StatPro (SOG) hopes to transform its prospects by transitioning into a pure cloud services business, with upgraded products that help investment professionals assess portfolio risk and performance.
Admittedly, that transition - from conventional software company to providing services purely over the internet - has yet to feed directly into the bottom line. In fact, adjusted half-year pre-tax profit slipped 5 per cent year on year to £2.56m, reflecting heavy investment in its product suite. But the number of clients for its initial cloud services product, StatPro Revolution, has doubled year on year to 220.
Annualised recurring revenue from StatPro Revolution soared 124 per cent and it now generates 8 per cent of the recurring revenue book and 5 per cent of total revenues. The real test, however, will come when the company launches StatPro R+, the cloud product designed to replace the company's traditional software suite. A 'beta' version of the product (for testing) was launched in July ahead of the release of the full version in late 2014.
Broker Cenkos thinks rising investment costs will reduce full-year adjusted pre-tax profit to £3.9m, giving EPS of 4.6p, before rising in 2014 to £4.5m and 5.1p (from £5m and 5.9p in 2012).
STATPRO (SOG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 82p | MARKET VALUE: | £55.4m | |
| TOUCH: | 79-84p | 12-MONTH HIGH: | 110p | LOW: 79p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 74p* | NET CASH: | £2.84m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 16.1 | 1.44 | 1.70 | 0.80 |
| 2013 | 16.5 | 1.89 | 1.90 | 0.85 |
| % change | +2 | +31 | +12 | +6 |
Ex-div: 9 Oct Payment: 6 Nov *Includes intangible assets of £57.7m, or 86p a share | ||||
