The group’s annualised recurring revenue (ARR) was flat due to higher than normal churn. However, we believe this slowdown is temporary as Statpro Group (LON:SOG) is looking increasingly well positioned to benefit from the outsourcing shift in the global asset management industry. StatPro is the only SaaS provider of performance, attribution and risk solutions and it also offers APIs along with full managed services. We have increased our interest forecasts while also reducing tax, which results in EPS forecasts remaining unchanged. Given the ongoing active M&A backdrop in financial software and the scope for revenue acceleration and margin expansion, we continue to see strong upside potential in the shares.
H1 results: Revolution’s ARR grew by 19%
H118 group revenue rose by 22% to £27.2m while adjusted EBITDA increased by 23% to £4.3m. Underlying group annualised recurring revenue (ARR) was flat due to higher than normal churn. Excluding the acquisitions of Alpha and Delta, which have specific issues, group ARR growth was 2%. Additionally, we note that H1 gross sales were higher than budgeted and the flagship Revolution grew its ARR by 19%. Earlier this month StatPro acquired ODDO BHF’s regulatory risk services bureau which will enable it to offer a complete risk managed service to customers across the globe. The service will be particularly attractive to smaller asset service providers (ASPs) that lack the specialist skills to operate StatPro’s software.
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