Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Will miss this one, having been invested for about 10 years. Always enjoyed JW's comments and his interviews. Bulk of proceeds have been invested into Rockrose Energy - now paying a good dividend and looking undervalued by quite some margin.
Farewell Statpro and rest in peace!
Interim Report published today on Statpro's website (RNS 31.07.19)
Interims a little lower than I expected - Revenue up £1m, expenses before amortisation down £1m, but amortisation costs (previously capitalised development costs) up by £2m. The result was adjusted profits of £2.655m against £2.367m and adjusted eps of 3.8p (3.3p 2018).
Some guidance on cost savings were stated - £1m to come from converting remaining Seven clients to Revolution, and £1.5m to come from the Delta / Revolution upgrade - due through 2020 and 2021. The JP Morgan tie up is expected to bring in revenues and profits likewise in 2020/21. Hence, 2020 should be a year to put this company on investors' maps with a significant increase in profits hitting the bottom line.
For 2019, adjusted eps is now looking more likely to come in at 8.0p ish! and I'm now reckoning on 10.5p for 2020.
SNN
Investor's Chronicle news update today --
StatPro (SOG) – a provider of cloud-based portfolio analytics and asset-pricing services for asset management companies – has announced a strategic partnership with J.P. Morgan (US: JPM). This partnership, which has an initial term of five years, will see J.P. Morgan’s data and analytics business and StatPro develop risk and performance attribution capabilities for portfolio managers through J.P. Morgan’s data and analytics platform. Shares in StatPro were up by around 5 per cent this morning. Buy.
Well, this should put some 'fly' in the ointment!!!
Finally, Statpro is getting the due recognition for its cloud analytics platform. With a few more big names on board (and I am sure they will be coming over the next couple of years or so) the future of this company and its investors looks very promising. The work the company has put into the development of this platform over the last 10 years is going to be almost impossible for anyone else to replicate any time soon. It is not a case of first mover advantage, more 'only mover' advantage. And all the while its current customers are adding additional portfolios to the system quietly in the background. Turnover should now start to grow organically, noticeably, and with rising net profit margins as development expenditure flattens off or declines slightly.
As pointed out below, the JPM partnership "will be a significant contributor to our growth in the years to come." - you don't say!
Admittedly, the company has perhaps a little too much debt for comfort (though the facility is for even more - £49m), but the lenders must be comfortable with future anticipated profit growth. How high this profit growth is and at what pace, only time will tell.
I am looking for a PER of 20 (previously the company traded on 30, for a good number of years, but has since been derated, maybe because of the debt, maybe because of slow progress in the cloud platform bearing fruit). This year's EPS should be 8.5 to 9p I think are forecast. So, say 180p per share by Jan - Mar next year. Could be looking at 11p to 12p EPS for 2020.
For an AIM company, this is very low risk, and a very strong buy for any serious long term investor.
Interesting RNS this morning. The CEO statement that this partnership with JP Morgan will be a " significant contributor to growth in years to come" is encouraging. And the market reaction would indicate that the market agrees.
I am quite surprised that this BB is not more engaged. There are companies full of spin and a lot less substance on AIM, whereas SOG is a solid business with real revenues and a promising future that invests in new products and technologies, attracts new business and has a competent management.
I am quite puzzled about the share price, but of course the market makes up its own mind based on demand and supply.
Why has this share price fallen so much? I was expecting it to rise after the last set of figures and forecast growth.
Avergage 3 brokers target price 251p thats 40% upside from here....
Broker forecasts eps growth 16% this year and 23% next year Year Ending 2018-12-31 Revenue (�M) 56.34 Pre-Tax 5.41 (�M) EPS 6.86p P/E 25.5 PEG 1.6 EPS Growth 16% Div 2.90p Yield 1.6% Year Ending 2019-12-31 Revenue (�M) 59.57 Pre-Tax 6.64 (�M) EPS 8.43p P/E 21.6 PEG 0.9 EPS Growth 23% Div 2.90p Yield 1.6%
StatPro benefiting from Delta belter The portfolio analytics platform operator has been shrewd in its acquisition policy and the purchase of Delta from UBS may just be the best acquisition yet StatPro Group PLC (LON:SOG) has long augmented organic growth with a series of bolt-on acquisitions, but the purchase of Delta could be the best yet. It's still early days for the acquisition in the spring of 2017 of Delta, the risk and performance analytics service it bought from UBS, but the signs are very good. "The acquisition and successful integration of Delta in May was the highlight of 2017. Delta has since increased sales and plans are in place to achieve functional parity for Delta within StatPro Revolution,� said Justin Wheatley, the group chief operating officer of StatPro. The acquisition gave StatPro �scale� and significantly enhanced its product capabilities, with the portfolio analytics platform operator working hard on migrating Delta's unique functionality onto StatPro Revolution's platform. With Delta joining the family, StatPro's analytics service will branch out from the middle office to the front office of asset managers. The acquisition followed the previous year's purchase of a 72.7% stake in South African software provider, Infovest Consulting Ltd. Infovest specialises in data warehousing and reporting software for the asset management industry, a sector in which StatPro also operates. 2016, meanwhile, saw the company acquire Investor Analytics (now known as Alpha), which will also beef up the group's flagship cloud platform, StatPro Revolution. Reaping rewards of early investment in the cloud The group's early switch to the cloud, which started taking place in the latter half of the previous decade before most of us had even heard of the term, looks to have been a very shrewd one. The cloud-based StatPro Revolution platform saw organic revenue growth of 16% in the first half of 2017, as the group as a whole reported a 2% organic rise in revenue. The group announced in a trading update that full-year revenues for 2017 are expected to be around �49.0mln, up 30% from �37.6mln the year before. Annualised recurring revenue (ARR) for the group as a whole rose by 39% on a constant currency basis to �53.0mln from �38.1mln the year before. ARR for StatPro Revolution rose 13% organically. Adjusted underlying earnings are expected to be roughly �6.9mln, up 35% from �51mlm the year before, when the audited figures are published. Net debt at the end of the year had doubled to �20.2mln from a year earlier as the company ploughed money into its acquisitions. The legacy StatPro Seven platform is still soldiering on, but software-as-a-service is clearly where it�s at. �This success is undoubtedly due to our early investment in cloud technology, over eight years ago. The complexity and scale of the technology
Nice pop over night. The company�s enterprise value compared at annualised recurring revenues at 2.5 times is lowly so plenty of upside if the company can now scale freecashlow generation / profit generation.
Why is the value of this contract worth £15 million Sterling?
excellent RNS this morning with major South African Investment House-? Investec- who currently use Statpro 7. They will migrate to Revolution and then do a proof of concept evaluation in 2017 with the intention of moving to Revolution Performance. This is moving from traditional legacy systems to new IT systems-and most banks in the world are based on old legacy systems! Surprised SP is up so little.
Video interview with StatPro chief executive Justin Wheatley http://tinyurl.com/zmf26fv Justin Wheatley, chief executive of investment analytics firm StatPro Group PLC (LON:SOG), speaks to Proactive after the company unveiled solid results for 2015. Annualised recurring revenue (ARR) for StatPro Revolution - it's cloud product- met its target of an increase of 46% at £7.8mln from £5.35mln in 2014 and Wheatley says this now represents 27% of the group’s recurring revenue. “The core benefit of our product is the way it brings together a number of different analytic products” he says, adding that traditionally people have had separate systems for performance, attribution risk while StatPro can “bring all those together and allow people to access that information in one go.”
I tried to engage the company but they didn't want to respond to my very basic questions. On paper the enterprise value to recurring revenues, the cloud based business all look very good, but there is a smell about this one and I can't quite figure out what's wrong. The major shareholders don't want to engage the market participants. Why don't they ?
Statpro has been generating free cashflow yet has recently taken out a large debt facility . Is the company expecting to soon be cashflow negative or are acquisitions on the horizon ?
Valuation: Near-term P/E ratios are irrelevant While the stock trades on a pricey c 28x our FY14 earnings, this is due to heavy investment as the group moves to a pure cloud business model. We note that US pure cloud plays trade in the region of c 6-12x revenues and many are loss making. As we have pointed out previously, StatPro is a first mover in this space, and putting the foot on the accelerator now appears the right move to gain market share, fortify its competitive position and create economic value, in our view.
Valuation: Evolving into a scalable pure SaaS play In our view, the recent distribution deals with fund administrators and software providers put the group in a strong position to drive growth in FY13 and beyond. The stock trades on c 21x our maintained FY12 EPS falling to c 20x in FY13 and to 18x in FY14. The valuation reflects the strong growth potential from the highly scalable new cloud-based solutions, supported by the cash-generative traditional software.