TIDMSOG
RNS Number : 0114V
StatPro Group PLC
25 January 2017
25 January 2017
StatPro Group plc
Year End trading update
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, announces a
trading update for the year ended 31 December 2016.
-- Group Annualised Recurring Revenue ("ARR") increased by 18%
to GBP39.3 million (2015: GBP33.3 million*)
-- Forward order book of contracted revenue up 9% to GBP46.0 million (2015: GBP42.1 million*)
-- StatPro Revolution, the cloud-based portfolio analysis
service, ARR increased by 68% to GBP15.0 million (2015: GBP8.9
million*)
-- StatPro Seven maintained resilience with a 2% net underlying cancellation rate (2015: 3%*)
-- Net debt was GBP10.1 million at 31 December 2016 (2015: net cash GBP1.3 million)
-- Non-cash impairment charge expected of approximately GBP10
million against goodwill associated with Canadian business, FRI,
acquired in October 2006
* at constant currency
Justin Wheatley, Group CEO, StatPro, commented:
"We have had a good year with the Group's revenue and
profitability remaining in line with our expectations. Notable
highlights include two acquisitions, the launch of Revolution
Performance in September 2016 and our best year yet for sales of
StatPro Revolution.
"This success is undoubtedly due to our early investment in
cloud technology, over eight years ago. The complexity and scale of
the technology we have developed will be difficult to imitate. We
are now firmly established as a leading innovator in the rapidly
digitising asset management industry.
"Looking ahead we have a strong forward order book of contracted
revenue which is up 9% to GBP46.0 million."
Group
Trading is in line with the Board's expectations, with Group ARR
increasing to GBP39.3 million.
The Group generated positive operating cash flow. At the
year-end, net debt was GBP10.1 million (2015: net cash GBP1.3
million) after investment in acquisitions and a share buy-back in
2016.
The businesses that were acquired in 2016 (Investor Analytics
and 51% stake in Infovest) performed well and achieved incremental
profits in line with expectations.
The forward order book of contracted revenue was up 9% at 31
December 2016 to GBP46.0 million (2015: GBP42.1 million*).
StatPro Revolution
ARR for StatPro Revolution increased by 68% to GBP15.0 million
(2015: GBP8.9 million*). The forward order book of contracted
revenue for StatPro Revolution was up 28% at 31 December 2016 to
GBP21.4 million (2015: GBP16.7 million*).
StatPro Seven and Data
StatPro Seven's ARR was resilient with a 2% net cancellation
rate at constant currency, excluding the impact of acquired revenue
and conversions to StatPro Revolution (2015: 3%).
Data revenue performed well with a net increase in ARR during
2016 of 6% (2015: 1%*).
Update on other matters
Goodwill impairment review
As part of the annual goodwill impairment review process,
StatPro has identified an exceptional impairment charge of
approximately GBP10 million; this is subject to review and
confirmation by the year-end audit process. Whilst goodwill is
assessed against the business cash flows as one cash generating
unit, this impairment charge relates to goodwill associated with
the Group's acquisition of FRI, a Canadian business, acquired in
October 2006.
This expected impairment charge reflects the strength of the
Canadian dollar and also the Group's strategy of converting legacy
revenue to cloud revenue. There will be no cash or tax impact of
this charge.
Infovest
In February 2016, the Group acquired a 51% stake in InfoVest.
The positive trading results for Infovest have resulted in an
increase in the valuation of the business and as a result, there
has been an increase in the value of the non-controlling interests'
put option to approximately ZAR 42 million.
Combined with a stronger South African Rand v. GBP, this
resulted in an increase in the provision by approximately GBP0.6
million (since June 2016) to GBP2.5 million. It is anticipated that
this charge will be added back in determining the adjusted EBITDA
and adjusted EPS figures in the Group's accounts for 2016. The
valuation will be reviewed at the end of each trading period going
forward.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 (MAR).
Enquiries:
StatPro Group plc
Justin Wheatley, Chief Executive +44 (0) 20 8410 9876
Andrew Fabian, Finance Director
Panmure Gordon - Nomad and Broker
Corporate Finance - Freddy Crossley
/ Fabien Holler +44 (0) 20 7886 2500
Corporate Broking - Tom Salvesen
Instinctif Partners
Adrian Duffield / Lauren Foster +44 (0) 20 7457 2020
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. This multi-asset
class analytics platform helps StatPro's clients increase assets
under management, improve client service, meet tough regulations
and reduce costs.
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 open source Freedom Index.
StatPro has grown its Annualized Recurring Revenue from less
than GBP1 million in 1999 to around GBP39 million at the end of
December 2016. The Group has operations in Europe, North America,
South Africa, Asia and Australia, with hundreds of clients in 38
countries around the world. Approximately 80% of recurring revenues
are generated outside the UK. StatPro Group plc shares are listed
on AIM.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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