JP Morgan24 Jun 2019 16:07
Well, this should put some 'fly' in the ointment!!!
Finally, Statpro is getting the due recognition for its cloud analytics platform. With a few more big names on board (and I am sure they will be coming over the next couple of years or so) the future of this company and its investors looks very promising. The work the company has put into the development of this platform over the last 10 years is going to be almost impossible for anyone else to replicate any time soon. It is not a case of first mover advantage, more 'only mover' advantage. And all the while its current customers are adding additional portfolios to the system quietly in the background. Turnover should now start to grow organically, noticeably, and with rising net profit margins as development expenditure flattens off or declines slightly.
As pointed out below, the JPM partnership "will be a significant contributor to our growth in the years to come." - you don't say!
Admittedly, the company has perhaps a little too much debt for comfort (though the facility is for even more - £49m), but the lenders must be comfortable with future anticipated profit growth. How high this profit growth is and at what pace, only time will tell.
I am looking for a PER of 20 (previously the company traded on 30, for a good number of years, but has since been derated, maybe because of the debt, maybe because of slow progress in the cloud platform bearing fruit). This year's EPS should be 8.5 to 9p I think are forecast. So, say 180p per share by Jan - Mar next year. Could be looking at 11p to 12p EPS for 2020.
For an AIM company, this is very low risk, and a very strong buy for any serious long term investor.