 (10%)
------------ ------------
4.36 4.87 (10%)
FX - 0.59
------------ ------------
Adjusted EBITDA 4.36 5.46 (20%)
============ ============
Adjusted EBITDA margin
StatPro Revolution and cloud-related (55.9%) (79.2%)
StatPro Seven and non-cloud-related 50.8% 54.6%
Adjusted EBITDA margin - total 13.6% 16.1%
--------------------------------------- ------------ ------------ -------
* At constant currency
Finance income and expense
Net finance expense was GBP0.29 million (2013: GBP0.27 million),
and is mainly the finance costs of the Group's currently unutilised
credit facility.
Profit before tax
The impact of currency movements was to decrease adjusted profit
before taxation by GBP0.54 million. Profit before taxation was
GBP2.37 million (2013: GBP3.11 million). Adjusting for amortisation
of acquired intangible assets, share based payments and exceptional
items, the adjusted profit before taxation was GBP2.58 million
(2013: GBP4.05 million).
Taxation
The tax charge is GBP0.77 million (2013: GBP1.03 million). The
overall effective tax rate is 33% (2013: 33%). This is higher than
the prevailing UK rate mainly due to the impact of operations in
countries with higher tax rates than the UK.
Earnings per share
Adjusted earnings per share was 2.7p (2013: 4.5p). Actual and
diluted earnings per share was 2.4p (2013: 3.1p).
Dividends
The Directors are recommending an increased final dividend of
2.05p per share (2013: 1.95p) making a total dividend for 2014 of
2.9p per share (2013: 2.8p), up 4%. The final dividend will be paid
on 27 May 2015 to all shareholders on the register at the close of
business on 1 May 2015.
Total dividends paid in 2014 amounted to GBP1.89 million (2013:
GBP1.86 million). The dividend cover (calculated as adjusted eps:
dividends per share) was 0.93 times (2013: 1.61).
Balance sheet
The Group's net assets at the year end were GBP45.69 million
(2013: GBP46.91 million).
Cash flow and financing
2014 was another year of positive cash generation with cash
inflow from operating activities of GBP7.71 million (2013: GBP9.40
million), although lower than the prior year, mainly due to lower
operating profits and working capital movements. The Group ended
the year with net cash of GBP2.68 million (2013: GBP4.00 million).
The Group retains its long-term financing facility, amounting to
GBP7.5 million, which was undrawn at 31 December 2014.
Research and development and capex
The research and development team is now focused solely on the
Group's cloud-based solutions, the StatPro Revolution platform.
R&D as planned expenditure increased overall by 12% to GBP4.99
million (2013: GBP4.44 million), equating to 16% of Group revenue
(2013: 14%). The total expenditure on StatPro Revolution including
marketing and other costs was GBP5.52 million (2013: GBP4.92
million).
Development costs of GBP3.62 million were capitalised in the
year (2013: GBP3.40 million) and amortisation on internal
development was GBP3.35 million (2013: GBP3.40 million).
Expenditure on other intangible assets was GBP0.44 million (2013:
GBP0.08 million) and total capital expenditure on property, plant
and equipment was GBP1.86 million (2013: GBP0.93 million).
GROUP INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2014
(Unaudited)
Notes 2014 2013
GBP'000s GBP'000s
Revenue 2 32,018 32,486
Operating expenses before amortisation
of intangibles and exceptional items (25,529) (24,712)
Amortisation of acquired intangibles (188) (402)
Amortisation of other intangibles (3,640) (3,639)
Exceptional item - increase in contingent
consideration - (347)
------------------------------------------- ------ --------- ---------
Operating expenses 3 (29,357) (29,100)
--------- ---------
Operating profit 2,661 3,386
Finance income 12 35
Finance expense (303) (308)
--------- ---------
Net finance expense (291) (273)
--------- ---------
Profit before taxation 2 2,370 3,113
Taxation 6 (774) (1,030)
--------- ---------
1,596 2,083
========= =========
Earnings per share - basic 7 2.4p 3.1p
- diluted 7 2.4p 3.1p
GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31
DECEMBER 2014
(Unaudited)
2014 2013
GBP'000s GBP'000s
Profit for the year 1,596 2,083
Other comprehensive income to be reclassified
to the income statement:
Net exchange differences (946) (3,126)
Total comprehensive income/(loss) for
the year 650 (1,043)
========= =========
GROUP BALANCE SHEET AS AT 31 DECEMBER 2014
(Unaudited)
Notes Group Group
2014 2013
GBP'000s GBP'000s
Non-current assets
Goodwill 46,724 47,927
Other intangible assets 5,822 5,597
Property, plant and equipment 2,470 1,883
Other receivables 8 109 135
Deferred tax assets 988 450
--------- ---------
56,113 55,992
Current assets
Trade and other receivables 8 7,722 6,167
Financial instruments - other 27 102
Current tax assets - 29
Cash and cash equivalents 2,692 4,014
--------- ---------
10,441 10,312
Liabilities
Current liabilities
Financial liabilities - borrowings (12) (12)
Financial instruments - other (15) (1)
Trade and other payables 9 (6,088) (4,400)
Current tax liabilities (828) (581)
Deferred income (12,603) (12,678)
Provisions 10 (725) (842)
(20,271) (18,514)
--------- ---------
Net current liabilities (9,830) (8,202)
--------- ---------
Non-current liabilities
Other creditors and accruals 9 (76) (154)
Deferred tax liabilities (449) (549)
Deferred income (60) (41)
Provisions 10 (13) (138)
(598) (882)
--------- ---------
Net assets 45,685 46,908
========= =========
Shareholders' equity
Share capital 677 677
Share premium 23,474 23,472
Shares to be issued 63 63
Treasury shares (249) (249)
Other reserves 6,704 7,650
Retained earnings 15,016 15,295
--------- ---------
Total shareholders' equity 45,685 46,908
========= =========
GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER
2014
(Unaudited)
Group Group
2014 2013
GBP'000s GBP'000s
Operating activities
Cash generated from operations 11 7,705 9,403
Finance income 12 35
Finance costs (22) (133)
Tax paid (1,173) (1,616)
--------- ---------
Net cash flow from operating
activities 6,522 7,689
--------- ---------
Investing activities
Payment of contingent consideration - (990)
Investment in intangible assets (4,053) (3,482)
Purchase of property, plant and
equipment (1,863) (930)
Proceeds from the disposal of 12 -
property, plant and equipment
Net cash flow used in investing
activities (5,904) (5,402)
--------- ---------
Financing activities
Proceeds from issue of ordinary 2 -
shares
Dividends paid to shareholders (1,889) (1,856)
--------- ---------
Net cash flow used in financing
activities (1,887) (1,856)
--------- ---------
Net increase in cash and cash
equivalents (1,269) 431
--------- ---------
Cash and cash equivalents at
1 January 4,014 3,681
Effect of exchange rate movements (53) (98)
Cash and cash equivalents at
31 December 2,692 4,014
========= =========
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEAR
ENDED 31 DECEMBER 2014
(Unaudited)
Share Share Shares Treasury Other Retained Total
capital premium to be shares reserves earnings equity
issued
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
At 1 January
2013 677 23,472 63 (249) 10,776 14,881 49,620
--------- --------- --------- --------- ---------- ---------- ---------
Profit for
the year - - - - - 2,083 2,083
Other comprehensive
income - - - - (3,126) - (3,126)
--------- --------- --------- --------- ---------- ---------- ---------
Total comprehensive
income - - - - (3,126) 2,083 (1,043)
--------- --------- --------- --------- ---------- ---------- ---------
Transactions
with owners:
Share based
payment transactions - - - - - 192 192
Tax relating
to share
option scheme - - - - - (5) (5)
Dividends - - - - - (1,856) (1,856)
--------- --------- --------- --------- ---------- ---------- ---------
- - - - - (1,669) (1,669)
--------- --------- --------- --------- ---------- ---------- ---------
At 31 December
2013 677 23,472 63 (249) 7,650 15,295 46,908
========= ========= ========= ========= ========== ========== =========
Share Share Shares Treasury Other Retained Total
capital premium to be shares reserves earnings equity
issued
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
At 1 January
2014 677 23,472 63 (249) 7,650 15,295 46,908
--------- --------- --------- --------- ---------- ---------- ---------
Profit for
the year - - - - - 1,596 1,596
Other comprehensive
income - - - - (946) - (946)
--------- --------- --------- --------- ---------- ---------- ---------
Total comprehensive
income - - - - (946) 1,596 650
--------- --------- --------- --------- ---------- ---------- ---------
Transactions
with owners:
Share based
payment
transactions - - - - - 26 26
Tax relating
to share
option scheme - - - - - (12) (12)
Shares issued - 2 - - - - 2
Dividends - - - - - (1,889) (1,889)
--------- --------- --------- --------- ---------- ---------- ---------
- 2 - - - (1,875) (1,873)
--------- --------- --------- --------- ---------- ---------- ---------
At 31 December
2014 677 23,474 63 (249) 6,704 15,016 45,685
========= ========= ========= ========= ========== ========== =========
Other reserves include merger reserves of GBP2,369,000 (2013:
GBP2,369,000) and translation reserve of GBP4,335,000 (2013:
GBP5,281,000). The merger reserve arose on acquisitions and
represents the difference between the fair value of shares issued
and the nominal value of the shares. The translation reserve
incorporates the gains and losses on revaluation of the net assets
and liabilities of subsidiary undertakings and other currency gains
and losses that are treated as part of equity.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER
2014
1. Announcement
This announcement was approved by the Board of directors on 9
March 2015. The preliminary results for the year ended 31 December
2014 are unaudited. The financial information set out in this
announcement does not constitute the Company's statutory accounts
for the years ended 31 December 2014 or 31 December 2013. The
financial information set out in the announcement 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 2013.
This condensed consolidated financial information does not
constitute statutory accounts within the meaning of Section 434 of
the Companies Act 2006. The auditor's report on the financial
statements for the years ended 31 December 2013 was unqualified and
did not contain a statement under Section 498 of the Companies Act
2006. The financial statements for the year ended 31 December 2013
have been delivered to the Registrar of Companies.
2 Segmental information
The Group's operating segments have been determined based on the
information regularly reviewed by the Group Executive Board, which
has been identified as the Chief Operating Decision Maker ("CODM").
The Group Executive Board considers the business to be split into
two primary geographical markets: EMEAA and North America. Central
costs relate to the expenses related to the Group's headquarters
and costs directly associated with the parent Company, which are
managed by the Group management team. The external debt is held
within Central.
All revenue, profit/(loss) before taxation and total assets are
attributable to the principal activity of the Group, being the
development, marketing and distribution of software, data solutions
and related professional services to the global asset management
industry. Segment assets represent those assets arising from the
operating activities of those segments. Segment results exclude the
impact of any intercompany recharges of revenues or costs.
For the year ended 31 December 2014:
EMEAA North Central Total
America
GBP'000s GBP'000s GBP'000s GBP'000s
Revenue 20,820 11,198 - 32,018
Segment expense (16,453) (10,810) (2,094) (29,357)
--------- --------- --------- ---------
Operating profit/(loss) 4,367 388 (2,094) 2,661
Finance net income/(expense) 3 1 (295) (291)
--------- --------- --------- ---------
Profit/(loss) before taxation 4,370 389 (2,389) 2,370
========= ========= ========= =========
Statement of financial
position
Assets 29,162 36,444 948 66,554
Liabilities (13,698) (5,452) (1,719) (20,869)
--------- --------- --------- ---------
Net assets 15,464 30,992 (771) 45,685
========= ========= ========= =========
Other
Purchase of property, plant
and equipment 1,198 665 - 1,863
Net investment in intangible
assets 2,786 602 665 4,053
Depreciation of property,
plant and equipment 557 635 - 1,192
Amortisation of intangibles 3,504 324 - 3,828
For the year ended 31 December 2013:
EMEAA North Central Total
America
GBP'000s GBP'000s GBP'000s GBP'000s
Revenue 20,449 12,037 - 32,486
Segment expense (16,262) (11,011) (1,827) (29,100)
--------- --------- --------- ---------
Operating profit/(loss) 4,187 1,026 (1,827) 3,386
Finance net income/(expense) 5 1 (279) (273)
--------- --------- --------- ---------
Profit/(loss) before taxation 4,192 1,027 (2,106) 3,113
========= ========= ========= =========
Statement of financial
position
Assets 29,097 36,267 940 66,304
Liabilities (13,205) (4,126) (2,065) (19,396)
--------- --------- --------- ---------
Net assets 15,892 32,141 (1,125) 46,908
========= ========= ========= =========
Other
Purchase of property, plant
and equipment 605 325 - 930
Net investment in intangible
assets 2,055 160 1,267 3,482
Depreciation of property,
plant and equipment 418 480 - 898
Amortisation of other intangibles 3,555 486 - 4,041
3 Operating expenses
2014 2013
GBP'000s GBP'000s
Operating expenses relate to:
Staff costs
- Research and development 4,985 4,440
- Other staff costs 10,962 10,984
- Share based payment 26 192
- Internal development costs
capitalised (3,615) (3,404)
--------- ---------
Total staff costs 12,358 12,212
Depreciation of property, plant
and equipment 1,192 898
Amortisation of intangible
assets 3,828 4,041
Operating lease rentals in
respect of:
- Land and buildings 1,670 1,502
- Other 57 123
Auditors' remuneration 172 139
Exceptional items (note 4) - 347
Other operating expenses 10,097 9,564
Exchange differences (17) 274
Total operating expenses 29,357 29,100
========= =========
4 Exceptional items
There were no exceptional items in 2014. Following a project to
streamline core internal services (IT, finance and HR), we decided
to re-locate our Toronto team to a smaller office. Whilst not
treated as an exceptional item, there was a one-off charge relating
to the office lease of around GBP0.35 million.
The exceptional charge of GBP0.35 million in 2013 related to
additional contingent consideration for the SiSoft acquisition.
5 Adjusted profit before taxation, adjusted operating profit
margin and adjusted EBITDA
In order to provide the reader of the accounts with profit
measures that more clearly demonstrate the underlying business
performance from year to year a number of adjusted profit measures
are shown below.
Adjusted profit before taxation
2014 2013
GBP'000s GBP'000s
Profit before taxation 2,370 3,113
Add back: Amortisation on acquired
intangible assets 188 402
Add back: Share based payments 26 192
Add back: Exceptional items - 347
Adjusted profit before tax 2,584 4,054
========= =========
Adjusted operating profit
2014 2013
GBP'000s GBP'000s
Operating profit 2,661 3,386
Add back: Amortisation on acquired
intangible assets 188 402
Add back: Share based payments 26 192
Add back: Exceptional items - 347
Adjusted operating profit 2,875 4,327
========= =========
Adjusted operating margin 9.0% 13.3%
Adjusted EBITDA
2014 2013
GBP'000s GBP'000s
Operating profit 2,661 3,386
Add back: Depreciation of property,
plant and equipment 1,192 898
Add back: Amortisation on purchased
intangible assets 292 238
Add back: Amortisation on acquired
intangible assets 188 402
Add back: Share based payments 26 192
Add back: Exceptional items - 347
Adjusted EBITDA 4,359 5,463
========= ===================
Adjusted EBITDA margin 13.6% 16.8%
Free cash flow
2014 2013
GBP'000s GBP'000s
Cash generated from operations 7,705 9,403
Net interest paid (10) (98)
Net tax paid (1,173) (1,616)
Purchase of property, plant
and equipment (1,863) (930)
Investment in intangible assets (4,053) (3,482)
--------- ---------
Free cash flow 606 3,277
========= =========
6 Taxation
2014 2013
GBP'000s GBP'000s
Current tax
Current tax on profits for the year (1,303) (1,457)
Adjustments in respect of prior years (125) 13
--------- ---------
Total current tax (1,428) (1,444)
Total deferred tax 654 414
Income tax expense (774) (1,030)
========= =========
The tax on the Group's profit before tax differs from the
standard rate of corporation tax in the UK of 21.5% (2013: 23.5%)
as follows:
2014 2013
GBP'000s GBP'000s
Profit before tax 2,370 3,113
--------- ---------
Tax charge on profit before tax at standard rate
of corporation tax in the UK of 21.5% (2013: 23.5%) (510) (732)
Tax effects of:
Enhanced tax deductions 272 116
Unrecognised deferred tax movement (232) 68
Recognition of previously unrecognised deferred
tax asset 523 -
Adjustments in respect of prior years (125) 13
Effect of higher overseas taxes on current
taxes (311) (218)
Effect of higher overseas taxes on deferred
taxes (391) (277)
--------- ---------
Tax charge (774) (1,030)
========= =========
7 Earnings per share
Earnings per share - basic and diluted
Earnings Weighted Earnings Earnings Weighted Earnings
average per average per
number share number share
of shares of
shares
2014 2014 2014 2013 2013 2013
GBP'000s '000s pence GBP'000s '000s pence
Earnings per share -
basic 1,596 67,479 2.4 2,083 67,479 3.1
Potentially dilutive
shares - 60 (0.0) - 69 (0.0)
--------- ----------- --------- --------- --------- ---------
Earnings per share -
diluted 1,596 67,539 2.4 2,083 67,548 3.1
---------------------- --------- ----------- --------- --------- --------- ---------
Earnings per share - adjusted
Earnings Weighted Earnings Earnings Weighted Earnings
average per average per
number share number share
of shares of
shares
2014 2014 2014 2013 2013 2013
GBP'000s '000s pence GBP'000s '000s pence
Earnings per share -
basic 1,596 67,479 2.4 2,083 67,479 3.1
Add back: amortisation
of acquired intangibles 188 - 0.3 402 - 0.6
Add back: share based
payments 26 - 0.0 192 - 0.3
Add back: exceptional
items - - - 347 - 0.5
--------- ----------- --------- --------- --------- ---------
Adjusted earnings per
share 1,810 67,479 2.7 3,024 67,479 4.5
Potentially dilutive
shares - 60 (0.0) - 69 (0.0)
--------- ----------- --------- --------- --------- ---------
Adjusted earnings per
share - diluted 1,810 67,539 2.7 3,024 67,548 4.5
-------------------------- --------- ----------- --------- --------- --------- ---------
The adjusted earnings per share information has been provided in
order to assist the reader to understand the underlying performance
of the business on a comparable basis. Potentially dilutive shares
exclude any anti-dilutive share options.
8 Trade and other receivables
Current assets: trade and other receivables
2014 2013
GBP'000s GBP'000s
Trade debtors 5,794 4,317
Other debtors 58 56
Prepayments 1,376 1,266
Accrued income 228 212
VAT recoverable 121 92
Rental deposits 145 224
--------- ---------
7,722 6,167
========= =========
Non-current assets: other receivables
Group Group
2014 2013
GBP'000s GBP'000s
Rental deposits 109 135
--------- ---------
109 135
========= =========
9 Trade and other payables
Current liabilities: trade and other payables
Group Group
2014 2013
GBP'000s GBP'000s
Trade creditors 1,433 769
Other creditors and accruals 2,903 2,352
Other taxation and social security 1,752 1,279
6,088 4,400
========= =========
Non-current liabilities: other creditors
2014 2013
GBP'000s GBP'000s
Other creditors 76 154
76 154
========= =========
The non-current "Other creditors and accruals" of GBP0.08
million (2013: GBP0.15 million) relates to lease inducements, which
are amortised over the period of the relevant lease.
10 Provisions
Total movement on provisions for the Group is as follows:
Provisions - Group 2014 2014 2014 2013
Contingent Onerous Total Total
consideration contracts
GBP'000s GBP'000s GBP'000s GBP'000s
At 1 January 725 255 980 1,705
Arising in the year - - - 515
Utilised in the year - (190) (190) (1,301)
Exchange differences (49) (3) (52) 61
At 31 December 676 62 738 980
=============== =========== ========= =========
The contingent consideration is the consideration on the SiSoft
acquisition and is now expected to be utilised in 2015 although it
is possible that it will fall beyond twelve months. The onerous
contracts provision relates to onerous leases and other contracts,
and is expected to be utilised within five years.
11 Reconciliation of profit before taxto net cash inflow from
operating activities
2014 2013
GBP'000s GBP'000s
Profit before taxation 2,370 3,113
Net finance expense 291 273
--------- ---------
Operating profit 2,661 3,386
Exceptional item - 347
--------- ---------
Operating profit before exceptional
items 2,661 3,733
Depreciation of property, plant
and equipment 1,192 898
Loss on disposal of property,
plant and equipment 42 -
Amortisation of intangible assets 3,828 4,041
(Increase)/decrease in receivables (1,597) 993
Increase/(decrease) in payables
and provisions 1,364 (107)
Increase/(decrease) in deferred
income 189 (347)
Share based payments 26 192
--------- ---------
Net cash inflow from operating
activities before exceptional
items 7,705 9,403
========= =========
12 Analysis of changes in net debt
At 1 Cash Non-cash Exchange At 31 December
January flow changes differences 2014
2014
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Cash and cash equivalents (per
balance sheet) 4,014 (1,269) - (53) 2,692
Overdrafts - - - -
--------- --------- --------- ------------- ---------------
Cash and cash equivalents (per
statement of cash flows) 4,014 (1,269) - (53) 2,692
Bank and other loans (12) - - (12)
Net cash 4,002 (1,269) - (53) 2,680
========= ========= ========= ============= ===============
At 1 Cash Non-cash Exchange At 31
January flow changes differences December
2013 2013
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Cash and cash equivalents (per
balance sheet) 3,681 431 - (98) 4,014
Overdrafts - - - - -
--------- --------- --------- ------------- ----------
Cash and cash equivalents (per
statement of cash flows) 3,681 431 - (98) 4,014
Bank loans (net of issue costs
deferred) (14) - - 2 (12)
Net cash 3,667 431 - (96) 4,002
========= ========= ========= ============= ==========
13 Reconciliation of net cash flow to movement in net cash
2014 2013
GBP'000s GBP'000s
Increase in cash and cash equivalents in the year (1,269) 431
Exchange movements (53) (96)
--------- ---------
Movement in net cash (1,322) 335
Net cash at beginning of year 4,002 3,667
Net cash at end of year 2,680 4,002
========= =========
14 Contingent liabilities
As is normal for a group of this size and scope of operations,
Group companies are involved in a number of potential legal claims
and disputes from time to time arising from our activities, none of
which are expected to have a material impact on the Group's
financial results.
The Board expects the remaining contingent consideration payable
to the 45% minority shareholder (22% of total shares) in Sisoft to
be in the range of EUR0.7 million - EUR1.1 million (approximately
GBP0.6 million - GBP0.9 million). It is possible that it will not
be fully resolved during 2015. There is also a risk that the final
consideration determined by the Court including related costs will
be higher than the amount provided, although the Board's estimate
of the measurement of the liability has not changed (allowing for
fluctuations in exchange rates).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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