StatPro sees revenue and profit growth through cloud investment

StatPro, the London based portfolio analytics software provider, reported organic revenue growth of 2% in the first half of 2017, with its key product, the cloud-based Revolution platform, seeing a 16% increase.

As a whole, group revenue rose 23% to £21.62m despite the reduced revenue from its StatPro Seven software. Recurring revenue rose 47% to £53.19m, primarily due to the April acquisition of UBS Delta.

Chief executive officer, Justin Wheatley said, "The acquisition of Delta was a major development for us. This business transforms our scale and significantly enhances our product capabilities," before going on to state that as it moved forward, Stat Pro's focus would be on, "maintaining the service for Delta clients, whilst migrating Delta's unique functionality onto StatPro Revolution's platform."

The company also reported a sizeable swing in free cash flow, with an inflow of £3.52m, as opposed to an outflow of £2.44m from the year before.

While costs relating to the acquisition of Delta, and the restructuring associated with it, did result in a pre-tax loss of £2.29m against £960k in 2016, EBITDA rose 35% to £2.78m.

"Our journey to transform StatPro into a SaaS (software as a service) business is largely complete, with over 82% of our software revenues coming from our cloud services. We expect to improve our margins at all levels as we benefit from the enhanced scale provided by Delta, our solid organic growth and the operational gearing inherent in a cloud-based business," Wheatley said.

StatPro shares sat at 132.03p as of BST 0900.