StatPro's measured performance
Article Date: Aug 08 2000Maiden interim results from StatPro, the specialist software developer with a string of blue-chip financial and other clients, display buoyant revenue thanks to a strengthened sales team. Profits are still two years away, writes Roxanna Mohseni.
Income from StatPro's performance measurement software for fund managers surged 46 per cent to £1.28 million to the end of June. With the software rented to the customer and income spread over the lifetime of the contract, this figure under-represents invoiced revenue, which was 126 per cent ahead at £1.75 million.
However, investments in infrastructure, research and development, and personnel saw pre-tax losses soar from £360,000 to £1.99 million. These outlays bore substantial fruit, with 32 new contracts signed in the first half.
The acquisition of French software concern, AMS, in March, added a further performance tool to StatPro's product range, which, according to chief executive Justin Wheatley offers 'very large productivity gains to the user, as well as adding value and expertise'. Boasting financial market clients such as UBS, Morgan Stanley and Schroders, Wheatley estimates the global market for its products could reach $1 billion.
'This is a green field site', Wheatley explains, 'there are no real competitors. Potential clients just use internal resources at the moment'.Strategic alliances with Deloitte and Touche, Russell/Mellon and Reuters Lipper were signed in June, providing StatPro with credibility, a large customer base and marketing channels that will 'help push the product forward'.
With the shares at 90p, 10p above their May placing price, house broker Peel Hunt forecasts full year revenues of £3.2 million and losses of £4.5 million. Even with £5.4 million in the bank, largely from the May placing, StatPro is not expected to make profits until 2002.
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