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Wednesday's agenda: StatPro Group PLC crunches the numbers

Shareholders will doubtless be interested in how StatPro's acquisitions are bedding down.
You say you want a revolution ...

Results from StatPro Group PLC (LON:SOG), the portfolio analytics software provider, should hold few surprises, given the company's pre-close update at the end of January.

The company revealed group revenue for 2015 came in at around £30.0mln, down from £32.02mln the year before, while adjusted underling earnings (EBITDA) should be around the £4mln mark, down from £4.36mln in 2014.

It is worth bearing in mind when looking at these numbers that the company is in the process of making the transition to a cloud-based software-as-a-service model, which typically takes a while to gain traction but which in the long run leads to the sort of revenue visibility the market, and finance directors, like.

The group generated positive cash flow in the year, finishing with net cash of £1.3mlmn, despite continued investment in its StatPro Revolution platform.

Just before it announced its pre-close trading statement, the company bought Investor Analytics, a US-based provider of cloud-based risk services to hedge funds and asset managers, while in February it acquired a majority stake in InfoVest Consulting, a South Africa-based software provider focused on the asset management industry.

Shareholders will doubtless be interested in how the acquisitions are bedding down.

StatPro announced last month that Investor Analytics had won the 2016 HFM US Technology Awards for “Best Risk Management Software”.

“In what can look like a crowded fintech market space the award shows a stand-out player. In addition to getting something for the trophy cabinet with its recent Investor Analysts acquisition StatPro got for itself: (i) complementary Risk Factor and Monte Carlo models to add to its Historical Simulation risk model, (ii) a “significant” increase for its US footprint – StatPro had £11.2mln revenue from North America at latest finals. (iii) a beefed up financial model – Investor Analysts brought with it an additional US$4.85m of ARR [annualised recurring revenue],” said George O'Connor at StatPro's nominated adviser and house broker, Panmure Gordon.

Looking ahead to the results, O'Connor said: “We think that the outlook commentary will be positive and so we are relaxed with our ongoing Buy recommendation at 119p target price. 

Among the blue-chips, insurance giant Prudential issue its fourth quarter results, following on from a strong set of third quarter numbers.

“Investors should expect this to follow through in the final quarter;however, within the asset management businesses, there have been net outflows and this could have accelerated over the period given the extreme volatility in the markets. With global growth concerns being led by a weakening China, investors will be seeking some reassurances that there still remain good prospects for life business in the Far East where it has a large exposure,” said Graham Spooner, a research analyst at The Share Centre.

Significant announcements expected

Finals: 4imprint Group (LON:FOUR), G4S (LON:GFS), Hill & Smith Holdings (LON:HILS), Hochschild Mining (LON:HOC), Lookers (LON:LOOK), Mincon Group Eur0.01 (LON:MCON), Portmeirion Group (LON:PMP), Prudential (LON:PRU), Restaurant Group (LON:The) (LON:RTN), SIG (LON:SHI), StatPro Group (LON:SOG), Tri-Star Resources (LON:TSTR)

Economic: UK – Industrial production; NIESR GDP Estimate; RICS House Price Balance


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