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StatPro saw sales activity accelerate in final quarter of 2017

Sales activity accelerated in the fourth quarter last year and the group is seeing key fund administration clients starting to increase their use of StatPro's flagship platform, Revolution
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The group is engaging with a number of parties about partnering with their platforms to offer an enhanced combined service

Annualised recurring revenue (ARR) grew by more than a third in 2017 at StatPro Group PLC (LON:SOG), driven by the acquisition of Delta from UBS.

The portfolio analytics software provider said ARR rose 35%, or 39% on a constant currency (CC) basis, to £53.04mln in 2017 from £93.27mln the year before.

READ: StatPro finished 2017 strongly and is confident of further progress in 2018

Excluding the impact of acquisitions and currency rates, the organic growth in group ARR was 1%. Roughly 82% of new recurring contracted revenue came from existing clients (2016: 83%).

Revenue for the year was £49.34mln, up 31% (CC:+26%) from £37.55mln the year before. Stripping out the Delta acquisition, revenues rose 2% on a CC basis.

Adjusted underlying earnings (Ebitda) surged 36% (CC:+24%) to £6.95mln from £5.1mln the year before, though various one-off items, such as amortisation of intangible assets and acquisition costs, meant the company made a loss before tax of £3.36mln, though this was considerably narrower than the 2016 loss of £10.12mln.

StatPro continues to be cash-generative with cash generated from operations after payment for acquisition and restructuring costs of £10.68 million (2016: £7.45 million).

The group ended the year with net debt of £20.22mln (2016: £10.06mln). The free cash flow, before acquisition and restructuring payments, increased to £4.59mln (2016: £0.65mln).

WATCH: StatPro in unique position after 'transformational' Delta acquisition

The final dividend has been maintained at 2.05p, which means the full-year dividend remains at 2.9p.

"The transformative acquisition of Delta in May 2017 was the defining point of the year - expanding our portfolio analytics capabilities as well as driving adjusted Ebitda and recurring revenue growth,” declared Justin Wheatley, the chief executive of StatPro.

"The integration of Delta's capabilities into our flagship Revolution platform is on course. Once completed, we will be able to provide the only cloud-based, multi-tenant portfolio analytics solution with a broad range of functions across performance, risk and regulation.

"Our improving cloud technology platform will be key to further organic growth in 2018 - offering fund administration clients significant improvements in efficiency and capabilities.

"We ended 2017 strongly and expect to continue to see further organic revenue and profit growth in 2018.  We have started the current financial year in line with our expectations," Wheatley added.

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August 19 2018

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