In an in-line AGM trading update, Statpro Group (LON:SOG) says that sales have progressed well and that the pipeline remains solid. We have maintained all of our forecasts, but see scope for upgrades as the year progresses, unless sterling continues its recovery. In April, StatPro said that it was acquiring UBS Delta, a portfolio analysis and risk management system, at a valuation of less than 0.8x revenues. The valuation compared with the c 7.3x sales that FactSet recently paid for BISAM, a key competitor of StatPro. We continue to see strong upside potential in the shares, if StatPro can successfully integrate UBS Delta, given the significant valuation disparity between StatPro and its US-listed financial software peers.
Trading update: A solid pipeline
In the trading update, StatPro says that “trading in the first quarter of the current financial year is in line with expectations. New sales of StatPro Revolution and StatPro Seven have progressed well and the pipeline for the remainder of the year remains solid”. Following the acquisition of UBS Delta, c 81% of annualised recurring software revenues now come from SaaS or cloud-based solutions with the balance from the group’s hosted StatPro Seven product. Carl Bacon is stepping down as chairman in November, after 17 years. Rory Curran will take on the role as chairman. Mr Curran joined the board as a non-executive director in May 2016.
To read the entire report Please click on the pdf File Below