Trading in line, focus on fund administrators
StatPro’s trading update for Q3 2018 reflects the integration of acquisitions and a steady performance in line with expectations. There was a small increase in Group ARR (Annualised Recurring Revenue) from a pro forma £53.74 million in July to £54.8 million as at the end of September. We also note the recent encouraging contract win for the Group’s Infovest service. We leave estimates unchanged at present. The announcement says that the transition of ODDO BHF’s regulatory risk services bureau to the Revolution platform is on target for completion by the end of 2018 which will lead to the anticipated removal of duplicate costs. The migration of Delta is also progressing well with its addition to Revolution targeted to greatly expand the functionality for both Delta and Revolution clients. Given the Group’s view of the market trend towards outsourcing, StatPro continues to focus on fund administrators and notes ‘a steady increase quarter on quarter of new revenue’ from its current partners. In all, another solid quarterly performance from StatPro as it remains on track with the integration of its acquisitions and the evolution of its Revolution platform.