StatPro Group

LN: SOG

£88.2m market cap

134p last close

StatPro Group provides cloud-based portfolio analytics solutions to the global investment community.

Investment summary

StatPro has acquired ECPI, a small private Italian environmental, social and governance (ESG) research and index business, from its management for a total consideration of c €2.9m (c £2.6m). While the deal is small, we believe there is significant potential to add value by cross-selling the products to StatPro’s large global client base. In our view, the shares continue to look undervalued, given the group’s c £56m recurring revenue book and the attractive rating (c 14x FY20e), especially in light of the active M&A backdrop in the financial software sector.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 49.3 6.8 3.3 5.8 23.1 8.1
2018A 54.8 9.0 5.0 7.3 18.4 6.9
2019E 58.4 9.5 6.2 8.0 16.8 5.6
2020E 61.8 10.7 7.6 9.2 14.6 5.1
Last updated on 25/06/2019
Industry outlook

StatPro’s products are targeted at the global wealth management industry. The outlook for fund managers has been showing improvements. PwC estimated global AuM were $98.1tn in 2017 and are expected to rise to $145.4tn in 2025 (5.0% CAGR). Asset managers have a reputation for being slow to adopt digital technology, but StatPro believes this is now changing. It says that many clients are transforming their technology and the middle office, where StatPro is strong, is part of this process. StatPro is the first cloud-based analytics platform targeting the sector and is therefore well-placed to address the market.

Last updated on 25/06/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 23
Forecast gearing ratio (%) 82
Price performance
%
1m
3m
12m
Actual 1.9 18.6 (22.1)
Relative* 0.2 14.8 (20.3)
52-week high/low 172.5p/105.0p
*% relative to local index
Key management
Justin Wheatley CEO
Andrew Fabian FD

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