Final Results

Preliminary Results for the Year ended 31 December 2014

Financial highlights:

    Additional investment in people, product development, data and IT resulted in lower adjusted EBITDA, down 10% at constant currency to 4.36 million (2013 at constant currency: 4.87 million)

    Annualised recurring contract revenue (1) up 4% to 29.39 million at 31 December 2014 (2013 at constant currency: 28.30 million)

    StatPro Revolution annualised recurring contract revenue (1)  up 68% to 5.42 million at 31 December 2014 (2013 at constant currency: 3.22 million)

    Recurring revenue from StatPro Revolution accounted for 18% of Group recurring revenue (2013: 11%)

    46% of our software clients by value (2013: 37%) now have contracted for StatPro Revolution, marking an inflexion point in the cloud strategy

    Forward order book of contracted revenue (2) up 7% to 38.74 million at 31 December 2014 (2013 at constant currency: 36.36 million) of which 25% is StatPro Revolution

    Dividend increased by 4% to 2.9p (2013: 2.8p)

Operating highlights:

    Strategic contract win worth almost 4 million (3.1 million) with major European asset manager to transition its existing StatPro Seven software to the StatPro Revolution platform; three year contract includes professional services and represents 55% conversion premium (4)

    Increased focus on revenue per client; average revenue for StatPro Revolution clients rose 37% to 17.2k p.a. (2013: 12.5k)

    Good progress on the StatPro Revolution platform development, including launch of AIFMD module

(1) Annualised recurring contract revenue is the annual value of revenue contractually committed at year end.  

(2) Forward order book of contracted revenue is the total amount of software and professional services revenue that is contractually committed at year end.  

(3) Adjusted EBITDA and adjusted earnings per share are EBITDA and earnings per share after adjustment for amortisation of acquired intangible assets, share based payments and exceptional items ( notes 5 and 7)

(4) Defined as the percentage increase in total recurring revenue for StatPro Revolution compared to total recurring revenue for StatPro Seven from that client

Justin Wheatley, Chief Executive of StatPro, commented:

We have reached an inflexion point in the roll out of our cloud-based product StatPro Revolution.  Its annualised recurring revenue jumped by 68% and now contributes some 18% of the Group’s total recurring revenue — up from 11%.  46% (by value of recurring software contracts) of our client base now use StatPro Revolution.

As expected, the roll out of StatPro Revolution has opened up a number of new markets and opportunities — both geographically and by type of customer, including hedge funds and private wealth asset managers.

Our recently signed three year 4 million contract with a large European asset manager to transition its StatPro Seven platform to StatPro Revolution clearly demonstrates the upsell, conversion potential, and value uplift in StatPro Revolution.

The current financial year has started well and is in line with our expectations. With some 38.7 million of contracts secured, of which 9.7 million is for StatPro Revolution, and the momentum building in cloud revenues, we are focused on further implementing our strategy to transition to a pure-cloud business.

- Ends -

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