Revenue ahead after strong growth in StatPro Revolution sales and currency tailwinds
Companies: Statpro Group
Asset Management software specialist StatPro Group has beaten expectations in its final results for the year to 31 December, with the firm reporting sizeable revenue, EBITDA, and underlying EPS growth. Reported earnings were -15.4p/share after the firm took an £11.38m goodwill charge.
Revenue was ahead of expectations at £37.55m (N+1 Singer expectations: £35.1m), whilst full-year profits were in-line. Singers said the results had been aided by currency tailwinds and it would review its forecasts:
"...given the strength of the order book and healthy growth in the recurring revenue base (6% organic, constant currency) we expect to increase our FY 2017 revenue estimate by c7% and our corresponding adjusted EBITDA estimate by c4%. We are highly encouraged by continuing improvement in core KPIs and recent contract news."
The AIM-listed firm said performance had been driven by positive contributions from its 2016 acquisitions, Investor Analytics (now Revolution Alpha) and Infovest Consulting, and by the successful launch of StatPro Revolution. Revolution achieved record value of new contracts adding annualised recurring revenues of £3.8m.
Adjusted EBITDA rose 26% to £5.1m, up from £4.04m in FY15, and adj EPS rose 35% to 3.5p a share. However, due to goodwill charges, acquisitions, and restructuring costs, on a reported basis earnings came in at -15p a share. The firm is trading at a forward P/E of roughly 25x when earnings are considered on an underlying basis.
CEO Justin Wheatley said the year had been a pivotal one for StatPro, with the firm making two acquisitions, successfully launching Revolution Performance, and winning "significant" new business for its core services:
"... [we] achieved our best year ever for new contracts for StatPro Revolution...
The market for portfolio risk management and analytics is rapidly changing as technology evolves and asset managers streamline their businesses by outsourcing infrastructure, software and data to service providers."
According to Mr Wheatley, the firm has positioned itself to benefit from these changes and to service them directly.
"Our total forward order book of contracted revenue is now £46 million and the current financial year has started well. We aim to continue our steady accretion of annualised recurring revenue whilst benefiting from the operational leverage inherent within our business."
StatPro shares opened up about 2% on Wednesday, and are up 18% up in the past year. However, SOG hit highs of 115p in September and has since fallen about 20%.
