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 nine months ended 30 September 2011.
· Trading in Q3 2011 in line with expectations
· Further clients signed for Revolution and Seven
· Seven Risk bureau service launched in Q3 and first client signed
· Board remains confident of successful outcome to the year
Revenue and profits for nine months to end September 2011 are in line with our expectations. We are continuing to invest in cloud-based technology services both on StatPro Revolution, which was launched this year, and also in progressing the development of a cloud-based StatPro Seven service.
Whilst revenues in 2011 for StatPro Revolution, our innovative cloud-based portfolio analysis and research service, are expected to be modest, we have added further clients and portfolios in Q3 2011. There are positive indications that we shall make further progress in signing new clients in both Q4 2011 and 2012, which will be the service's first full year since its launch. New features have been added and others will be added during the remainder of 2011 and we plan to increase expenditure on marketing and sales in 2012 to add to the momentum expected to be generated by the global launch.
New business signed in Q3 was satisfactory in what is typically the lowest quarter for signing new commitments. We were pleased to sign our first client for our new StatPro Seven Risk bureau service which was launched in Q3 and we believe addresses a demand by clients who want a risk service without investing in systems or infrastructure. Our renewal rates remain high and are projected to be around 90% or better for the full year.
There is no doubt that the global economic outlook has worsened since we last reported and in these uncertain market conditions, there has been an increase in demand for our risk-based products and services. However, these market conditions make it more challenging to accurately forecast levels of new business and renewal rates. Overallrates. Overall, given StatPro's high level of recurring revenue and prospects for new business for Revolution and Seven, we are confident of a successful outcome for the year.
Justin Wheatley, Chief Executive, commented: "Our increased marketing presence has enabled us to make progress with all our products. Our clients can see how a combination of StatPro Seven and StatPro Revolution will enable them to communicate better with their clients at a time of high volatility and uncertainty in the markets. Regulation continues to drive needs and our cloud platform allows us to adapt even faster to client priorities."