Statpro, an AIM-listed supplier of portfolio analytics software for fund managers, has posted a 45% drop in pre-tax profit for the first half of the year and is warning of a "worsening in trading conditions in the second half".
Statpro stock slumped over 20% to 61.00 pence after the vendor said pre-tax profit came in at £1.02 million for the six months to 30 June 2008, compared to £1.86 million a year earlier.
The profit shortfall was due to the integration of recent acquisition Performa Consultants UK, a provider of compliance software to asset managers, as well as other initiatives, says Statpro.
On a more positive note, group revenue rose 15% from £11.32 million in H107 to £13.07 million this year. Statpro says recurring annualised revenue increased by 26% to £23.78 million during the period. Recurring revenue accounted for 86% of total revenue.
Despite this Statpro says it is likely to experience a slowdown in he second half of the year. Prospects and clients in Europe and the US are delaying decision making whilst cutting their own costs and this will impact new sales, says the vendor. Although some regulatory products will continue to sell well, other products may see a slow down in new sales.
"Despite benign conditions during the first half of the year, it is now the view of the Board that our market is likely to experience a worsening in trading conditions in the second half," says Statpro chief executive, Justin Wheatley. "Whilst we cannot affect the macro-economic environment, we will do everything we can to maximise our own opportunities."