TIDMSOG
RNS Number : 8183M
StatPro Group PLC
02 August 2017
2 August 2017
StatPro Group plc
Revenue and profit growth through cloud investment
StatPro Group plc, (AIM: SOG, "StatPro", "the Group"), the
leading provider of portfolio analysis and asset pricing services
for the global asset management industry, has published its interim
results for the six months ended 30 June 2017.
Six months Six months
ended 30 ended 30
June 2017 June 2016 % change
GBP21.62 GBP17.55
Revenue m m +23%
Annualised Recurring GBP53.19 GBP36.17
Revenue ("ARR") (1) m m +47%
GBP2.78 GBP2.05
Adjusted EBITDA (2) m m +35%
GBP(2.29) GBP(0.96)
Loss before tax m m
GBP3.52 GBP(2.44)
Free cash flow m m
Loss per share - basic (3.3)p (1.2)p
Earnings per share -
adjusted (2) 1.8p 1.1p +64%
Interim dividend per
share 0.85p 0.85p -
------------------------ ----------- ----------- ---------
Financial highlights:
-- Group revenue up 23% to GBP21.62 million (2016: GBP17.55 million)
o Organic growth in revenue 2% (2016: nil)
o Currency impact on revenue 11% (2016: 2%)
-- Adjusted EBITDA increased by 35% to GBP2.78 million (2016: GBP2.05 million)
-- Loss before tax of GBP2.29 million (2016: GBP0.96 million)
after acquisition and restructuring costs and other non-cash
adjustments
-- Interim dividend maintained at 0.85 pence per share
-- Free cash flow in H1 2017 increased to GBP3.52 million (2016: outflow of GBP2.44 million)
Operating highlights:
-- StatPro Revolution organic revenue growth of 16% (2016: 62%)
-- Completed acquisition of UBS Delta - risk and performance
analytics service for approx. EUR13 million (GBP11.2 million) in
cash, paid over three years.
o UBS Delta extends risk and performance analytics service from
middle office to front office of asset managers
o Acquisition phased over three to five years as StatPro
incorporates UBS Delta's functionality into flagship product,
StatPro Revolution
o Integration progressing to plan
-- Software as a service (SaaS) as a percentage of software now 82% (2016: 74%)
-- Multi-currency financing facility with Wells Fargo increased to GBP41.0 million
(1) Annualised Recurring Revenue is the annual value of revenue
contractually committed at period end.
(2) Adjusted EBITDA and adjusted earnings/losses per share are
EBITDA and earnings/losses per share after adjustment for
amortisation of acquired intangible assets, acquisition
transaction, redundancy and other integration costs, fair value
movement on non-controlling interest put option and share based
payments (notes 2 and 5).
Justin Wheatley, Chief Executive of StatPro, commented:
"Our underlying profitability has seen a solid improvement in H1
2017 and the recently acquired Delta business has significantly
boosted our recurring revenues - a key metric for the business. Our
ARR is now GBP53.19 million, up some 47% from this time last
year.
"The acquisition of Delta was a major development for us. This
business transforms our scale and significantly enhances our
product capabilities. Our focus is now on maintaining the service
for Delta clients, whilst migrating Delta's unique functionality
onto StatPro Revolution's platform.
"Our journey to transform StatPro into a SaaS business is
largely complete, with over 82% of our software revenues coming
from our cloud services. We expect to improve our margins at all
levels as we benefit from the enhanced scale provided by Delta, our
solid organic growth and the operational gearing inherent in a
cloud-based business."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014 (MAR).
A presentation for analysts of the interim results will be held
at 9.30am today at the offices of Instinctif Partners, 65 Gresham
Street, London, EC2V 7NQ.
Enquiries:
StatPro Group plc
Justin Wheatley, Chief +44 (0) 20 8410
Executive 9876
Andrew Fabian, Finance
Director
Panmure Gordon - Nomad
and Broker
Corporate Finance - Freddy +44 (0) 20 7886
Crossley / Fabien Holler 2500
Corporate Broking - Tom
Salvesen
Instinctif Partners
Adrian Duffield / Kay Larsen +44 (0) 20 7457
/ Chris Birt 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.
The Group has operations in Europe, North America, South Africa,
Asia and Australia, with hundreds of clients in 39 countries around
the world.
StatPro has grown its Annualised Recurring Revenue from less
than GBP1 million in 1999 to around GBP53 million today. Over 75%
of recurring revenues are generated outside the UK. StatPro Group
plc shares are listed on AIM.
Overview
The first half of the year saw a strong improvement in adjusted
EBITDA, rising 35% to GBP2.78 million (2016: GBP2.05 million) with
H1 revenues up 23% to GBP21.62 million (2016: GBP17.55
million).
ARR, which highlights the Group's strategy of growing recurring
revenue contracts, increased by 47% to GBP53.19 million (2016:
GBP36.17 million) over the last 12 months.
Excluding the effect of the acquisition of Delta, revenues rose
13% and the operating profit was GBP0.62 million (2016: loss
GBP0.60 million). Free cash flow increased to GBP3.52 million from
a GBP2.44 million cash outflow. The Group has maintained the
dividend at 0.85p.
StatPro is now truly cloud-based and firmly established as one
of the leading services for the portfolio analytics market. 82% of
the Group's software ARR is now from SaaS.
The highlight of the first half was the acquisition of Delta
from UBS for approximately EUR13 million (GBP11.2 million) in cash,
paid over three years. Delta will enable StatPro to extend its risk
and performance analytics service from the middle office to the
front office of asset managers.
The acquisition of Delta is phased over three to five years as
StatPro incorporates Delta's functionality into its flagship
product, StatPro Revolution. Throughout the transition, and until
StatPro has fully integrated Delta's functionality, UBS will
continue to operate and support Delta for its clients.
Investor Analytics (now known as Alpha), acquired in 2016, is
being integrated into the Group's flagship cloud platform, StatPro
Revolution.
These two acquisitions provide the Group with considerably
enhanced capabilities, functionality and the ability to address a
wider number of portfolio risk and performance segments.
The Group will continue to consider making acquisitions to widen
its customer base and/or increase its product portfolio.
Current trading and outlook
The Group's sales pipeline of larger prospects continues to grow
as asset managers and fund administrators begin to see the benefits
of StatPro's cloud-based technology for their risk and performance
management operations.
The Board is positive about the prospects for H2 2017 with
trading expected to be in line with expectations. The addition of
Delta underpins this confidence.
Operational review
Total StatPro Revolution revenue grew 61%, including
acquisitions. The underlying growth, excluding acquisitions, was
27%. StatPro Seven also continues to be resilient with StatPro
Composites seeing growth of 9% in ARR as more and more asset
managers become compliant with Global Investment Performance
Standards ("GIPS(R) "). Professional services have been lower in
part due to the greater ease with which clients are able to
implement StatPro Revolution, thus requiring less consulting.
Since launching the core module, StatPro Revolution Performance
in September 2016, two fund administrator clients have on-boarded
36 of their own clients between them. They are looking to expand
this significantly in the second half of 2017.
StatPro Revolution Performance has transformed the operations of
fund administrators, allowing the on-boarding of new clients more
efficiently, with greater ease of controlling data and increased
speed and scale in calculating results and delivering services to
their clients. It is notable that both of these fund administrators
have spoken at conferences on the benefits of StatPro Revolution in
providing their clients a better service.
The performance measurement and risk analytics market is largely
a replacement market and it can take time for prospects to make
decisions. However, the step change that the Group's proven
technology offers is giving StatPro a real advantage over incumbent
legacy systems. Once a decision to switch has been made, it is
normally for a five to ten-year period.
With the Group's new technology now maturing as a service,
StatPro is expanding its North America sales team. The Group has
hired a senior executive, William Entwistle, to lead the team.
William has previously worked at IDC, SS&C, and IBM and joins
the Group's operating board, the Group Executive Board. StatPro has
also hired three new salespeople for North America and is likely to
invest in further additions in H2 2017.
In Europe, the Group has consolidated its sales teams in London
and Milan following the acquisition of Delta. StatPro currently has
12 salespeople across Europe and is looking to expand the London
team during H2.
The Group has consolidated its Asian operation into Sydney,
doubling its size, and closed its Hong Kong office. StatPro has
also added further sales resource there to help support its Delta
clients in the region.
Development of StatPro Revolution has been expanded to include
additional resource to handle the integration of Delta, as well as
continuing the existing road map for development. StatPro has made
three releases so far this year, each delivering significant
improvements in functionality. Two more are expected this year.
Acquisitions
Delta
StatPro is fully engaged in the process of integrating Delta
into the Group with the focus on developing the unique Delta
functions inside StatPro Revolution. The Group is engaging with
Delta clients to explain the integration plans.
The Group is focussed on continuing to ensure that there is no
disruption to Delta's service, as StatPro has guaranteed the
existing platform for five years. The business is having extensive
consultations with clients to ensure optimal migration.
It is also clear that there are numerous opportunities for new
business with Delta clients.
Alpha (previously Investor Analytics)
StatPro launched the first version of Alpha integrated with
StatPro Revolution in March 2017 and the second version was
released in July 2017. The Group expects to complete the
integration of Alpha seamlessly into the StatPro Revolution
platform next year.
Alpha's physical servers have been moved from New Jersey to the
Group's private cloud capability in Toronto. The combination of
Alpha and StatPro Revolution has resulted in a number of additional
sales and the pipeline is growing well.
Increased investment in Infovest
In February 2017, StatPro increased its investment in Infovest
to 72.7% by acquiring additional shares from three of the founders
of the company. The business has made strong progress since StatPro
acquired 51% of the business in March 2016.
Infovest revenues have grown 28%, and profitability has
increased by approximately 47%. Infovest has been able to leverage
the Group's global network of clients to win new business in the
US, Canada and the UK as well as its home market of South
Africa.
Financial review
Revenue
Group revenue increased by 23% to GBP21.62 million (2016:
GBP17.55 million). The revenue growth was driven by organic growth
in StatPro Revolution combined with the positive impact of the
Delta acquisition and currency benefits, offset by the expected
reduction in revenue for StatPro Seven, as shown below.
GBPm % change
Revenue bridge
H1 2016 at actual rates 17.55
Underlying growth
StatPro Revolution 0.96 +16%
StatPro Seven (0.38) (4%)
Data/professional fees (0.23) (7%)
-------
0.35 +2%
Impact of acquisitions and currency
Acquisitions 1.86
Currency impact 1.86
-------
H1 2017 at actual rates 21.62 +23%
------------------------------------- ------- ---------
95% of Group revenue was recurring revenue (2016: 93%).
Recurring revenue
The Group's SaaS business model of recurring revenue contracts
provides excellent visibility of projected revenue. ARR at the end
of June 2017 increased by 47% over the previous 12 months to
GBP53.19 million (2016: GBP36.17 million). Organic growth of
StatPro Revolution ARR was 9%. Growth in StatPro Seven ARR was 3%;
Data ARR fell by 2%. Excluding the impact of acquisitions and
currency rates, overall organic growth in Group ARR was 3% (2016:
1%).
Our revenue derives from contracts in a mix of currencies, with
the primary ones being EUR, USD, GBP and CAD and therefore the
business is impacted by movements in fx rates but the spread of
currencies for revenues and costs provides an element of natural
hedging in the reported results.
There has been a significant increase (67%) in average revenue
per StatPro Revolution/cloud client to GBP75,500 (2016: GBP45,300),
boosted by continued focus on larger contract values, and the Delta
acquisition, where average revenue per client is approximately
GBP127,500. The organic growth of average ARR for StatPro
Revolution was 19%.
Approximately 85% of new recurring contracted revenue came from
existing clients (2016: 83%). Data fees were GBP2.03 million (2016:
GBP1.81 million) and professional services revenue was GBP1.03
million (2016: GBP1.16 million).
SaaS-based KPIs
One KPI used by SaaS businesses is the ratio of costs of
acquiring each customer ("CAC") compared to the Lifetime Value of
the customer contracts ("LTV"). The results for StatPro are
presented below for June 2017 on a 12-month trailing basis.
All contracts (unaudited)
Year Year
to to
30 30
June June
2017 2016
Average Cost of Acquiring
Customer ("CAC") (GBP'000s) 120.0 85.9
Implied Customer Lifetime
(years) 12.4 10.2
Average ARR per customer
(GBP'000s) 98.8 79.3
Implied Customer Lifetime
Value ("LTV") (GBP'000s) 1,221 810
LTV: CAC 10.2 9.4
The comparatives for June 2016 have been restated to be
consistent with the methodology adopted in the Annual Report for
2016
A value of three or higher for the ratio of LTV:CAC is
considered the industry benchmark for a successful SaaS business
and for StatPro it is well above this figure.
Operating expenses
Operating expenses (before amortisation of intangible assets and
exceptional items) increased as planned by 22% (13% at constant
currency) to GBP17.78 million (2016: GBP14.54 million). GBP1.96
million (13%) of the increase was related to operating costs within
the recently acquired Delta business. Other increases in
expenditure related to the investment in cloud technology, data
costs, software and communications costs and cloud infrastructure.
The average number of employees was 303 (2016: 255).
Adjusting items
One-off adjusting items amounting to a total of GBP2.71 million
were incurred. These include: GBP2.51 million related to the
transaction costs of the acquisition and associated restructuring
charges in Delta as well as costs arising from streamlining
StatPro's European operations. The non-cash fair value movement on
the non-controlling interest put option of GBP0.20 million relates
to Infovest.
Six Six Six Six
months months months months
to to to to
June June June June
2017 2017 2017 2016
GBP'000s GBP'000s GBP'000s GBP'000s
Existing
operations Acquisition Total Total
=================================== =========== ============ ========= =========
Fair value movement on
non-controlling interest
put option 202 - 202 -
Acquisition transaction,
redundancy and other integration
costs 499 2,008 2,507 1,241
Total adjusting items 701 2,008 2,709 1,241
------------------------------------ ----------- ------------ --------- ---------
Profitability
Adjusted EBITDA increased to GBP2.78 million (2016: GBP2.05
million). Gross profit margin was 58% (2016: 60%) as shown in note
5. The adjusted EBITDA margin was 12.9% (2016: 11.7%). Delta was
close to breakeven on an adjusted EBITDA basis in the short period
since acquisition and the core business had an EBITDA margin of
approximately 14.6%.
Finance income and expense
Net finance expense was GBP0.50 million (2016: GBP0.36 million),
as a result of increased net debt associated with the financing of
the Delta acquisition.
Loss before tax
The adjusted operating profit increased year on year to GBP1.94
million (2016: GBP1.29 million). Adjusting items include
amortisation of acquired intangible assets (GBP0.88 million),
acquisition related and restructuring costs (GBP2.51 million), fair
value movement on non-controlling interest put option (GBP0.20
million), and share based payments (GBP0.14 million). The loss
before taxation was GBP2.29 million (2016: GBP0.96 million).
EBITDA Reconciliation
---------------------------------------- --------- --------- ---------
2017 2016
GBP'000s GBP'000s % change
Adjusted EBITDA 2,780 2,053 35%
Depreciation of property,
plant and equipment (743) (659)
Amortisation on purchased
assets (95) (105)
--------- ---------
Adjusted operating profit 1,942 1,289 51%
Amortisation on acquired
intangible assets (881) (546)
Fair value movement on non-controlling
interest put option (202) -
Acquisition related, restructuring
costs and negative goodwill (2,507) (1,241)
Share-based payments (144) (105)
--------- ---------
Total adjusting items (3,734) (1,892)
--------- ---------
Operating loss (1,792) (603)
Net finance expense (496) (357)
--------- ---------
Loss before taxation (2,288) (960)
----------------------------------------- --------- --------- ---------
Taxation
The tax credit was GBP0.27 million (2016: GBP0.25 million). The
overall effective tax credit rate on the loss is 12% (2016: 26%).
The underlying tax rate has reduced mainly due to reducing UK tax
rates and R&D tax benefits.
Earnings/losses per share
Adjusted earnings per share was 1.8p (2016: 1.1p). Actual basic
and diluted losses per share was 3.3p (2016: 1.2p).
Interim dividend
An interim dividend of 0.85 pence per ordinary share (2016: 0.85
pence) will be paid on 1 November 2017 to shareholders on the
register at the close of business on 6 October 2017 (ex-div date
will be 5 October 2017).
Balance sheet
The Group's net assets at the period end were GBP28.93 million
(Dec 2016: GBP32.59 million). The primary movements in the
six-month period were the increase in intangible assets of GBP10.33
million, mainly relating to the acquired intangibles from the Delta
acquisition, and the increase in borrowings related to acquisition
payments. There has also been an increase in deferred revenue,
which is a non-cash liability to GBP18.58 million (Dec 2016:
GBP17.60 million).
Cash flow and financing
StatPro continues to be cash generative with cash generated from
operations of GBP7.48 million (2016: GBP2.29 million), benefitting
from strong positive working capital movements. The free cash flow
was an inflow of GBP3.52 million (2016: outflow of GBP2.44
million). The Group ended the period with net debt of GBP18.92
million (Dec 2016: GBP10.06 million). The increase in net debt
arose primarily because of the financing of the Delta acquisition,
and further payments on Infovest and Investor Aanalytics
acquisitions, using the Group's debt facilities.
Financing facility
As part of the acquisition of Delta signed in April 2017, the
multi-currency financing facilities with Wells Fargo were
increased. The key features of the facilities, now amounting to
GBP41.0 million, are:
-- Five-year commitment period to April 2022
-- GBP10 million committed revolving credit facility
-- Committed term loans totalling GBP19.0 million
-- Committed deferred drawdown loans totalling GBP4.5 million
-- GBP7.5 million uncommitted additional facility available
The primary financial covenants are linked to recurring revenue
and EBITDA while allowing the Group to invest for growth. The
financing costs are amortised over the five-year term. This
facility strengthens the Group's long-term financial structure and
therefore the Board believes that the Group is well positioned to
manage the business risks.
Acquisitions
During H1 2017, StatPro completed one acquisition and increased
its investment in an existing subsidiary, as follows:
Acquisition of Delta
On 15 May 2017, StatPro completed the First Closing of the
acquisition, from UBS, of its risk and performance analytics
service, UBS Delta. An initial payment of approximately GBP7.5
million has been made, out of a total cash consideration of
approximately EUR13 million (GBP11.2 million), with the remainder
being paid over three years.
Increase in majority control of Infovest
The Group increased its shareholding in Infovest Consulting
(Pty) Ltd ("Infovest"), from 51.0% to 72.7% in February 2017. The
consideration for the additional 21.7% shareholding was ZAR 19.1
million (GBP1.15 million) in cash.
Further details on these acquisitions are provided in note
9.
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 expenditure increased to GBP3.62 million (2016: GBP2.27
million), equating to 17% of Group revenue (2016: 13%). R&D has
increased as a result of the work commenced on integrating the
Delta product onto the Revolution platform and although R&D is
higher than H1 2016, the level of R&D spend in relation to
revenue is similar to the level in FY 2016. Capitalised development
costs were GBP2.62 million (2016: GBP1.87 million) and amortisation
on internal development was GBP1.94 million (2016: GBP1.71
million). Capital expenditure on property, plant and equipment was
GBP1.46 million (2016: GBP1.02 million), of which GBP1.09 million
were financed under finance lease arrangements.
Principal risks and uncertainties
The directors continue to evaluate the principal business risks
and uncertainties affecting the Group and further discussion of the
principal risks and uncertainties can be found on pages 24 to 27 of
the StatPro 2016 Annual Report.
Group Income Statement
For the six months ended 30 June 2017
Notes Unaudited Unaudited Unaudited Unaudited Audited
Six Six Six Six Year
months months months months to
to 30 to to to 31
June 30 30 30 December
June June June
2017 2017 2017 2016 2016
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Existing Acquisition Total
operations *
Revenue 3 19,754 1,861 21,615 17,546 37,545
Operating expenses
before amortisation
of intangible assets
and other adjustments (15,826) (1,957) (17,783) (14,545) (30,254)
Amortisation of
acquired intangible
assets (570) (311) (881) (546) (1,060)
Amortisation of
other intangible
assets (2,034) - (2,034) (1,817) (4,191)
Goodwill impairment - - - - (9,724)
Fair value movement
on non-controlling
interest put option 4 (202) - (202) - (628)
Movements in provisions
for contingent consideration - - - - 272
Acquisition related,
restructuring costs
and negative goodwill 4 (499) (2,008) (2,507) (1,241) (1,298)
------------------------------------- ------ ------------ ------------ ---------- ---------- ----------
Operating expenses (19,131) (4,276) (23,407) (18,149) (46,883)
------------ ------------ ---------- ---------- ----------
Operating profit/(loss) 623 (2,415) (1,792) (603) (9,338)
Finance income 33 7 33
Finance expense (529) (364) (819)
Net finance expense (496) (357) (786)
---------- ---------- ----------
Loss before taxation 5 (2,288) (960) (10,124)
Taxation 267 252 74
---------- ---------- ----------
Loss for the period (2,021) (708) (10,050)
========== ========== ==========
Profit attributable
to non controlling
interests 98 71 94
Loss attributable
to equity shareholders (2,119) (779) (10,144)
---------- ---------- ----------
(2,021) (708) (10,050)
========== ========== ==========
Loss per share -
basic 2 (3.3)p (1.2)p (15.4)p
- diluted 2 (3.3)p (1.2)p (15.4)p
* This relates to the results of the acquisition made during the
financial period
Group Statement of Comprehensive Income
For the six months ended 30 June 2017
Unaudited Unaudited Audited
Six Six Year
months months to 31
to 30 to December
June 30
June
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Loss for the period (2,021) (708) (10,050)
Other comprehensive income to
be reclassified to the income
statement:
Net exchange differences (333) 4,864 6,606
Total comprehensive (loss)/income
for the period (2,354) 4,156 (3,444)
========== ========== ==========
Attributable to:
Non controlling interests 109 71 139
Equity shareholders (2,463) 4,085 (3,583)
Total comprehensive (loss)/income
for the period (2,354) 4,156 (3,444)
========== ========== ==========
Group Balance Sheet
At 30 June 2017
Notes Unaudited Unaudited Audited
At 30 At At
June 30 31
June December
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Non-current assets
Goodwill 10 44,447 53,656 44,759
Other intangible assets 10 21,266 11,107 10,937
Property, plant and equipment 3,457 2,895 2,742
Other receivables 135 237 134
Deferred tax assets 2,541 890 516
---------- ---------- ----------
71,846 68,785 59,088
Current assets
Trade and other receivables 8,161 9,211 12,051
Financial instruments - 10 - -
other
Current tax assets 1,518 1,042 2,674
Cash and cash equivalents 3,354 3,615 4,356
---------- ---------- ----------
13,043 13,868 19,081
Liabilities
Current liabilities
Financial liabilities -
borrowings (4,212) (511) (8,459)
Financial instruments -
non-controlling interest
put option * (1,615) (1,929) (2,557)
Financial instruments -
other (9) (283) (32)
Trade and other payables
* (6,296) (5,385) (7,573)
Current tax liabilities (602) (162) (485)
Deferred income (18,536) (15,631) (17,534)
Provisions * 11 (1,284) (1,197) (680)
(32,554) (25,098) (37,320)
---------- ---------- ----------
Net current liabilities (19,511) (11,230) (18,239)
---------- ---------- ----------
Non-current liabilities
Financial liabilities -
borrowings (18,062) (12,245) (5,961)
Other creditors * 11 (3,443) (2,375) (819)
Deferred tax liabilities (1,864) (2,202) (1,416)
Deferred income (40) (41) (67)
Provisions * 11 - - -
---------- ---------- ----------
(23,409) (16,863) (8,263)
---------- ---------- ----------
Net assets 28,926 40,692 32,586
========== ========== ==========
Shareholders' equity
Share capital 12 678 678 678
Share premium 23,537 23,537 23,537
Shares to be issued 63 63 63
Treasury shares 12 (2,328) (2,328) (2,328)
Other reserves 6,980 5,627 7,324
Retained earnings (142) 12,796 3,018
---------- ---------- ----------
Total shareholders' equity 28,788 40,373 32,292
---------- ---------- ----------
Non controlling interests 138 319 294
Total equity 28,926 40,692 32,586
========== ========== ==========
* For consistency with the year-end audited accounts for 2016,
the comparatives for some components of provisions have been
reclassified to non-controlling interest put option, and trade and
other payables.
Group Statement of Cash Flows
For the six months ended 30 June 2017
Unaudited Unaudited Audited
Notes Six months Six Year
to 30 months to 31
June to 30 December
June
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Operating activities
Cash generated from operations 6 7,479 2,291 7,454
Finance income 33 7 30
Finance costs (328) (223) (530)
Tax received 173 - 453
Tax paid (753) (1,421) (1,747)
----------- ---------- ----------
Net cash flow from operating
activities 6,604 654 5,660
----------- ---------- ----------
Investing activities
Acquisition of subsidiaries
(net of cash acquired) 9 (10,269) (4,806) (4,786)
Investment in intangible
assets (2,716) (2,080) (4,940)
Purchase of property, plant
and equipment (365) (1,016) (1,518)
Proceeds from the disposal
of property, plant and equipment - - 13
----------- ----------
Net cash flow used in investing
activities (13,350) (7,902) (11,231)
----------- ---------- ----------
Financing activities
Net proceeds from bank loan 7 7,281 10,797 11,685
Net (payments to)/proceeds
from finance leases 7 (280) 1,040 (330)
Purchase of own shares - (2,079) (2,079)
Dividends paid to non-controlling (135) - -
interests
Dividends paid to shareholders (1,327) (1,327) (1,877)
----------- ---------- ----------
Net cash flow from financing
activities 5,539 8,431 7,399
----------- ---------- ----------
Net (decrease)/increase in
cash and cash equivalents (1,207) 1,183 1,828
----------- ---------- ----------
Cash and cash equivalents
at start of period 4,356 2,203 2,203
Effect of exchange rate movements 205 229 325
----------- ---------- ----------
Cash and cash equivalents
at end of period 3,354 3,615 4,356
----------- ---------- ----------
Group Statement of Changes in Shareholders' Equity
For the six months ended 30 June 2017
Shares
to Other
Share Share be Treasury reserves Retained Non-controlling Total
Unaudited capital premium issued shares * earnings interest equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000 GBP'000s
At 1 January
2016 678 23,537 63 (249) 2,692 14,796 - 41,517
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
Profit for the
period - - - - - (779) 71 (708)
Other comprehensive
income - - - - 4,864 - - 4,864
Total comprehensive
income - - - - 4,864 (779) 71 4,156
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
Transactions
with owners:
Put option relating
to non-controlling
interests - - - - (1,929) - - (1,929)
Non-controlling
interests - - - - - - 248 248
Purchase of own
shares - - - (2,079) - - - (2,079)
Share based payment
transactions - - - - - 105 - 105
Tax relating
to share option
scheme - - - - - 1 - 1
Dividends - - - - - (1,327) - (1,327)
---------- ---------
At 30 June 2016 678 23,537 63 (2,328) 5,627 12,796 319 40,692
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
Shares
to Other
Share Share be Treasury reserves Retained Non-controlling Total
Unaudited capital premium issued shares * earnings interest equity
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000 GBP'000s
At 1 January
2017 678 23,537 63 (2,328) 7,324 3,018 294 32,586
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
Profit for the
period - - - - - (2,119) 98 (2,021)
Other comprehensive
income - - - - (344) - 11 (333)
Total comprehensive
income - - - - (344) (2,119) 109 (2,354)
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
Transactions
with owners:
Non-controlling
interests - - - - - 130 (130) -
Share based payment
transactions - - - - - 144 - 144
Tax relating
to share option
scheme - - - - - 12 - 12
Dividends - - - - - (1,327) (135) (1,462)
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
At 30 June 2017 678 23,537 63 (2,328) 6,980 (142) 138 28,926
--------- --------- --------- --------- ---------- ---------- ---------------- ---------
* Other reserves includes a merger reserve of GBP2,369,000
(2016: GBP2,369,000), a translation reserve surplus of GBP6,540,000
(2016: GBP5,187,000) and a reserve relating to the put option held
by non-controlling interests of a debit balance of GBP1,929,000
(2016: GBP1,929,000). The merger reserve arose on acquisitions and
represents the difference between the fair value and the nominal
value of the shares issued. 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 presented in equity.
Notes to the interim financial information
For the six months ended 30 June 2017
1. Principal Accounting policies
This interim report was approved by the Board of directors on 1
August 2017. The financial information set out in this interim
report has been prepared under IFRS as adopted by the European
Union and on the basis of the accounting policies set out in the
statutory accounts of StatPro Group plc for the year ended 31
December 2016, amended as explained below.
New and amended accounting standards and interpretations
There were no new or amended IFRS and IFRIC interpretations
effective as of 1 January 2017 which impact this interim
report.
Interpretations and revised standards that are not yet effective
and have not been early adopted by the Group
The following interpretations to existing standards have been
published that are mandatory for the Group's future accounting but
which the Group has not adopted early. Management has not yet fully
assessed the impact of these new standards.
-- IFRS 9 Financial Instruments - Classification and Measurement - 1 January 2018
-- IFRS 15 Revenue from Contracts with Customers - 1 January 2018
-- IFRS 16 Leases - 1 January 2019
This report is not prepared in accordance with IAS 34, which is
not mandatory. This interim report has not been audited but has
been reviewed in accordance with ISRE 2410 by the Company's
auditors, Ernst & Young LLP. The financial information does not
constitute statutory accounts within the meaning of section 435 of
the Companies Act 2006. Statutory accounts for StatPro Group plc
for the year ended 31 December 2016 reported under IFRS have been
delivered to the Registrar of Companies. The auditors' report on
those accounts was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006. Copies of this
report will be posted or provided electronically to shareholders.
Further copies are available free of charge on request from the
Company Secretary at the Company's registered office, Mansel Court,
Mansel Road, London SW19 4AA.
Basis of preparation - going concern
After making appropriate enquiries, the directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. For
these reasons, the Board continues to adopt the going concern basis
in preparing the interim report.
2. Earnings/losses per share
Basic (loss)/earnings per share has been calculated based on the
loss after taxation of GBP2.12 million (2016: GBP0.78 million) and
the weighted average number of shares of 64.72 million (2016: 65.84
million). The basic and diluted losses per share were 3.3p (2016:
1.2p).
Weighted Weighted
average average
number Earnings number Earnings
of per of per
Earnings shares share Earnings shares share
Six Six Six Six Six Six
months months months months months months
to to to to to to
30 30 30 30 30 30
June June June June June June
2017 2017 2017 2016 2016 2016
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000s '000s pence GBP'000s '000s pence
Loss per share
- basic and diluted (2,119) 64,715 (3.3) (779) 65,836 (1.2)
========== ========== ========== ========== ========== ==========
Adjusted earnings per share are shown in the table below. The
diluted adjusted earnings per share are based on potentially
dilutive shares outstanding of 1.80 million (2016: 1.06 million).
The reported diluted loss per share for the year to 31 December
2016 has been adjusted to 15.4p from the 15.1p previously
reported.
Weighted Weighted
average average
number Earnings number Earnings
of per of per
Earnings shares share Earnings shares share
Six Six Six Six Six Six
months months months months months months
to to to to to to
30 30 30 30 30 30
June June June June June June
2017 2017 2017 2016 2016 2016
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000s '000s pence GBP'000s '000s pence
Loss per share - basic (2,119) 64,715 (3.3) (779) 65,836 (1.2)
Add back: amortisation
of acquired intangibles 881 - 1.4 546 - 0.8
Add back: Non-controlling
interest put option 202 - 0.3 - - -
Add back: Acquisition
related, restructuring
costs and negative
goodwill 2,507 - 3.9 1,241 - 1.9
Effect of tax on adjusting
items (451) - (0.7) (391) - (0.6)
Add back: share based
payments 144 - 0.2 105 - 0.2
---------- ---------- ---------- ---------- ---------- ----------
Adjusted earnings
per share 1,164 64,715 1.8 722 65,836 1.1
Potentially dilutive
shares - 1,799 (0.0) - 1,059 (0.0)
---------- ---------- ----------
Adjusted earnings
per share - diluted 1,164 66,514 1.8 722 66,895 1.1
========== ========== ========== ========== ========== ==========
3. Revenue analysis
Revenue by type of service was as follows:
2017 2017 2017 2016
Existing Acquisition Total Change
GBP GBP GBP GBP
million million million million %
============================ ========= ============ ========= ========= =======
Revenue
StatPro Revolution/cloud 6.94 1.86 8.80 5.45 61%
StatPro Seven 9.76 - 9.76 9.13 7%
Data fees 2.03 - 2.03 1.81 12%
----------------------------
Total recurring revenue 18.73 1.86 20.59 16.39 26%
Professional services 1.03 - 1.03 1.16 (11%)
----------------------------
Total revenue 19.76 1.86 21.62 17.55 23%
---------------------------- --------- ------------ --------- --------- -------
Percentage of total
revenue that is recurring 95% 100% 95% 93%
The Acquisition relates to Delta
A key performance indicator for the Group is the Annualised
Recurring Revenue ("ARR") from client contracts. The movement in
Annualised Recurring Revenue ("ARR") in the 12-month period to June
2017 was as follows:
Annualised Recurring Revenue June June
2017 2016
GBP million GBP
million
At 30 June 2016 36.17 28.62
Net impact of exchange
rates 1.51 3.30
At 30 June2016 (at 30
June 2017 rates) 37.68 31.92
ARR added from acquisitions 14.53 3.97
New contracted revenue 5.47 5.27
Cancellations/reductions (4.49) (4.99)
Net increase 0.98 0.28
At 30 June 2017 53.19 36.17
------------------------------- ------------ ---------
Percentage increase in
revenue
Total ARR increase 47% 26%
Total ARR increase at
constant currency 41% 13%
Total ARR - organic increase 3% 1%
The Annualised Recurring Revenue profile of StatPro Revolution
clients (including Delta cloud solution) was as follows:
StatPro Revolution Annualised Number Average Annualised Number Average
revenue of revenue revenue* of revenue
clients per clients per
client client
*
Annualised June June June June June June
revenue bands 2017 2017 2017 2016 2016 2016
GBP'000s Number GBP'000s GBP'000s Number GBP'000s
<GBP10k 334 95 3.5 382 124 3.1
GBP10k -
GBP50k 3,265 133 24.5 2,196 102 21.5
GBP50k-GBP100k 4,570 60 76.2 3,099 40 77.5
GBP100k-GBP200k 9,877 72 137.2 5,403 41 131.8
>GBP200k 11,311 29 390.0 3,179 8 397.4
----------- --------- ----------- ---------
Total 29,357 389 75.5 14,259 315 45.3
-------------------- ----------- --------- --------- ----------- --------- ---------
* at constant currency
4. Adjusting items
One-off adjusting items amounting to a total of GBP2.71 million
were incurred in H1 2017. These include: GBP2.51 million related to
the acquisition of Delta and associated restructuring charges in
the core business. The fair value movement on the non-controlling
interest put option of GBP0.20 million relates to Infovest.
Six months Six months Six months Six months
to to to to
June June June June
2017 2017 2017 2016
GBP'000s GBP'000s GBP'000s GBP'000s
Existing
operations Acquisition Total Total
=================================== =========== ============ =========== ===========
Fair value movement on
non-controlling interest
put option 202 - 202 -
Acquisition transaction,
redundancy and other integration
costs 499 2,008 2,507 1,241
Total adjusting items 701 2,008 2,709 1,241
------------------------------------ ----------- ------------ ----------- -----------
5. Adjusted profit before taxation, adjusted operating profit,
adjusted EBITDA and gross margin analysis
a) Adjusted profit before taxation
Unaudited Unaudited Audited
Six Six Year
months months to 31
to 30 to 30 December
June June
2017 2016 2016
GBP'000s GBP'000s GBP'000s
(Loss)/Profit before taxation (2,288) (960) (10,124)
Add back: Amortisation on acquired
intangible assets 881 546 1,060
Add back: goodwill impairment - - 9,724
Add back: fair value movement
on non-controlling interest
put option 202 - 628
Add back: movements in provisions
for contingent consideration - - (272)
Add back: acquisition related,
restructuring costs and negative
goodwill 2,507 1,241 1,298
Add back: Share based payments 144 105 361
---------- ---------- ----------
Adjusted profit before tax 1,446 932 2,675
========== ========== ==========
b) Adjusted operating profit
` Unaudited Unaudited Audited
Six Six Year
months months to 31
to 30 to 30 December
June June
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Operating (loss)/profit (1,792) (603) (9,338)
Add back: Amortisation on acquired
intangible assets 881 546 1,060
Add back: goodwill impairment - - 9,724
Add back: fair value movement
on non-controlling interest
put option 202 - 628
Add back: movements in provisions
for contingent consideration - - (272)
Add back: acquisition related,
restructuring costs and negative
goodwill 2,507 1,241 1,298
Add back: Share based payments 144 105 361
---------- ---------- ----------
Adjusted operating profit 1,942 1,289 3,461
========== ========== ==========
c) Adjusted EBITDA
Unaudited Unaudited Audited
Six Six Year
months months to 31
to 30 to 30 December
June June
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Operating (loss)/profit (1,792) (603) (9,338)
Add back: Depreciation of property,
plant and equipment 743 659 1,327
Add back: Amortisation on purchased
intangible assets 95 105 316
Add back: Amortisation on acquired
intangible assets 881 546 1,060
Add back: goodwill impairment - - 9,724
Add back: fair value movement
on non-controlling interest
put option 202 - 628
Add back: movements in provisions
for contingent consideration - - (272)
Add back: acquisition related,
restructuring costs and negative
goodwill 2,507 1,241 1,298
Add back: Share based payments 144 105 361
---------- ---------- ----------
Adjusted EBITDA 2,780 2,053 5,104
========== ========== ==========
Adjusted EBITDA margin 12.9% 11.7% 13.6%
d) Gross profit margin analysis
Gross profit margin analysis helps us assess the profitability
of incremental revenue as the business evolves into a pure cloud
business and the costs drivers begin to change. As there are a
number of methodologies for allocating costs, we have described how
we have allocated the cost elements. The Board's view is that, as
the business grows, the inherent scalability of cloud technology
will lead to greater profitability in the future.
Unaudited Unaudited Unaudited
Six months Six months Year
to 30 to 30 to 31
June June December
2017 2016 2016
% % %
Revenue 100.0% 100.0% 100.0%
Cost of services (42.1%) (40.0%) (38.9%)
----------- ----------- ----------
Gross profit margin 57.9% 60.0% 61.1%
R&D costs (5.4%) (6.3%) (5.4%)
Sales & Marketing
costs (11.0%) (8.9%) (10.3%)
General & Administration
costs (29.3%) (33.6%) (32.8%)
----------- ----------- ----------
(45.7%) (48.8%) (48.5%)
Share-based payments 0.7% 0.5% 1.0%
----------- ----------- ----------
Adjusted EBITDA 12.9% 11.7% 13.6%
=========== =========== ==========
Definition of cost category for gross margin analysis:
Cost of services includes Clients Services employee salaries,
Data employee salaries, Development employee salaries related to
support, contractors' costs, data costs, costs of software and
hardware maintenance.
R&D includes the element of Development employee salaries
that relates to new research and development.
Sales & marketing includes Sales and Marketing employee
salaries, external marketing costs and sales commissions.
General & administration includes the Finance, HR and IT
employee salaries, communications costs, occupancy costs,
professional fees, travel and expenses, and other costs.
Six
Six months Year
months to to
to 30 30 31
June June December
General & Administration
costs 2017 2016 2016
% % %
Finance, HR & Administration (2.0%) (3.2%) (3.2%)
IT & Internal projects (5.0%) (4.8%) (4.7%)
Executive management (2.4%) (2.7%) (2.7%)
Employee-related costs
including travel (6.6%) (7.3%) (7.4%)
-------- -------- ----------
(16.0%) (18.0%) (18.0%)
Property & communications (9.1%) (10.1%) (9.8%)
Professional fees, insurance
and other (4.2%) (5.5%) (5.0%)
-------- -------- ----------
(13.3%) (15.6%) (14.8%)
-------- -------- ----------
Total General & Administration
costs (29.3%) (33.6%) (32.8%)
-------- -------- ----------
Free cash flow
Unaudited Unaudited Audited
Six Six Year
months months to
to to 31
30 30 December
June June
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Cash generated from operations
before exceptional payments 8,762 3,166 8,905
Net interest paid (295) (216) (500)
Net tax paid (580) (1,421) (1,294)
Purchase of property, plant
and equipment (365) (1,016) (1,518)
Investment in intangible assets (2,716) (2,080) (4,940)
---------- ---------- ----------
Free cash flow (before adjusting
items) 4,806 (1,567) 653
---------- ---------- ----------
Acquisition-related and restructuring
costs (1,283) (875) (1,451)
---------- ---------- ----------
Free cash flow 3,523 (2,442) (798)
========== ========== ==========
Property, plant and equipment amounting to GBP1.09 million
acquired under finance leases is excluded from the cash flow.
6. Reconciliation of profit before tax to net cash inflow from operating activities
Unaudited Unaudited Audited
Six Six
months months
to to Year
30 30 to 31
June June December
2017 2016 2016
GBP'000s GBP'000s GBP'000s
Loss before taxation (2,288) (960) (10,124)
Net finance expense 496 357 786
---------- ---------- ----------
Operating loss (1,792) (603) (9,338)
Goodwill impairment - - 9,724
Fair value movement on non-controlling
interest put option 202 - 628
Movements in provisions for contingent
consideration - - (272)
Acquisition-related, restructuring
costs and negative goodwill 2,507 1,241 1,298
Depreciation of property, plant
and equipment 743 659 1,327
Loss on disposal of property,
plant and equipment - - 29
Amortisation of intangible assets 2,915 2,363 5,251
Decrease/(increase) in receivables 3,501 826 (1,937)
(Decrease)/increase in payables
and provisions (433) (1,560) 380
Increase in deferred income 975 135 1,453
Share based payments 144 105 362
---------- ---------- ----------
Net cash inflow from operating
activities before exceptional
payments 8,762 3,166 8,905
---------- ---------- ----------
Acquisition-related and restructuring
costs (1,283) (875) (1,451)
---------- ---------- ----------
Net cash inflow from operating
activities 7,479 2,291 7,454
========== ========== ==========
7. Reconciliation of net cash flow to movement in net (debt)/cash
At 1 At 30
January Non-cash Exchange June
Cash
2017 flow changes differences 2017
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
--------------------------- --------- --------- --------- ------------ ---------
Cash and cash equivalents
(per balance sheet) 4,356 (1,207) - 205 3,354
Overdrafts - - - - -
--------------------------- --------- --------- --------- ------------ ---------
Cash and cash equivalents
(per statement of
cash flows) 4,356 (1,207) - 205 3,354
Finance leases (1,228) 280 (1,073) 3 (2,018)
Bank, other loans
and derivatives (13,192) (7,281) (94) 311 (20,256)
--------------------------- --------- --------- --------- ------------ ---------
Net (debt)/cash (10,064) (8,208) (1,167) 519 (18,920)
--------------------------- ========= ========= ========= ============ =========
At 1 At 30
January Non-cash Exchange June
Cash
2016 flow changes differences 2016
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
--------------------------- --------- --------- --------- ------------ ---------
Cash and cash equivalents
(per balance sheet) 2,203 1,183 - 229 3,615
Overdrafts
--------------------------- --------- --------- --------- ------------ ---------
Cash and cash equivalents
(per statement of
cash flows) 2,203 1,183 - 229 3,615
Finance leases (269) (1,040) - - (1,309)
Bank, other loans
and derivatives (650) (10,797) - - (11,447)
--------------------------- --------- --------- --------- ------------ ---------
Net cash 1,284 (10,654) - 229 (9,141)
--------------------------- ========= ========= ========= ============ =========
8. Dividend
An interim dividend for 2017 of 0.85 pence per ordinary share
(2016: 0.85 pence) will be paid on 1 November 2017 to shareholders
on the register on 6 October 2017. A final dividend for 2016 of
2.05 pence per ordinary share was paid on 26 May 2017.
9. Acquisitions
Acquisition of UBS Delta
On 15 May 2017, StatPro completed the First Closing of the
acquisition from UBS of its risk and performance analytics service,
UBS Delta. An initial payment of approximately GBP7.5 million has
been made, out of total cash consideration of approximately EUR13
million (GBP11.2 million), with a fair value of GBP10.55 million.
The remaining payments will be paid as follows:
-- In May 2019 - approximately GBP1.4 million
-- In May 2020 - approximately GBP2.3 million
UBS Delta enables StatPro to extend its risk and performance
analytics service from the middle office to the front office of
asset managers.
The acquisition is phased over three to five years as StatPro
incorporates UBS Delta's cloud-based functionality into its
flagship product, StatPro Revolution.
The tables below provides the allocation of the purchase price
to the fair value of intangible and tangible assets acquired as
required under IFRS 3 and whilst these have been reviewed by the
auditors, they are subject to audit at the year end. The
provisional fair values of the assets and liabilities are presented
below. The goodwill is not deductible for tax purposes.
The business was operated as part of a larger business unit and
it is not practical to disclose pre-acquisition results.
Fair value of assets Provisional
acquired and liabilities
assumed
fair
value
GBP'000
Trade debtors 2,240
Intangible asset - Brand
and client contract 2,359
Intangible asset - Technology 8,436
------------
13,035
Deferred income (1,867)
Other creditors and provisions (373)
Deferred tax liability (429)
------------
(2,669)
------------
Total identifiable net
assets at fair value 10,366
Goodwill arising on acquisition 184
------------
Fair value of purchase
consideration 10,550
============
Increase in investment in Infovest
The Group increased its shareholding in Infovest Consulting
(Pty) Ltd ("Infovest"), a South African-headquartered software
provider, specialising in data warehouse, ETL and reporting
software for the asset management industry, from 51.0% to 72.7% in
February 2017. The consideration for the additional 21.7%
shareholding was ZAR 19.1 million (GBP1.15 million) in cash. The
transaction resulted in the derecognition of GBP1.15 million of the
non-controlling interest put option and a GBP130,000 equity
transfer from non-controlling interest to the retained earnings
reserve.
The valuation of this buy-out is based on a formula linked to
recurring revenue but with a minimum profit level with the multiple
being just under eight times adjusted EBITDA.
Total cash payments on acquisitions in H1 2017 were as
follows:
GBP million
Delta initial payment 7.53
Investor Analytics deferred
payment 1.59
Infovest increase 1.15
------------
Total 10.27
------------
10. Goodwill and other intangible assets
Goodwill increased by GBP0.18 million as a result of the
acquisition of Delta offset by a reduction due to currency
movements.
Other intangible assets increased by GBP10.33 million, mainly
due to the Delta acquisition and comprise internally generated
development costs capitalised, acquired intangible assets
(technology, brands and client contracts) and purchased intangible
assets.
11. Other creditors and provisions
Other creditors greater than one year increased to GBP3.44
million, mainly due to the deferred consideration due on Delta.
Provisions of GBP1.28 million at 30 June 2017 (2016: GBP1.20
million) relates to residual deferred contingent consideration and
provisions for redundancies and onerous contracts. GBP0.62 million
utilised in the period relates to the purchase of shares in SiSoft
Sarl. On 25 July 2017, former shareholders of SiSoft Sarl lodged an
appeal against the French Commercial Court's decision on the
valuation of the shares purchased by StatPro. Management believe
there is no merit in the appeal as the valuation was backed by an
expert's report and no further amount has been provided.
Provisions 2017 2017 2017 2016
- Group
Contingent Redundancies Total Total
consideration and
onerous
contracts
GBP'000s GBP'000s GBP'000s GBP'000s
At 1 January 657 23 680 642
Utilised
in the period (616) (1,283) (1,899) (556)
Arising in
the period - 2,507 2,507 1,029
Exchange
differences - (4) (4) 82
At 30 June 41 1,243 1,284 1,197
=============== ============= ========= =========
Some items that were included in provisions in June 2016 have
been reclassified (e.g. non-controlling interest put option).
12. Share capital and treasury shares
No shares were issued during the period (2016: nil). At 30 June
2017, there were 67,813,650 shares (2016: 67,813,650 shares) in
issue including 3,098,713 (2016: 3,098,713) held in treasury
(64,714,937 excluding treasury shares). The treasury shares do not
accrue dividends and are excluded from the earnings per share
calculation.
Independent review report to StatPro Group plc
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2017, which comprises the Group Income
Statement, Group Statement of Comprehensive Income, Group Balance
Sheet, Group Statement of Cash Flows, Group Statement of Changes in
Shareholders' Equity and the related notes 1 to 12. We have read
the other information contained in the half yearly financial report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
This report is made solely to the Company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we
have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the Interim Report in accordance with the AIM Rules
issued by the London Stock Exchange which require that it is
presented and prepared in a form consistent with that which will be
adopted in the Company's annual accounts having regard to the
accounting standards applicable to such annual accounts.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with IFRS's as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with the AIM Rules issued by the London Stock
Exchange.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2017 is not prepared, in all material respects, in accordance
with the accounting policies outlined in Note 1, which comply with
IFRS's as adopted by the European Union and in accordance with the
AIM Rules issued by the London Stock Exchange.
Ernst & Young LLP
London
1 August 2017
This information is provided by RNS
The company news service from the London Stock Exchange
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