StatPro Regulatory News (SOG)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

For Release at 07.00 Friday, 9 November 2012

STATPRO GROUP PLC

("StatPro", "the Company" or "the Group")

Placing of New Ordinary Shares to raise gross proceeds of approximately £6.1 million

StatPro to accelerate investment in Cloud offering

StatPro Group plc, (AIM:SOG), the AIM listed provider of portfolio analysis and asset pricing services for the global asset management industry, is pleased to announce that it has today entered into a placing agreement with Cenkos Securities plc to raise approximately £6.1 million (before expenses) through the placing of 6,059,613 ordinary shares of 1p each in the capital of the Company ("Placing Shares") at a price of 101 pence (the "Placing Price") per Placing Share (the "Placing") with management and institutional shareholders. Directors and senior management are subscribing for approximately £0.2 million to the Placing.

The Placing Shares, which were conditionally issued under the authority granted to the directors at the Company's last Annual General Meeting held on 2 May 2012, represent approximately 10 per cent. of the existing issued share capital of the Company. 

Objectives of Placing and Uses of Funds

The board of directors (the "Board") believes that the growing pace of client sign up to StatPro Revolution, its cloud-based service, is indicative of the current market opportunity and intends to use part of the proceeds from the Placing to accelerate investment in its cloud-based technology offering. Whilst this may marginally reduce projected profits in 2013 and 2014, it is the Board's view that this increased investment is in the long-term interests of the shareholders.

The net proceeds of the Placing will be used primarily for working capital purposes, to bring forward implementation of the Company's growth strategy through accelerating development of StatPro Revolution, strengthening its client services and sales teams, increasing its marketing and fund administrator and partner distribution network and for the purchase of data sources. The Placing proceeds will initially be used to reduce the Group's debt.

Further trading update

Since the Company's Q3 trading update issued on 18 October 2012, the Group has continued to trade well and as at the end of October 2012 had signed up 146 clients for StatPro Revolution, generating recurring annual revenue of £1.25 million (US$2.0 million). The Company is focussing its efforts on partnering with Fund Administrators and currently £0.65 million (52%) of StatPro Revolution revenue is from Fund Administrators.

Total annualised recurring software revenue from clients who have contracted for StatPro Revolution (including Seven revenue) amounts to £3.87 million, which equates to approximately 16% of total software revenue of £24.57 million. The Group also has annualised data revenue amounting to £4.80 million. All figures are as at the end of October 2012 at month end exchange rates.

Directors' interests

The directors are subscribing for 113,861 of the Placing shares. Following the Placing, the directors' beneficial interests will be as follows:

In addition to the above interests, JMBT Wheatley has an indirect interest in 93,000 ordinary shares in a family trust being a trustee and potential beneficiary of the trust,

Application has been made for the 6,059,613 Placing Shares to be admitted to trading on AIM ("Admission"). Admission of the Placing Shares is expected to occur on 14 November 2012. The Placing Shares will rank pari passu with the existing ordinary shares in the share capital of the Company. Following Admission, StatPro will have 67,703,650 ordinary shares in issue, including 225,000 ordinary shares held in treasury. The total of 67,478,650 ordinary shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Commenting on the placing Justin Wheatley, Chief Executive of StatPro Group, said: "I am delighted with the strong level of support we have received from our shareholders. The Placing will provide StatPro with funding to accelerate our development programme for StatPro Revolution and StatPro Revolution Plus, enabling us to capitalise on what we believe to be a significant current market opportunity."

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About StatPro

StatPro is a global provider of portfolio analytics for the investment community. Our cloud based services provide vital analysis of portfolio performance, attribution and risk for hundreds of asset managers, fund administrators, RIAs, CEOs, heads of risk, sales directors, marketing managers and authorised corporate directors. They are now using our cloud services and software products to perform sophisticated analysis, reporting and distribution on a regular basis.

With 18 years of experience and expertise, we believe analytics should be sophisticated yet simple and useful as well as secure. StatPro data coverage includes global equities, global bonds, global mutual funds, most families of benchmarks, FX rates, sector classifications and much else besides.

StatPro has grown its recurring revenue from less than £1 million in 1999 to £30 million at end June 2012 and currently enjoys a renewal rate of approximately 94%. StatPro floated on the London Stock Exchange in May 2000 and transferred its listing in June 2003 to AIM. The Group has operations in Europe, North America, South Africa, Asia and Australia and approximately 350 clients in 28 countries around the world. Approximately 80% of recurring revenues are generated outside the UK.

This announcement is for information purposes only and is not intended to and does not constitute, or form part of, any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities of the Company in any jurisdiction in which such an offer or solicitation is unlawful and should not be relied upon in connection with any decision to subscribe for or acquire any such securities. In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States.

Any securities issued in connection with the Placing have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold, taken up or renounced in the United States absent registration under the Securities Act or an applicable exemption from such registration. There will be no public offering of securities in the United States.

This announcement has been issued by, and is the sole responsibility of, the Company. No person has been authorised to give any information or to make any representations other than those contained in this announcement and, if given, or made, such information or representations must not be relied on as having been authorised by the Company or Cenkos Securities plc.

Cenkos Securities plc, which is authorised and regulated in the United Kingdom by the Financial Services Authority is acting as Nominated Adviser, agent and broker to the Company for the purposes of the AIM Rules for Companies and the AIM Rules for Nominated Advisers in connection with the Placing and is not acting for, and will not be responsible to, any person other than the Company for providing the protections afforded to customers of Cenkos Securities plc or for advising any other person on any transaction or arrangement referred to in this announcement.