Higher interest charges and integration and restructuring costs of £560,000 left analytics group Statpro with a 45 per cent fall in first half pre-tax profits to £1m, despite its top line revenues growing 15 per cent to £13m.
Integration and other initiatives are expected to save the group £1m per year and recurring revenues now account for 86 per cent of revenues. Contract renewal rates are also high at 94 per cent. But, despite this, management expressed caution over Statpro's outlook in the near term due to "mixed signals" from the market. Management said current economic conditions are beginning to affect the group, with client contract delays and cost cutting in the US and Europe.
As such, planned expansion of its cost base has been put on hold, and management have cautioned that current expectations may be "difficult to meet should new sales slow down".
