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Clik here to view.StatPro’s H1 results reveal the asset management portfolio analysis provider is managing to hold its ship steady as it transitions to a SaaS-only model. Revenue is up 3% at mid-year to £16.1m and a reassuring 94% of that is recurring. As expected, first half restructuring has had an impact on profits though: PBT is down 20% to £1.44m after a £0.95m exceptional charge. Underlying profitability is improving with adjusted operating margins climbing to 18.4% from 15.3% in the same period last year.
StatPro’s key sales focus is now on StatPro Revolution, its cloud-based portfolio analysis platform launched last year (see also StatPro: accelerating SaaS, taking short term pain). That focus is paying dividends: 111 clients had Revolution at the end of June, up from just 16 in 2011; 101 of these are new clients for StatPro and ten of them are fund administrators. It’s also encouraging that sales of StatPro Seven, which the group stopped actively marketing at the beginning of the year, have remained steady with further sales expected in the second half. The percentage of StatPro Seven clients on a hosted platform increased to 46% (2011: 34%). If StatPro can successfully preserve its StatPro Seven client base until the cloud-based replacement Revolution Plus is available from 2013 it will make the Group’s rapid transition to SaaS less painful.
Over all, CEO Justin Wheatley says current business levels are ‘satisfactory’ and he believes StatPro will meet market expectations for the full year. We continue to believe that StatPro is managing its move to ‘the cloud’ well aided by the tight scope of its business, and that bodes well for the longer term (eligible TechMarketView subscribers should see Targeted apps and focused market aid StatPro’s SaaS transition for more background).