29 January 2016

StatPro Group plc                

Year End trading update

StatPro Group plc (AIM:SOG), the AIM listed provider of cloud-based portfolio analysis and asset pricing services for the global asset management industry, today announces a trading update for the year ended 31 December 2015.

Highlights

·      Group revenue approximately £30.0 million (2014: £ 32.02 million)

·      StatPro Revolution, the cloud-based portfolio analysis service, ARR increased by 46% to £7.8 million (2014:   £5.4 million*)

·      Adjusted EBITDA expected to be approximately £4.0 million (2014: £4.36 million)

·      Net cash of £1.3 million at 31 December 2015 (2014: £2.7 million)

·    Post year end acquisition of Investor Analytics increases Group pro forma ARR to approximately £32.0    million

* at constant currency

Justin Wheatley, Chief Executive of StatPro, commented:

"Despite Sterling's strength throughout 2015, we have achieved our core objective of growing StatPro Revolution ARR by 46%. We are now close to the end of our investment cycle in new technology with the launch of our last product module due in the summer.

"Our early investment in cloud technology puts us in a very strong position to becoming a leading innovator in the rapidly digitising asset management industry. It also means that we can take advantage of industry fragmentation and make acquisitions, such as Investor Analytics.

"As a consequence we look forward to improving the Group's profitability by a combination of both organic and acquisitive growth."

Group

Group revenue is expected to be approximately £30.0 million with adjusted EBITDA expected to be approximately £4.0 million. As expected, Professional Services revenue was significantly lower in 2015. 

The Group generated positive operating cash flow; net cash was £1.3 million (2015: £2.7 million) after continued investment. 

StatPro Revolution

ARR for StatPro Revolution increased by 46% to £7.8 million (2014: £5.4 million*). The forward order book of contracted revenue for StatPro Revolution was up 52% at 31 December 2015 to £14.2 million (2014: £9.3 million*). 

StatPro Seven

StatPro Seven recurring revenue was resilient with a net cancellation rate at constant currency, excluding the impact of conversions to StatPro Revolution, of around 3% (2014: nil).

Acquisition of Investor Analytics

On 22 January 2016, StatPro acquired Investor Analytics, a US-headquartered provider of cloud-based risk services to hedge funds and asset managers. This acquisition means that StatPro's cloud-based ARR is now approximately £11.1 million, taking cloud-based ARR to 35% of total Group ARR total of £32.0 million on a pro forma basis.

About StatPro

StatPro is a global provider of award winning portfolio analytics solutions for the investment community. The Group's cloud-based platform provides vital analysis of portfolio performance, attribution, risk and compliance. This multi-asset class analytics platform helps StatPro's clients increase assets under management, improve client service, meet tough regulations and reduce costs.

The Group's integrated and global data coverage includes over 3.2 million securities such as equities, bonds, mutual funds, FX rates, futures, options, OTCs, sector classifications and much else besides. StatPro also covers most families of benchmarks including MSCI, FTSE, Russell, NASDAQ and the licence free Freedom Index.

StatPro has grown its Annualised Recurring Revenue from less than £1 million in 1999 to around £32 million today (including Investor Analytics on a pro forma basis). The Group has operations in Europe, North America, South Africa, Asia and Australia, with hundreds of clients in 38 countries around the world. Approximately 80% of recurring revenues are generated outside the UK. StatPro Group plc shares are listed on AIM.