Cloud-based provider of portfolio analytics provider StatPro Group PLC (LON:SOG) saw strong growth in annualised recurring revenue (ARR) for its flagship Revolution product in 2018.
StatPro Revolution's ARR notched up organic year-on-year growth of 17%, up from growth of 13% in 2017.
READ: StatPro sees earnings rise by a third in 2018
ARR from cloud services was up 11% to £3343mln from £30.06mln the year before while average ARR per customer jumped to £120,800 from £106,100 in 2017.
For the group as a whole, revenue in 2018 rose 11%, or 13% on a constant currency (CC) basis, to £54.84mln from £49.26mln (restated) in 2017.
The UK and Europe were the best-performing regions, but the group said it had “a very strong year” in South Africa and sales picked up in the important North American market thanks to its focus on US fund administrators.
StatPro’s exciting performance measurement platform, Revolution Performance, has the capability to handle multi-share classes & calculate returns based off the return definitions. This video provides an overview on some of these key elements! https://t.co/euadvW0wcd #Performance pic.twitter.com/s2A4W0419f
— StatPro Group (@StatProGroup) March 12, 2019
StatPro expects to see further growth in 2019 in all the regions in which it operates.
Adjusted profit before tax soared 49% (+51% on a CC basis) to £4.96mln from £3.33mln the preceding year, while the statutory loss before tax narrowed to £988,000 from £3.47mln, reflecting the amortisation of intangible assets to the tune of £8.66mln (2017: £7.10mln).
The final dividend has been maintained at 2.05p, leaving the full-year dividend unchanged at 2.9p.
Solid pipeline
StatPro said 2018 ended strongly and that it has a solid pipeline of well-qualified prospects. It said it would continue to maintain its focus this year on maintaining margins. Trading this year has been in line with expectations.
"Strong organic growth of 17% in ARR for our flagship service - StatPro Revolution - has underpinned a solid year. Our adjusted EBITDA grew strongly as we continue to improve our underlying margins,” said Justin Wheatley, the chief executive officer of StatPro.
"Our strategic and technological positioning, by being the only cloud-based provider of portfolio analytics, gives us a real advantage with our fund administration clients, who are using our product and service capabilities to meet their growing customer demand.
"Our new 2019 divisional structure is already making a difference, releasing considerable entrepreneurial drive across the business. We have reduced ongoing costs and focused the business on key targets. We have started the year well," he added.