Positive update from AIM-listed firm, £46m in pipeline
Companies: Statpro Group
AIM-listed cloud portfolio analysis firm StatPro Group plc has released a trading update for the year ending 31 December, reporting ARR (Group annualised recurring revenue) of £39.3m, up 18% Yoy, and a hefty £46m of pipeline orders.
StatPro Revolution, the firm's flagship service, saw revenues increase by 68% to £15m.
Broker N+1 Singer welcomed the positive update, saying the firm's core KPIs signalled good progress. Singers increased its FY17 revenue estimate by 2% and raised its target price by 5p:
"An anticipated £10m goodwill impairment charge should not cause concern given it relates to the prudent revaluation of a historical asset and has no cash/tax impact, while a charge arising from the revaluation of the Infovest business will not feature in adjusted earnings. We increase our FY 2017 revenue estimate by 2% to reflect the beneficial impact of weaker sterling but make no changes to our earnings numbers to allow headroom for increased investment.
Our target price increases from 158p to 163p to reflect a higher peer-based valuation offset by the impact of higher net debt on the SOTP and DCF components of our valuation methodology."
Analyst Adam Lawson said Singers continues to look for further "significant" Revolution orders in the hope that this year will provide a springboard for accelerating growth.
Group CEO Justin Wheatley said it had been a good year for the company, with revenue and profitability in line with expectations:
"Notable highlights include two acquisitions, the launch of Revolution Performance in September 2016 and our best year yet for sales of StatPro Revolution.
This success is undoubtedly due to our early investment in cloud technology, over eight years ago. The complexity and scale of the technology we have developed will be difficult to imitate. We are now firmly established as a leading innovator in the rapidly digitising asset management industry.
Looking ahead we have a strong forward order book of contracted revenue which is up 9% to £46.0 million."
Statpro shares opened flat on Wednesday.