StatPro has reported FY 2017 revenues and Adjusted EBITDA in line with expectations reflecting solid growth from Revolution and a positive EBITDA contribution from Delta. Reported revenue increased by 26% at constant currency rates (CCR), adjusted EBITDA was up 24% while adjusted EPS grew by 74%. The dividend is maintained at 2.9p. Group Annualised Recurring Revenue (ARR) increased by 35% to £53.04 million. The acquisition of UBS Delta in April 2017 was a key feature of the year and its integration into Revolution continues. The announcement flags a restructuring of the business in 2019 into three divisions to allow management focus on the specific growth opportunities in the business lines. CEO Justin Wheatley says that StatPro ended 2017 strongly and that the Group expects to see further organic revenue and profit growth in 2018. StatPro has started the current financial year in line with management expectations. We make minor adjustments to our FY 2018E estimates and introduce FY 2019E numbers.
Growth in Group ARR reflected the acquisition of Delta and included 13% organic growth in ARR in StatPro Revolution. Excluding conversions to Revolution, StatPro Seven was up 3% on constant currency terms.
StatPro is in the process of integrating Delta into the Group and continues to engage with Delta’s existing clients to ensure a smooth transition. StatPro is also implementing plans to enable an automated switchover for any Delta clients with all their portfolios to Revolution.
The distribution profile of Revolution’s ARR continues to shift towards the higher client revenue bands, helped by Delta, and average revenue per client reflects that.
The Group is to be structured into three divisions in 2019. Revolution will be the Analytics division, comprising Revolution, Seven, Delta and Alpha. Source: StatPro will be the data division while Infovest will be the integration and data management division, comprising Infovest and StatPro Portfolio Management (SPM).
Following an in-line set of results for FY 2017, we are leaving our FY 2018E estimates predominantly unchanged other than tweaking our finance charge a little. In addition, we are introducing FY 2019E estimates which can be seen in the table at the end of this document.