LONDON (Alliance News) - StatPro Group PLC on Wednesday said it prepares to restructure its business into three divisions after swinging to profit it the first half of 2018.
The stock was trading 8,5% lower on Wednesday at 156.00 pence per share.
The portfolio analysis provider said it swung to a pretax profit of GBP900,000 in the six months to the end of June from GBP1.5 million loss reported a year earlier.
Revenue grew by 22% to GBP27.2 million from GBP22.47 million. On a constant currency basis, revenue rose by 24%. Annualised recurring revenue came in at GBP52.3 million, down 2% from GBP53.2 million the year before.
The company said its revenue is derived from contracts in a mix of currencies, primarily being euro, dollar, sterling and Canadian dollar, and therefore the business is impacted by movements in currency rates.
StatPro Revolution revenue, excluding Delta acquisition, rose 15%, with annualised recurring revenue increasing by 19% on an underlying basis.
StatPro bought risk & performance analytics service firm UBS Delta for EUR13.1 million in May last year. Since then, the company said it progressed well on integration of Delta's functionality into its flagship product, Revolution.
Sales in StatPro Revolution grew 12% year-on-year to a record GBP6.1 million, however, this was offset by a higher level of cancellations at 9%.
Data fees were flat at GBP2.00 million while revenue from professional services dropped to GBP970,000 from GBP1.0 million in the first half of 2017.
The company maintained its interim dividend at 0.85 pence per share.
Looking ahead, StatPro said it continues to consider making acquisitions to widen its customer base and increase its product portfolio. the company added that it is positive about the prospects for the reminder of the year and thereafter.
For 2019, StatPro plans to restructure the business into three divisions. The largest division, Revolution, will contain all the group's analytics services.
Source: StatPro will contain revenue from market data and managed services. The company said it decided to invest more in this division and appointed Gordon Bloor, former CEO of market data provider Tenfore Holdings, as new divisional chief executive officer.
Infovest unit will contain Infovest, based in South Africa, and the portfolio management service based in Canada. Back in February, StatPro acquired the remaining 27% stake in Infovest Consulting Pty Ltd for GBP1.9 million.
"We are pleased with the solid growth in group revenue and profits in the first half," said StatPro Chief Executive Justin Wheatley.
"In 2018 and beyond, we anticipate strong growth in specialised managed services for regulations, risk and performance. We are focused upon building our partnerships with Asset Service Providers to broaden the services they offer the asset management community," added Wheatley.
