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 2012.
· Trading in Q3 2012 in line with expectations
· StatPro Revolution has 130 clients at end Q3
· Significant new Distribution Partner: Linedata
· Renewals in Q3 continue to be resilient
· Appointment of Jane Tozer MBE OBE strengthens Board
· Board remains confident of successful outcome to the year
Revenue and profits for the nine months to end September 2012 are in line with our expectations. We are continuing to focus our strategic efforts on StatPro's transition to a pure-play software-as-a-service business, providing leading-edge portfolio analytics to the global asset management market. We are therefore continuing to invest in developing our cloud-based technology services; StatPro Revolution, launched in 2011, and StatPro Revolution Plus, the cloud-based StatPro Seven upgrade service, as well as expanding our direct and indirect sales capacity.
StatPro Revolution - progress in Q3
Good progress was made in Q3, with the highlight being our well attended client conference in mid-September. Sales of StatPro Revolution have reached 130 clients, including 12 fund administrators who all act as distributors for StatPro Revolution. Our sales pipeline continues to grow and we hope to build upon this success and momentum in the final quarter of 2012 and beyond.
Since its launch in March 2011, asset managers using the StatPro Revolution platform have been able to reduce their IT costs and provide dynamic fund performance data to new and prospective clients.
New partnership with Linedata
StatPro today announces a new partnership with Linedata, a global solutions provider. Linedata has 700 clients around the world and has integrated StatPro Revolution into its very successful Front Office Order Management system ("OMS"), Linedata Longview. Providing sophisticated portfolio analytics to the front office is essential and combining it seamlessly with an OMS adds considerable value to both products. Linboth products. Linedata has a global sales force across North America, Europe and Asia. It is a core part of our strategy to leverage the distribution capacity of our partners to accelerate the sales of StatPro Revolution. We believe the partnership will be fruitful.
In line with our new strategy of focusing the business on on-line services, we are not actively marketing StatPro Seven but we are nevertheless achieving some modest levels of new revenue as result of new business, additional modules and price increases. Our focus is to migrate our clients to StatPro Revolution and StatPro Revolution Plus over the coming two to three years as the service is enhanced. Our overall renewal rate remains high and is currently above last year's rate of 92%. We anticipate lower levels of data overage, being the usage above the minimum contracted level, going forward as a number of data-only clients are rationalising data sources. Development of StatPro Revolution Plus, the cloud-based upgrade path for StatPro Seven clients, is progressing well and we continue to expect to launch the first modules in 2013.
As previously announced, we are delighted to welcome Jane Tozer MBE OBE as a Non-Executive Director to the Board of StatPro. Her depth of knowledge of the public company arena and the asset management and software industries will be invaluable to us as we seek to deliver increased shareholder value through the long-term profitable growth of the business.
We believe that the global economic outlook, which remains difficult for our clients, increases the appeal of cloud-based services, which are able to save our clients' infrastructure costs whilst providing better value for money. This puts StatPro in a strong strategic position as we develop our new distribution network of Fund Administrators and software partners, which in turn should help future sales growth significantly. We believe that with our high level of recurring revenue and prospects for new business for StatPro Revolution, we are confident of a successful outcome for the year.
Justin Wheatley, Chief Executive, commented: "We are now well into our evolution to a pure play SaaS business and are pleased with our progress to date. As we sign up additional sales partners, such as Linedata, so our distribution and market reach for StatPro Revolution increases. This combined with our own successes in direct sales mean that we believe we are only at the very start of what could be a sustained period of growth for the business."