StatPro (SOG) reported that the integration of Delta is “on track” after it bought the risk and performance analytics service from UBS in April 2017. The transition of clients from the Delta platform to Revolution, StatPro’s flagship product, has so far been “seamless”. From a client’s perspective, it will seem as if Revolution has been added to Delta. But behind the scenes, StatPro is working to consolidate Delta into Revolution, so that it will only have to operate one platform instead of two. Chief executive Justin Wheatley said the process should flow through into improved margins, already evident in the adjusted cash profit margin, which advanced from 13.9 per cent to 16.4 per cent.
Adding more services like that of Delta and the new fixed income offering make StatPro’s cloud-based software solutions more appealing to asset managers, fund administrators and asset management service providers. Indeed, annualised recurring revenue (ARR) increased by 5 per cent to £55.7m, driven both by Revolution and cloud services. Average ARR per customer improved to from £106,100 to £120,800, increasing the implied customer lifetime value to £1.11m.
Analysts at Stifel expect adjusted pre-tax profits of £7.1m this year, giving EPS of 7.1p, compared with £6.2m and 4.9p in 2018.
| STATPRO (SOG) | ||||
| ORD PRICE: | 124p | MARKET VALUE: | £81.3m | |
| TOUCH: | 122-125p | 12-MONTH HIGH: | 188p | LOW: 105p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | na | |
| NET ASSET VALUE: | 42p* | NET DEBT: | 90% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 32.0 | 2.37 | 2.4 | 2.9 |
| 2015 | 30.2 | 2.41 | 2.4 | 2.9 |
| 2016 | 37.6 | -10.12 | -15.5 | 2.9 |
| 2017 | 49.3 | -3.47 | -3.7 | 2.9 |
| 2018 | 54.8 | -0.99 | -0.8 | 2.9 |
| % change | +11 | - | - | |
| Ex-div: | 25 Apr | |||
| Payment: | 29 May | |||
| *Includes intangible assets of £64m, or 97p a share | ||||
