StatPro Group plc, (AIM:SOG), the AIM listed provider of portfolio analysis and asset pricing services for the global asset management industry, today provides a trading update for the six months ended 30 June 2014.
· Trading in H1 2014 in line with market expectations
· StatPro Revolution annualised recurring revenue increased by 28% to £4.0 million at end June
2014 (December 2013: £3.1 million*)
· StatPro Revolution client numbers increased to 322 at end June 2014 (December 2013: 257)
· StatPro Revolution related recurring revenue** increased to £9.9 million, being 40% of total
software recurring revenue (December 2013: £8.9 million* /37%)
· Resilient renewals for StatPro Seven in H1 2014
* at constant currency
** defined as the total recurring revenue from clients whose subscription includes StatPro Revolution
Revenue and profits in H1 2014 are in line with market expectations, with StatPro Revolution annualised recurring revenue reaching £4.0 million. As previously indicated and in line with our cloud strategy, we have increased spending on recruiting more sales people, additional marketing activities to promote our cloud solutions, and R&D to accelerate development of new features. We also continue to strengthen the client services team to support our existing and new clients and streamline our internal operations to gear up for future expansion of our client base.
We have extended our financing facilities for a further year and therefore, subject to customary covenants, these committed facilities are available until May 2017. These facilities currently total £8 million. As planned, we had a higher level of capex in H1 2014 associated with technology improvements to our SaaS platform and moving our London Head Office, and we paid a higher final dividend in H1 2014. Nevertheless, we generated a solid operating cash inflow and at 30 June 2014 we had net cash of approximately £3.2 million (December 2013: £4.0 : &po: £4.0 million). Around 80% of our contracts are denominated in currencies other than sterliterling and whilst we have a level of natural hedging in place, with sterling strengthening by approximately 10% over the past 12 months against these currencies, this has had an impact on the sterling reported value of revenue as well as profits.
Sales of StatPro Revolution, our cloud-based portfolio analysis service, continue to grow in line with expectations. During H1 2014, client numbers had reached 322 and recurring revenue had grown by £0.9 million to £4.0 million. StatPro Revolution related recurring revenue increased to £9.9 million (December 2013: £8.9 million). This demonstrates that clients are increasingly attracted by the advantages of cloud-based solutions, including improved productivity and quality of service, as well as lower total cost of ownership, and gives us confidence in our transition strategy. Our sales pipeline continues to grow and we look forward to building upon this success and momentum.
StatPro Seven and StatPro R+
Renewals for StatPro Seven in H1 2014 were resilient and progress on development of StatPro R+ continues well and in accordance with our development schedule, providing a clear transition roadmap for our existing customer base.
We believe that the service we offer through our cloud-based solution, StatPro Revolution, provides a compelling story that meets client demands for greater transparency, improved reporting to satisfy new regulations, and acts as a selling tool as well as being great value for money.
Our continuing progress gives the Board confidence in a successful outcome for the year.
Justin Wheatley, Chief Executive, commented: "Within just a few years of launching StatPro Revolution we have more than doubled our customer base, with around 500 asset management firms and fund administrators now using one or more of our services. This not only demonstrates the revolution that cloud technology can bring to the IT industry but also the broad applicability of our portfolio analysis service. With a strongly growing pipeline of sales opportunities around the world, an enlarged sales force and a market leading technology, we are confident we have the right platform to deliver future growth."