Following a solid performance in 2018, StatPro’s AGM statement confirms that the Group has traded in line with expectations during the first part of the current financial year. This is consistent with the outlook comment in the March FY 2018 results announcement which said that the Group had good visibility into H1 2019 with a solid business pipeline. We also note recent positive announcements on contracts – the latest of which was made earlier this week when the Group announced a three year extension for £2.44 million with a Top 20 Fund Administrator. Management had previously said that StatPro was seeing further growth from its fund administration clients in the first quarter of 2019. In his statement, Chairman Rory Curran reiterates two particular areas of focus: improving EBITDA margins – aided by the move to the new divisional structure – and ensuring that the Delta integration is a success. We leave estimates unchanged while noting the supportive contract announcements.
The most recent contract extension, that we note above, was for Revolution which the Fund Administrator currently uses to provide services to over 30 of its clients for performance, attribution and risk. The contract extension renewed the client’s commitment to Revolution and, we believe, is another example of how the functionality and scalability of StatPro’s technology continues to drive new, increased contract values.
With the continuity project to integrate the Delta functionality into the Revolution platform in full swing, another recent win saw an encouraging extension to a contract with an existing customer – a total of €1.2m over three years from a Revolution Delta client. We note that this existing fixed income client was comfortable to commit to a multiyear relationship while adding additional functionality.
Given the increasingly complex requirements within the asset management industry with regard to, inter alia, data management and regulation, StatPro’s ability to provide scalable, cloud-based Performance Measurement, Risk Management, Compliance and Reporting services remains a key attribute.
StatPro has shown positive momentum and we highlight some metrics which underline that: Total Group Annualised Recurring Revenue ("ARR") has nearly doubled over the last four years with average client ARR up 51%. In the same period, Cloud Services ARR has quadrupled and there has been 96% growth in cash from operations.