StatPro Group plc, (AIM:SOG), the AIM listed provider of portfolio analysis and asset pricing services for the global asset management industry, will be holding its Annual General Meeting today at 4pm.
At the meeting, Carl Bacon, Chairman of the Group will make the following statement on the Group's progress in the year ending 31 December 2011:
StatPro Revolution launch
The key strategic objective for StatPro in 2011 is the successful launch of StatPro Revolution, our innovative web-based portfolio analysis and asset pricing service, and we are pleased to report that we have made a good start in this. Following the signing of our first custodian client, RBC Dexia in March 2011, its white-labelled version of Revolution is planned to be launched this week, and is being made available to RBC Dexia's global customer base. We have attracted our first direct online clients, and are pleased to report today that we have signed our first distribution contract with Trasset International SpA, an Italian based back office system vendor with 50 clients in asset management and private wealth.
It is still too early to quantify or confirm any trends, however, we are satisfied that we have started building a solid pipeline of Revolution opportunities and to capitalise on this initial momentum, we have decided to bring forward our planned investment in Asia. We will be opening our Hong Kong office in early September 2011 to support our online sales initiatives as we believe the Asian market presents an excellent opportunity. We are also continuing to add further sales and support capacity in our offices elsewhere.
Trading in the first four months of 2011 is in line with expectations. We are pleased to have signed up several new clients for StatPro Seven during the period although we continue to experience long sales cycles in line with many in similar global markets as prospects delay decisions. Our renewal rates remain high, and are currently projected to be around 90% or better for the full year. Our focus on cash generation has resulted in a further reduction in net debt to around £3.3 million at 30 April 2011 (from £5.5 million at the end of Decemmber 2010).
It is clear from the feedback we have received over the last six months that StatPro Revolution has a strong appeal to asset managers of all types. The service is performing well, securing new business and opening up additional markets for the Group. We are a robust business operating in a growth market and the high levels of recurring revenue from our StatPro Seven business provides us with the confidence to continue to invest for the future. Therefore, whilst there remains further investment to be made to exploit StatPro Revolution's full potential, the Board is confident of a successful outcome for the year.