Published on: July 31, 2019

Good growth in ARR and a positive outlook

StatPro’s interim results reflect growth in Annualised Recurring Revenue (ARR) and EBITDA which result from increasing margins, improved growth in new contract numbers and fewer cancellations. Although there is some influence on the shape of the reported numbers from restatements and some exceptional items, it is clear that progress has continued in the first half. The new divisional structure has given the businesses renewed impetus and it was clear from a number of announcements during the first half that the Group is benefitting from contract wins and extensions which include conversions from Seven to Revolution. The Group also announced an important strategic partnership with J.P. Morgan. We note the increasing momentum behind ARR and profitability growth. The new contracts, partnerships and the integration of acquisitions are underpinning our full year estimates. We update numbers mainly to reflect adjusting items and IFRS 16 as detailed below. We expect StatPro to continue to reflect progress in its strategic delivery and profitability as it adds new contracts and converts more of its existing clients to using the Revolution platform. We also note the £2.5 million of mooted cost savings from that latter process in the coming years.

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