Investment summary

StatPro plans to upgrade all its clients to cloud technology over the next few years. The sales team is accelerating its focus on Revolution while the hosted service, StatPro Seven, will not be actively marketed. Hence we have cut our forecasts for the traditional software licence business. A cloud-based replacement product for Seven is under development and will take two to four years to complete. In our view, the strategic move by StatPro is the right one, as we believe this market is ideally suited to cloud technology and management recognises it needs to lead the change. However, Revolution is a young product and it will take time to develop revenues.

Last updated on 26/01/2012

Industry outlook

StatPro's products are targeted at the global wealth management industry. While this target market has clearly suffered a fair amount of turmoil over the last three years, volatility and a lower interest rate environment should help underpin retail demand for equities and bonds, and therefore the longer-term industry growth profile. In addition, competitive, cost and regulatory pressures all require asset managers to maintain and upgrade their reporting and risk management systems.

Last updated on 09/12/2011