StatPro Group plc, (AIM: SOG, “StatPro”, “the Group”), a leading provider of portfolio analysis and asset pricing services for the global asset management industry, has published its interim results for the six months ended 30 June 2019.
Six months ended 30 June 2019 | Six months ended 30 June 2018 Restated (3) | % change | % change at constant currency | |
Revenue | £28.25 m | £27.24 m | +3.7% | +3.2% |
Annualised Recurring Revenue (“ARR”) (1) | £56.48 m | £52.25 m | +8.1% | +5.7% |
Adjusted EBITDA (2) | £5.68 m | £5.18 m | +9.7% | +10.2% |
(Loss)/profit before tax | (£0.26) m | £0.81 m | ||
Earnings per share – adjusted (2) | 3.8p | 3.3p | +15% | |
(Loss)/earnings per share – basic | (0.3)p | 1.0p | ||
Interim dividend per share | 0.85p | 0.85p | – |
Financial highlights:
- Group revenue up 3.7% to £28.25 million (2018: £27.24 million)
- Recurring revenue grew to 98% (2018: 96%) of total Group revenue
- Revolution platform ARR grew by 22.9% (4) (2018: 19.0%) to £17.64 million (2018: £14.35 million)
- Software as a service (SaaS) as a percentage of software ARR grew to 85% (2018: 84%)
- Adjusted EBITDA increased by 9.7% to £5.68 million (2018: £5.18 million)
- Free cash flow (before acquisition and restructuring costs) increased to £3.53 million from £3.16 million
Operating highlights:
- Strategic partnership signed with J.P. Morgan to develop Risk and Performance Attribution capabilities for portfolio managers and distribute through J.P. Morgan’s data and analytics platform
- Environmental, social and governance (“ESG”) research and index business unit of ECPI acquired in July 2019
- Fixed Income module released on StatPro Revolution – enabling final phase of conversions of clients from StatPro Seven to Revolution
(1) Annualised Recurring Revenue is the annual value of revenue contractually committed at period end.
(2) Adjusted EBITDA and adjusted earnings/loss per share are EBITDA and earnings/loss per share after adjustment for amortisation of acquired intangible assets, acquisition transaction, redundancy and other integration costs, and share-based payments (see notes 2 and 5).
(3) The interim and full year accounts for 2018 have been restated to take into account the adoption of IFRS 16 and deferred tax (see note 1) and the SiSoft provision (see note 4).
(4) Underlying ARR growth relates to revenue on the Revolution platform and excludes the acquired cloud revenues from Delta and Investor Analytics, and includes clients converted from Seven and other products at constant currency (see note 3).
Justin Wheatley, Chief Executive of StatPro, commented:
“We have continued to execute on our strategy to grow organically whilst switching our clients from legacy software onto our expanding Revolution platform cloud service – which saw another period of strong ARR growth.
“The stand-out development in H1 was our new partnership with J.P. Morgan. It strengthens our market position and equally importantly, it is a step change in our distribution capacity.
“As we approach the end of our conversion programme – which will result in a marked improvement in margins – we are developing our routes to market and also expanding our services for both our fund administration and asset manager clients.”
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