Full year results last month highlighted healthy organic growth (+13%) in StatPro Revolution ARR and a reassuring contribution from Delta. While the level of revenue cancellations/reductions (notably Alpha) was disappointing, key product releases, sales investment and stabilisation of Alphas revenue base should help deliver improved organic growth in 2018. Accelerating sales activity in Q4 last year and increasing usage of Revolution by fund administration clients has underpinned a solid start to the year; hence we have left our headline revenue and EBITDA estimates broadly unchanged. We introduce a new set of estimates for FY 2019 that imply 6% organic revenue growth and margin gains, but evidence of this is probably required before we see further significant re-rating. We maintain our Buy and 205p target price.
"LSE:SOG:StatPro is on the verge of something big. The market believes it - that's why the shares have rocketed this year. With the financial industry caught up in lashings of red tape, the demand for easy, cheap and efficient cloud-based data ..."
the key statements for me are "will transform the way asset managers calculate performance" and it will create " entirely new levels of productivity" and as we know they have already had commitment to purchase from at least 2 funds. Techinvest may well coment this weekend and he made it one of his 12 for 2016 and also midyear recs.-both at 82p. Is this the time to buy more?
World's most scalable performance measurement system for asset managers launched
StatPro Group plc, ("StatPro", "the Group", AIM: SOG), the cloud-based portfolio analysis and asset pricing services provider for the global asset management industry, launches today a major expansion of its Revolution platform with a new cloud-based performance measurement service, StatPro Revolution Performance.
StatPro Revolution Performance simplifies the critical process of performance measurement for asset managers at a time when data management complexity grows and demands from regulators and clients continue to increase.
Asset managers are struggling to keep pace with rapid change in the industry, with many systems operating at peak load and failing to meet ever-shorter calculation deadlines. StatPro Revolution Performance provides immense scalability with data control and workflow for asset managers of any size and enables them to utilise the enormous scalability of the cloud, which will make entirely new levels of productivity a reality.
Justin Wheatley, Chief Executive, commented:
"We are delighted to launch this core service of our Revolution platform, today. Over the last decade we have designed and built a unique cloud-based performance measurement service for asset managers.
"StatPro Revolution Performance significantly reduces the turnaround time for delivering portfolio performance results to stakeholders. It enables clients to manage and control data more efficiently, calculate results faster than ever before, and distribute results for analysis and reporting, all within a single platform.
"We always look to provide our clients with significant productivity gains, but the productivity gains promised by Revolution Performance are of a different magnitude. We believe the business benefits of our new cloud technology will transform the way asset managers calculate performance."
Analyst and investors presentation
StatPro is hosting an analyst and investors presentation today. Justin Wheatley, the Group's Chief Executive Officer, is leading the event with presentations from other key executives covering StatPro Revolution. There will be no material information published and the presentations will be published on the Group's website later today.
Client launch event
The Group is also hosting a launch event today for clients: 2:00pm at Banking Hall, 14 Cornhill, London.
Asset management industry
The asset management industry has grown rapidly since the 1980's. In 1980, US mutual funds had just $135 billion in assets; by 1990 that had risen to $5 trillion. Today, it is estimated that total assets under management in pensions, insurance, mutual funds, hedge funds and private wealth accounts is around $100 trillion. This makes the asset management industry a significant portion of the financial markets.
At the same time, the systems that were first implemented for the industry have failed to keep up with the huge growth in assets, complexity and sophistication of the asset management business. In addition a plethora of regulations have been imposed by governments and regulatory bodies.
Very few asset managers of any size have only one system for performance measurement and most have many. This situation evolved as different parts of any one organisation selected different systems, including the front office for managing money, the middle office for reporting to clients and the back office for reporting to private clients.
StatPro believes that if asset managers rationalised these systems the savings made would be considerable, not only in system costs and duplicated IT and data licenses, but also in the effort to manage and reconcile differing numbers from different systems.
The challenge for any single system is to be scalable in order to handle large volumes of portfolios to be able to manage private client portfol
"StatPro inks a second deal for Revolution Performance aka The most powerful, flexible and efficient performance system anywhere in as many weeks. The latest buyer is as an unnamed global American financial institution. Once again we have a very attractive customer LTV the five-year contract is worth US$1.75m (£1.25m) minimum over the period. This comes in the wake of last weeks banner deal in Australia saw the client spend £2.3m over a three year term."
"It dropped into my in-tray, harmless click bait I thought. But no, it is a hold the date invite from StatPro. It informs that 28 September is for the Revolution Performance launch. This is a big date on UK Fintechs H2 calendar. This follows news earlier this week that StatPro had inked a banner deal in Australia. The client, unnamed, was to spend £2.3m over a three year term and had committed to buying the new Revolution Performance module. Given that this does not see the light of day until Q3/2016 is a major endorsement."
"StatPro hits the wire this morning announcing a banner deal in Australia. The client, unnamed, is spending £2.3m over a three year term. However, the even bigger news is that the client has committed to buying the new Revolution Performance module. Given that this does not see the light of day until Q3/2016 is a major endorsement for a yet-to-be-released product. This suggest to us: (i) StatPro is running an extensive beta programme under the covers; (ii) on launch day StatPro will be have a real life user and, (iii) this is a sign of real confidence not just by StatPro, but by a customer ensuring that they are first in line."
Read Panmure Gordon & Co's note on STATPRO GROUP, out this morning, by visiting https://www.research-tree.com/company/GB0006300213
"The company believes that only the right technology in partnership with industry knowledge and experience can deliver true customer value. This week delivery of its v67 showed that StatPros tech continues to deliver to that customer promise. To remind, 2016 is a watershed year for StatPro as it replaces StatPro Seven with StatPro Revolution Performance and be a true cloud multi-tenant solution this then joins Revolution a true built from the ground up SaaS ..."
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