20th Jan 2009 07:00
Tuesday, 20 January 2009
STATPRO GROUP PLC
("StatPro", "the Company" or the "Group")
Year end trading update
Notice of results
StatPro Group plc, the AIM listed provider of portfolio analytics and data solutions for the global asset management industry, today announces a trading update for the year ended 31 December 2008.
Highlights:
Successful conclusion to 2008 and encouraging outlook for 2009
Annualised contracted recurring revenue increased to £28.4 million* as at 31 December 2008 (2007: £20.27 million)
Contract renewal rate over 94% in 2008
Over 70% of contracts by value are committed beyond 2009 and weighted average contract length is 16 months
Cost cutting initiatives in October 2008 successfully completed reducing annualised costs by £1.5 million
New Software as a Service ("SaaS") platform now has 28 customers
* Based on year end currency rates (see table below)
Year end trading update
The Board is pleased to report a successful close to the year and consequently expects to report full year results in line with current market expectations. In addition, with renewal rates currently above 94% and the high level of visibility associated with our rental business model, we are confident of delivering a solid performance in 2009.
StatPro is well positioned in a resilient niche of the asset management sector. Fund managers, pension funds, private banks and custodian banks, which represent 99% of our customer base, require and will continue to require performance measurement, investment control and risk analysis tools, irrespective of any impact they might be seeing relating to a changing economic environment.
StatPro's rental business model provides for a significant level of resilience in difficult markets and very clear revenue visibility. Entering 2009, we have £28.4 million revenues under contract and a solid pipeline of new business. Our policy of signing long-term contracts means that over 70% of clients have contractual commitments that extend beyond 2009.
Our recent cost cutting initiatives have resulted in the reduction of costs by £1.5 million per annum.
The global financial business environment is likely to see complex, large scale IT projects give way to simpler SaaS solutions and StatPro aims to take full advantage of this move. Therefore, our development focus in 2009 will continue to be on helping our clients reduce their total cost of ownership of our services by providing an advanced version of our SaaS platform and Index Data Service, as well as the further simplification of our product suite. We now have 28 customers using the SaaS service and ten using the new Index Data Service.
Justin Wheatley, Chief Executive, commented: "2008 has continued to see us build on the growth achieved in 2007. Due to the predictable nature of our rental business model, an extremely high level of visibility of revenues and a strong new business pipeline, we expect this growth to continue. In addition, the advancement of our SaaS platform has been well received by our customers, reducing their overall cost of ownership of our software which in turn is facilitating a shorter sales cycle for new customers. We therefore look forward to a successful 2009."
Notice of results
The Company expects to report its preliminary results for the year ended 31 December 2008 on Monday, 9 March 2009.
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Software licences and data fees |
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Annualised recurring contract value £ million |
% of starting year value |
|
Unaudited |
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At 31 December 2007 |
20.27 |
100.0% |
|
|
Net impact of exchange rates |
4.15 |
20.5% |
|
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At 1 January 2008 (at 31 Dec 2008 exchange rates) |
24.42 |
120.5% |
|
|
Contracts acquired with acquisition |
2.08 |
10.3% |
|
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New contracted revenue (net of cancellations) |
1.89 |
9.3% |
|
|
At 31 December 2008 |
28.39 |
140.1% |
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For further information, please contact:
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StatPro Group plc |
www.statpro.com |
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Justin Wheatley, Chief Executive |
020 8410 9876 |
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Andrew Fabian, Finance Director |
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|
Cenkos Securities |
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Jon Fitzpatrick / Ken Fleming |
0131 220 6939 |
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Julian Morse |
020 7397 1931 |
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ICIS |
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Tom Moriarty / Caroline Evans-Jones |
020 7651 8688 |
About StatPro
StatPro is a leading provider of portfolio analytics and data solutions for the global asset management industry.
The Company sells its suite of products on a rental basis to investment management companies to analyse portfolio performance, attribution, risk and GIPS© compliance. StatPro also provides the market data and valuation feeds including a new Complex Asset Pricing service.
StatPro has grown its recurring revenue from less than GBP1 million in 1999 to GBP28.4 million at end December 2008 and currently enjoys a 94% renewal rate.
StatPro floated on the London Stock Exchange in May 2000 and transferred its listing in June 2003 to AIM. The Company has operations in the Europe, North America, South Africa and Australia, with 80% of revenues being generated outside the UK.
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