There is no doubt that the transition from a traditional ‘on premise’ software publishing model to that of a SaaS pure-play is not for the faint-hearted for the many reasons we have been espousing for years. But management at asset management portfolio analysis provider StatPro have the bit clenched firmly between their collective teeth, with progress not unreasonably more at a trot than a gallop (see StatPro strong on SaaS and distribution opportunities).
There is of course a real financial cost to such a transition and for this reason StatPro has placed a tranche of new shares mainly with institutional investors to raise £6.1m gross. Management is also taking a small chunk. The placing is at 101p per share, a small discount to the prior day’s 104p closing price. The funds will be used to pay down debt (H1 net debt was £3.9m) and will flow through to working capital in order to accelerate both development and sales of StatPro’s ‘Revolution’ SaaS product.
Management can call on wise heads for counsel, with Jane Tozer the latest addition to the board (see here).