StatPro Regulatory News (SOG)

19 July 2016

StatPro Group PLC

Half year trading update

StatPro Group plc, (AIM: SOG, "StatPro", "the Group"), the leading provider of portfolio analysis and asset pricing services for the global asset management industry, provides a trading update for the six months ended 30 June 2016.

Highlights

· Group Annualised Recurring Revenue ("ARR") up 26% to £36.2 million (H1 2015: £28.6 million), 13% on a constant currency basis

· Two large contracts signed including new Revolution Performance module

· ARR from cloud services (StatPro Revolution and Investor Analytics) up 112% to £13.7 million (H1 2015: £6.5 million), 90% on a constant currency basis

· Recurring revenue from cloud services now 38% of Group ARR (H1 2015: 23%)

· Contracted forward order book revenue increased 19% to £44.1 million (H1 2015: £37.0 million), 8% on a constant currency basis

· Launch of Revolution Performance on track for Q3 2016

Justin Wheatley, StatPro Chief Executive, commented:

"We had a good first half with strong sales of Revolution with total contracted value of £6.4 million driven by two international banner deals.

"Our forward order book continues to grow and we are trading in line with our expectations for the year as a whole.

"As we complete the finishing touches to our core module, Revolution Performance, we look forward to its formal launch on 28 September."

StatPro Revolution

Sales of StatPro Revolution, the Group's cloud-based portfolio analysis service, grew strongly to reach an ARR of £13.7 million (including the acquired Investor Analytics cloud solution). The annualised recurring run rate is up 112% compared to H1 2015 (£6.5 million).

ARR from cloud services namely StatPro Revolution including Investor Analytics now represents 38% of Group recurring revenues, an increase from 23% in H1 2015.

StatPro Revolution related recurring revenue, defined as the total recurring revenue from clients whose subscription includes StatPro Revolution, increased to £21.6 million and now makes up 67% of Group software revenue (H1 2015: £13.1 million/52%).

StatPro Seven

ARR for StatPro Seven was resilient as expected with less than 6% net reduction in renewal values (excluding the impact of conversions) over the last 12 months.

Currency movements

There has been a significant positive impact on the Group's ARR due to GBP:USD exchange movement, as only 15% of the Group's ARR is denominated in GBP. This has resulted in a £3.0 million increase in ARR in H1 2016.

StatPro generates surplus cash primarily in USD and EUR. As part of the Group's risk management, it hedges some of its expected future earnings based on projected surplus cash.

Group debt is denominated mostly in GBP, as well as in USD, EUR and CAD. Net debt at 30 June 2016 was approximately £9.1 million. The Group has a total committed facility of approximately £17.3 million and an additional uncommitted facility of around £7.5 million.

Exceptional costs

The Group expects to report approximately £1.5 million of exceptional one-off charges in H1 2016. These charges are made up of the one-off costs related to the acquisition of Investor Analytics and costs relating to the restructuring of the Group's Paris office.

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About StatPro

StatPro is a global provider of award winning portfolio analytics solutions for the investment community. The Group's cloud-based platform provides vital analysis of portfolio performance, attribution, risk and compliance. This multi-asset class analytics platform helps StatPro's clients increase assets under management, improve client service, meet tough regulations and reduce costs.

The Group's integrated and global data coverage includes over 3.2 million securities such as equities, bonds, mutual funds, FX rates, futures, options, OTCs, sector classifications and much else besides. StatPro also covers most families of benchmarks including MSCI, FTSE, Russell, NASDAQ and the licence free Freedom Index.

StatPro has grown its Annualised Recurring Revenue from less than £1 million in 1999 to around £36 million at end June 2016. The Group has operations in Europe, North America, South Africa, Asia and Australia, with hundreds of clients in 37 countries around the world. Approximately 80% of recurring revenues are generated outside the UK. StatPro Group plc shares are listed on AIM.