StatPro Group PLC – Continued increase in profitability as cloud services continue to grow strongly
31 July 2019
StatPro Group PLC
Continued increase in profitability as cloud services continue to grow strongly
StatPro Group plc, (AIM: SOG, “StatPro”, “the Group”), a 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 2019.
|Six months ended 30 June 2019||Six months ended 30 June 2018 Restated (3)||% change||% change at constant currency|
|Revenue||£28.25 m||£27.24 m||+3.7%||+3.2%|
|Annualised Recurring Revenue (“ARR”) (1)||£56.48 m||£52.25 m||+8.1%||+5.7%|
|Adjusted EBITDA (2)||£5.68 m||£5.18 m||+9.7%||+10.2%|
|(Loss)/profit before tax||(£0.26) m||£0.81 m|
|Earnings per share – adjusted (2)||3.8p||3.3p||+15%|
|(Loss)/earnings per share – basic||(0.3)p||1.0p|
|Interim dividend per share||0.85p||0.85p||–|
- Group revenue up 3.7% to £28.25 million (2018: £27.24 million)
- Recurring revenue grew to 98% (2018: 96%) of total Group revenue
- Revolution platform ARR grew by 22.9% (4) (2018: 19.0%) to £17.64 million (2018: £14.35 million)
- Software as a service (SaaS) as a percentage of software ARR grew to 85% (2018: 84%)
- Adjusted EBITDA increased by 9.7% to £5.68 million (2018: £5.18 million)
- Free cash flow (before acquisition and restructuring costs) increased to £3.53 million from £3.16 million
- Strategic partnership signed with J.P. Morgan to develop Risk and Performance Attribution capabilities for portfolio managers and distribute through J.P. Morgan’s data and analytics platform
- Environmental, social and governance (“ESG”) research and index business unit of ECPI acquired in July 2019
- Fixed Income module released on StatPro Revolution – enabling final phase of conversions of clients from StatPro Seven to Revolution
(1) Annualised Recurring Revenue is the annual value of revenue contractually committed at period end.
(2) Adjusted EBITDA and adjusted earnings/loss per share are EBITDA and earnings/loss per share after adjustment for amortisation of acquired intangible assets, acquisition transaction, redundancy and other integration costs, and share-based payments (see notes 2 and 5).
(3) The interim and full year accounts for 2018 have been restated to take into account the adoption of IFRS 16 and deferred tax (see note 1) and the SiSoft provision (see note 4).
(4) Underlying ARR growth relates to revenue on the Revolution platform and excludes the acquired cloud revenues from Delta and Investor Analytics, and includes clients converted from Seven and other products at constant currency (see note 3).
Justin Wheatley, Chief Executive of StatPro, commented:
“We have continued to execute on our strategy to grow organically whilst switching our clients from legacy software onto our expanding Revolution platform cloud service – which saw another period of strong ARR growth.
“The stand-out development in H1 was our new partnership with J.P. Morgan. It strengthens our market position and equally importantly, it is a step change in our distribution capacity.
“As we approach the end of our conversion programme – which will result in a marked improvement in margins – we are developing our routes to market and also expanding our services for both our fund administration and asset manager clients.”
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.
StatPro Group plc
Justin Wheatley, Chief Executive
Andrew Fabian, Finance Director
+44 (0) 20 8410 9876
Panmure Gordon – Nomad and Broker
Corporate Finance – Freddy Crossley / Fabien Holler
Corporate Broking – James Stearns
+44 (0) 20 7886 2500
Adrian Duffield / Kay Larsen / Chantal Woolcock
+44 (0) 20 7457 2020
StatPro Group (www.statpro.com) provides cloud-based portfolio analytics, asset data services and data management tools for the global asset management industry and asset management service providers.
The Group has 10 offices in Europe, North America, South Africa and Australia, servicing 450+ clients in 38 countries. It is organised into three divisions: Revolution, Source: StatPro and Infovest.
Revolution is a global provider of award-winning portfolio analytics solutions. The cloud-based platform offers vital analysis of portfolio performance, attribution, risk and compliance. Revolution helps clients reduce costs, improve client communication and control investment decisions.
Source: StatPro is a global market data business and provides Data-as-a-Service to Revolution to enable analytics. The division’s integrated and global data coverage includes millions of securities covering the full range of financial instruments and benchmarks.
Infovest supplies data management solutions for the global asset management market, including data warehouse technology, ETL, compliance and reporting tools, as well as portfolio management solutions.
StatPro Group plc shares are listed on AIM.
StatPro Group plc has acquired the environmental, social and governance (“ESG”) research and index business unit.
The Importance of Data Management for Fixed Income Attribution.
Accurate fixed income attribution calculations are impossible without good data. In the world of fixed income data, a minor change can result in millions of dollars in cost differential.