StatPro swings to loss as cloud services take flight

(ShareCast News) - Portfolio analysis tools provider StatPro Group posted its interim results for the six months to 30 June on Wednesday, with group revenue up 14% to £17.55m from £15.44m a year ago.The AIM-traded company said its flagship product, StatPro Revolution, had underlying revenue up 64% to £4.02m.Group annualised recurring revenue (ARR) was up 26% to £36.17m, or 13% on a constant currency basis, with ARR from cloud services up 112% to £13.72m, or 90% on a constant currency basis.Recurring revenue from cloud services now made up 38% of group ARR, up from 23% last year.StatPro's adjusted EBITDA increased by 19% to £2.05m, up from £1.73 million, although the firm swung to a loss before tax of £0.96m, compared to a profit £0.82m last year, after exceptional items of £1.24m and acquired intangible assets amortisation of £0.55m.The board declared an interim dividend at 0.85p per share, in line with 2015."Our strategy to convert our portfolio analytics and risk services to the cloud has secured us a significant technological lead in our market," said StatPro chief executive Justin Wheatley."As a result, we offer our clients a materially better and simpler service.The scale, speed and control of Revolution provide asset managers with huge productivity gains," Wheatley explained.He said the company has recently signed agreements with two more leading fund administrators."We are gaining momentum, as demonstrated by the 64% jump in Revolution's revenue and are extremely well positioned in a growing market."This is reflected in our forward order book of £44.13m, up 19% - of which £21.91m is contracted revenue for StatPro Revolution, an increase of 86%," Wheatley added."We look forward to the launch of StatPro Revolution Performance in September."