StatPro slips on profit shortfall

StatPro slips on profit shortfall

Shares in AIM-listed StatPro have slumped in morning trading after the vendor said full year profit had fallen 31% after restrucuring charges ate into earnings.

StatPro stock fell 11% - or 12 pence - to 96 pence after it said full year 2006 profit fell to £1.14m, from £1.64m in 2005, due to £1.42m in exceptional restructuring costs relating to its the acquisition of FRI Corporation (FRI), a Canadian provider of portfolio management technology.

But the vendor is also reporting a healthy 35% rise in full year turnover to £14.60m, from £10.79m a year ago. Statpro says it has also reduced costs for its combined business going forward by £1m per annum.

Despite the profit fall, Statpro says it enters 2007 "with considerable confidence". As well as having a large pipeline of prospects the company says the average value of contracts is expected to be higher than in previous years.

Says Justin Wheatley, chief executive, Statpro: "We have had a satisfactory start to the current financial year with furthe progress on the integration of FRI and our cross selling initiatives, and overall performance is in line with our expectations."

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