LONDON (Alliance News) - StatPro Group PLC, which provides cloud software to asset managers, on Tuesday reported a fall in pretax profit in 2014, but said it can target new markets and customers including hedge funds and private wealth assets managers thanks to its new cloud-based revolution product.
In a statement, StatPro said it made a GBP2.4 million pretax profit in 2014, compared with GBP3.1 million in the prior year. Revenue was only slightly lower, falling by 2.0% to GBP32.0 million, hit by foreign exchange movements. At constant currency, revenue showed an increase of 6%, the company said. Operating expenses crept up by 1% to GBP29.4 million, resulting in a lower operating profit.
StatPro said the current year has begun "in line" with its expectations. The company expects to see growth in revenue from its revolution cloud product. Of the GBP38.7 million of contracted revenue secured for the next few years, StatPro said, about GBP9.7 million is due to the revolution product. The company has been focused on moving clients to the revolution product from its seven product.
"We have reached an inflexion point in the roll out of our cloud-based product StatPro Revolution. Its annualised recurring revenue jumped by 68% and now contributes some 18% of the group's total recurring revenue - up from 11%," Justin Wheatley, Chief Executive, said in a statement.
According to Wheatley, 46% of its client base now use the revolution product, by value of recurring software contracts.
"As expected, the roll out of StatPro revolution has opened up a number of new markets and opportunities - both geographically and by type of customer, including hedge funds and private wealth asset managers," Wheatley said.
StatPro raised its dividend for the year by 0.1 pence to 2.9p.
The company's shares were down 1.2% at 80.00p in late morning trading on Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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