StatPro Group

LN: SOG

£80.7m market cap

122.5p last close

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

Investment summary

FY18 group revenue grew by 11% (13% at constant currency) to £54.8m and adjusted EBITDA surged by 32% (34% at cc) to £9.0m as the margin increased by 250bp to 16.4%. Annualised recurring revenue (ARR) grew by 5%, or 1% organically, over the year to £55.7m. We broadly maintained our revenue and EPS forecasts. In our view, the shares continue to look attractive, given the c £56m recurring revenue book and the declining rating (c 10x FY21e), especially in light of the active M&A backdrop in the financial software sector. In the latest sector deal, Deutsche Borse has acquired Axioma, a StatPro competitor in the risk space, for $850m or c 8.5x sales.

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 21.1 7.4
2018A 54.8 9.0 5.0 7.3 16.8 6.3
2019E 58.0 9.5 6.2 8.0 15.3 5.1
2020E 61.0 10.5 7.4 9.1 13.5 4.7
Last updated on 17/04/2019
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 17/04/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 21.2
Forecast gearing ratio (%) 71
Price performance
%
1m
3m
12m
Actual 7.9 (7.2) (24.4)
Relative* 4.7 (14.7) (26.3)
52-week high/low 180.5p/105.0p
*% relative to local index
Key management
Justin Wheatley CEO
Andrew Fabian FD

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