STATPRO GROUP PLC
ANNUAL REPORT & ACCOUNTS 2014
Revolutionary Portfolio Analytics
 
STATPRO GROUP PLC ANNUAL REPORT & ACCOUNTS 2014  To access this report online visit www.statpro.com/investors
Strategic Report Governance Financial Statements
StatPro is a global provider  
of portfolio analytics for the  
investment industry.
OUR MULTI-ASSET CLASS, AWARD WINNING PLATFORM HELPS OUR CLIENTS INCREASE 
SALES AND ASSETS UNDER MANAGEMENT (‘AUM’), IMPROVE CLIENT SERVICE, MEET TOUGH 
REGULATIONS AND REDUCE COSTS.
Strategic Report
1 2014 Highlights
2 At a Glance
4 Chairman’s Statement
5 Our Business
6 Market Overview
8 StatPro’s Strategy
10 Chief Executive’s Review
13 Financial Review
18 Operational Review
20 Product Strategy 
22 Group Executive Board
22 Our Expertise
25 Principal Risks and Uncertainties
Governance
28 Introduction to Corporate Governance
29 Corporate Governance
32 Board of Directors 
34 Directors’ Report
37 Remuneration Report
Financial Statements
41  Independent Auditor’s Report
43 Group Income Statement
43 Group Statement of Comprehensive Income
44 Balance Sheets
45 Statement of Cash Flows
46 Group Statement of Changes in
 Shareholders’ Equity
47 Company Statement of Changes in
 Shareholders’ Equity
48 Notes to the Financial Statements
82 Five Year Record
83 Financial Calendar
84 Directors and Advisers
85 StatPro Office Locations 1
2014 HIGHLIGHTS
Financial highlights:
• Additional investment in people, product development, data and IT resulted in lower adjusted EBITDA
1
, down 10% at 
constant currency to £4.36 million (2013 at constant currency: £4.87 million)
• Annualised recurring contract revenue
2
 up 4% to £29.39 million at 31 December 2014 (2013 at constant currency: 
£28.30 million)
• StatPro Revolution annualised recurring contract revenue
2
 up 68% to £5.42 million at 31 December 2014 (2013 at 
constant currency: £3.22 million)
• Recurring revenue from StatPro Revolution accounted for 18% of Group recurring revenue (2013: 11%)
• 46% of software clients by value (2013: 37%) now have contracted for StatPro Revolution, marking an inflexion point 
in the cloud strategy 
• Forward order book of contracted revenue
3
 up 7% to £38.74 million at 31 December 2014 (2013 at constant currency: 
£36.36 million) of which 25% is StatPro Revolution
• Dividend increased by 4% to 2.9p (2013: 2.8p)
Operating highlights:
• Strategic contract win worth almost €4 million (£3.1 million) with major European asset manager to transition its 
existing StatPro Seven software to the StatPro Revolution platform; three year contract includes professional services 
and represents 55% conversion premium
4
• Increased focus on revenue per client; average revenue for StatPro Revolution clients rose 37% to £17.2k p.a. (2013: £12.5k) 
• Good progress on the StatPro Revolution platform development, including launch of AIFMD module
1 Adjusted EBITDA and adjusted earnings per share are EBITDA and earnings per share after adjustment for amortisation of acquired intangible assets, share 
based payments and exceptional items (notes 3 and 10).
2 Annualised recurring contract revenue is the annual value of revenue contractually committed at year end. 
3 Forward order book of contracted revenue is the total amount of software and professional services revenue that is contractually committed at year end. 
4 Defined as the percentage increase in total recurring revenue for StatPro Revolution compared to total recurring revenue for StatPro Seven from that client.
“We have reached an inflexion point in the roll out of our cloud-based product 
StatPro Revolution. Its annualised recurring revenue jumped by 68% and 
now contributes some 18% of the Group’s total recurring revenue – up from 
11%. 46% (by value of recurring software contracts) of our client base now use 
StatPro Revolution.”
Justin Wheatley, Group Chief Executive Strategic Report Governance Financial Statements
2
62%
19%
7%
6%
6%
AT A GLANCE
A review of 2014.
Q1
•  M a r c h StatPro moved its London headquarters to  
a new low carbon building in Wimbledon.
•  StatPro Revolution allows authorised users to 
manage access permissions, invite external people  
to see shared portfolios, as well as validate and sign- 
off portfolio results within selected time frames.
Q2
•  M ay Maitland Fund Services partner  
with StatPro in South Africa.
•  J une StatPro Revolution allows batch reporting  
for multiple portfolios and multiple reports.
•  Performance and risk management services  
go live with Capita Asset Services.
2
“In 2014, approximately 78%  
of new sales were upsells  
to existing clients.”
STATPRO IS ADDRESSING THIS MARKET IN THE FOLLOWING OFFICES:
Globally, the total figure for assets under management is estimated at around $87 trillion*. 
At the same time, demand from the asset management industry for StatPro products is being driven by the increasing 
requirement for more types of analysis, as well as the need for greater levels of accuracy and faster delivery of analysis 
and data.
Development into StatPro Revolution has opened a range of new addressable markets to StatPro within the asset 
management sector, including hedge funds, private wealth businesses and fund administrators wishing to offer 
portfolio analytics as a service to their clients. StatPro is addressing this market in the following offices.
Boston
Montréal
Toronto
Hong Kong
Sydney
Cape Town
London
Paris
Frankfurt
Milan
Luxembourg 
ANNUALISED CONTRACT
VALUE BY CLIENT TYPE
●
Asset Managers
●
Third Party Administrators
●
Pension Funds
●
Private Wealth
●
Other
*
 Bank of England
2014 MILESTONES 3
28%
15%
38%
19%
Q3
•  J u l y StatPro joins NASDAQ’s elite index data  
partner programme.
•  StatPro announces multi-year contract with  
major Italian asset manager worth a minimum  
of $1.1 million over three years.
•  S ep t em b er StatPro achieves ISO27001 Information 
Security accreditation for the sixth year.
Q4
•  O c t o b e r StatPro announces five year contract with 
Prudential Investment Managers.
•  StatPro signs NICE Pricing and Information as referral 
partner in Korea.
•  StatPro signs five year GIPS solution contract renewal 
with global asset manager.
•  StatPro Revolution wins ‘Best Buy-Side Risk  
Management Initiative over the last 12 months’. 
•  D e ce m b e r Advanced equity attribution added to  
StatPro Revolution includes multi-level attribution  
models with currency overlay. 3
1 Annualised recurring contract revenue is the annual value of revenue contractually committed at year end. 
2 Forward order book of contracted revenue is the total amount of software and professional services revenue that is contractually committed at year end. 
3 Adjusted EBITDA and adjusted earnings per share are EBITDA and earnings per share after adjustment for amortisation of acquired intangible assets, share 
based payments and exceptional items (notes 3 and 10).
“StatPro has a 15 year track record of sustained 
long term revenue streams – with an average 
renewal rate of 94% over that period.”
2014 2013 Change Constant currency
Revenue £32.02m £32.49m (1%) +6%
Annualised recurring contract revenue
1
£29.39m £28.72m +2% +4%
Forward order book of contracted revenue
2
£38.74m £36.86m +5% +7%
Profit before tax £2.37m £3.11m (24%) (9%)
Adjusted EBITDA
3
£4.36m £5.46m (20%) (10%)
Earnings per share – basic 2.4p 3.1p (23%)
Earnings per share – adjusted
3
2.7p 4.5p (40%)
Dividend per share – total for year 2.9p 2.8p +4%
ANNUALISED CONTRACT
VALUE BY REGION
●
United Kingdom
●
Continental Europe
●
Rest of the World
●
North America Strategic Report Governance Financial Statements
4
CHAIRMAN’S STATEMENT
Asset managers continue to grapple with 
increased regulation, more complex 
investment strategies, cost reduction and 
demands for better communication.
Carl Bacon
I look forward to leveraging  
your Company’s substantial 
investment in StatPro 
Revolution to assist asset 
managers achieve their 
objectives, reduce costs, meet 
complex regulations, improve 
data management and replace 
legacy systems with more 
flexible and scalable solutions 
delivered via the cloud.
Progress
I am pleased to report that your Company increased total annualised revenue  
by 4% to £29.4 million at constant currency (2013 actual: £28.7 million) including  
a 68% increased contribution from StatPro Revolution of £5.4 million  
(2013: £3.2 million). Total revenue increased by 6% at constant currency but  
was 1% lower at actual rates at £32.0 million (2013: £32.5 million). As a result  
of continued investment in StatPro Revolution, sales and client services,  
profit before tax decreased by 24% to £2.4 million (2013: £3.1 million).  
StatPro Revolution related recurring revenue now amounts to £12.0 million  
(2013: £9.1 million), representing 46% of total software recurring revenue (2013: 37%).
Dividend
Your Board is proposing a final dividend of 2.05p per share for 2014 payable  
on 27 May 2015 to all shareholders on the register at the close of business on  
1 May 2015 taking the total dividend to 2.9p per share (2013: 2.8p per share). 
Products
In 2014, total research and development expenditure increased by 12% to  
£5.0 million (2013: £4.4 million) representing 16% of Group revenue. The total cash 
expenditure in 2014 on StatPro Revolution, including marketing and other costs, 
amounted to £5.5 million (2013: £4.9 million).
Regulation continues to drive client requirements and hence product 
development. In November 2014, StatPro won the Waters Buy-Side Technology 
award for ‘Best Risk Initiative’ for our Risk Limits and Commitment Leverage 
Monitoring Module. This premium module, available as part of StatPro Revolution, 
is aimed at managers who need to report data for the UCITS and AIFMD 
regulations. 
People
I am delighted, once again, to congratulate our employees, our greatest asset,  
for their commitment to achieving your Company’s objectives, whilst they manage 
the transformation to a pure, cloud-based analytics provider.
Prospects
Asset managers continue to grapple with increased regulation, more complex 
investment strategies, cost reduction and demands for better communication.  
I look forward to leveraging your Company’s substantial investment in StatPro 
Revolution to assist asset managers achieve their objectives, reduce costs, meet 
complex regulations, improve data management and replace legacy systems 
with more flexible and scalable solutions delivered via the cloud. 
Carl Bacon
Chairman
12 March 2015 5
Annual subscription to the
StatPro Revolution platform
Which helps them;
Analyse Performance
Monitor Portfolio Risk
Comply with Regulations
Generate investment
returns for their client
Which helps them;
Increase sales and assets
under management 
Improve client services
Meet tough regulations 
Reduce costs
INVESTMENT MANAGERS HELP 
MANAGE THAT MONEY
PEOPLE & BUSINESSES HAVE 
MONEY TO INVEST
THEY DO THIS USING SYSTEMS 
SUCH AS STATPRO REVOLUTION
*Directly or through fund administrators and partners
Investment managers use
StatPro Revolution to enhance
their investment process and 
to keep their clients informed
THOUSANDS OF
INVESTMENT PROFESSIONALS
USE OUR SERVICE*
Portfolio analysis
Data management
Reporting online
Distribution
1  Bank of England
OUR BUSINESS
StatPro is a global provider of portfolio analytics for the 
investment community. Our cloud-based services provide 
vital analysis of portfolio performance, attribution, risk 
and compliance.
Our objective 
To accumulate and compound recurring revenues from 
automatically repeating long term subscription contracts. 
New technology
By using a highly centralised cloud platform we aim to drive 
down the cost of supplying these contracts and steadily 
increase our gross margins. 
Retain clients 
Through long term contracts, deeply implemented systems, 
an expert, high quality service, and through innovation to 
keep the service up to date.
Targeted approach
We seek to target our existing large installed client base to 
upsell them StatPro Revolution, converting, increasing and 
extending their current contracts. 
Expand markets
We also target hedge funds and private wealth businesses 
where access to, and use of, portfolio analytics is limited, 
due to the historic cost and complexity of traditional 
solutions. We also target fund administrators that wish to 
offer portfolio analytics as a service to their clients.
StatPro is a small, but high quality business which comprises 
people with great expertise in the domain of portfolio 
analytics. By being both very good and very focused, we 
can hold our own against much larger businesses, offering 
real value to our clients.
We are a premium service which offers great 
value. We are recognised for innovation as we 
combine technology and expertise.
Portfolio analytics used to be a small market, but the need 
for analysis has expanded remorselessly over the last 20 
years. These days, client reporting is a regulated process, so 
it must be done properly. Investment processes have become 
immeasurably more complex, requiring sophisticated 
solutions to match them. Multi-jurisdictional compliance  
and regulation of all kinds, pose existential threats to asset 
managers that do not take them seriously. Generation X and 
Y want internet-based reporting and analysis. Assets under 
management have grown vastly over the last 20 years, 
from a few trillion to over $87 trillion
1
 worldwide. Wealth is 
continuing to accumulate and come from new markets like 
China. All these trends have made portfolio analytics a 
significantly bigger and more important market. Strategic Report Governance Financial Statements
6
“What our clients really want are 
solutions to these issues that are 
cost-effective, and that cut the 
timeframe of implementation, as well 
as iron out problems with managing 
the day-to-day workflow for 
compliance and risk management. 
That is what they tell us they want,  
and that is what we are focused  
on delivering”.
Dario Cintioli
Managing Director, StatPro
StatPro Live 2014: StatPro ran a 
series of roadshows across Europe in 
2014, updating our prospects and 
clients on our award winning solution.
MARKET OVERVIEW
The three main drivers affecting our industry today include 
technology spend, current and forthcoming regulations and  
data management.
1 Financial markets tech spending to 2018 (Ovum research 2014) 
2 Portfolio Management Systems, Capital Markets Tech Spend – CEB Tower Group January 2014
3 The cost of compliance 2013 – KPMG/AIMA/MFA Global Hedge Fund Survey
4 Techonomy conference, Lake Tahoe, CA (as detailed in http://techcrunch.com/2010/08/04/schmidt-data/)
5 International Investment Funds Association
“Performance Measurement and Attribution is attracting  
a lot of attention in the industry driven by a competitive 
investment environment, continued shortfall in public plans, 
drive towards greater transparency and disclosure, and 
antiquated PM&A technology that is beginning to creak 
under new industry demands.” 
Dushyant Shahrawat
Senior Research Director, CEB TowerGroup
Best Buy-Side Risk Management Initiative 
over the Last 12 Months
Winner
StatPro  7
Technology spend in 2015
The global financial industry is 
forecast to spend $100 billion on 
technology by 2018 according to a 
2014 research study by analyst firm 
Ovum
1
. In asset management, IT 
spending is also on the rise, but IT 
budget growth is slower than the 
innovation from business lines with 
new products and fund launches, 
putting pressure on existing IT 
systems. As a result, IT departments 
are being careful to allocate 2015 
budgets towards projects that  
fall within a few core IT priorities. 
According to research conducted by 
CEB TowerGroup
2
, this focus is on 
application delivery using the cloud, 
regulatory compliance and data 
management.
The Board believes that StatPro 
Revolution was one of the world’s  
first cloud-based portfolio analytics 
platforms; it has recently won ‘Best 
Risk Initiative in 2014’ for our risk 
monitoring module, which is specifically 
aimed at reducing the cost and 
complexity of meeting regulations  
that impact many of our clients  
and prospects. The global asset 
management industry uses thousands 
of software applications and a typical 
StatPro client will have to manage 
hundreds of these in their investment 
and reporting process. Many of these 
applications are local, meaning they 
are managed and delivered by local  
IT teams and pushed to the user’s 
desktop or laptop using installed 
software. These legacy systems also 
have large IT footprints in the data 
centre and require costly server 
hardware and even more costly 
software licenses from operating 
system providers. 
Our market is now actively working  
to replace older legacy systems with 
more flexible and scalable solutions 
that are delivered via the cloud rather 
than from local data centres and 
locally installed software. The 
technology processes of portfolio 
analysis, regulatory compliance and 
reporting are very well suited to 
outsourcing with vendors who deliver 
new software solutions via the  
cloud. StatPro is well placed to take 
advantage of this technology refresh 
and it is something on which we are 
working actively with existing clients.
Industry regulations
Since the financial crisis of 2008, 
governments and regulatory bodies 
have been pushing hard to introduce 
new or enhanced regulations to 
govern activities within the asset 
management industry. A lot of this 
focus has been on alternative 
investments such as derivatives and 
over the counter securities (OTCs). 
Regulations such as the alternative 
investment fund manager’s directive 
(AIFMD) require managers to report 
information on levels of risk and 
leverage within each fund. Some of  
the calculations required to create 
certain elements of these reports are 
very complex, and managers have 
struggled to find flexible and scalable 
solutions as part of their reporting 
workflow. Alternative asset managers 
and hedge funds are traditionally 
streamlined organisations who like to 
avoid large and complex IT projects. 
Their focus is on managing the money 
and meeting the required regulations 
with minimal cost and distraction. 
Regulations focus the IT budget 
decision because there is no choice for 
the manager if they want to participate 
in highly regulated trading activities. 
A recent KPMG paper
3
 states that  
the asset management industry is 
investing heavily in compliance, on 
average spending more than seven 
percent of their total operating costs 
on compliance technology. Based on 
extrapolations from their data, KPMG 
believes that compliance is costing the 
industry more than $3 billion. Keeping 
up with new regulations and ensuring 
effective implementation is a real 
challenge for the industry, and the 
impact of non-compliance has never 
been more serious.
StatPro’s response to this ever 
increasing regulatory framework is  
to provide compliance solutions within 
the StatPro Revolution platform that 
make calculating and reporting data 
for regulations easier and more cost 
effective than ever before. StatPro’s 
innovation in this area was recognised 
by the industry when, in November 
2014, StatPro won the Waters 
Buy-Side Technology award for Best 
Risk Initiative for our Risk Limits and 
Commitment Leverage Monitoring 
Module. This premium module, 
available as part of StatPro Revolution, 
is aimed at managers who need to 
report data for the UCITS and AIFMD 
regulations, something that affects 
almost every investment fund in the EU. 
Data management
The growth in data within the asset 
management industry isn’t something 
unique to the financial sector. 
According to Google CEO Eric 
Schmidt
4
, we create more data every 
two days than we did in all of human 
history up until 2003. More and more 
systems are generating larger 
amounts of data than ever before. 
There are several factors that are 
driving this growth in data and forcing 
effective data management up the 
agenda at every asset manager. 
A key driver in this growth is the 
product innovation and growth within 
the business of asset management. 
More funds are being launched every 
day. There has been more than 12% 
growth in the number of mutual funds 
from 2009 to the end of 2013
5
 and  
the product mix is becoming more 
sophisticated to meet client return  
and risk diversification expectations. 
This product innovation leads to  
data growth as clients demand more 
sophisticated portfolio analysis and 
proof of investment performance at  
all levels. Asset Managers need flexible 
ways of creating this data and the 
ability to distribute it in the most cost 
effective manner. Without a clear  
data management strategy, asset 
managers will drown in volumes of 
ad hoc and spreadsheet reports that 
don’t actually add any value. Clients are 
much more sensitive to performance 
and less loyal in their willingness to  
set and forget where they park their 
investments for the long-term. Instead, 
they require fact-based proof of above 
average performance by their 
investment managers. 
StatPro’s cloud-based Revolution 
platform is designed to reduce the 
number of applications required to 
perform detailed portfolio analysis 
and the reporting and online 
distribution that clients need. By 
moving applications and data sources 
to the cloud, asset managers can 
remove local silos of data and turn 
existing data into something more 
useful: knowledge. Strategic Report Governance Financial Statements
8
Advancing the StatPro Revolution platform
StatPro’s strategy is to continue developing advanced 
analytics for the StatPro Revolution platform to enable 
a wider range of existing clients and prospects to migrate 
to our new cloud-based services. In 2014, advanced 
attribution analysis features were added to StatPro 
Revolution, further paving the way for existing clients 
to migrate from StatPro Seven. The Advanced Risk 
Management module is now a key focus for 2015 and will be 
rolled out to StatPro Revolution throughout the year. Such 
advanced risk analysis will allow StatPro Seven clients who 
use only Risk to migrate to the StatPro Revolution platform. 
These new features help attract new clients to StatPro 
as they look to consolidate existing analytics systems and 
reduce costs compared to terminal based platforms. 
A further enhancement to StatPro’s cloud-
based platform to be delivered during 2015 
will be our new, highly scalable performance 
calculation and data management service. 
This brand new module brings the data management 
and advanced performance measurement capabilities of 
StatPro’s Seven products over to the cloud. As these new 
capabilities are added to the StatPro Revolution platform, 
clients will be able to migrate any portfolio to our cloud-
based solution. In 2015 we will perform further testing of 
the new data and performance engines against detailed 
day-to-day client requirements along with developing the 
security level transaction-based performance engines.
As our cloud development continues, StatPro remains 
committed to new technology and determining how this 
can be harnessed to benefit our business and our clients. 
Advances in high volume data processing in the cloud allow 
us to design and build products that make ‘big data’ a 
real business benefit rather than an IT buzzword. Asset 
managers are facing an avalanche of data with new 
product launches and a growing regulatory background. 
Being able to transform this data into knowledge that can 
be actioned upon is what technological advancements can 
bring. StatPro will continue this research and development 
to ensure we are at the forefront of ‘FinTech’ advancement 
during 2015 and beyond.
Existing clients and the journey to the cloud
StatPro’s existing client base is a solid one. Working with 
existing clients on their migration path to the StatPro 
Revolution platform is a key part of our strategy during 
2015. This migration path is not a ‘one rule fits all’ approach. 
Each client has their own set of requirements and priorities. 
While clients can be grouped into existing product sets, 
such as risk clients for example, each migration involves a 
combination of StatPro expertise from both product and 
business units. Ensuring these teams within StatPro are 
aligned to client migration requirements was a priority 
during 2014 and will continue to be so during 2015.
Migrations to the StatPro Revolution platform bring 
opportunities at all types of client. 
On 6 January 2015, StatPro announced  
that an existing major client in Europe had 
contracted to migrate from StatPro Seven  
to the StatPro Revolution platform and this 
resulted in a 55% conversion premium over 
the existing recurring element of the contract. 
Being able to demonstrate the overall cost savings and 
benefits of a cloud-based platform allows clients to have 
a larger relationship with StatPro while reducing their total 
cost of ownership across their portfolio analytics systems.
One key group of clients that will come into focus during 
2015 are risk analytics clients. StatPro’s 2015 development 
roadmap is weighted towards enhanced risk analytics within 
the StatPro Revolution platform. As these features are 
implemented throughout the year, more and more risk 
clients on the existing StatPro Risk Management system  
will be in a position to migrate to the cloud. The advantages 
for StatPro are two-fold: the potential for larger contract 
values and extended commitment periods and the 
possibility to reduce hosting and support costs once old 
systems are decommissioned. StatPro hosts many existing 
clients within data centres across the world. By reducing  
the IT footprint in these data centres StatPro will be able  
to realise cost savings. Application support costs can also 
be reduced. Centralising clients onto a single platform  
with a single live version to support is more efficient than 
supporting multiple versions each with their own unique 
support challenges.
STATPRO’S STRATEGY
Value and quality are the key themes for us as we 
develop advanced analytics, migrate our clients and 
expand relationships in 2015. 9
1  P&I/Towers Watson global 500 ranking
Growing relationships and demonstrating value
In June 2014, StatPro raised the minimum annual 
commitment level for new StatPro Revolution clients to 
$18,000. This figure rises to $36,000 for clients with 
complex assets such as derivatives and OTCs (typically 
hedge funds and alternative investment managers). This 
change will continue to yield higher value clients and help 
focus our sales efforts. Implementation consulting is also a 
component of many new and existing contracts as we work 
with clients to get their portfolios online. While this is a much 
more streamlined process than traditional software, it still 
requires expert knowledge and an understanding of the 
client’s portfolio structures to ensure a smooth transition. 
This is something clients see great value in, allowing them 
to get the most value out of their subscription investment 
in the shortest possible time.
Demonstrating the value and quality of the StatPro 
Revolution platform is something that is central to our 
sales strategy. 
In our view, the minimum annual subscription 
of $18,000 represents extremely good value 
compared to alternative solutions available in 
the market.
Our continued development of the platform in terms of 
analytical capability, data management, distribution and 
usability continues to enhance that value. Making perhaps 
six new releases of the platform every year contrasts with 
the traditional approach of one major release every 12 
months. This agile approach allows us to enrich the product 
much faster than legacy systems. As the breadth and depth 
of the platform continues to grow, we will attract larger and 
more sophisticated client relationships, which StatPro is very 
experienced in supporting. This will come in the form of 
new clients from a wider market along with existing clients 
looking to gain from the benefits of cloud computing. With 
StatPro they have a ready-made partner and platform 
to migrate to.
“With eight out of the top ten 
largest asset managers in the 
world as clients
1
, we have a real 
responsibility to bring innovative 
and disruptive technology to the 
market. Margins and budgets 
are under pressure, regulations 
and compliance are in focus 
and providing exceptional client 
service is a key differentiator 
in a competitive market. 
Technology is the strategy. 
Cloud computing and Software 
as a Service (‘SaaS’) are 
technologies StatPro has 
pioneered in the asset 
management industry and our 
clients of all sizes are realising 
the benefits.”
Neil Smyth
Marketing and Technology Director Strategic Report Governance Financial Statements
10
1  Bank of England
CHIEF EXECUTIVE’S REVIEW
At the end of 2014, StatPro Revolution 
accounted for 18% of Group recurring 
revenues, marking an inflexion point for 
StatPro on the path to becoming a pure 
cloud services provider.
Justin Wheatley
As expected, the roll out of 
StatPro Revolution has opened 
up a number of new markets 
and opportunities – both 
geographically and by types of 
customers, including hedge 
funds and private wealth  
asset managers. 
Overview
StatPro has a 15 year track record of 
growing sustained long term revenue 
streams – with an average renewal 
rate of 94% over that period.
The Group has reached an inflexion 
point in the roll out of its cloud-based 
product StatPro Revolution. Its 
annualised revenue jumped by 68% 
and now contributes some 18% of the 
Group’s total annualised recurring 
revenue (‘ARR’) – up from 11%. 
The Group anticipates that it will 
continue the process of converting its 
clients from its StatPro Seven product 
to StatPro Revolution. The timing for 
converting a client will largely depend 
on the client’s own requirements but 
StatPro expects the bulk will convert 
over the next three to four years.
In 2014, approximately 78% of new 
sales were upsells to existing clients.
At the start of 2014 StatPro launched 
its AIFMD module which, together with 
the UCITS module, has sold very well.
At the same time, as expected, the roll 
out of StatPro Revolution has opened 
up a number of new markets and 
opportunities - both geographically 
and by types of customers, including 
hedge funds and private wealth 
asset managers.
 
Total Group revenues grew 6% on a 
constant currency basis to £32.02 
million, (2013 actual: £32.49 million) 
and the Group’s ARR as a whole also 
grew 4% on a constant currency basis 
to £29.39 million (2013 at constant 
currency: £28.30 million). Profits were 
reduced as expected as StatPro 
continued its investment programme 
to underpin future revenues and 
growth potential. The forward order 
book of contracted revenue grew by 
7% to £38.74 million (2013 at constant 
currency: £36.36 million). Revenues 
were up 8% in EMEAA and up 2% in 
North America on a constant currency 
basis.
The Board is recommending that  
the dividend increases by 4% to 2.9p 
(2013: 2.8p).
Strategy
StatPro provides portfolio analysis 
and data for the international asset 
management industry, a highly 
regulated and expanding sector. Its 
sophisticated solutions address the 
complexity of investment processes 
driven by a number of industry 
factors including multi-jurisdictional 
compliance, regulatory change and 
rising demand for cloud-based 
reporting and analysis.
Globally, the total figure for assets 
under management is estimated  
at over $87 trillion
1
 with significant 
compound growth over the past 
20 years. At the same time, demand 
from the asset management industry 
for StatPro products is being driven by 
the increasing requirement for more 
types of analysis, as well as the need 
for greater levels of accuracy and 
faster delivery of analysis and data.
StatPro achieves high client retention 
through a combination of long term 
contracts and deeply embedded 
systems, underpinned by superior 
levels of expertise and service and 
continuous innovation. 
In early 2011, StatPro introduced 
StatPro Revolution, its cloud-based 
highly centralised platform with 
extensive data and portfolio  11
capabilities. Over the past four years, 
StatPro has continued to service its 
existing client base whilst upselling 
the cloud capabilities that StatPro 
Revolution offers. 
At the same time, StatPro Revolution 
has opened a range of new 
addressable markets to StatPro  
within the asset management sector, 
including hedge funds, private wealth 
businesses and fund administrators 
wishing to offer portfolio analytics as  
a service to their clients.
At the end of 2014, recurring revenue 
from StatPro Revolution accounted 
for 18% of Group recurring revenues, 
marking an inflexion point in the 
revenue mix for StatPro on the path 
to becoming a pure cloud services 
provider. 
This has resulted both from upselling 
StatPro Revolution to existing clients 
as well as new sales resulting from  
the enlarged market opportunity that 
StatPro Revolution addresses. At the 
end of 2014, 46% of recurring software 
contract value was derived from 
customers who have signed up for 
StatPro Revolution, as StatPro 
migrates its stable cash generative 
customer base onto this lower cost, 
higher-margin cloud-based solution 
with international scalability.
Current trading and outlook
In 2015, StatPro has continued to 
maintain high levels of recurring 
revenue whilst driving growth in sales 
of StatPro Revolution to both its 
existing customer base and to new 
types of customers, including hedge 
funds and private wealth managers.
The Group’s recently signed 
three year €4 million  
(£3.1 million) contract with  
a large European asset 
manager to transition its 
StatPro Seven platform to 
StatPro Revolution clearly 
demonstrates the upsell, 
conversion potential and value 
uplift in StatPro Revolution.
The current financial year has started 
well and is in line with the Board’s 
expectations. The Group has some 
£38.7 million in contracts revenue 
secured over the next few years, of 
which £9.7 million is for StatPro 
Revolution. With this level of 
momentum, the Group believes it will 
continue to see further growth in 
StatPro Revolution revenues.
OPERATIONAL REVIEW
Strategy implementation
2014 has been a successful year; StatPro 
has seen strong growth in StatPro 
Revolution ARR, up 68% to £5.42 million 
(2013: £3.22 million) and continued 
stability for the StatPro Seven platform 
with total ARR of £20.28 million at  
end December 2014 (£21.21 million 
before impact of StatPro Revolution 
conversions) (2013: £21.20 million). 
The Group has made good progress 
in implementing a strategy to convert 
clients from the StatPro Seven 
platform to the StatPro Revolution 
platform with 46% by value of 
software clients using StatPro 
Revolution. StatPro has a growing list 
of clients that it expects to convert to 
StatPro Revolution in due course as it 
rolls out further functionality. 
In June 2014, StatPro implemented 
a new pricing policy, requiring a 
minimum relationship fee from new 
clients of $18,000 p.a. (up from $1,200 
p.a.). This has increased new revenue 
per client although the numbers of 
new clients being added has slowed. 
By focusing attention and resources 
on more profitable clients, StatPro has 
also improved its basic operating cost 
model. In 2015, the Group will focus on 
migrating those clients that pay less 
than $18,000 p.a. to the new minimum 
subscription level.
In 2014, senior management visited 
over 150 of StatPro’s largest clients 
(representing approximately 80% 
by value of our subscription base), 
spanning Europe, North America, 
Australia, Asia and South Africa, to 
gauge their clients’ perspectives on 
their businesses and how StatPro’s 
new technology is supporting them. 
Acceptance of cloud-based services is 
now almost universal. The economic 
case for the cloud now looks irresistible 
and, even where there is still some 
doubt, it is likely that these fears will be 
overcome. The greatest common worry 
for StatPro’s clients is to meet an ever 
growing list of regulations, whilst 
keeping IT budgets at a reasonable 
level. For many clients, there is also  
the threat of competitors being able to 
use technology to deliver a far better 
service at a lower cost point.
The Group anticipates that it will 
continue the process of converting its 
clients from StatPro Seven to StatPro 
Revolution over the next few years. 
The timing for converting a client will 
largely depend on the client’s own 
requirements but StatPro expects the 
bulk will convert over the next three to 
four years. Strategic Report Governance Financial Statements
12
Approximately 78% of new 
sales in 2014 were upsells to 
existing clients. The Group 
believes that StatPro 
Revolution is particularly well 
adapted for repeat sales  
to clients and that existing 
clients will continue to be a 
rich source of new business. 
With a large base of approximately 
500 clients, StatPro has a ready-made 
market to sell additional services, 
portfolios and modules.
PRODUCT DEVELOPMENT 
Cloud
Development of the StatPro Revolution 
cloud platform has gone well in 
2014 with some very significant new 
functionality being delivered. At the 
start of 2014 StatPro launched its 
AIFMD module which, together with 
the UCITS module, has sold very well 
and now accounts for approximately 
18% of StatPro Revolution recurring 
revenue. StatPro was proud to receive 
an award for this module for the Best 
Risk Initiative 2014 from Waters Buy 
Side Technology Magazine. 
Additionally, StatPro launched 
Advanced Equity Attribution which 
means that StatPro Revolution offers 
the very latest and most sophisticated 
functionality available for equity 
attribution. The Group believes this will 
encourage the conversion of clients on 
StatPro Seven to StatPro Revolution in 
order to access the improved 
functionality.
During the course of 2015, StatPro 
will launch the Advanced Risk Module 
within StatPro Revolution, which offers 
significantly more functionality than 
the risk module in StatPro Seven. The 
Group anticipates that many of its risk 
clients using StatPro Seven will convert 
to this product in due course.
The Group is also building a new high 
volume calculation platform using 
Apache
TM
 Hadoop
®
 technology 
which will enable it to offer StatPro 
Revolution to clients with extremely 
large portfolios and benchmarks. This 
will form an integral part of StatPro’s 
advanced fixed income attribution 
module planned for release in 2016.
StatPro has decided to rebrand 
StatPro R+ as the performance 
module within StatPro Revolution, 
thus simplifying the naming convention 
for all new products on the StatPro 
Revolution platform. The StatPro 
Revolution performance module is 
progressing as planned and StatPro 
will be releasing the full replacement 
of StatPro Seven to several clients on 
a beta basis in the second half of the 
year and go live in 2016.
StatPro markets its data services 
in StatPro Revolution as part of a 
bundled service, and continues to 
expand the depth and quality of data 
for StatPro Revolution. To make the 
user experience as smooth as possible, 
StatPro has woven together raw data 
with its very large pricing library to 
produce further data for risk and fixed 
income analysis. 
Each market has different conventions 
and habits and StatPro Revolution 
is able to cater for hundreds of 
methodologies to give users the view 
of their portfolio to suit their specific 
requirements. This is one of the 
ways that StatPro Revolution is a 
considerable improvement on StatPro 
Seven. StatPro Revolution provides 
software, IT and data in a combined 
service that enables StatPro to offer 
a significantly enhanced service.
StatPro Seven 
Repeat revenue from StatPro Seven 
was very solid in 2014 with new sales 
largely offsetting reductions. New 
sales tend to come from existing 
clients buying additional modules 
and user licences as well as new 
sales of StatPro Composites. 
StatPro continues to support 
its clients on the StatPro Seven 
platform, offering upgrades 
and maintenance. StatPro 
Seven provides essential 
services for the Group’s clients 
by delivering accurate and 
comprehensive analysis for 
reporting to their clients.
Client feedback indicates that the 
operators of StatPro Seven want 
greater control over their data so that 
they have higher confidence that they 
will always publish accurate analysis. 
Whereas in the past, sending out 
approximately correct performance 
numbers was common practice, the 
new regulatory environment makes 
this unacceptable. This in turn has 
led to clients expanding the use of 
accurate systems like StatPro Seven to 
a broader range of portfolios such as 
private wealth mandates. This is where 
StatPro Revolution will offer the crucial 
solution: complete control of data and 
huge scale and speed compared to 
StatPro Seven and other systems 
using older technology.
Justin Wheatley
Group Chief Executive
12 March 2015
CHIEF EXECUTIVE’S REVIEW
(CONTINUED...) 13
Andrew Fabian
The increase in expenditure 
related to several areas of the 
business as part of the 
investment in cloud technology. 
FINANCIAL REVIEW
The forward order book of contracted 
revenue increased by 7% at constant 
currency (5% at actual rates) to  
£38.74 million at 31 December 2014. 
Revenue
Group revenue increased by 6% at constant currency but fell by 1% at actual 
rates to £32.02 million (2013: £32.49 million). 
Contracted revenue
The forward order book of contracted revenue increased by 7% at constant 
currency (5% at actual rates) to £38.74 million at 31 December 2014 (2013 at 
constant currency £36.36 million). The proportion by value of recurring software 
licences and data clients at the end of 2014 secured to the end of 2015 or beyond 
amounted to 77% (2013: 78%); the weighted average length of contracts 
committed remained unchanged at 16 months. 
New contracted revenue
New sales of recurring software and data contracts were up 19% to £3.87 million 
(2013: £3.24 million). Professional services revenue increased by 33% to  
£2.76 million (2013: £2.07 million). Approximately 78% of new recurring 
contracted revenue came from existing clients (2013: 77%). 
Recurring revenue 
The Group’s business model of Software as a Service (‘SaaS’) and recurring 
revenue contracts continues to provide excellent visibility of revenue. The 
annualised recurring revenue from software licences and data fees at the end  
of December 2014 increased by 4% at constant currency to £29.39 million 
(2013: £28.30 million). The net growth rate for StatPro Revolution was  
68% (2013: 114%).
StatPro Seven annualised recurring revenue was resilient at £20.28 million  
(2013: £21.20 million) with net cancellation rate of 4% (2013: 5%). Excluding the 
impact of conversions to StatPro Revolution, the recurring revenue for StatPro 
Seven (at £21.21 million) was flat year on year (2013: 2% reduction).
TABLE 1
Software licences and data fees
Annualised recurring 
contract revenue 
2014
£ million
Annualised recurring 
contract revenue 
2013
£ million
As at 31 December 2013 28.72 29.52
Net impact of exchange rates (0.42) (1.05)
At 1 January 2014 (at December 2014 rates) 28.30 28.47
New contracted revenue 3.87 3.24
Cancellations/reductions (2.78) (2.99)
Net increase 1.09 0.25
Recurring licence fees as at 31 December 2014 29.39 28.72 Strategic Report Governance Financial Statements
14
Revenue by segment
Revenue increased in the EMEAA 
region by 8% at constant currency to 
£20.82 million (2013 at constant 
currency: £19.36 million). In the North 
American region, revenue increased 
by 2% at constant currency to  
£11.20 million (2013 at constant currency: 
£10.94 million), as shown in table 2.
Revenue by service
Cloud revenues (incorporating StatPro 
Revolution, Risk and Data) grew 
by 28% as shown in table 3.
StatPro Revolution revenue profile
StatPro Revolution recurring revenue 
is now 18% of the Group total (2013: 11%) 
and has grown at a higher rate than 
other revenues as the service 
is developed on a highly scalable 
technology platform. 
The total recurring revenue from 
clients whose subscription includes 
StatPro Revolution was £11.95 million 
(2013: £9.12 million) representing 46% 
(2013: 37%) of total software recurring 
revenue.
Following the decision in 2014 to raise 
the minimum client fee, the average 
revenue per StatPro Revolution client 
has increased by 37% and the revenue 
distribution profile for StatPro 
Revolution is shown in table 4.
Operating expenses 
Operating expenses (before 
amortisation of intangible assets 
and exceptional items) as expected 
increased by 3% (10% at constant 
currency) to £25.53 million  
(2013: £24.71 million). The increase in 
expenditure related to several areas of 
the business as part of the investment 
in cloud technology. This included 
additional employee costs in client 
services, sales and development, data 
costs and cloud infrastructure. The 
average number of employees was 
251 (2013: 249). 
Exceptional items
There were no exceptional items in 
2014. Following a project to streamline 
core internal services (IT, finance and 
HR), the Group decided to relocate  
the Toronto team to a smaller office. 
Whilst not treated as an exceptional 
item, there was a one-off charge 
relating to the office lease of around 
£0.35 million. 
The exceptional charge of £0.35 million 
in 2013 related to additional contingent 
consideration for the SiSoft acquisition 
(see notes 3, 8 and 26).
TABLE 2
Revenue by segment
2014
£ million
2013*
£ million
Change
%
EMEAA 20.82 19.36 8%
North America 11.20 10.94 2%
 32.02 30.30 6%
FX – 2.19 
Group revenue 32.02 32.49 (1%)
*
 At constant currency
FINANCIAL REVIEW
(CONTINUED...)
TABLE 3
Revenue by service
2014
£ million
2013*
£ million
Change
%
StatPro Revolution and cloud-related 11.16 8.72 28%
StatPro Seven and non-cloud-related 20.86 21.58 (3%)
 32.02 30.30 6%
FX - 2.19 
Group revenue 32.02 32.49 (1%)
*
 At constant currency 15
Profitability
As a result of the planned increase in 
investment in cloud technology, the 
adjusted EBITDA was £4.36 million 
(2013: £5.46 million).
Finance income and expense 
Net finance expense was £0.29 million 
(2013: £0.27 million), and is mainly the 
finance costs of the Group’s currently 
unutilised credit facility.
Profit before tax 
The impact of currency movements 
was to decrease adjusted profit before 
taxation by £0.54 million. Profit  
before taxation was £2.37 million  
(2013: £3.11 million). Adjusting for 
amortisation of acquired intangible 
assets, share based payments and 
exceptional items, the adjusted profit 
before taxation was £2.58 million 
(2013: £4.05 million). 
Taxation
The tax charge is £0.77 million  
(2013: £1.03 million). The overall 
effective tax rate is 33% (2013: 33%). 
This is higher than the prevailing UK 
rate, mainly due to the impact of 
operations in countries with higher  
tax rates than the UK.
TABLE 4
StatPro Revolution  
Annualised revenue bands
Annualised 
revenue
2014
£’000s
Number of 
clients
2014
Number
Average 
revenue  
per client
2014
£’000s
Annualised
revenue*
2013
£’000s
Number of 
clients
2013 
Number
Average 
revenue  
per client
2013
£’000s
<£2k 139 127 1.1 143 136 1.1
£2k–£10k 414 97 4.3 277 68 4.1
£10k–£50k 1,419 62 22.9 884 34 26.0
£50k–£100k 1,328 19 69.9 952 13 73.2
>£100k 2,122 10 212.2 967 6 161.2
Total 5,422 315 17.2 3,223 257 12.5
* At constant currency
TABLE 5
Adjusted EBITDA
2014
£ million
2013*
£ million
Change
%
StatPro Revolution and cloud-related (6.24) (6.91) 10%
StatPro Seven and non-cloud-related 10.60 11.78 (10%)
 4.36 4.87 (10%)
FX - 0.59 
Adjusted EBITDA 4.36 5.46 (20%)
Adjusted EBITDA margin
StatPro Revolution and cloud-related (55.9%) (79.2%)
StatPro Seven and non-cloud-related 50.8% 54.6%
Adjusted EBITDA margin - total 13.6% 16.1%
*
 At constant currency Strategic Report Governance Financial Statements
16
Earnings per share
Adjusted earnings per share was  
2.7p (2013: 4.5p). Actual and diluted 
earnings per share was 2.4p  
(2013: 3.1p). 
 
Dividends
The Directors are recommending an 
increased final dividend of 2.05p per 
share (2013: 1.95p) making a total 
dividend for 2014 of 2.9p per share 
(2013: 2.8p), up 4%. The final dividend 
will be paid on 27 May 2015 to all 
shareholders on the register at the 
close of business on 1 May 2015. 
Total dividends paid in 2014 amounted 
to £1.89 million (2013: £1.86 million). 
The dividend cover (calculated as 
adjusted eps: dividends per share) 
was 0.93 times (2013: 1.61).
Balance sheet
The Group’s net assets at the year end 
were £45.69 million (2013: £46.91 million). 
Cash flow and financing
2014 was another year of positive 
cash generation with cash inflow from 
operating activities of £7.71 million 
(2013: £9.40 million), although lower 
than the prior year, mainly due to 
lower operating profits and working 
capital movements. The Group ended 
the year with net cash of £2.68 million 
(2013: £4.00 million). The Group 
retains its long-term financing facility, 
amounting to £7.5 million, which was 
undrawn at 31 December 2014. 
Research and development and capex
The research and development team 
is now focused solely on the Group’s 
cloud-based solutions, the StatPro 
Revolution platform. R&D expenditure 
increased overall by 12% to £4.99 million 
as planned (2013: £4.44 million), 
equating to 16% of Group revenue 
(2013: 14%). The total expenditure on 
StatPro Revolution including marketing 
and other costs was £5.52 million 
(2013: £4.92 million). 
Development costs of £3.62 million 
were capitalised in the year  
(2013: £3.40 million) and amortisation 
on internal development was  
£3.35 million (2013: £3.40 million). 
Expenditure on other intangible assets 
was £0.44 million (2013: £0.08 million) 
and total capital expenditure on 
property, plant and equipment was 
£1.86 million (2013: £0.93 million). 
Principal financial risks 
The principal business risks and 
uncertainties affecting the Group are 
described on pages 25 to 27. For each 
category of risk, the directors have 
identified means by which the risk 
can be managed or reduced in a cost 
effective way, whilst accepting that 
some risks cannot be completely 
eliminated. Details of key financial 
risks are considered below.
Financial risk management 
The current and projected financial 
risks of the Group are managed by 
the Group finance team. The primary 
risk relates to financing facilities and 
this is mitigated by ensuring very 
tight control of cash and detailed 
forecasting of business cash flows. 
Liquidity risk
The Group’s cash position is closely 
monitored with weekly updates from 
all overseas operations and daily 
updates of cash collected from 
customers. Any aged debtor balance 
that is overdue is investigated to 
ascertain the reason and to resolve 
the situation promptly. Monitoring 
procedures for short term cash 
projections allow the Group finance 
team to closely monitor the key 
liquidity and other financial ratios to 
ensure that there is sufficient liquidity 
in the business at all times and 
sufficient headroom in relation to the 
banking covenants.
FINANCIAL REVIEW
(CONTINUED...) 17
Financing facilities
The Company retains its senior  
debt facility with The Royal Bank  
of Scotland plc (RBS), which is 
committed to May 2017, subject to 
compliance with agreed covenants.  
At 31 December 2014, the Group  
had both net cash of £2.68 million  
and undrawn credit facilities of  
£7.50 million available to support its 
business operations and therefore  
the Board believes that the Group is 
well positioned to manage the 
business risks.
Foreign exchange risk management
The Group is exposed to exchange rate 
fluctuations given that the majority of 
its revenue is non-sterling based. The 
Group also has a significant proportion 
of its costs in the same currencies 
as its revenues and therefore there 
is a reasonable degree of natural 
reduction in overall currency risk. 
All material foreign currency 
transaction exposures (i.e. sales and 
purchase contracts denominated 
in a different currency to the local 
reporting currency) are hedged 
through use of foreign exchange 
contracts as soon as the amount and 
timing of the exposure is identified with 
reasonable certainty. The Group’s 
policy is not to hedge profit and loss 
translation exposures. 
As part of our liability management, 
we have made use of currency 
swaps with a total principal value 
of approximately £5.11 million 
denominated in USD, CAD, and EUR, 
to create synthetic currency hedges 
in order to provide a partial hedge 
against movements in the fair value of 
investments in overseas subsidiaries. 
As the Group continues to grow and 
generates increased profits overseas 
in foreign currencies, this exchange 
rate exposure is expected to increase. 
Interest rate risk management
The Group is exposed to interest rate 
risk and an increase in interest rates 
would increase the interest payable 
on the Group’s banking facility. Given 
the Group’s current net cash position 
and the benign outlook for interest 
rates, the Board has decided not to 
undertake any interest rate hedging 
but will review the position from time 
to time.
The risk to rising interest rates (should 
the Group return to a net debt 
position) would be partly mitigated by 
an increase in interest income from 
surplus cash and deposits, where 
the policy is to seek to maximise 
interest return without exposure 
to inappropriate liquidity or 
counterparty risk. 
Andrew Fabian
Group Finance Director
12 March 2015 Strategic Report Governance Financial Statements
18
SALES
THEMES
NEEDS
IMPLEMENTATION
SALES
PROCESS
EXPERTISE PRODUCT
FEEDBACK
Dario Cintioli
Total Group revenue grew by 6% 
on a constant currency basis. In 
EMEAA revenues were up 8% 
and up 2% in North America at 
constant currency. In EMEAA 
revenues grew by 2% at actual 
rates while costs increased by 
only 1% resulting in an overall 
increase in profit in the region.  
In North America revenues were 
down by 7% at actual rates, 
costs fell by 2% leading to an 
overall reduction in profits year 
on year. 
OPERATIONAL REVIEW
During 2014, StatPro has continued its 
transformation from a traditional 
software provider into a pure cloud-based 
service provider.
The theme of the year is Value and Quality; this has led to further integration 
between business and production divisions, with the design of an integrated 
operational cycle.
We start with the client; their business needs, their precise definition and the 
formulation of how StatPro’s solution can satisfy those needs. Armed with  
this information and assisted by qualified pre-sales teams, the sales team can 
sign profitable new business. That is not, of course, the end of the process;  
clients must use the product and embed it in their workflows to satisfy their 
requirements. The key to achieving this is a successful implementation, which is 
viewed as an essential stepping stone for future sales and enhanced reputation. 
In the integrated operational cycle, the sales process itself pre-determines the 
success of an implementation.
The process described above generates feedback, further refining the evolving 
business needs; these are processed by product management teams and 
eventually transformed into new product developments.
Service-oriented cloud-based software production allows the effective creation 
of an ‘integrated cycle’, increasing the responsiveness of StatPro, client 
satisfaction and, ultimately, productivity. At StatPro, we are at an intermediate 
stage in the implementation of this process, and we still have some work to do to 
migrate some clients to the new products, but this is the philosophy that is driving 
the transformation of our operations. 2014 has seen a decisive acceleration in 
this direction.
< Members of the continental European sales team. 19
Business needs and sales themes
StatPro Revolution is maturing quickly, offering solutions to multiple business 
needs. For example, the solution can assist you in complying with key aspects 
of miscellaneous ‘buy-side’ regulations (AIFMD, UCITS, FORM PF), fulfill the 
reporting needs of a middle office operation, distribute analytics information  
and use the system to achieve a better portfolio. In the coming months, the 
performance module within StatPro Revolution will be available, offering 
additional angles of attack in the traditional performance space. 
During the second half of 2014, we reorganised our sales processes to reflect  
our clients’ needs that are best satisfied by our products, putting those at the 
centre of our sales and implementation strategy.
Marketing continues to support the sales and client services teams globally as  
we recognise joint and varied client drivers globally and locally.
The key role of expertise
In portfolio analytics, expertise is often the key difference between success 
and failure. StatPro has strengthened its traditional expertise in performance, 
risk and compliance with the recruitment of key personnel in the three main 
hubs (London, Boston and Hong Kong). Linking to the sales themes, pre-
sales experts work closely with sales teams to target the clients’ needs.
Organising the sales process around pre-defined business needs also 
helps clients clarify how to achieve their aims. A good pre-sales process is 
a natural precursor to a successful implementation, as it pre-defines the 
key elements required.
Cloud makes a difference
The cycle that is described is not new; however, the service-oriented 
architecture of a cloud product brings two key elements:
• Implementation rules can be more easily standardised, transforming 
customisation into configuration, deploying scale in embedding the 
product inside clients’ workflow; and
• The capacity of the product to adapt to feedback transforms a cycle that  
was previously measured in years to months, if not weeks, making it much 
more productive.
Cloud service-oriented architecture makes it possible to 
achieve a continuous and integrated cycle of evolution, 
centered on the business needs. This is our operational 
vision and what we are implementing at StatPro.
New minimum tariff part of the vision
In June 2014, we implemented a  
new policy whereby clients must sign  
a minimum financial commitment.  
We set a minimum annual tariff for 
StatPro Revolution that is in line with 
the operational vision described.  
The minimum tariff eliminates smaller 
commitments from our sales radar, 
sharpening our sales focus on bigger, 
more profitable opportunities with 
more standardised business needs.  
At the same time, we have simplified 
the implementation process, asking  
a base set of requirements that may 
be a challenge for smaller clients  
and increased the productivity of our 
professional consultants, increasing 
the return on our expertise, a scarce 
resource by definition. The first  
seven months of this policy show an 
encouraging increase of productivity.
2015
During the course of 2015, we plan to 
accelerate in the direction described 
above, whilst continuing to cultivate 
the basic ingredients of our 
‘integrated’ operational process:
• Product aligned with clients’ needs;
• Detailed expertise;
• Sales capacity, integrated with 
product skills; and
• Aligned supporting departments. Strategic Report Governance Financial Statements
20
PRODUCT STRATEGY
The compliance module contributed 
meaningfully to StatPro Revolution sales 
growth in 2014. 
“It’s easy to forget that StatPro 
won the award for best 
newcomer for its Revolution 
product only three years ago. 
Mature beyond its years, 
StatPro has rapidly established 
itself with investment managers 
by taking advantage of its 
relative youth to evolve solutions 
to tackle practical problems — 
something the company did to 
win this same category in 2010 
for its liquidity risk and stress-
testing tool. And once again, its 
risk management initiative in 
2014 — focusing this time on the 
Alternative Investment Fund 
Managers Directive (AIFMD) — 
wins the category.”
Timothy Bourgoize Murray
Waters Technology
In the Product Strategy Review last year, we emphasised the development of a 
UCITS/AIFMD compliance module, explaining that, during 2013 and the early part 
of 2014, we spent some development resources in bringing this module to market. 
One year later, I am pleased to report that the compliance module contributed 
meaningfully to StatPro Revolution sales growth in 2014 and that it won the, 
award for ‘Best Buy-Side Risk Management Initiative over the last 12 months’ 
(awarded by Waters Technology). In 2015, compliance remains one of our key 
sales drivers, as the European hedge fund regulation, AIFMD, remains a hot topic 
for many of our clients and prospects and we expect sales traction to continue.
In addition to compliance, StatPro Revolution development has significantly 
enhanced two key functional areas:
• Equity performance attribution analysis: we have implemented a number  
of improvements that align functional breadth to our top clients requirements, 
related to equity portfolios;
• Reporting/data extraction: we improved the usability of StatPro Revolution’s 
reporting and data extraction facility, with the objective of embedding them 
inside our clients’ workflow.
During 2015, we will be focusing our StatPro Revolution development resources 
on our risk offering, with two main commercial objectives:
• Bridging the gap with StatPro Seven functionality to allow existing clients to 
migrate smoothly to the new cloud platform;
• Adding advanced features, such as risk factor decomposition, to enlarge the 
appeal of our risk offering to a wider audience, which includes not only middle 
office users, but also extends to front office practitioners.
Also during 2015, we will increase the scalability of StatPro Revolution,  
leveraging leading-edge database technology and cutting the marginal cost of 
storage and calculation. This investment is geared towards managing the large 
fixed income benchmarks at an effective cost for our clients, whilst generating  
an appropriate margin.  21
2015 will be the  
year of Risk (i.e. Advanced 
Risk Management module).
“Partnering with StatPro 
Revolution to offer the NASDAQ 
Global Index Family is an 
exciting opportunity for both 
companies that creates 
unsurpassed value for the 
buy-side community. The 
combination of StatPro’s cloud-
based analytics platform and 
NASDAQ’s deep global index 
content enables investment 
managers of all sizes to conduct 
sophisticated portfolio 
attribution analysis at an 
affordable price.”
Oliver Albers
Vice President Sales for Index & Data 
at NASDAQ OMX
Therefore, whereas 2014 might be categorised as the year of Equity Attribution 
and compliance, 2015 will be the year for Risk. We expect 2016 to be the year  
for Fixed-Income Attribution, where we will eliminate any remaining functional 
gaps between StatPro Seven and StatPro Revolution. The ongoing investments  
in scalable technology are necessary to achieve the planned fixed-income 
developments in 2016.
Looking beyond 2015, integrating the performance module within the StatPro 
Revolution platform, we will be able to migrate every portfolio from the ‘old 
analytics’ platform to the ‘new world’. During 2014, we started transferring the 
first equity portfolios. Developments in 2015 will empower clients to move their 
risk processes to StatPro Revolution. The development efforts in 2016 will 
complete the functional scope and accelerate the portfolio migration process.
StatPro Revolution’s performance module
2014 has also seen significant improvements in the performance module within 
StatPro Revolution (formerly known as StatPro R+), with the completion of key 
deliverables for performance computation and the release of a beta version. 
We are currently working on three key development streams:
• Engaging with our internal client teams to test the system against detailed 
client day-to-day requirements, refining the product and smoothing the 
client experience;
• Completing the development of security-level transactional based 
performance computation engines; and
• Integrating the performance module within StatPro Revolution to deliver 
a single user experience for the clients that will use both products. 
We expect to have further beta releases available to clients during the course 
of 2015 and we are synchronising development with the StatPro Revolution 
roadmap to allow our StatPro Seven clients to plan and begin the migration 
of their operations later in 2015 and beyond.
Dario Cintioli
Managing Director 
12 March 2015 Strategic Report Governance Financial Statements
22
Dario Cintioli
Managing Director 
Dario joined StatPro in 2003 following 
StatPro’s investment in RiskMap. Dario 
was the original creator of StatPro Risk 
Management. He is an expert in risk 
management, fixed income attribution 
and reporting techniques, including 
‘Value at Risk’, which provides a 
monetary measure of the risk of a 
portfolio. Before establishing RiskMap 
and joining StatPro, Dario spent  
10 years in leading Italian financial 
institutions, as Head of Interest Rate 
Derivatives and Head of Quantitative 
Analysis. Today Dario is responsible 
for all StatPro’s products including 
software and data services as well as 
sales, client services, marketing and IT.
GROUP EXECUTIVE BOARD
The Group 
Executive Board is 
made up of the 
following directors 
who manage 
specific functions 
globally.
Justin Wheatley
Group Chief Executive
(as detailed on page 32)
Andrew Fabian
Group Finance Director
(as detailed on page 32)
Andrew Peddar
Group Chief Operating Officer
Andrew joined StatPro’s UK office 
in September 1999, as a Project 
Manager, and became Client Services 
Manager for the UK region in 2002. In 
March 2004 Andrew moved to Cape 
Town, where he co-founded StatPro 
South Africa as Managing Director. 
Following four successful years in the 
Cape Town office he moved to StatPro 
Canada, based in Toronto. In January 
2011, he became CEO, North America 
with overall responsibility for the 
region. At the beginning of 2013 
Andrew took up his current position. 
OUR EXPERTISE
At StatPro we support all kinds of 
social events to encourage a good 
team spirit. The atmosphere is 
professional but relaxed. The dress 
code is casual. The emphasis is on 
team work. With around 250 
employees worldwide, StatPro is both 
diverse and full of experience.
59%
HOLD A BACHELOR’S DEGREE
OR EQUIVALENT
29%
HOLD A MASTER’S DEGREE
OR EQUIVALENT
4%
ARE CHARTERED
FINANCIAL ANALYSTS
AT STATPRO, OUR STAFF RETENTION  
RATES ARE RELATIVELY HIGH
YEARS
1-2 <1 5-10 10+ 2-5
16% 15% 32% 20% 17% 23
Michel Lempicki
Global Accounts Director
Previously working for S&P, Michel 
joined StatPro in 1998 to open our 
European operations in Benelux, 
France and Germany. He was involved 
in the acquisition of AMS in Paris and 
Riskmap in Italy which later became 
StatPro Italy. In 2010, Michel became 
the European Sales Director and 
moved to his current role in 2013. 
Michel manages and nurtures global 
strategic accounts within StatPro. This 
includes large fund administration 
and custodian banks, along with third 
parties that wish to resell StatPro 
services to their clients. 
Neil Smyth
Marketing & Technology Director
Neil is responsible for the overall 
technology strategy and global 
marketing activity. He joined StatPro 
in 1997. Neil has held positions in QA, 
Client Services and IT and was the 
CTO before taking up his current 
position in January 2011. Neil started 
the research project which became 
StatPro Revolution in 2008, leading 
an initial group of architects and 
developers to produce prototypes and 
public beta’s ready for the commercial 
launch in March 2011. Neil continues to 
be part of the StatPro Revolution 
product strategy group today.
Marc Zandt
Global Services Director
Marc has worked within the financial 
services industry for over 20 years. 
He started his career working for 
Arthur Anderson, Rothschild Asset 
Management and Insight Investment. 
His experience on the buy-side has 
given him a deep appreciation for the 
challenges faced within the industry.
Marc joined StatPro South Africa in 
2008, initially as an Account Manager, 
later becoming CEO, South Africa. In 
2013, Marc became Global Services 
Director, based in London, responsible 
for managing all our services with 
our clients.
 OF STATPRO STAFF HAVE 
12% PROFESSIONALLY PUBLISHED THEIR OWN WORK
ACADEMIC AWARDS HELD AT STATPRO INCLUDE:
•  ACMT qualified (Association of Corporate Treasurers)
•  S e a r c h S e c ur i ty . c o . U K aw a r d
•  Maximum score (110/110) at Bocconi University (Milan, Italy)
•  Dean’s list for overall academic achievement
•  Master of Commerce
WE ALSO HAVE EXPERTS WITH QUALIFICATIONS IN:
• CIPM, IIMR, Prince2, CEFA, financial risk management, treasury and chartered accountancy.
📖 🏆 🎓 Source: StatPro staff survey, February 2015. Strategic Report Governance Financial Statements
StatPro Revolution is a sophisticated and complete portfolio analytics service
Our unique value proposition is that with full control, you can easily provide access  
to portfolio analysis with as many users as you want for no extra cost. 
This multi-asset class, award winning analytics platform helps our clients:
• INCREASE SALES AND ASSETS UNDER MANAGEMENT.
• IMPROVE CLIENT SERVICE.
• MEET TOUGH REGULATIONS.
• REDUCE COSTS.
24 25
PRINCIPAL RISKS AND UNCERTAINTIES
StatPro has outlined its strategy in this Annual Report. 
Key to the successful outcome is our understanding of 
StatPro’s market drivers:
Transparency
To ensure that StatPro adds the most value possible to its 
clients, it must listen and understand their requirements:
• StatPro uses client ‘new feature’ requests and sales 
team feedback to prioritise product enhancement.
• StatPro also employs suitable financially qualified staff 
(e.g. to CFA level, even on the product development 
team) to ensure that we understand our clients’ needs 
and their issues.
Regulation
By understanding the impact of unfolding regulatory 
changes and updating its products in time, StatPro 
helps clients meet new regulatory requirements.
Competition
StatPro has significant resources to deliver on what is 
required, yet is small enough to react to changing market 
threats or opportunities. Such agility is a key corporate 
attribute.
Cloud
To allay customer concerns regarding their data being in 
the ‘cloud’, StatPro has invested in both the ISO 27001 
and SSAE 16 certifications. StatPro has embraced the best 
cloud product development and management practices for 
over four years, and has partnered with industry-leading 
IT services suppliers to ensure the best service availability 
and security.
Outsourcing
StatPro has invested in its own products with best-practice 
procedures for its own staff to ensure that clients’ 
requirements are routinely met.
StatPro’s approach to risk - Enterprise Risk Management 
framework
An Enterprise Risk Management (‘ERM’) framework provides 
a holistic approach that aligns an organisation’s strategic, 
operational, reporting and compliance objectives across all 
levels to manage all key business risks and opportunities. 
The goal is to maximise value for the entire enterprise.
The interaction between business objectives, risk framework 
components and organisational level is best illustrated 
by the Committee of Sponsoring Organisations of the 
Treadway Commission’s (COSO) ERM Cube. 
The ISO 31000 ‘Risk Management – Principles and 
Guidelines’ standard (published 2009) complements 
COSO’s ERM framework by addressing the management 
system that supports the design, implementation, 
maintenance and improvement of ERM processes.
FIGURE 1 - COSO'S ERM CUBE
OPERATIONS
STRATEGIC
REPORTING
COMPLIANCE
SUBSIDIARY
BUSINESS UNIT
DIVISION
ENTITY-LEVEL
INTERNAL ENVIRONMENT
OBJECTIVE SETTING
EVENT IDENTIFICATION
RISK ASSESSMENT
RISK RESPONSE
CONTROL ACTIVITIES
INFORMATION & COMMUNICATION
MONITORING Strategic Report Governance Financial Statements
26
PRINCIPAL RISKS AND UNCERTAINTIES
(CONTINUED...)
The Group risk assessment has identified the following top five 
risks that StatPro must manage at the corporate level:
Risk
1
Business Strategy fails:
‘StatPro’s updated business strategy fails to identify new markets and/or products; and/or 
fails to improve on its current offerings.’
CONTEXT
StatPro continues to make considerable investment in 
StatPro Revolution, and will also migrate its ‘traditional’ 
asset performance and valuation products to the 
‘cloud’ with the launch of the performance module 
within StatPro Revolution in 2015. If market take-up  
of StatPro Revolution does not meet expectations, or 
current clients fail to sign up for the planned cloud-
based products over current ‘hosted’ or ‘installed’ 
products, the ‘cloud’ investment won’t have been 
maximised. Indeed, legacy-product clients may  
leave for competitor offerings that they feel more 
comfortable with.
Product design, complemented by a sufficient 
Marketing and Sales effort is key to identifying and 
winning new clients; at the same time convincing them 
of the merits of cloud technology (fast provisioning, 
lower cost, security, availability).
CONTROLS
• Continual investment in Development and Quality 
Assurance.
• Regular monitoring and reporting of project development 
and quality; user-acceptance testing of enhancements.
• StatPro actively promotes itself within the asset 
management industry.
• StatPro uses cost-effective online advertising tools to track 
interest in its products, enabling effective/efficient marketing 
and sales efforts.
• The Board has regular meetings with all teams to ensure 
that products and services meet market requirements.
• Continually update market and competitor intelligence.
• Continually monitor user feedback and internal KPIs.
Risk
2
Sales target not met:
‘StatPro signing insufficient new contracts.’
CONTEXT
We have communicated to our shareholders our 
strategic direction for building cloud related revenue 
growth. If our externally announced targets are not 
met this could cause uncertainty in the marketplace 
for our reputation and lower revenues could put 
pressure on our EBITDA and cash generation.
CONTROLS
• Continuous control over the sales process and close 
monitoring of the sales pipeline by regional sales directors.
• Targets are set each year and territory performance is 
monitored against them.
• The sales pipeline is managed in Salesforce and is updated 
with reasons for lost opportunities e.g. sales performance, 
functionality etc.
• Actions are identified in the sales strategy meeting  
to manage the strategy and competitive positioning.
• Monthly updates of sales forecasts are made.
• StatPro has implemented both traditional below-the-line 
marketing strategies such as event hosting and sponsorship 
and cost-effective online advertising tools to track and 
report interest in its products, thereby enabling a more 
effective and efficient marketing and sales effort. 27
The principal financial risks of the Group are outlined in the Financial Review. 
The Strategic Report on pages 1 to 27 is approved by the Board.
By order of the Board.
Andrew Fabian
Company Secretary
12 March 2015
Risk
3
Clients not satisfied:
‘StatPro’s reputation suffers as clients’ expectations are not met.’
CONTEXT
StatPro anticipates (as many successful products do in an 
‘infinite’ digital market) that StatPro Revolution will reach a 
‘tipping point’ (when a critical mass of users act as product 
evangelists to further convince potential users to try or 
subscribe for the service), leading to ‘exponential’ growth.
To reach the ‘tipping point’ sooner, StatPro must ensure that 
existing clients are ‘on-boarded’ as quickly and as smoothly as 
possible, thereby enhancing their customer experience and 
increasing their likelihood of becoming product evangelists.
CONTROLS
• Ensure a good understanding of clients’ needs.
• Allocate an Account Manager to manage the  
client relationship.
• Escalate any issues to director level.
• Proactive account management.
• Long-term contracts foster client commitment.
Risk
4
Unavailability of hosted services due to infrastructure outage:
‘StatPro’s IT systems unavailable to StatPro and its clients as and when needed.’
CONTEXT
Loss of Company’s service may induce its clients to seek 
alternative suppliers and could have a material adverse 
effect on its business.
Where there is system unavailability (which can arise from 
hardware malfunction or capacity issues, or networking  
and power supply stability problems), these incidents  
are analysed in detail and all root causes are addressed  
and controlled.
CONTROLS
• StatPro IT use follow-the-sun support arrangement 
which implies that global regions ensure that system 
integrity is maintained.
• The hosted environment alignment project was 
initiated to mitigate the shortcomings of all hosted 
platforms and provide a consistent and manageable 
service. As part of this project a series of important 
infrastructure upgrades have been performed.
• Data centres and back-up facilities outsourced to 
specialist providers.
• Disaster recovery plans in place and regularly tested.
• Continual investment in appropriate technology to 
assure meeting Service Level Agreements.
Risk
5
StatPro must ensure the protection and privacy of client data:
‘StatPro has client data security breach.’
CONTEXT
Breaches of information security measures could expose 
StatPro, its clients or the individuals affected to a risk of  
loss or misuse of this information, potentially resulting in 
litigation and liability for the Company, as well as the loss of 
existing or potential clients and damage to the Company 
brand and reputation.
StatPro’s products and processes, involve storage and 
transmission of proprietary information and sensitive or 
confidential data, including client portfolio holdings. StatPro 
relies on its ISO/IEC 27001 and SSAE16 Information 
Security Management System internal controls to protect 
the privacy of client data.
If StatPro fails to maintain the adequacy of its internal controls, 
including any failure to implement required new or improved 
controls, or if StatPro experiences difficulties in their 
implementation, their misappropriation of client data by an 
employee or an external third party could occur, which could 
damage the Company’s reputation and ultimately its business.
CONTROLS
• Our IT processes are aligned with ISO/IEC 27001 
requirements, which ensures adequate and 
proportionate information security measures for 
StatPro and Client’s information and mitigates against 
the risk of serious data breach.
• Regular external and internal information security 
audits are performed.
• Regular penetration tests are performed against  
web faced systems.
• Regular staff information security training and 
awareness sessions are performed.
• An information security incident reporting process is in 
place and users are made aware of issues which have 
to be reported promptly. Strategic Report Governance Financial Statements
28
PLC Board
Carl Bacon CIPM, Non-Executive Chairman
Justin Wheatley, Group Chief Executive
Andrew Fabian FCA FCT, Group Finance Director
Mark Adorian, Non-Executive Director
Stuart Clark, Non-Executive Director
Jane Tozer MBE OBE, Non-Executive Director
Audit
Committee
Jane Tozer - Chairman
Mark Adorian
Stuart Clark
Carl Bacon
Remuneration
Committee
Stuart Clark - Chairman
Mark Adorian
Carl Bacon
Jane Tozer
Nominations
Committee
Mark Adorian - Chairman
Carl Bacon
Jane Tozer
Stuart Clark
INTRODUCTION TO CORPORATE GOVERNANCE
This section of our Annual Report 
explains how the Board and each 
of its committees function.
My aim as Chairman is to create 
a diverse, inclusive and effective 
Board, which is fully informed 
about the business and able  
to provide the executive 
membership with an 
appropriate balance of 
challenge and support.
Carl Bacon
Chairman
12 March 2015
The Board oversees the Company’s financial reporting, risk management and 
regulatory compliance functions. It also sets executive remuneration and 
oversees executive appointments. These roles are fulfilled by the Board and its 
three committees shown below. The Board and its committees meet regularly, 
discuss matters by ‘phone when necessary, and circulate minutes and relevant 
papers in advance of each meeting.
My relationship with our CEO and our interaction with the non-executive directors 
is of key importance for a climate of open communication and constructive 
debate. I run annual Board evaluations, which provide useful feedback to drive 
improvements in the Board’s and committees’ work. 29
CORPORATE GOVERNANCE
Compliance with the UK Corporate Governance Code
Your Company is listed on the Alternative Investment Market 
of the London Stock Exchange (AIM), so the Company is not 
required to comply with the UK Corporate Governance Code, 
which applies only to fully listed companies. Nevertheless,  
the Company is committed to high standards of corporate  
governance and the Board is accountable to the Company’s 
shareholders. This statement describes how the Company 
applies the principles of good corporate governance.
The workings of the Board and its committees
The Board
The Board comprises the Non-Executive Chairman, the 
Group Chief Executive, the Group Finance Director and 
three other non-executive directors. It is responsible to 
shareholders for the proper management of the Company. 
Directors’ biographies appear on pages 32 to 33 and 
demonstrate their range of relevant experience, bringing 
independent judgement to bear on issues of strategy, 
performance, resources, industry knowledge and standards 
of conduct.
All directors have access to the Company Secretary,  
who is responsible for company secretarial matters and 
compliance with relevant statutory obligations. All directors 
have access to training to enable them to comply with their 
duties as a director.
To enable the Board to discharge its duties, all directors 
have full and timely access to all relevant information. The 
Board meets at least quarterly and has adopted a formal 
schedule of matters specifically reserved for decision by it, 
thus ensuring that it exercises control over appropriate 
strategic, financial, operational and compliance issues. At its 
meetings the Board reviews trading performance, ensures 
adequate financing, sets and monitors strategy, examines 
investment and acquisition opportunities and discusses 
reports to shareholders. The directors can also take 
independent professional advice as appropriate at the 
Company’s expense. The Chairman meets at least once a 
year with the non-executive directors without the executive 
directors present.
The performance of the executive directors is reviewed 
annually by the non-executive directors. On resignation 
from the Board a non-executive director would be invited to 
provide a written statement to the Chairman for circulation 
to the Board, if he or she were to have any unresolved 
concerns about the running of the Company. The overall 
effectiveness of the Board and its sub-committees is 
reviewed by the Board as a whole through annual 
completion and discussion of a questionnaire.
The Board believes that the level of sales consulting to 
promote StatPro Revolution provided by Mark Adorian in 
recent years, in addition to his substantial shareholding, 
means that he may no longer be considered independent 
under the UK Corporate Governance code, although the 
Board believes that Mark Adorian is independent of mind 
and continues to act in the interests of all shareholders.
Stuart Clark is the Senior Independent Director and is 
available to the shareholders for any concerns which have 
not been resolved by contact with the Chairman, Chief 
Executive or other executives, or for which such contact  
is inappropriate.
Audit Committee
The Audit Committee is chaired by Jane Tozer. The Audit 
Committee also comprises the Chairman (Carl Bacon),  
Mark Adorian and Stuart Clark, and meets at least three 
times annually. The Audit Committee receives reports from 
the Group’s external auditors and its meetings are also 
attended, by invitation, by the Group Finance Director.
The Audit Committee reviews the Company’s financial 
matters, as set out in written terms of reference, including 
the interim results and the Annual Report and Accounts, 
before their submission to the Board. It monitors the 
controls in force to ensure the integrity of financial 
information reported to shareholders.
The Audit Committee reviews the appointment of external 
auditors, discusses the nature and scope of the audit  
and reviews the external auditor’s remuneration both for 
audit and non-audit work. The Audit Committee assesses 
annually the qualification, expertise and resources, the 
independence of the external auditors, and the 
effectiveness of the audit process. Strategic Report Governance Financial Statements
30
TABLE 1
Scheduled 
Board 
meetings
Audit 
Committee 
meetings
Remuneration 
Committee 
meetings
Nominations 
Committee 
meetings
CR Bacon 6/6 3/3 4/4 n/a
JMBT Wheatley 6/6
AM Fabian 6/6
MC Adorian 6/6 3/3 4/4 n/a
SJ Clark 6/6 3/3 4/4 n/a
JE Tozer 6/6 3/3 4/4 n/a
 
The Audit Committee reviews the whistleblower policy and 
process for staff and receives reports on all issues raised 
through this process.
Remuneration and Nominations Committees
The Remuneration Committee is responsible for determining  
the contract terms, remuneration and other benefits  
for executive directors, including performance-related 
bonus schemes and participation in the Group’s Long  
Term Incentive Scheme. Stuart Clark is chairman of the 
Remuneration Committee and the other members are  
Carl Bacon, Mark Adorian and Jane Tozer.
The Remuneration Report, which includes details of 
directors’ remuneration, pension entitlements and directors’ 
interests, together with information on service contracts is 
set out on pages 37 to 40.
Mark Adorian is the chairman of the Nominations 
Committee and the other committee members are Carl 
Bacon, Stuart Clark and Jane Tozer. The Nominations 
Committee reviews and nominates appointments to the 
Board. All such appointments are then reviewed and 
approved by the full Board.
Board meeting attendance
Six scheduled Board meetings were held in 2014. During  
the year, there were three Audit Committee meetings, four 
Remuneration Committee meetings and no Nominations 
Committee meetings. The number of scheduled Board 
meetings and sub-committee meetings attended by each 
director during the year are shown in Table 1.
Group Executive Board
The Group Executive Board (GEB) is the executive 
committee, which comprises the executive directors and 
other senior executives of the Group who meet at least  
ten times per year to discuss strategic and operational 
matters. Regional executive boards and product-focused 
committees have been established to deal with other 
executive matters within clearly defined terms of reference 
established by the Board.
On 1 October 2014, Dario Cintioli was promoted to the role 
of Managing Director. Dario is now responsible for all the 
day to day business operations of StatPro and he reports 
directly to Justin Wheatley, Chief Executive, who runs the 
corporate strategy. The members of the Group Executive 
Board and their roles and responsibilities are:
Justin Wheatley, Group Chief Executive
Andrew Fabian, Group Finance Director
Dario Cintioli, Managing Director
Andrew Peddar, Group Chief Operating Officer
Michel Lempicki, Global Accounts Director
Neil Smyth, Marketing and Technology Director
Marc Zandt, Global Services Director
The Group Executive Board has the following sub-committees:
Regional Boards
EMEAA Region (Europe, South Africa and Asia Pacific) and 
North American Region
Operational decisions on implementing the Group’s strategy, 
including sales and client services strategy and expenditure 
and recruitment plans, are delegated to senior executives  
in the Group’s regions, within clearly defined terms of 
reference and overall budgets established by the Board.
CORPORATE GOVERNANCE 
(CONTINUED...) 31
Product strategy
Operational decisions on implementing the Group’s  
product strategy including development plans and related 
expenditure and recruitment plans are delegated to the 
Product Director who works with other senior executives on 
product-focused committees, within clearly defined terms 
of reference and overall budgets established by the Board.
Relations with shareholders
Communications with shareholders are very important. 
There is a regular dialogue with institutional shareholders 
and market analysts, including presentations after the 
Company’s preliminary announcement of the annual and 
interim results and any other major announcements.
Internal controls and risk management
During the year, the Board has formally reviewed the 
Group’s risk profile and reported on the effectiveness of the 
Group’s system of internal controls and management of 
Group risk. This review addresses internal financial controls 
and other risks and controls of the business. The directors 
acknowledge that they are responsible for the Company’s 
system of internal control, which is designed to manage 
rather than eliminate business risks and which provides 
reasonable but not absolute assurance against material 
mis-statement or loss.
The Company has established risk management procedures 
which the Board considers appropriate to a group of 
StatPro’s size and complexity. During the year the risk 
management procedures were reviewed by the directors. 
This is achieved through a series of reports and meetings  
of specific committees including the Information Security 
Committee. The Company has a Group Risk Manual, which 
sets out the key risks and the controls in place to manage 
these risks, and identifies actions to be taken to eliminate or 
mitigate risks as appropriate.
Each senior executive is responsible for managing risks in  
his or her area of responsibility, and making regular reports 
on risk issues to both the main Board, Audit Committee and 
the Group Executive Board. This risk analysis is embedded  
in risk review meetings in the Group Executive Board, and 
covers all business risks including commercial, financial, 
operational, legal and environmental risks. These reports 
include the potential impact to the business of each key risk 
and its likelihood of occurrence, plus details of mitigating 
actions and insurance policies including specific cover for 
the Company and/or its directors.
Recommendations on internal controls and risk improvement 
are reviewed by the Audit Committee and the Board.
A statement of the directors’ responsibilities in respect of 
the financial statements is set out on pages 34 and 35 and 
a statement on going concern is below.
Financial controls
The Group has established written expenditure approval, 
delegation of authority and authorisation levels, segregation 
of duties and other control procedures including accounting 
policies and procedures.
Budgetary process
Each year the Board approves the annual budget and  
key risk areas are identified. Performance is monitored  
and relevant action is taken throughout the year through 
regular reporting to the Board of variances from the 
budget, updated forecasts for the year and information  
on the key risk areas.
Investment appraisal
Major capital and other project expenditure is controlled by 
a budgetary process and authorisation levels set by the 
Board. For capital expenditure above specified levels, and 
for acquisitions and disposals, detailed written proposals 
must be submitted to the Board for approval.
Internal audit
The Group currently does not have an internal audit 
function as the directors consider this to be inappropriate 
given the size of the Group. However, this is reviewed by the 
Board annually.
Going concern
After making appropriate enquiries and for the reasons set 
out in the Directors’ Report, the directors have a reasonable 
expectation that the Group has adequate resources to 
continue in operational existence for the foreseeable future. 
For this reason, they continue to adopt the going concern 
basis in preparing these financial statements (see note 1). Strategic Report Governance Financial Statements
32
Carl Bacon CIPM 
(1 2 3)
Non-Executive Chairman
EXPERTISE:
Carl’s expertise in risk, 
performance measurement 
and GIPS enables him to  
add value to product 
development and StatPro’s 
business strategy. As he 
continues to publish and 
teach in these fields, external 
market knowledge is brought 
to the StatPro Board.
JOINED STATPRO: 2000
Carl, 52, previously worked as Director 
of Risk Control and Performance at 
F&C Investment Management Limited 
and prior to that was Vice President 
- Head of Performance at J P Morgan 
Investment Management Inc. He is 
a founder member of both the 
Investment Performance Council and 
GIPS®, member of the GIPS Executive 
Committee, and a member of the 
Advisory Board of the Journal of 
Performance Measurement. Carl is 
a director of the Freedom Index 
Company and is also the author of 
‘Practical Portfolio Performance 
Measurement & Attribution’ and 
‘Practical Risk-adjusted Performance 
Measurement’.
Justin Wheatley
Group Chief Executive
EXPERTISE:
Justin has done many things, 
from sales to product 
development and design,  
to the acquisition of ten 
companies and running a 
public business that covers 
over ten offices around the 
world. Today his focus is 
implementing the strategy for 
growing StatPro Revolution 
into the leading portfolio 
analysis service.
JOINED STATPRO: FOUNDER 1994
Justin, 50, began his career in 1989 as 
a salesman with Micropal, a provider 
of independent information on mutual 
funds. He set up an agency for 
Micropal in 1991 in Switzerland and 
grew the business to cover France  
and Luxembourg. In 1994, he founded 
StatPro, floating the business in May 
2000 raising £5 million to build up 
StatPro’s international expansion. 
StatPro´s revenues have grown from 
under £3 million to over £30 million 
since 2000. He has day to day 
responsibility for the Group. 
BOARD OF DIRECTORS
Andrew Fabian FCA FCT
Group Finance Director
EXPERTISE:
Andrew has significant 
experience in the financial 
services sector and is a 
chartered accountant and 
qualified corporate treasurer.
JOINED STATPRO: 2000
Prior to joining StatPro, Andrew, 53, 
was Group Financial Controller at 
William Baird PLC. and has previously 
held senior finance roles at De La 
Rue plc and Deloitte & Touche. He is 
a Fellow of both the ICAEW and the 
Association of Corporate Treasurers 
(ACT) and served for three years on 
the ACT’s governing council. Andrew 
is responsible for the global finance 
function at StatPro. Andrew was 
appointed Company Secretary in 
2012. In 2012, Andrew was awarded a 
ranking in the ‘Hot 20 FDs’ in the TMT 
sector by BDO LLP. 
1 Member of the Audit Committee
2 Member of the Remuneration Committee
3 Member of the Nominations Committee 33
Mark Adorian 
(1 2 3)
Non-Executive Director  
and Chairman of the  
Nominations Committee
EXPERTISE:
Mark’s career in the asset 
management industry and 
experience in business 
growth adds value to  
the StatPro Board. His 
understanding of market 
data in this industry supports 
the business and strategy.
JOINED STATPRO: 2002
Mark, 52, was previously Managing 
Director of Standard & Poor’s Fund 
Services. Mark co-founded Micropal, 
the global fund performance analysis 
company in 1986, becoming their Sales 
& Marketing Director in 1987. In 1992 he 
became Managing Director of Micropal, 
and subsequently in 1997 negotiated 
the sale of Micropal to Standard & 
Poor´s, a division of the McGraw-
Hill Companies. Between 1999 and 
2001, Mark was Managing Director 
of Standard & Poor’s Fund Services. 
Mark chairs the Group’s Nominations 
Committee. 
Stuart Clark 
(1 2 3)
Senior Independent Director  
and Chairman of the  
Remuneration Committee
EXPERTISE:
Stuart brings experience  
in managing a global data 
organisation as well as more 
than 40 years working in  
the financial industry. His 
experience at IDC and at Ipreo, 
enables Stuart to add growth, 
acquisition and market 
intelligence value to StatPro.
JOINED STATPRO: 2009
Stuart, 67, has been employed in the 
financial information industry since 
1968. From 1995 to 2009 Stuart 
held various senior positions at IDC. 
As President and CEO from 2000, 
Stuart led the business through 
nine years of continuous and strong 
growth, with revenues more than 
doubling to US$750 million and with 
profitability and cash flow growing 
more than threefold. IDC consistently 
outperformed the market in growth 
over that period and, at around 30%, 
had close to the highest EBITA margin 
amongst major comparable players 
in its industry. Stuart was also non-
executive chairman of Ipreo Holdings 
LLC, a New York based, leading 
provider of deal execution platforms, 
market intelligence and investor 
communication tools until August 2014, 
when the business was sold. Stuart 
is the Senior Independent director 
and chairs the Group’s Remuneration 
Committee. 
Jane Tozer MBE OBE 
(1 3)
Non-Executive Director 
and Chairman of the  
Audit Committee
EXPERTISE:
Jane brings a wealth of 
experience from start-up to 
advisory within StatPro’s 
marketplace, supporting the 
growth strategy with the 
appropriate level of formality 
and governance.
JOINED STATPRO: 2012
Jane, 67, began her career with IBM, 
after which she was CEO of Softwright 
Systems Ltd., taking it from start-up 
to trade sale. Jane has since held a 
portfolio of non-executive directorships 
including quoted technology companies, 
investment trusts, the John Lewis 
Partnership, the DWP and the MoJ, and 
technology start-ups. Jane is currently 
the Senior Independent Director at F&C 
Global Smaller Companies plc, and a 
non-executive director of JP Morgan 
Income & Growth plc, Asthma UK, the 
Information T echnologists’ Company 
Charitable Trust and her local Citizen’s 
Advice Bureau. She also runs ITNEA and 
is a member of the Warwick Business 
School Advisory Board. Jane was 
awarded an MBE for services to the IT 
sector in 1991, and an OBE for services 
to the public service and voluntary 
sector in 2009. Jane is an Independent 
Director and chairs the Group’s Audit 
Committee.  Strategic Report Governance Financial Statements
34
The directors present their annual report and the audited 
financial statements for the year ended 31 December 2014.
Going concern
After making appropriate enquiries, the directors have 
a reasonable expectation that the Group has adequate 
resources to continue in operational existence for the 
foreseeable future. For these reasons, they continue to 
adopt the going concern basis in preparing the Group’s 
financial statements (see note 1).
Future developments
Future development for the business are covered in the 
strategic report on pages 1 to 27.
Research and development
The Group continues to invest in developing improved 
software products and services. Development expenditure 
incurred during the year was £4.99 million (2013: £4.44 million). 
In accordance with International Financial Reporting 
Standards (IFRS), development costs are capitalised where 
recognition criteria are met and written off over the useful 
life, currently estimated by the directors to be three years. 
The amount capitalised in the year was £3.62 million  
(2013: £3.40 million) and the total amount of amortisation 
was £3.35 million (2013: £3.40 million).
Results, dividends and transfers to reserves
The Group’s profit attributable to equity shareholders for 
the financial year was £1.60 million (2013: £2.08 million).  
A final dividend of 2.05p per ordinary share (2013: 1.95p) 
has been recommended by the directors taking the total 
dividend for the year to 2.9p (2013: 2.8p). If approved by the 
passing of a resolution at the 2015 Annual General Meeting, 
it is intended to pay the final dividend on 27 May 2015 to  
all shareholders on the register at close of business on  
1 May 2015 (ex-div date will be 30 April 2015). The profit  
for the year has been transferred to reserves.
Shares issued in year
During 2014 the Company issued 4,000 shares (2013: nil) as 
detailed in note 20 to the financial statements. There were 
225,000 shares held in treasury at 31 December 2014 
(2013: 225,000). At the forthcoming Annual General 
Meeting, the directors are seeking to renew the authority to 
allow the purchase of own shares up to a limit of 10% of the 
Company’s share capital.
Financial instruments
The Group’s financial instruments comprise cash, money 
market deposits, bank loans, provisions, derivatives financial 
instruments and various other accounts receivables and 
payables that arise directly from its operations. These 
financial instruments are described in Note 18.
Directors and their interests
The directors who held office during the year were:
CR Bacon Non-Executive Chairman
JMBT Wheatley Group Chief Executive
AM Fabian Group Finance Director
MC Adorian Non-Executive Director
SJ Clark  Non-Executive Director
JE Tozer  Non-Executive Director
All directors are subject to election at the first opportunity 
after their appointment, and to re-election thereafter at 
intervals of no more than three years in accordance with the 
Company’s Articles of Association. The Company’s Articles 
of Association require that one third of the directors, or the 
number nearest to one third, are to retire from office by 
rotation. Accordingly, MC Adorian and CR Bacon seek 
re-election at the forthcoming Annual General Meeting.
Directors’ interests in the Company’s share capital and 
share options are detailed on pages 39 and 40.
Directors’ interests in significant contracts
Directors’ interests in significant contracts are described in 
note 21 to the financial statements.
Directors’ responsibilities statement
The directors are responsible for preparing the Directors’ 
Report and the financial statements in accordance with 
applicable law and regulations.
Company law requires the directors to prepare financial 
statements for each financial year. Under that law the 
directors have elected to prepare the Group and Company 
financial statements in accordance with International 
Financial Reporting Standards as adopted by the European 
Union. Under company law the directors must not approve 
the financial statements unless they are satisfied that they 
give a true and fair view of the state of affairs of the Group 
and the Company and the profit or loss of the Group for 
that period.
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014 35
In preparing these financial statements, the directors are 
required to:
• select suitable accounting policies and then apply them 
consistently;
• make judgements and accounting estimates that are 
reasonable and prudent;
• state whether applicable IFRSs adopted by the European 
Union have been followed, subject to any material 
departures disclosed and explained in the financial 
statements; and
• prepare the financial statements on the going concern 
basis unless it is inappropriate to presume that the 
Group and Company will continue in business.
The directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the Group and Company’s transactions and disclose with 
reasonable accuracy at any time the financial position of 
the Group and Company and enable them to ensure that 
the financial statements comply with the Companies Act 
2006. They are also responsible for safeguarding the 
assets of the Group and Company and hence for taking 
reasonable steps for the prevention and detection of fraud 
and other irregularities.
Directors’ indemnity insurance
The Company carries an appropriate level of professional 
indemnity insurance cover for the size of the business and 
also has insurance cover for Directors’ and Officers’ liability.
Disclosure of information to auditors
Each director has confirmed that:
• so far as the director is aware, there is no relevant audit 
information of which the Group’s auditors are unaware, 
and
• he or she has taken all the steps that he or she ought  
to have taken as a director in order to make himself or 
herself aware of any relevant audit information and to 
establish that the Group’s auditors are aware of that 
information.
This confirmation is given in accordance with Section 418 of 
the Companies Act 2006.
Substantial shareholdings
The Company has been notified of the following disclosable 
holdings of voting rights in the Company’s issued share 
capital as at 1 March 2015:
Number of 
shares
% of share 
capital
Liontrust Asset Management 12,843,304 19.0%
Herald Investment Management 7,657,784 11.3%
JMBT Wheatley  7,433,672 11.0%
AXA Framlington  7,388,750 10.9%
Artemis Investment Management 6,197,294 9.2%
Brown Brothers Harriman & Co 3,423,273 5.1%
MC Adorian 2,956,148 4.4%
In addition to the above holdings, JMBT Wheatley holds 
307,580 ordinary shares (representing 0.5% of the ordinary 
share capital) in a family trust, being a trustee and potential 
indirect beneficiary of the trust.
Employment policies
The Group acknowledges the vital role that all employees 
play in its success through their skills, initiative and 
commitment. All operations are encouraged to provide 
the proper resources to maximise this potential through 
efficient systems of recruitment, communication, training 
and development. It is the Group’s policy to give full and fair 
consideration to the employment and career development 
of disabled persons, commensurate with their aptitudes 
and abilities. The Group’s policy in respect of staff who 
become disabled whilst employed is to make appropriate 
adjustments and to assist them wherever possible to 
continue employment within the Group. The Group is also 
committed to providing equal opportunities regardless of 
age, gender, religion or ethnic origin.
The Group ensures that all employees are kept fully 
informed, as far as it is practicable, with regard to the 
activities of the Group, by circulation of news and regular 
meetings between directors, managers and other 
employees. The London office of StatPro, the Group’s head 
office and base of UK operations, retains its Investors in 
People (IIP) award in recognition of the investment the 
Company has made in its people. The award reflects our 
commitment to and belief in the value of our staff, their 
performance and their contribution to the success of 
the business. Strategic Report Governance Financial Statements
36
Corporate Social Responsibility
The Group made charitable donations for educational 
purposes during the year of £42,000 (2013: £33,000),  
the main component of which related to scholarships and 
sponsorships to students from disadvantaged backgrounds 
to various educational establishments in South Africa.
StatPro’s new London headquarters has achieved the 
Low Carbon Workplace Standard under the Carbon Trust 
scheme which encourages businesses to reduce their 
carbon footprint.
Health and safety
The Group’s policy is to ensure that, as far as is reasonably 
practicable, working environments exist which will minimise 
risk to the health and safety of employees.
Legal form
The Company is a public limited company, incorporated 
and domiciled in England and Wales. The Company’s 
Registration number is 2910629.
Auditors
A resolution to re-appoint Ernst and Young LLP as 
independent auditor to the Company will be proposed 
at the Annual General Meeting.
By order of the Board.
Andrew Fabian
Company Secretary
12 March 2015
DIRECTORS’ REPORT
(CONTINUED...) 37
Stuart Clark is the Chairman of the Remuneration 
Committee and the other members of the committee 
are Carl Bacon, Mark Adorian and Jane Tozer. The 
remuneration of all executive directors and other senior 
executives is recommended to the Board by the Committee. 
The remuneration of the non-executive directors is 
determined by the Board. During the year the committee 
has reviewed salary surveys and the policies of other 
companies of a comparable nature and has taken 
professional advice in relation to the design of a new 
Long Term Incentive Plan.
Remuneration policy
The Group’s policy is to attract, retain and motivate high 
calibre executives by rewarding them with remuneration 
packages which reflect both individual performance and  
the results of the operations under their control. Packages 
consist of basic salary, performance-related bonuses, share 
options, pensions and other benefits, with a proportion 
of potential remuneration based upon achievement 
of demanding performance targets. Details of the 
remuneration package of each director are set out on  
pages 38 and 39.
The Group has implemented a remuneration policy to 
align the executives’ interests with the objectives of all 
shareholders. The current focus is on the execution of the 
cloud strategy, and the achievement of revenue growth 
for StatPro Revolution.
Basic salary and benefits
Salaries are established by reference to prevailing  
market rates, adjusted to reflect individual performance, 
experience, responsibilities and skills. The Remuneration 
Committee approved an increase in basic salary for Andrew 
Fabian to £158,000 with effect from 1 January 2015.
Non-executive fees
There were no changes to fee arrangements for non-
executive directors during 2014.
Annual performance-related bonus scheme
In addition to basic salary, executive directors and other 
senior executives participate in an annual performance-
related bonus scheme. Performance targets are designed 
to both stretch and encourage individuals whilst aligning 
their interests to that of the Group.
REMUNERATION REPORT
In 2014, the targets for performance-related bonuses for 
main Board executive directors related to the Group’s 
revenue growth rate for StatPro Revolution, combined 
with satisfactory profit generation. The Committee may 
also award individual discretionary bonuses. In 2014, there 
were no discretionary awards. Bonuses do not form part 
of pensionable earnings.
Long Term Incentive Plan
The committee has reviewed the LTIP arrangements for the 
senior executive team in consultation with external advisers 
and institutional shareholders. The remuneration committee 
has proposed a new incentive plan, in conjunction with 
professional and legal advice. The plan is a Performance 
Share Plan (‘PSP’), which consists of awards of nil cost 
options, primarily to executives who are on the Group 
Executive Board.
There will be performance criteria associated with  
an award, linked to eps growth above a certain level 
(i.e. non-market performance criteria). The performance 
level will affect the proportion of shares that are awarded 
at the end of the vesting period. There will be a potential 
further one year holding for a proportion of the award.
The scheme will be managed by a third party (Kleinwort 
Benson, Jersey), who will establish an Employee Benefit 
Trust and the plan is to buy shares in the market over the 
vesting period rather than issue new shares. The shares 
held in the Trust would not be entitled to dividends.
The PSP was approved by the shareholder general meeting 
on 26 February 2015 and the intention is to make the first 
awards in March 2015. The vesting periods for the first 
award will be three and four years.
Details of the options outstanding under the schemes are 
provided in note 20 to the financial statements.
The LTIP award granted in 2011 failed to vest and as a result 
options over 35,000 shares previously granted to Justin 
Wheatley and 35,000 shares previously granted to Andrew 
Fabian lapsed in 2014.
Pensions and other benefits
The Company also operates a defined contribution pension 
scheme for executive directors. Other benefits include 
allowances, life assurance and membership of a private 
healthcare scheme. Strategic Report Governance Financial Statements
38
155.0
65.0
Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14
132.5
110.0
87.5
— StatPro Group plc
— AIM All Share
Service contracts
Each of the executive directors has a rolling contract of service, which is terminable by no more than 12 months’ notice. In the 
event of termination of a service contract, compensation amounting to the notice period would be payable. Details of service 
agreements for each executive director are as follows:
Date of service agreement Notice period on termination
JMBT Wheatley 31 December 2012 6 months
AM Fabian 10 July 2000 12 months
StatPro International Sarl entered into a new employment contract with JMBT Wheatley on substantially the same terms 
as  his previous employment contract with effect from 1 January 2013. Justin Wheatley is currently on secondment to 
StatPro Inc.
Non-executive directors do not have service contracts. MC Adorian and CR Bacon seek re-election at the forthcoming 
Annual General Meeting. Biographical details of all directors can be found on pages 32 to 33.
Performance graph
In the opinion of the directors, the FTSE™ AIM index is the most appropriate benchmark for total shareholder return 
comparatives. For the five-year period from 31 December 2009 to 31 December 2014 the total shareholder return for 
StatPro was -19%. Over the same period the FTSE™ AIM total shareholder return was +7%.
Directors’ remuneration
2014
Salary/
fees
 £’000s
Performance-
related bonus 
£’000s
Discretionary 
bonus 
£’000s
Benefits*
£’000s
Total 
excluding 
pensions 
£’000s
Pensions 
£’000s
Total 
2014 
£’000s
CR Bacon 45 – – – 45 – 45
JMBT Wheatley 212 35 – 103 350 – 350
AM Fabian 155 40 – 10 205 20 225
MC Adorian 35 – – – 35 – 35
SJ Clark 36 – – – 36 – 36
JE Tozer 40 – – – 40 – 40
523 75 – 113 711 20 731
REMUNERATION REPORT
(CONTINUED...)
* Benefits in kind for JMBT Wheatley and AM Fabian relate to travel and car allowances, private healthcare and life assurance. 39
2013
Salary/fees 
£’000s
Performance-
related 
bonus 
£’000s
Discretionary 
bonus 
£’000s
Benefits* 
£’000s
Total 
excluding 
pensions 
£’000s
Pensions 
£’000s
Total 
2013 
£’000s
CR Bacon 41 – – – 41 – 41
JMBT Wheatley 229 35 – 99 363 – 363
AM Fabian 150 35 – 10 195 22 217
MC Adorian 33 – – – 33 – 33
SJ Clark 34 – – – 34 – 34
JE Tozer 35 – – – 35 – 35
522 70 – 109 701 22 723
* Benefits in kind for JMBT Wheatley and AM Fabian relate to travel and car allowances, private healthcare and life assurance.
Carl Bacon and Mark Adorian performed some consultancy services during 2014 for the Company as detailed in note 21.
Directors’ pension arrangements
The table below shows directors’ pension arrangements in respect of a defined contribution scheme.
Contribution 
rate 
£’000s
Relevant 
salary
 £’000s
Contributions 
2014 
£’000s
Contributions 
2013
 £’000s
AM Fabian 13% 155 20 22
StatPro operates a pension salary sacrifice arrangement where individuals can exchange their salary for Company 
paid pension contributions. Where individuals exchange salary this reduces StatPro’s National Insurance contributions. 
For executive directors, StatPro credits this saving to the individual’s pension. As part of JMBT Wheatley’s new service 
agreement, JMBT Wheatley has opted to swap pension benefits for other allowances and therefore, he received no 
pension contribution from the Company in 2014 or 2013.
Directors’ interests
Interests in shares
As at 31 December 
2014 
Number
As at 31 December 
2013 
Number
CR Bacon 829,000 800,000
JMBT Wheatley 7,433,672 7,378,672
AM Fabian 264,647 264,647
MC Adorian 2,956,148 2,873,548
SJ Clark 90,000 90,000
JE Tozer 24,752 24,752
In addition to the above interests, JMBT Wheatley has an interest in 307,580 ordinary shares (2013: 69,000) in a family 
trust, being a trustee and potential beneficiary of the trust. Strategic Report Governance Financial Statements
40
Interests in share options
As at 
31 December 
2013 
Number
Granted
 in year
Number
Exercised
 in year
Number
Lapsed
 in year 
Number
As at 
31 December 
2014 
Number
Exercise 
price
pence Exercise period
JMBT Wheatley 45,000 – – – 45,000 100 2011-2015*
35,000 – – (35,000) – 130 2014-2018*
1,000,000 – – – 1,000,000 108 2016-2022*
1,080,000 – – (35,000) 1,045,000
AM Fabian 35,000 – – – 35,000 100 2011-2015*
35,000 – – – 35,000 135 2013-2017*
35,000 – – (35,000) – 130 2014-2018*
150,000 – – – 150,000 108 2016-2022*
100,000 – – – 100,000 108 2016-2019*
355,000 – – (35,000) 320,000
* Performance criteria are attached to these options
Gains made by directors on share options
No directors exercised any options in 2014 and in 2013.
Share price
The highest and lowest mid-market prices of the Company’s ordinary shares during the year were 89.5p and 71p 
respectively, and the mid-market price on 31 December 2014 was 72.5p.
This report was approved by the Board on 12 March 2015.
Stuart Clark
Chairman of Remuneration Committee
12 March 2015
REMUNERATION REPORT
(CONTINUED...) 41
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STATPRO GROUP PLC
We have audited the financial statements of StatPro Group plc for the year ended 31 December 2014 which comprise Group 
Income Statement, Group Statement of Comprehensive Income, Group Balance Sheet, Company Balance Sheet, Group  
and Company Statements of Cash Flows, Group Statement of Changes in Shareholders’ Equity, Company Statements of 
Changes in Shareholders’ Equity and the related notes 1 to 27. The financial reporting framework that has been applied in 
their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European 
Union and, as regards the parent Company financial statements, as applied in accordance with the provisions of the 
Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies 
Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are 
required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not 
accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit 
work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditor
As explained more fully in the Directors’ Responsibilities Statement set out on pages 34 and 35, the directors are 
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.  
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and 
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices 
Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. 
This includes an assessment of: whether the accounting policies are appropriate to the Group’s and the parent Company’s 
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting 
estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the 
financial and non-financial information in the Annual Report and Accounts to identify material inconsistencies with the 
audited financial statements and to identify any information that is apparently materially incorrect based on, or materially 
inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent 
material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion:
• the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs  
as at 31 December 2014 and of the Group’s profit for the year then ended;
• the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European 
Union; 
• the parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the 
European Union and as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and the Directors’ Report for the financial year for which the 
financial statements are prepared is consistent with the financial statements. Strategic Report Governance Financial Statements
42
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, 
in our opinion:
• adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not 
been received from branches not visited by us; or
• the parent Company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or  
we have not received all the information and explanations we require for our audit.
Andy Glover (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
12 March 2015
Notes:
1 The maintenance and integrity of the StatPro Group plc website is the responsibility of the directors; the work carried out by the auditors does not 
involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial 
statements since they were initially presented on the website.
2 Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STATPRO GROUP PLC
(CONTINUED...) 43
Notes
2014
£’000s
2013
£’000s
Revenue 2 32,018 32,486
Operating expenses before amortisation of intangible assets and exceptional items (25,529) (24,712)
Amortisation of acquired intangible assets 11 (188) (402)
Amortisation of other intangible assets 11 (3,640) (3,639)
Exceptional item – increase in contingent consideration 3 – (347)
Operating expenses 3 (29,357) (29,100)
Operating profit 2,661 3,386
Finance income 6 12 35
Finance expense 6 (303) (308)
Net finance expense (291) (273)
Profit before taxation 2 2,370 3,113
Taxation 7 (774) (1,030)
Profit for the year 1,596 2,083
Earnings per share – basic 10 2.4p 3.1p
Earnings per share – diluted 10 2.4p 3.1p
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014
2014
£’000s
2013
£’000s
Profit for the year 1,596 2,083
Other comprehensive income to be reclassified to the income statement:
Net exchange differences (946) (3,126)
Total comprehensive income/(loss) for the year 650 (1,043)
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014 Strategic Report Governance Financial Statements
44
BALANCE SHEETS
AT 31 DECEMBER 2014
Notes
Group
2014
£’000s
Group
2013
£’000s
Company
2014
£’000s
Company
2013
£’000s
Non-current assets
Goodwill 11 46,724 47,927 – –
Other intangible assets 11 5,822 5,597 511 354
Property, plant and equipment 12 2,470 1,883 – –
Other receivables 14 109 135 15,781 14,345
Deferred tax assets 17 988 450 – –
Investments 13 – – 43,385 43,362
56,113 55,992 59,677 58,061
Current assets
Trade and other receivables 14 7,722 6,167 123 306
Financial instruments – other 18 27 102 27 102
Current tax assets – 29 – –
Cash and cash equivalents 2,692 4,014 897 1,331
10,441 10,312 1,047 1,739
Liabilities
Current liabilities
Financial liabilities – borrowings 18 (12) (12) – –
Financial instruments – other 18 (15) (1) (15) (1)
Trade and other payables 15 (6,088) (4,400) (15,945) (15,751)
Current tax liabilities (828) (581) (227) (253)
Deferred income (12,603) (12,678) – –
Provisions 16 (725) (842) (676) (725)
(20,271) (18,514) (16,863) (16,730)
Net current liabilities (9,830) (8,202) (15,816) (14,991)
Non-current liabilities
Other creditors 15 (76) (154) – –
Deferred tax liabilities 17 (449) (549) (84) (32)
Deferred income (60) (41) – –
Provisions 16 (13) (138) – –
(598) (882) (84) (32)
Net assets 45,685 46,908 43,777 43,038
Shareholders’ equity
Share capital 20 677 677 677 677
Share premium 23,474 23,472 23,474 23,472
Shares to be issued 63 63 63 63
Treasury shares (249) (249) (249) (249)
Other reserves 6,704 7,650 2,369 2,369
Retained earnings 15,016 15,295 17,443 16,706
Total shareholders’ equity 45,685 46,908 43,777 43,038
The financial statements were approved by the Board of Directors on 12 March 2015 and were signed on its behalf by: 
   
Justin Wheatley    Andrew Fabian
Director    Director 45
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2014
Notes
Group
2014
£’000s
Group
2013
£’000s
Company
2014
£’000s
Company
2013
£’000s
Operating activities
Cash generated from operations 22 7,705 9,403 1,698 4,235
Finance income 12 35 5 28
Finance costs (22) (133) (20) (130)
Tax paid (1,173) (1,616) (110) (594)
Net cash flow from operating activities 6,522 7,689 1,573 3,539
Investing activities
Payment of contingent consideration – (990) – (990)
Investment in intangible assets 11 (4,053) (3,482) (665) (1,267)
Purchase of property, plant and equipment 12 (1,863) (930) – –
Proceeds from the disposal of property, plant and equipment 12 – – –
Dividends received from subsidiaries – – 545 900
Net cash flow used in investing activities (5,904) (5,402) (120) (1,357)
Financing activities
Proceeds from issue of ordinary shares 20 2 – 2 –
Dividends paid to shareholders 9 (1,889) (1,856) (1,889) (1,856)
Net cash flow used in financing activities (1,887) (1,856) (1,887) (1,856)
Net (decrease)/increase in cash and cash equivalents (1,269) 431 (434) 326
Cash and cash equivalents at 1 January 4,014 3,681 1,331 1,005
Effect of exchange rate movements (53) (98) – –
Cash and cash equivalents at 31 December 2,692 4,014 897 1,331 Strategic Report Governance Financial Statements
46
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2014
Share  
capital
£’000s
Share  
premium
£’000s
Shares to  
be issued
£’000s
Treasury  
shares
£’000s
Other  
reserves
£’000s
Retained  
earnings
£’000s
Total  
equity
£’000s
At 1 January 2013 677 23,472 63 (249) 10,776 14,881 49,620
Profit for the year – – – – – 2,083 2,083
Other comprehensive income – – – – (3,126) – (3,126)
Total comprehensive income – – – – (3,126) 2,083 (1,043)
Transactions with owners:
Share based payment transactions – – – – – 192 192
Tax relating to share option scheme – – – – – (5) (5)
Dividends – – – – – (1,856) (1,856)
– – – – – (1,669) (1,669)
At 31 December 2013 677 23,472 63 (249) 7,650 15,295 46,908
Share  
capital
£’000s
Share  
premium
£’000s
Shares to  
be issued
£’000s
Treasury  
shares
£’000s
Other  
reserves
£’000s
Retained  
earnings
£’000s
Total  
equity
£’000s
At 1 January 2014 677 23,472 63 (249) 7,650 15,295 46,908
Profit for the year – – – – – 1,596 1,596
Other comprehensive income – – – – (946) – (946)
Total comprehensive income – – – – (946) 1,596 650
Transactions with owners:
Share based payment transactions – – – – – 26 26
Tax relating to share option scheme – – – – – (12) (12)
Shares issued – 2 – – – – 2
Dividends – – – – – (1,889) (1,889)
– 2 – – – (1,875) (1,873)
At 31 December 2014 677 23,474 63 (249) 6,704 15,016 45,685
Other reserves include merger reserves of £2,369,000 (2013: £2,369,000) and translation reserve of £4,335,000  
(2013: £5,281,000). The merger reserve arose on acquisitions and represents the difference between the fair value of 
shares issued and the nominal value of the shares. The translation reserve incorporates the gains and losses on revaluation 
of the net assets and liabilities of subsidiary undertakings and other currency gains and losses that are treated as part  
of equity.  47
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2014
Share  
capital
£’000s
Share 
premium
£’000s
Shares to 
 be issued
£’000s
Treasury 
shares
£’000s
Other 
reserves
£’000s
Retained 
earnings
£’000s
Total  
equity
£’000s
At 1 January 2013 677 23,472 63 (249) 2,369 14,349 40,681
Profit for the year – – – – – 4,026 4,026
Other comprehensive income – – – – – – –
Total comprehensive income – – – – – 4,026 4,026
Transactions with owners:
Share based payment transactions – – – – – 192 192
Tax relating to share option scheme – – – – – (5) (5)
Dividends – – – – – (1,856) (1,856)
– – – – – (1,669) (1,669)
At 31 December 2013 677 23,472 63 (249) 2,369 16,706 43,038
 
Share  
capital
£’000s
Share 
premium
£’000s
Shares to 
 be issued
£’000s
Treasury 
shares
£’000s
Other 
reserves
£’000s
Retained 
earnings
£’000s
Total  
equity
£’000s
At 1 January 2014 677 23,472 63 (249) 2,369 16,706 43,038
Profit for the year – – – – – 2,612 2,612
Other comprehensive income – – – – – – –
Total comprehensive income – – – – – 2,612 2,612
Transactions with owners:
Share based payment transactions – – – – – 26 26
Tax relating to share option scheme – – – – – (12) (12)
Shares issued – 2 – – – – 2
Dividends – – – – – (1,889) (1,889)
– 2 – – – (1,875) (1,873)
At 31 December 2014 677 23,474 63 (249) 2,369 17,443 43,777
Other reserves are merger reserves of £2,369,000 (2013: £2,369,000). The merger reserve arose on acquisitions and 
represents the difference between the fair value of shares issued and the nominal value of the shares. Share based 
payment transactions in reserves include a credit of £23,000 (2013: 179,000) relating to investments in subsidiaries. Strategic Report Governance Financial Statements
48
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
1 Principal accounting policies
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies 
have been consistently applied to all the years presented unless otherwise stated.
Accounting convention
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)  
and IFRIC interpretations endorsed by the European Union (EU) and those parts of the Companies Act 2006 applicable  
to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention 
modified to include the measurement of financial assets and liabilities at fair value through profit or loss. A summary of  
the significant Group accounting policies is set out below, together with an explanation of where changes have been made 
to previous policies on the adoption of new accounting standards in the year.
As permitted by Section 408 of the Companies Act 2006, the Company has not presented its own income statement or 
statement of comprehensive income. The profit after taxation for the financial year of the Company was £2,612,000 
(2013: £4,026,000). 
The Group and parent Company financial statements are presented in Sterling and all values are rounded to the nearest 
thousand pounds (£’000s) except where otherwise indicated.
Basis of preparation – going concern
The Group operates in the asset management sector of the financial services industry and whilst many of our clients are 
part of banking groups most of them are relatively resilient to the challenging economic backdrop. This is because, like 
StatPro itself, they themselves have recurring revenue business models and, to a large extent, the services and software 
provided by StatPro are reasonably embedded within their core operations. StatPro has a client base of around 500  
(2013: 450), which is diversified geographically and by product and with no significant client concentration. The largest client 
group, which comprises a number of contracts for a variety of products and in a number of territories, represents less than 
6% of recurring revenue. StatPro has a level of cancellations each year but most of our contracts are multi-year agreements 
which roll into subsequent commitments unless written notice is given to terminate the contract. For most software 
contracts the annual licence fee is payable in advance and for data contracts the fees are monthly in advance. For these 
reasons, we have good visibility on any potential deterioration in our trading outlook and potential risks to our business.
Renewals occur throughout the year although there is a slightly greater weighting in the fourth quarter. The Board closely 
monitors clients that are potentially at risk of cancellation as well as the pipeline of new business. 
The Group has both cash and undrawn credit facilities available to support its business operations and therefore the Board 
believes that the Group is well-positioned to manage the business risks. In reaching their conclusion the Board has reviewed 
cash flow forecasts. After making appropriate enquiries, the directors have a reasonable expectation that the Group has 
adequate resources to continue in operational existence for the foreseeable future. For these reasons, the Board continues 
to adopt the going concern basis in preparing the Group and Company financial statements.
Critical accounting estimates and judgements
The preparation of financial statements under IFRS requires management to make estimates and assumptions concerning 
the future. The resulting accounting estimates will, by definition, therefore not necessarily equate to the actual outcome. 
Estimates are made by the directors based on experience and estimates believed to be reasonable expectations of future 
outcomes. Critical accounting estimates and judgements are made in the following areas:
• Impairment of goodwill;
• Carrying value of development assets;
• Uncertain tax positions. 49
The accounting policies in respect of these items are set out below and further details can be found in notes 11 and 17.
Impairment of goodwill
The Group’s impairment test for goodwill and intangible assets with indefinite useful lives is based on a value in use 
calculation. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from  
the budget and projections for the next five years and do not include restructuring activities that the Group is not yet 
committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being 
tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as 
the expected future cash-inflows and the growth rate used for extrapolation purposes. The key assumptions used to 
determine the recoverable amount for the different cash generating units, including a sensitivity analysis, are disclosed 
further in note 11.
Carrying value of development assets
Development costs are capitalised in accordance with Group accounting policy. Initial recognition is based on 
management’s judgement that technological and economical feasibility is confirmed, usually when a product development 
project has reached a defined milestone according to an established project management model. In determining the 
amounts to be capitalised, management makes assumptions regarding the expected future cash generation of the assets, 
discount rates to be applied and the expected period of the benefits.
Uncertain tax positions
The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by tax authorities of 
the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience 
with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax 
authority. Management judgement is required to determine the amount of deferred tax assets that can be recognised, 
based upon the likely timing and the level of future taxable profits together with an assessment of the effect of future tax 
planning strategies. 
New and amended accounting standards and interpretations
The following new and amended IFRS and IFRIC interpretations were effective as of 1 January 2014:
• IFRS 10 Consolidated Financial Statements – 1 January 2014;
• IFRS 11 Joint Arrangements – 1 January 2014;
• IFRS 12 Disclosure of interest in other entities – 1 January 2014;
• IAS 27 (amendment) Consolidated and separate financial statements – 1 January 2014;
• IAS 28 (amendment) Investments in associates and joint ventures – 1 January 2014;
• IAS 32 (amendment) Offsetting financial assets and liabilities – 1 January 2014; and
• IAS 36 (amendment) Recoverable amount disclosures for non-financial assets – 1 January 2014.
There was no material impact to the Group’s results in adopting these standards.
Interpretations and revised standards that are not yet effective and have not been early adopted by the Group
The following interpretations to existing standards have been published that are mandatory for the Group’s future 
accounting but which the Group has not adopted early. Management has not yet fully assessed the impact of these 
new standards:
• IFRS 9 Financial Instruments – Classification and Measurement – 1 January 2018;
• IFRS 14 Regulatory Deferral Accounts – 1 January 2016; and
• IFRS 15 Revenue from Contracts with Customers – 1 January 2017.
Basis of consolidation 
The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings all 
made up to 31 December each year. Subsidiaries are entities over which the Group has the power to govern the financial 
and operating policies generally accompanying a shareholding of more than one half of the voting rights. Strategic Report Governance Financial Statements
50
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...)
Revenue
Revenue represents the invoiced value of goods and services, excluding value added tax, of the following: 
a) Licence revenue and related software support contracts 
 Licence revenue and software support contract income relating to obligations under contracts is recognised in the 
income statement over the period of the contract, on a monthly basis, from the start of the month in which the licence 
commences. Any balance not relating to the accounting period is carried forward as deferred income on the 
balance sheet. 
b) Data fees
 Data fee income is recognised in the income statement over the period of the contract, on a monthly basis, from the 
start of the month in which the contract commences. Any balance not relating to the accounting period is carried 
forward as deferred income on the balance sheet. Data overage revenue on data contracts (data revenue in excess  
of contracted amount) is recognised in the period that the overage was incurred.
c) Professional services revenue
 Income relating to consultancy projects is recognised in the income statement as a right to consideration is established 
as a result of performance.
d) Royalty revenue 
 Income is recognised in the income statement as rights to consideration accrue.
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating 
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance 
of the operating segments, has been identified as the Group Executive Board (see note 2).
Research and development 
Expenditure on research and development comprises salaries and related costs of personnel involved in software 
programming and development activities. Development costs are capitalised where the appropriate recognition criteria in 
accordance with IAS 38 are met including the asset and related costs being separately identifiable, the use of the asset 
being technically feasible and intended and the asset being expected to generate future benefits. As a result there is an 
intangible asset relating to capitalised development costs (both internally developed and acquired) recognised on the 
Group’s balance sheet where the Board expects the benefits to be recovered through incremental revenue from future 
sales. The carrying values, which are analysed by product, are considered carefully by the Board and are reviewed for 
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. 
Intangible assets – customer contracts
Customer contracts acquired with acquisitions are valued based on the net contribution expected to be realised over the 
estimated life of the contracts and discounted at an appropriate discount rate, taking into account any tax effects. The 
carrying values are reviewed for impairment whenever events or changes in circumstances indicate that the carrying 
amount may not be recoverable. 
Goodwill 
For business combinations before 1 January 2010, goodwill is calculated as the difference between the fair value of the 
consideration including all costs relating to the acquisition and the fair value of the Group’s share of the identifiable net 
assets of the acquired entity. In accordance with IFRS 3 (Revised), the calculation of goodwill relating to any acquisitions 
that completed after 1 January 2010 will not include any acquisition related costs. Goodwill is not amortised but is subject 
to annual impairment reviews. Goodwill arising on acquisitions prior to 1 January 2004 has been frozen with effect from 
1 January 2004 and is no longer amortised but subject to annual impairment reviews.  51
Business combinations
The results and net assets of subsidiary undertakings acquired are included in the Group income statement and balance 
sheet using the acquisition method of accounting from the effective date of acquisition, the date control is gained over the 
subsidiary. The results, and net assets of subsidiary undertakings disposed of, are included in the Group income statement 
and balance sheet using the acquisition method of accounting to the effective date of disposal. Income and expenditure 
relating to transactions between Group undertakings are eliminated on consolidation. 
Amortisation
The cost of other intangible assets are amortised on a straight line basis over the expected useful lives of the assets 
as follows:
Development costs internally generated   – 33% p.a.
Customer contracts    – over the period of the contracts (between 3 and 7 years) 
Other intangibles – software   – between 14% and 33% p.a.
Other intangibles – website development costs – 33% p.a. 
Other intangibles – trademarks   – 10% p.a. 
Depreciation
The cost of property, plant and equipment is depreciated on a straight line basis over the expected useful lives of the assets 
as follows:
Improvements to short leasehold property  – over the period of the lease (between 3 and 12 years)
Office equipment      – between 10% and 20% p.a. 
Fixtures and fittings    – between 10% and 20% p.a. 
Computer equipment    – 33% p.a. 
Investments 
Investments in subsidiary undertakings are stated at cost including estimated contingent consideration less any provisions 
for impairment.
Current and deferred taxation 
The tax expense for the period comprises current and deferred tax. The current tax charge is calculated on the basis of the 
tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company’s subsidiaries 
operate and generate taxable income. Deferred taxation is recognised in respect of all temporary differences between  
the tax bases of assets and liabilities and their carrying amounts in the financial statements at the balance sheet date  
and where these transactions or events result in an obligation to pay more tax, or a right to pay less tax in the future. 
Temporary differences are differences between the Group’s taxable profits and its results as stated in the financial 
statements. Deferred taxation assets are only recognised when their recoverability is more probable than not. Deferred 
taxation is measured at the average tax rates that are expected to apply in the periods in which the temporary differences 
are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted at the balance 
sheet date. Recognised deferred tax is measured on a non-discounted basis. 
Leased assets 
Rentals applicable to operating leases are charged to the income statement on a straight line basis over the term of 
the lease. Strategic Report Governance Financial Statements
52
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...)
Financial instruments 
Financial Assets
The Group classifies its financial assets in the following categories: fair value through profit or loss, loans and receivables, 
and available for sale. The classification depends on the purpose for which the financial assets were acquired. The directors 
determine the classification of its financial assets at initial recognition.
a) Financial assets at fair value through profit or loss
 Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in 
this category if acquired principally for the purpose of use in the short-term. Derivatives are also categorised as held for 
trading unless they are designated as hedges. Assets in this category are presented as current assets.
b) Loans and receivables
 Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in 
an active market. They are presented in current assets, except for those with maturities greater than 12 months after 
the balance sheet date, which are presented as non-current assets. 
c) Available-for-sale financial assets
 The Company does not hold any assets available for sale (other than investments in subsidiaries which are deemed to  
be assets available for sale).
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated  
at amortised cost; any difference between the proceeds (net of prepaid transaction costs) and the redemption value 
(including interest) is recognised in the income statement over the period of the borrowings using the effective interest 
method. Borrowings are classified as current liabilities unless the facility is committed such that the Group has an 
unconditional right to defer settlement for at least 12 months from the balance sheet date.
Cash and cash equivalents
The Group considers all bank deposits and highly liquid investments of less than three months’ maturity (which are 
considered to have insignificant risk to a change in value) to be cash equivalents. Bank overdrafts are excluded from cash 
and cash equivalents and are presented within borrowings in current liabilities on the balance sheet.
Provisions 
A provision is recognised when the Group has a legal or constructive obligation as a result of a past event; it is probable 
that an outflow of economic benefits will be required to settle the obligation; and a reliable estimate can be made of the 
amount of the obligation. If the effect is material, expected future cash flows are discounted using a current pre-tax rate 
that reflects, where appropriate, the risks specific to the liability.
Pensions 
The Group provides contributions on behalf of certain directors and employees to a defined contribution pension scheme. 
Contributions payable in the year are charged to the income statement.
Share-based payments 
In common with many high-growth technology enterprises, the Company has issued a number of share options to 
executives and employees. Under IFRS, the equity-settled, share-based payment awards are valued at fair value at 
inception and this cost is recognised over the option vesting period (typically three years). As there is no readily available 
market price for the options the Board has used an independent model to estimate the fair value of the options. There are a 
number of assumptions that affect the value and the Board has carefully considered these assumptions in order to derive 
an appropriate charge for the cost of options (note 20). The financial effects of awards by the Company of options over its 
equity shares to employees of subsidiary undertakings are recognised by the Company in its individual statements as an 
increase in its investment in subsidiaries with a credit to equity equivalent to the IFRS 2 cost in subsidiary undertakings.  53
Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Group’s financial statements in the period 
in which the dividend becomes a liability of the Company. In the case of an interim dividend this is on the payment date; for 
final dividends this arises on the passing of the relevant resolution at the Annual General Meeting of the shareholders.
Exceptional items
Significant items which are separately disclosed on the face of the income statement by virtue of their size or incidence to 
enable a full understanding of the Group’s financial performance.
Foreign currencies 
Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and 
liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.  
All differences are taken to the income statement. The assets and liabilities of overseas subsidiary undertakings are 
translated at the rate of exchange ruling at the balance sheet date. The profit and loss for the year is translated at the 
average rate for the year. The exchange differences arising on retranslation of opening net assets are taken to other 
comprehensive income. The difference between the profit and loss at the average rate and closing rate are taken to other 
comprehensive income. All other translation differences are taken to the income statement. 
2 Segmental information 
The Group’s operating segments have been determined based on the information regularly reviewed by the Group 
Executive Board, which has been identified as the chief operating decision maker (‘CODM’). The Group Executive Board 
considers the business to be split into two primary geographical markets: EMEAA and North America. Central costs relate  
to the expenses related to the Group’s headquarters and costs directly associated with the parent Company, which are 
managed by the Group management team. The external debt is held within Central. 
All revenue, profit/(loss) before taxation and total assets are attributable to the principal activity of the Group, being the 
development, marketing and distribution of software systems and the provision of web-based portfolio analysis and  
asset pricing services to the global asset management industry. Segment assets represent those assets arising from the 
operating activities of those segments. Segment results exclude the impact of any intercompany recharges of revenues or 
costs. Revenue was generated in the UK of £6.2 million (2013: £6.0 million) with non-current assets held by UK entities 
totalling £30.9 million (2013: £31.1 million). Strategic Report Governance Financial Statements
54
For the year ended 31 December 2014:
EMEAA
£’000s
North 
America
£’000s
Central
£’000s
Total
£’000s
Revenue 20,820 11,198 – 32,018
Segment expense (16,453) (10,810) (2,094) (29,357)
Operating profit/(loss) 4,367 388 (2,094) 2,661
Finance net income/(expense) 3 1 (295) (291)
Profit/(loss) before taxation 4,370 389 (2,389) 2,370
Statement of financial position
Assets 29,162 36,444 948 66,554
Liabilities (13,698) (5,452) (1,719) (20,869)
Net assets 15,464 30,992 (771) 45,685
Other
Purchase of property, plant and equipment 1,198 665 – 1,863
Net investment in intangible assets 2,786 602 665 4,053
Depreciation of property, plant and equipment 557 635 – 1,192
Amortisation of intangibles 3,504 324 – 3,828
For the year ended 31 December 2013:
EMEAA
£’000s
North
America
£’000s
Central
£’000s
Total
£’000s
Revenue 20,449 12,037 – 32,486
Segment expense (16,262) (11,011) (1,827) (29,100)
Operating profit/(loss) 4,187 1,026 (1,827) 3,386
Finance net income/(expense) 5 1 (279) (273)
Profit/(loss) before taxation 4,192 1,027 (2,106) 3,113
Statement of financial position
Assets 29,097 36,267 940 66,304
Liabilities (13,205) (4,126) (2,065) (19,396)
Net assets 15,892 32,141 (1,125) 46,908
Other
Purchase of property, plant and equipment 605 325 – 930
Net investment in intangible assets 2,055 160 1,267 3,482
Depreciation of property, plant and equipment 418 480 – 898
Amortisation of other intangibles 3,555 486 – 4,041
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 55
The split of revenue for the year by type was as follows:
2014
£ million
2013
£ million
Change
%
Revenue
Software licences – StatPro Seven 21.65 24.02 (10%)
Software licences – StatPro Revolution 3.66 2.19 67%
Software licences – Total 25.31 26.21 (3%)
Data fees 3.95 4.21 (6%)
Total recurring revenue 29.26 30.42 (4%)
Professional services and other revenue 2.76 2.07 33%
Total revenue 32.02 32.49 (1%)
3 Operating expenses
2014
£’000s
2013
£’000s
Operating expenses relate to:
Staff costs 
– Research and development 4,985 4,440
– Other staff costs 10,962 10,984
– Share based payments 26 192
– Internal development costs capitalised (note 11) (3,615) (3,404)
Total staff costs (note 4) 12,358 12,212
Depreciation of property, plant and equipment 1,192 898
Amortisation of intangible assets 3,828 4,041
Operating lease rentals in respect of:
– Land and buildings 1,670 1,502
– Other 57 123
Auditors’ remuneration (see below) 172 139
Exceptional items – 347
Other operating expenses 10,097 9,564
Exchange differences (17) 274
Total operating expenses 29,357 29,100
Auditors’ remuneration
During the year the Group (including its overseas subsidiaries) obtained the following services from the Group’s auditor:
2014
£’000s
2013
£’000s
Audit of the financial statements 73 72
Local statutory audits of subsidiaries 35 35
Total Group audit fees 108 107
Audit-related assurance services 16 16
Taxation compliance services 13 10
Taxation advisory services 35 6
172 139 Strategic Report Governance Financial Statements
56
Exceptional items
There were no exceptional items in 2014. Following a project to streamline core internal services (IT, finance and HR), we 
decided to relocate the Toronto team to a smaller office. Whilst not treated as an exceptional item, there was a one-off 
charge relating to the office lease of around £0.35 million. 
The exceptional charge of £0.35 million in 2013 related to additional contingent consideration for the SiSoft acquisition.
Adjusted profit before taxation, adjusted operating profit margin and adjusted EBITDA
In order to provide the reader of the accounts with profit measures that more clearly demonstrate the underlying business 
performance from year to year a number of adjusted profit measures are shown below.
Adjusted profit before taxation
2014
£’000s
2013
£’000s
Profit before taxation 2,370 3,113
Add back: Amortisation on acquired intangible assets 188 402
Add back: Share based payments 26 192
Add back: Exceptional items – 347
Adjusted profit before tax 2,584 4,054
Adjusted operating profit
2014
£’000s
2013
£’000s
Operating profit 2,661 3,386
Add back: Amortisation on acquired intangible assets 188 402
Add back: Share based payments 26 192
Add back: Exceptional items – 347
Adjusted operating profit 2,875 4,327
Adjusted operating margin 9.0% 13.3%
Adjusted EBITDA
2014
£’000s
2013
£’000s
Operating profit 2,661 3,386
Add back: Depreciation of property, plant and equipment 1,192 898 
Add back: Amortisation on purchased intangible assets 292 238
Add back: Amortisation on acquired intangible assets 188 402
Add back: Share based payments 26 192
Add back: Exceptional items – 347
Adjusted EBITDA 4,359 5,463
Adjusted EBITDA margin 13.6% 16.8%
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 57
Free cash flow
2014
£’000s
2013
£’000s
Cash generated from operations 7,705 9,403
Net interest paid (10) (98)
Net tax paid (1,173) (1,616)
Purchase of property, plant and equipment (1,863) (930)
Investment in intangible assets (4,053) (3,482)
Free cash flow 606 3,277
4 Employees
The average number of full time equivalent employees, including executive directors, employed by the Group during the 
year was as follows:
2014
Number 
2013
Number 
By activity 
Selling, distribution and client services 134 133
Research and development 79 77
Operations, management and administration 38 39
251 249
The number of employees at the end of December 2014 was 245 (2013: 255). The number of full time equivalent employees 
directly employed by the Company was 1 (2013: 1).
2014
£’000s
2013
£’000s
Staff costs:
Wages and salaries 13,610 13,065
Share based payments (note 20) 26 192
Social security costs 1,890 1,913
Other pension costs 447 446
15,973 15,616
Capitalisation of internal development costs (3,615) (3,404)
Employee costs charged to income statement (note 3) 12,358 12,212
5 Directors’ emoluments 
Details of the remuneration of each director, pension entitlements and share options are included in the Remuneration 
Report on pages 38 to 40. For the remuneration of key management personnel see note 21.
6 Net finance costs
2014
£’000s
2013
£’000s
Bank interest receivable 12 35
Bank interest payable (106) (132)
Amortisation of arrangement fees (197) (176)
Net finance expense (291) (273) Strategic Report Governance Financial Statements
58
7 Taxation 
2014
£’000s
2013
£’000s
Current tax
Current tax on profits for the year (1,303) (1,457)
Adjustments in respect of prior years (125) 13
Total current tax (1,428) (1,444)
Total deferred tax 654 414
Income tax expense (774) (1,030)
The portion of exchange differences taken to equity as shown in the Group Statement of Comprehensive Income that has a 
tax impact solely relates to the exchange differences arising on the translation of the borrowings as disclosed in note 18. In 
2014, the tax credit relating to these items is £16,000 (2013: £39,000).
The tax on the Group’s profit before tax differs from the standard rate of corporation tax in the UK of 21.5% (2013: 23.5%) 
as follows:
2014
£’000s
2013
£’000s
Profit before tax 2,370 3,113
Tax charge on profit before tax at standard rate of corporation tax in the UK of 21.5% (2013: 23.5%) (510) (732)
Tax effects of:
Enhanced tax deductions 272 116
Unrecognised deferred tax movement (232) 68
Recognition of previously unrecognised deferred tax asset 523 –
Adjustments in respect of prior years (125) 13
Effect of higher overseas taxes on current taxes (311) (218)
Effect of higher overseas taxes on deferred taxes (391) (277)
Tax charge (774) (1,030)
8 Non-controlling interests 
The Group exercised its option to acquire a 49% non-controlling interest in SiSoft in June 2010, and in July 2013 we 
completed the acquisition of 55% of the minority interest (i.e. approximately 27% of the shares). Vendors representing 
approximately 22% of the shares (i.e. 45% of the 49% minority interest) are disputing certain aspects of the valuation and 
we are in a legal process in the French Commercial Court to resolve the matter. There is therefore a risk that the final 
consideration determined by the Court including related costs will be higher than the amount provided – see notes 16  
and 26. We will provide a further update if the position changes materially or on the completion of the acquisition.
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 59
9 Dividends
Dividends of £1.89 million (2013: £1.86 million) were paid during the year as follows:
Dividend
Dividend
rate
p/share
2014
Amount
£’000s
Final dividend 2013 1.95 1,316 
Interim dividend 2014 0.85 573 
 1,889 
Dividend
Dividend
rate
p/share
2013
Amount
£’000s
Final dividend 2012 1.9 1,282 
Interim dividend 2013 0.85 574 
 1,856 
The directors have recommended a final dividend of 2.05p per ordinary share for 2014 (2013: 1.95p) resulting in a total 
dividend for the year of 2.9p per ordinary share (2013: 2.8p). If the 2014 final dividend is approved at the Annual General 
Meeting in May 2015 the dividend will be paid on 27 May 2015 to shareholders on the register at the close of business on 
1 May 2015 (ex-div date 30 April 2015). In accordance with IFRS, the dividend is not provided for as a liability in the accounts 
until it becomes a legal liability of the Company and will therefore be recorded in the interim and annual accounts for 2015. 
10 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders by the weighted average 
number of ordinary shares in issue during the year. Diluted earnings per share is calculated by adjusting the weighted 
number of ordinary shares outstanding to assume conversion of all dilutive potential shares into ordinary shares. The 
Company has two categories of dilutive potential ordinary shares: shares to be issued and share options. For the share 
options, a calculation is performed to determine the number of shares that could have been acquired at fair value 
(determined as the average annual market share price of the Company’s shares) based on the monetary value of the 
subscription rights attached to the outstanding share options. The number of shares calculated as above is compared with 
the number of shares that would have been issued assuming the exercise of the share options. 
Earnings per share – basic and diluted
Earnings
2014
£’000s
Weighted 
average 
number of 
shares 
2014
‘000s
Earnings  
per share 
2014
pence
Earnings
2013
£’000s
Weighted 
average 
number of 
shares 
2013
‘000s
Earnings  
per share 
2013
pence
Earnings per share – basic 1,596 67,479 2.4 2,083 67,479 3.1
Potentially dilutive shares – 60 (0.0) – 69 (0.0)
Earnings per share – diluted 1,596 67,539 2.4 2,083 67,548 3.1 Strategic Report Governance Financial Statements
60
Earnings per share – adjusted 
Earnings
2014
£’000s
Weighted 
average 
number of 
shares
2014
‘000s
Earnings  
per share 
2014
pence
Earnings
2013
£’000s
Weighted 
average 
number of 
shares
2013
‘000s
Earnings  
per share 
2013
pence
Earnings per share – basic 1,596 67,479 2.4 2,083 67,479 3.1
Add back: amortisation of acquired intangibles 188 – 0.3 402 – 0.6
Add back: share based payments 26 – 0.0 192 – 0.3
Add back: exceptional items – – – 347 – 0.5
Adjusted earnings per share 1,810 67,479 2.7 3,024 67,479 4.5
Potentially dilutive shares – 60 (0.0) – 69 (0.0)
Adjusted earnings per share – diluted 1,810 67,539 2.7 3,024 67,548 4.5
The adjusted earnings per share information has been provided in order to assist the reader to understand the underlying 
performance of the business on a comparable basis. Potentially dilutive shares exclude any anti-dilutive share options.
11 Intangible assets
Group goodwill
Cost £’000s
At 1 January 2013 51,521
Exchange differences (3,594)
At 31 December 2013 47,927
Exchange differences (1,203)
At 31 December 2014 46,724
The movement on goodwill relates to exchange differences of £1.20 million (2013: £3.59 million). The total goodwill of  
£46.72 million includes goodwill for the North American region of £30.95 million (2013: £31.76 million) and goodwill for  
the EMEAA region of £15.77 million (2013: £16.17 million).
Goodwill impairment review
The carrying value of goodwill arising on acquisition is reviewed at each balance sheet date to assess whether there has 
been any impairment. Goodwill arising on acquisitions is allocated to cash generating units (CGUs) by considering the 
Group’s share of the cash that is expected to be generated by the business or product that was acquired. The evaluation is 
based on management forecasts over the period five years forward and assuming a terminal value based on 3% growth 
thereafter. Discount rates are based upon a prudent risk-adjusted pre-tax weighted average cost of capital.
2014 2013
Discount rate for CGUs 
EMEAA 9% 9%
North America 10% 10%
To assess for impairment, the value in use of the CGU is compared to the goodwill. If the resultant net present value of the 
discounted cash flows is less than the carrying value for goodwill the difference is written off through the income statement. 
Key assumptions in the projection of cash flows are: levels of new sales, renewal rates, growth in expenses and the discount 
rate. Management base these projections on the latest budgets and forecasts which take into account market conditions 
and economic factors. The headroom is therefore dependent upon sensitivities to these and other assumptions. The 
largest element of goodwill is in the North American region and if EBITDA in the region were 28% below forecast then this 
could result in impairment. 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 61
2014 2013
Sensitivity for North America
Headroom at 10% discount rate £12 million £10 million
Headroom at 7.5% discount rate £39 million £36 million
Discount rate indicating impairment 13% 12%
The fair value measure is also sensitive to exchange rates, and could have an impact on the goodwill impairment 
assessment.  In particular the value of goodwill related to the FRI acquisition is linked to the Canadian dollar, whereas  
the underlying projection of cash flows is linked to exchange rates for several currencies.  As a result, a strengthening 
Canadian dollar could have an adverse impact on the measured headroom. The goodwill on all acquisitions has been 
reviewed and, in the opinion of the directors, there is no impairment to the carrying value at 31 December 2014 (2013: nil). 
Other intangible assets
Group
Development 
costs 
– internally 
generated 
£’000s
Customer 
contracts
– acquired 
£’000s
Other 
intangibles
– purchased
£’000s
Intangible 
assets
– total 
£’000s
Cost 
At 1 January 2014 20,333 2,934 898 24,165
Additions 3,615 – 438 4,053
Exchange differences – (41) (25) (66)
At 31 December 2014 23,948 2,893 1,311 28,152
Amortisation 
At 1 January 2014 15,352 2,714 502 18,568
Charge for the year 3,348 188 292 3,828
Exchange differences – (41) (25) (66)
At 31 December 2014 18,700 2,861 769 22,330
Net book value     
At 31 December 2014 5,248 32 542 5,822
Included within internally generated development costs are costs capitalised of £2.13 million in relation to StatPro 
Revolution (2013: £1.87 million); the amortisation charge during 2014 was £1.84 million (2013: £1.64 million). Strategic Report Governance Financial Statements
62
Development 
costs 
– internally 
generated 
£’000s
Customer 
contracts
– acquired 
£’000s
Other 
intangibles
– purchased
£’000s
Intangible 
assets
– total 
£’000s
Cost 
At 1 January 2013 16,929 3,075 875 20,879
Additions 3,404 – 78 3,482
Exchange differences – (141) (55) (196)
At 31 December 2013 20,333 2,934 898 24,165
Amortisation 
At 1 January 2013 11,951 2,453 313 14,717
Charge for the year 3,401 402 238 4,041
Exchange differences – (141) (49) (190)
At 31 December 2013 15,352 2,714 502 18,568
Net book value     
At 31 December 2013 4,981 220 396 5,597
Company
Development
costs
– internally 
generated 
£’000s
Other
intangibles
– purchased
£’000s
Intangible 
assets
– total
£’000s
Cost
At 1 January 2014 8,695 19 8,714
Additions 665 – 665
At 31 December 2014 9,360 19 9,379
Amortisation 
At 1 January 2014 8,354 6 8,360
Charge for the year 506 2 508
At 31 December 2014 8,860 8 8,868
Net book value    
At 31 December 2014 500 11 511
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 63
Development
costs
– internally 
generated 
£’000s
Other
intangibles
– purchased
£’000s
Intangible 
assets
– total
£’000s
Cost
At 1 January 2013 7,428 19 7,447
Additions 1,267 – 1,267
At 31 December 2013 8,695 19 8,714
Amortisation 
At 1 January 2013 7,233 4 7,237
Charge for the year 1,121 2 1,123
At 31 December 2013 8,354 6 8,360
Net book value    
At 31 December 2013 341 13 354
Acquired and internally generated development costs
Expenditure on research and development comprises salaries and related costs of personnel involved in software 
programming and development activities. Development costs are capitalised, where recognition criteria are met. As a 
result, there is an intangible asset relating to capitalised development costs (both internally developed and acquired) 
recognised on the Group’s balance sheet where the Board expects the benefits to be recovered through incremental 
revenue from future sales. Development expenditure is amortised over a three year period as, in the opinion of the 
directors, this is the period over which the benefits arise. The carrying values, which are analysed by product, are 
considered carefully by the Board and if there has been any impairment in any development costs then the carrying  
value is written down accordingly. There was no impairment in 2014 (2013: nil). 
Customer contracts
Customer contracts acquired were valued on acquisition by estimating the future cash flows to be derived from those 
contracts over a period varying between three and seven years depending on the type of contract and discounting cash 
flows at a discount rate of 10% (2013: 10%), adjusting for any tax impact. The resultant fair value for the acquired customer 
contracts is amortised over a period of between three and seven years as, in the opinion of the directors, this is the period 
over which the benefits arise. At each balance sheet date the current values of the original contracts are reviewed against 
the carrying values to assess for impairment. The acquired customer contracts have been reviewed and, in the opinion of 
the directors, there is no impairment to the carrying value at 31 December 2014 (2013: nil).  Strategic Report Governance Financial Statements
64
12 Property, plant and equipment
Group
Improvements 
to short 
leasehold 
property 
£’000s
Office 
equipment 
£’000s
Fixtures
and 
fittings 
£’000s
Computer 
equipment
£’000s
Total 
£’000s
Cost 
At 1 January 2014 2,205 174 744 2,229 5,352
Additions 384 57 392 1,030 1,863
Disposals/write offs (335) (14) – (5) (354)
Exchange differences (47) (5) (20) (71) (143)
At 31 December 2014 2,207 212 1,116 3,183 6,718
Depreciation
At 1 January 2014 1,474 150 605 1,240 3,469
Charge for the year 376 11 79 726 1,192
Disposals/write offs (286) (11) – (3) (300)
Exchange differences (32) (5) (23) (53) (113)
At 31 December 2014 1,532 145 661 1,910 4,248
Net book value      
At 31 December 2014 675 67 455 1,273 2,470
Improvements 
to short 
leasehold 
property 
£’000s
Office 
equipment 
£’000s
Fixtures
and 
fittings 
£’000s
Computer 
equipment
£’000s
Total 
£’000s
Cost 
At 1 January 2013 2,357 172 770 1,663 4,962
Additions 125 7 34 764 930
Disposals/write offs (126) (2) – – (128)
Exchange differences (151) (3) (60) (198) (412)
At 31 December 2013 2,205 174 744 2,229 5,352
Depreciation
At 1 January 2013 1,483 130 617 758 2,988
Charge for the year 193 24 48 633 898
Disposals/write offs (95) (2) – – (97)
Exchange differences (107) (2) (60) (151) (320)
At 31 December 2013 1,474 150 605 1,240 3,469
Net book value      
At 31 December 2013 731 24 139 989 1,883
As part of the financing arrangement with The Royal Bank of Scotland plc, the bank has security over certain Group assets.
Company 
The Company had no property, plant or equipment at 31 December 2014 (2013: nil).
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 65
13 Investments in subsidiary undertakings
2014
£’000s
2013
£’000s
Company – cost and net book value
At 1 January 2014 43,362 43,183
Net increase in investments* 23 179
At 31 December 2014 43,385 43,362
* Included in increase in investments is £23,000 relating to share based payments transactions with subsidiaries (2013: £179,000)
The Company’s principal subsidiary undertakings at 31 December 2014 comprised the following:
Country of incorporation
Total 
percentage 
held by the 
Group 
Total 
percentage 
held by the 
Company 
StatPro Limited England and Wales 100% 100%
Performa Consultants UK Limited England and Wales 100% 100%
StatPro SA Luxembourg 100% –
StatPro International S.a.r.l. Luxembourg 100% –
StatPro (Deutschland) GmbH Germany 100% –
StatPro France SARL France 100% –
StatPro Italia Srl Italy 100% 100%
SiSoft Sarl* France 78% 78%
StatPro Suisse SARL Switzerland 100% –
StatPro Inc USA 100% 100%
StatPro Canada Inc Canada 100% –
StatPro North America Inc Canada 100% 100%
StatPro South Africa (Pty) Ltd Republic of South Africa 100% 100%
StatPro Asia Ltd Hong Kong 100% 100%
StatPro Australia Pty Ltd Australia 100% 100%
* StatPro Group plc has exercised its option to acquire the remaining 22% of SiSoft Sarl, however, the legal process for completion of the transfer is not 
complete as the remaining non-controlling holders are disputing the valuation (note 8).
All trading subsidiaries are involved in either the development, or marketing and distribution of software and data solutions 
and related professional services to the global asset management industry and have been included in the consolidation. 
14 Trade and other receivables
Current assets: trade and other receivables
Group 
2014
£’000s
Group 
2013
£’000s
Company 
2014
£’000s
Company 
2013
£’000s
Trade debtors 5,794 4,317 – –
Other debtors 58 56 – 24
Prepayments 1,376 1,266 123 282
Accrued income 228 212 – –
VAT recoverable 121 92 – –
Rental deposits 145 224 – –
7,722 6,167 123 306 Strategic Report Governance Financial Statements
66
The ageing of the Group’s trade debtors at 31 December 2014 is analysed as follows:
2014
£’000s
2013
£’000s
Neither past due nor impaired 2,215 1,632
Not more than three months 3,150 2,139
More than three months and not more than six months 230 336
More than six months 199 210
5,794 4,317
Trade receivables are non-interest bearing, are generally 30 – 60 days terms, and are shown net of a provision for 
impairment. As at 31 December 2014 trade receivables at nominal value of £87,000 (2013: £76,000) were determined  
to be impaired because of poor payment history of the debtor and fully provided for. Movements in the provision for 
impairment of receivables were as follows:
2014
£’000s
2013
£’000s
At 1 January 76 50
Charge for the year 66 76
Unused amounts reversed (55) (50)
At 31 December 87 76
The bad debt provision as a percentage of the trade debtors was 1.5% (2013: 1.8%).
Non-current assets: other receivables
Group 
2014
£’000s
Group 
2013
£’000s
Company 
2014
£’000s
Company 
2013
£’000s
Rental deposits 109 135 – –
Receivables from subsidiaries – – 15,781 14,345
109 135 15,781 14,345
15 Trade and other payables
Current liabilities: trade and other payables 
Group
2014
£’000s
Group 
2013
£’000s
Company
2014
£’000s
Company
2013
£’000s
Trade creditors 1,433 769 41 48
Other creditors and accruals 2,903 2,352 259 447
Other taxation and social security 1,752 1,279 1 26
Payable to subsidiaries – – 15,644 15,230
6,088 4,400 15,945 15,751
Non-current liabilities: other creditors
2014
£’000s
2013
£’000s
Other creditors 76 154
76 154
The non-current ‘Other creditors and accruals’ of £0.08 million (2013: £0.15 million) relates to lease inducements, which are 
amortised over the period of the relevant lease.
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 67
16 Provisions
Provisions – Group
2014
Contingent 
consideration
£’000s
2014
Onerous 
contracts
£’000s
2014
Total
£’000s
2013
Total
£’000s
At 1 January 725 255 980 1,705
Arising in the year – – – 515
Utilised in the year – (190) (190) (1,301)
Exchange differences (49) (3) (52) 61
At 31 December 676 62 738 980
The contingent consideration is the consideration on the SiSoft acquisition and is now expected to be utilised in 2015 although 
it is possible that it will fall beyond 12 months. The onerous contracts provision relates to onerous leases and other contracts, 
and is expected to be utilised within five years. 
The ageing of provisions at 31 December 2014 is analysed as follows:
Group 
2014
£’000s
Group
2013
£’000s
Company
2014
£’000s
Company
2013
£’000s
Current 725 842 676 725
Non-current 13 138 – –
738 980 676 725
17 Deferred taxation
Deferred tax comprises:
Deferred taxation – Group
Assets
2014
Recognised 
asset
£’000s
2013
Recognised 
asset
£’000s
2014
Unrecognised 
asset
£’000s
2013
Unrecognised 
asset
£’000s
Accelerated capital allowances 4 15 – –
Overseas tax losses 967 399 477 873
Share based payments 17 36 – –
As at 31 December 988 450 477 873
Deferred taxation – Group
Liabilities
2014
(Recognised 
liability)
£’000s
2013
(Recognised 
liability)
£’000s
Fair value adjustment to intangible assets (38) (51)
Other timing differences (411) (498)
As at 31 December (449) (549)
The total potential underlying tax losses and other timing differences at the year end were £10.67 million (2013: £9.51 million). 
Of the total potential deferred tax asset of £1.47 million (2013: £1.32 million), a total of £0.99 million (2013: £0.45 million), 
which represents 67% (2013: 34%) of the total potential asset, was recognised at the end of the year. Deferred tax has been 
calculated at an estimated average rate for the Group of 20% (2013: 20%). A proportion of the deferred tax assets for the 
Group has been recognised as in the opinion of the directors this is the probable level of the recoverability of such losses. Strategic Report Governance Financial Statements
68
Deferred taxation – Company
Asset and liability
2014
Recognised 
asset/ 
(Recognised 
liability)
£’000s
2013
Recognised  
asset/ 
(Recognised 
liability)
£’000s
2014
Unrecognised 
asset
£’000s
2013
Unrecognised 
asset
£’000s
Share based payments 17 36 – –
Other timing differences (101) (68) – –
As at 31 December (84) (32) – –
Movements in deferred tax assets
Group
2014
Recognised 
asset
£’000s
Group
2013
Recognised 
asset
£’000s
Company
2014
Recognised 
asset
£’000s
Company
2013
Recognised 
asset
£’000s
As at 1 January 450 384 36 53
Differences in tax rates (6) (8) (11) (11)
Recognised/(utilised) in the year 560 84 4 (1)
Tax credited directly to equity (12) (5) (12) (5)
Exchange differences (4) (5) – –
As at 31 December 988 450 17 36
Movements in deferred tax liabilities
Group
2014
(Recognised 
liability)
£’000s
Group
2013
(Recognised 
liability)
£’000s
Company
2014
(Recognised 
liability)
£’000s
Company
2013
(Recognised 
liability)
£’000s
As at 1 January (549) (887) (68) (44)
Differences in tax rates 72 116 9 6
Utilised/(recognised) in the year 28 222 (42) (30)
As at 31 December (449) (549) (101) (68)
No deferred tax liability with respect to unremitted earnings has been recognised at the balance sheet date. Undistributed 
profits available to be remitted to the UK should meet the requirements of the UK dividend exemption and should, therefore, 
be exempt from UK corporation tax. No deferred tax liability has been recognised with respect to the value of the underlying 
subsidiaries since, in the event of a sale, a gain or loss arising on disposal should meet the UK Substantial Shareholders 
Exemption criteria and, therefore, be exempt from UK corporation tax. The Finance Act 2013 included legislation to reduce 
the main rate of corporation tax from 23% to 21% from 1 April 2014 and from 21% to 20% from 1 April 2015. Therefore, UK 
deferred tax is recognised at 20% in the current period. The rate changes will impact the amount of future tax payments to 
be made by the Company.
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 69
18 Financial instruments and financial risk management
The Company’s and Group’s key financial risks and its approach to managing these risks are described in the Financial 
Review on pages 16 and 17.
a) Financial instruments
The Group’s financial instruments comprise cash, money market deposits, bank loans, provisions, derivative financial 
instruments and various other accounts receivable and accounts payable, that arise directly from its operations.
Cash and money market deposits, when held, are carried at fair value. All financial assets except derivatives belong to the 
category ‘loans and receivables’ in IAS 39. All financial liabilities except derivatives are held at amortised cost. The only 
derivative financial instruments relate to forward currency contracts which are purchased from banks and are considered 
Level 2 financial instruments in accordance with IFRS 13.
Bank loans are recorded at the value of the proceeds received less any direct issue costs which, due to the short term 
nature of these instruments, approximates to fair value. They are subsequently stated at cost plus accrued interest, less 
any repayments which, due to the short term nature of these instruments, approximates to amortised cost using the 
effective interest rate method. 
Contingent consideration provision is considered a Level 3 financial instrument. Further information on contingent 
consideration can be found in note 16.
Derivative financial instruments are used by the Group to hedge against various financial risks, such as foreign currency 
and interest rate risk. They are initially recognised at fair value and are designated by the entity at fair value through 
profit or loss. 
As at 31 December 2014, the Group held forward currency hedging contracts to mitigate the effects of currency exposure 
relating to non-sterling financial assets and liabilities, cash flows and investments. The fair value of forward currency 
contracts relating to commercial transactions is recognised through the income statement, the net unrealised loss in 
respect of these contracts as at 31 December 2014 was £14,000 (2013: £74,000). The fair value of forward currency 
contracts relating to hedging of net investments designated in hedge accounting relationships is recognised through equity, 
and the net unrealised gain relating to these contracts recognised through equity as at 31 December 2014 was £26,000 
(2013: £27,000).
The Company recognises financial instruments in its accounts when it enters into a binding agreement to receive cash or 
other economic benefits and derecognises them once all parties to the agreement have discharged all of their obligations. 
Interest income and expenses are recognised in the income statement on an accruals basis. Realised gains and losses 
upon expiry of derivative financial instruments are recognised on settlement of the underlying contract.  Strategic Report Governance Financial Statements
70
Financial assets
The Group’s and Company’s financial assets at the year end are analysed as follows:
2014
Group
£’000s
2013
Group
£’000s
2014
Company
£’000s
2013
Company
£’000s
Cash and cash equivalents 2,692 4,014 897 1,331
Financial instruments 27 102 27 102
Rental deposits falling due after more than one year 109 135 – –
Rental deposits falling due within one year 145 224 – –
Trade debtors 5,794 4,317 – –
Accrued income 228 212 – –
8,995 9,004 924 1,433
Financial liabilities
Committed facilities
The Company has committed financing facilities with The Royal Bank of Scotland plc available until May 2017, subject to 
customary covenants and terms. The facilities available as at 31 December 2014 comprise:
• Multi-currency fully revolving credit facility amounting to £5.5 million;
• Flexibility to repay early with no penalty and to redraw within the amortising limits; and
• Multi-currency revolving working capital loan of £2.0 million (£2.0 million available at December 2014).
There are covenants associated with the facility primarily relating to the gearing (net debt/EBITDA), interest cover and debt 
service ratios. As part of the secured financing arrangement with The Royal Bank of Scotland plc, the bank has security over 
certain Group assets, including pledges over shares in certain subsidiaries.
The maturity of the Group’s financial liabilities as at 31 December 2014 was as follows:
Payable in
1 year
or less
£’000s
Payable in
more than
1 but
less than
2 years
£’000s
Payable in
more than
2 but
less than
5 years
£’000s
31 December 
2014
Total
£’000s
Bank loans and overdrafts 12 – – 12
Financial instruments 15 – – 15
Trade creditors 1,433 – – 1,433
Other creditors and accruals 2,903 – – 2,903
Provisions – contingent consideration 676 – – 676
Provisions – onerous contracts 49 – 13 62
5,088 – 13 5,101
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 71
The maturity of the Group’s financial liabilities as at 31 December 2013 was as follows:
Payable in
1 year
or less
£’000s
Payable in
more than
1 but
less than
2 years
£’000s
Payable in
more than
2 but
less than
5 years
£’000s
31 December 
2013
Total
£’000s
Bank loans and overdrafts 12 – – 12
Financial instruments 1 – – 1
Trade creditors 769 – – 769
Other creditors and accruals 2,352 – – 2,352
Provisions – contingent consideration 725 – – 725
Provisions – onerous contracts 117 28 110 255
3,976 28 110 4,114
All trade creditors are due in less than three months.
The maturity of the Company’s financial liabilities as at 31 December 2014 was as follows:
Payable in
1 year
or less
£’000s
Payable in
more than
1 but
less than
2 years
£’000s
Payable in
more than
2 but
less than
5 years
£’000s
31 December 
2014
Total
£’000s
Financial instruments 15 – – 15
Trade creditors 41 – – 41
Other creditors and accruals 259 – – 259
Payable to subsidiaries 15,644 – – 15,644
Provisions – contingent consideration 676 – – 676
16,635 – – 16,635
The maturity of the Company’s financial liabilities as at 31 December 2013 was as follows:
Payable in
1 year
or less
£’000s
Payable in 
more than
1 but
less than
2 years
£’000s
Payable in 
more than
2 but
less than
5 years
£’000s
31 December 
2013
Total
£’000s
Financial instruments 1 – – 1
Trade creditors 48 – – 48
Other creditors and accruals 447 – – 447
Payable to subsidiaries 15,230 – – 15,230
Provisions – contingent consideration 725 – – 725
16,451 – – 16,451
Net investment in foreign operations
As part of our liability management, in order to provide a partial currency hedge against movements in the fair value  
of investments in overseas subsidiaries, we have made use of currency swaps to create synthetic currency hedges 
denominated in a mixture of currencies (USD, CAD, and EUR). At 31 December 2014, the Group had currency swaps in 
place, with a notional principal amount of £5.11 million (2013: £5.19 million) as synthetic loan hedges. The Group recognised 
a net gain on the hedging instrument of £0.08 million (2013: £0.13 million) in equity. Strategic Report Governance Financial Statements
72
b) Financial risk management
Interest rate risk
Financial assets as at 31 December 2014
At floating 
interest rates
£’000s
At fixed 
interest rates
£’000s
Non interest- 
bearing
£’000s
Total
£’000s
Weighted 
average 
interest rate
%
Sterling 1,228 – 114 1,342 0.4%
US dollar – – 189 189 –
Euro 77 – 896 973 0.5%
Swiss franc – – (13) (13) –
Australian dollar – – 216 216 –
Canadian dollar – – (85) (85) –
South African rand 84 – 74 158 4.3%
Hong Kong dollar – – (88) (88) –
1,389 – 1,303 2,692
Financial assets are shown net of overdrafts under the Group Account (currency) Terms of the Company’s loan facility 
with RBS.
Financial assets as at 31 December 2013
At floating 
interest rates
£’000s
At fixed 
interest rates
£’000s
Non interest- 
bearing
£’000s
Total
£’000s
Weighted 
average 
interest rate
%
Sterling 1,068 – 266 1,334 0.4%
US dollar – – 728 728 –
Euro 120 – 1,409 1,529 0.3%
Swiss franc – – 165 165 –
Australian dollar – – 57 57 –
Canadian dollar – – 342 342 –
South African rand 34 – 238 272 3.5%
Hong Kong dollar – – 48 48 –
1,222 – 3,253 4,475
Floating rate financial assets comprise cash, rental deposits and short-term bank deposits bearing interest based on bank 
base rates. The non-interest bearing financial assets represent rental deposits and cash balances held in non-interest 
bearing accounts in overseas entities. Trade debtors of £5.79 million (2013: £4.32 million) have been excluded from the 
above tables and are non-interest bearing. 
Financial liabilities as at 31 December 2014
At floating 
interest rates
£’000s
At fixed 
interest rates
£’000s
Non interest-
bearing
£’000s
Total
£’000s
Canadian dollar – – 62 62
Euro 12 – 676 688
12 – 738 750
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 73
Financial liabilities as at 31 December 2013
At floating 
interest rates
£’000s
At fixed 
interest rates
£’000s
Non interest-
bearing
£’000s
Total
£’000s
Canadian dollar – – 167 167
US dollar – – 88 88
Euro 12 – 725 737
12 – 980 992
Trade creditors, other creditors and accruals and other taxes of £6.09 million (2013: £4.40 million) have been excluded from 
the above tables and are non-interest bearing. 
Floating rate financial liabilities predominantly relate to bank loans in sterling, Canadian dollars, US dollars and euros. 
Some debt is denominated in currencies in order to provide a currency hedge for profits generated by overseas 
subsidiaries and the investments in those overseas net assets. 
As at 31 December 2014 the Group had no material borrowings and therefore it has not assumed any risk sensitivity to 
reasonably possible changes in interest rates (with all other variables held constant) on the Group’s profit before tax 
through the impact of floating rate borrowings.  The Group did not assume any risk sensitivity in 2013 as it had no 
material borrowings.
Currency risk
The Group’s principal exposure to exchange rate fluctuations arises on the translation of overseas net assets and trading 
results into sterling for accounting purposes. The Group has a minimal transaction risk as most of the transactions are 
invoiced by the entities in their local currency. Where there are material exposures, these are covered by taking out 
currency contracts to eliminate the exposure. However, offsetting revenues against costs in the same currency reduces this 
risk so that only the residual accounting profit translation element is at risk. The balance sheet exposures are minimised by 
reducing the net asset exposure, for example, by arranging borrowings in local currency where appropriate. Where the 
resulting hedge qualifies for hedge accounting under IAS 39 the gains and losses on the translation of both the loan and 
the investment are deferred in equity. As the Group continues to grow and generates greater net profits overseas this 
exchange rate exposure will increase. Following the increase in the percentage of the Group’s operations that are overseas, 
the exposure to US dollars and euros in particular has increased. 
The table below shows the estimated sensitivity of the profit before tax and the net assets to movements in the key 
exchange rates to which the Group is exposed. If the US dollar and the euro strengthen/(weaken) against sterling this is 
expected to increase/(decrease) profits as shown below.
Change in 
currency vs. 
GBP
Effect on 
profit  
before tax  
£’000s
2014
US dollar/sterling +5% 77
-5% (70)
Euro/sterling +5% 257
-5% (233)
2013
US dollar/sterling +5% 122
-5% (111)
Euro/sterling +5% 169
-5% (153) Strategic Report Governance Financial Statements
74
The main balance sheet translation exposure is to the revaluation of goodwill denominated in foreign currency; the largest 
component relates to the goodwill arising on the acquisition of FRI, a Canadian business and is denominated in Canadian 
dollars. A depreciation of 10% in sterling against the Canadian dollar would result in a £3.3 million increase in net assets 
and an appreciation of 10% in sterling against the Canadian dollar would result in a £2.7 million decrease in net assets.
The fair value of all financial assets and liabilities is approximately equal to book value. The Group has a forward foreign 
exchange facility which allows the Group to hedge foreign exchange exposures. The Group does not permit anyone in the 
Group to trade in financial instruments.
Counterparty credit risk
This is the risk that a counterparty will be unable to pay amounts in full when due. Credit risks are associated with deposits 
with banks and receivables from customers. The Group takes into account the credit risk of the counterparty to any major 
bank deposits but currently the level of bank deposits is such that this is not considered a material risk. There is no large 
concentration of credit risk with customers as the largest customer group currently represents less than 6% of projected 
Group revenues. The maximum exposure to credit risk comprises the value of the Group’s cash and debtor balances from 
time to time.
Liquidity risk
This is the risk that the Group will have insufficient funds to meet its cash obligations when due. The Group manages this 
risk by close monitoring of projected cash collection from customers and cash obligations to suppliers and salary payments 
to staff, as well as all other cash commitments. At 31 December 2014, the Group also had £7.50 million headroom under its 
committed revolving credit and overdraft facility in addition to cash reserves to reduce the risk that an unforeseen change 
in the Group’s liquidity position will result in a breach of statutory or other payment obligations. 
The table below summarises the maturity of the Group’s financial liabilities as at 31 December 2014 and 2013 based on 
contractual undiscounted payments. 
The Group’s liquidity risk – 31 December 2014
On demand
£’000s
Payable in
1 year
or less
£’000s
Payable in 
more than
1 but
less than
2 years
£’000s
Payable in 
more than
2 but
less than
5 years
£’000s
31 December 
2014
Total
£’000s
Non-derivative financial liabilities
Interest bearing loans and overdrafts – 12 – – 12
Trade creditors and other payables – 4,336 – – 4,336
Other liabilities – 725 – 13 738
– 5,073 – 13 5,086
Derivative financial liabilities
Foreign exchange forward contracts outflow – 5,923 – – 5,923
Foreign exchange forward contracts inflow – (5,939) – – (5,939)
– (16) – – (16)
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 75
The Group’s liquidity risk – 31 December 2013
On demand
£’000s
Payable in
1 year
or less
£’000s
Payable in 
more than
1 but
less than
2 years
£’000s
Payable in 
more than
2 but
less than
5 years
£’000s
31 December 
2013
Total
£’000s
Non-derivative financial liabilities
Interest bearing loans and overdrafts – 12 – – 12
Trade creditors and other payables – 3,121 – – 3,121
Other liabilities – 842 28 110 980
– 3,975 28 110 4,113
Derivative financial liabilities
Foreign exchange forward contracts outflow – 7,471 – – 7,471
Foreign exchange forward contracts inflow – (7,577) – – (7,577)
– (106) – – (106)
The Company’s liquidity risk – 31 December 2014
On demand
£’000s
Payable in
1 year
or less
£’000s
Payable in 
more than
1 but
less than
2 years
£’000s
Payable in 
more than
2 but
less than
5 years
£’000s
31 December 
2014
Total
£’000s
Non-derivative financial liabilities
Trade creditors and other payables – 300 – – 300
Other liabilities – 676 – – 676
Payable to subsidiaries – 15,644 – – 15,644
– 16,620 – – 16,620
Derivative financial liabilities
Foreign exchange forward contracts outflow – 5,923 – – 5,923
Foreign exchange forward contracts inflow – (5,939) – – (5,939)
– (16) – – (16)
As noted in the Financial Review, the Group has a further £7.50 million of undrawn facilities available to it under the terms of 
its revolving credit and working capital facilities. Strategic Report Governance Financial Statements
76
The Company’s liquidity risk - 31 December 2013
On demand
£’000s
Payable in
1 year
or less
£’000s
Payable in 
more than
1 but
less than
2 years
£’000s
Payable in 
more than
2 but
less than
5 years
£’000s
31 December 
2013
Total
£’000s
Non-derivative financial liabilities
Trade creditors and other payables – 495 – – 495
Other liabilities – 725 – – 725
Payable to subsidiaries – 15,230 – – 15,230
– 16,450 – – 16,450
Derivative financial liabilities
Foreign exchange forward contracts outflow – 7,471 – – 7,471
Foreign exchange forward contracts inflow – (7,577) – – (7,577)
– (106) – – (106)
Capital risk
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to 
sustain further development of the business. The Board monitors the composition of investors as well as the return on 
capital, measured as earnings per share (profit attributable to shareholders divided by the weighted average number  
of ordinary shares in issue during the year). The capital managed by the Group comprises equity of £45.69 million  
(2013: £46.91 million) and borrowings of £12,000 (2013: £12,000) as capital.
19 Obligations under operating leases
The total of future minimum lease payments under non-cancellable operating leases are:
2014
£’000s
2013
£’000s
Land and buildings
Due within one year 1,296 987
Due between one year and five years 4,395 3,378
Due beyond five years 1,177 1,301
6,868 5,666
2014
£’000s
2013
£’000s
Other leases
Due within one year 56 41
Due between one year and five years 74 30
Due beyond five years – –
130 71
During the year, new operating leases were entered into in September 2014 for a period of six and a half years and in 
December 2014 for a period of seven years.
Other leases relate to computer equipment under operating leases.
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 77
20 Called up share capital
2014
£’000s
2013
£’000s
Authorised
125,000,000 (2013: 125,000,000) ordinary shares of 1p each 1,250 1,250
Allotted, called up and fully paid
67,707,650 (2013: 67,703,650) ordinary shares of 1p each 677 677
The Company has only one class of ordinary shares in issue and there are no restrictions regarding voting or other 
distribution or repayment rights. At 31 December 2014 the Company held 225,000 shares in treasury (2013: 225,000), and 
therefore 67,482,650 ordinary shares is the number of shares that may be used by shareholders in the Company as the 
denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in 
their interest in, the share capital of the Company under the FSA’s Disclosure and Transparency Rules, and for earnings per 
share calculations. The share premium account has remained the same (2013: £23.47 million).
Shares in issue at 1 January 2014 67,703,650
Share options exercised 4,000
Shares in issue at 31 December 2014 67,707,650
Proceeds of £2,400 were received in 2014 following the exercise of 4,000 share options at 60p.
No share options were exercised in 2013.
At 31 December 2014, the following options over shares in the Company were outstanding:
 
2014 2013
Number of
options
‘000s
Weighted 
average
exercise price
Number of
options
‘000s
Weighted 
average
exercise price 
Outstanding at 1 January 6,245 109p 5,959 110p
Granted – – 450 98p
Exercised (4) 60p – –
Lapsed (622) 123p (164) 114p
Outstanding at 31 December 5,619 107p 6,245 109p
Exercisable at 31 December 1,004 90p 1,108 90p
For options outstanding at 31 December 2014, the exercise price and weighted average remaining contractual lives were 
as shown below:
 
Options Outstanding Options Exercisable
No of
shares
Weighted 
average
remaining life 
(yrs)
No of
shares
Weighted 
average
remaining life 
(yrs)
Exercise price 
60p 221,000 0.2 221,000 0.2
88p 100,000 1.8 100,000 1.8
98p 440,000 8.2 – –
100p 1,562,500 2.5 682,500 0.4
108p 2,400,000 7.2 – –
135p 895,000 2.4 – –
  5,618,500 4.9 1,003,500 0.5 Strategic Report Governance Financial Statements
78
Share based payments
Under the approved and unapproved option schemes the Remuneration Committee can grant options to employees of  
the Group. Options are granted with a fixed exercise price which is typically issued at a premium to the market price. The 
contractual life is generally ten years from date of grant although occasionally a shorter period has been chosen. Options 
become exercisable after three years although exceptionally the period is shorter. Options issued to directors and senior 
executives carry performance criteria. There are other vesting conditions for options identified in the scheme rules, 
including performance conditions which are in the option terms with typically eps growth above a minimum hurdle, share 
price growth above a minimum level and a vesting period of three years. There were no share options issued in 2014. 
Options are valued using the Black-Scholes option-pricing model and the fair market value after consideration of market 
based performance conditions has been estimated using the following key assumptions for options issued in 2013:
2013
Issue
Average exercise price 98p
Average market price at date of grant 88p
Total number of options under grant (granted after November 2002) 450,000
Average vesting period (years) 3
Expected volatility 25%
Option life (years) 7
Expected life (years) 5
Risk free rate 1.03%
Expected dividend yield 3.07%
Expected lapse rate 10%
Fair value of options issued in year 12.36p
The risk free rate is based on the yield to maturity of a UK government bond for a term consistent with the assumed life of 
the options. The average share price in the year was 82p. The expected volatility level was determined by comparing the 
historic and current volatility for the Company and comparing with the average volatility for companies in the same sector 
to determine a reasonable estimate for the future volatility. The total charge in the income statement for the year relating 
to employee share based payments for the Group was £26,000 (2013: £192,000) and for the Company was £3,000 
(2013: £13,000).
There were 1,003,500 options exercisable at the balance sheet date (2013: 1,107,500), with a weighted average exercise 
price of 90p (2013: 90p). The weighted average remaining contractual life for options outstanding at the balance sheet  
date is 4.9 years (2013: 5.7 years).
On 10 March 2015, the Company issued 106,000 shares following the exercise of options under the Approved and 
Unapproved schemes.
21 Related party transactions
During the year, the Group paid a fee of £3,000 (2013: £14,658) for training courses and other services supplied by  
Otos Limited, of which CR Bacon is a Director. The year end creditor balance with Otos Limited was nil (2013: nil).
StatPro Group plc made a financial support payment of £50,000 in 2014 (2013: £50,000) to The Freedom Index Company 
Ltd, a not-for-profit organisation, of which CR Bacon, Chairman, is a director. The Freedom Index Company Ltd has created 
the Freedom Index benchmarks, which are made available free-of-charge to the asset management community. CR Bacon 
receives no fee for his services as a director of The Freedom Index Company Ltd.
During the year, the Group paid a fee of £10,800 (2013: £76,950) for consultancy services supplied by MC Adorian (Non-
Executive Director) in relation to StatPro Revolution sales initiatives including developing the sales function. The year end 
creditor balance with MC Adorian was nil (2013: nil).
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 79
The Company undertakes a range of transactions, including management recharges, with its subsidiaries, which are 
summarised as follows: 
Company
Transactions with related parties
Balances 
(owed by)/ 
due to the 
Company  
as at
31 December 
2014
£’000s
Balances 
(owed by)/ 
due to the 
Company 
as at
31 December 
2013
£’000s
Payable to subsidiaries
StatPro Limited (4,807) (7,294)
Performa Consultants UK Limited (2,328) (1,912)
StatPro SA (89) (801)
StatPro France – (232)
StatPro Inc (2,059) (371)
StatPro Canada Inc (6,361) (4,620)
(15,644) (15,230)
Receivables from subsidiaries 
StatPro South Africa (Pty) Ltd 83 87
StatPro North America Inc 4,565 4,311
StatPro International S.a.r.l. 11,133 9,947
15,781 14,345
Company
Nature of transactions
Value of 
transactions  
2014
£’000s
Value of 
transactions  
2013
£’000s
Revenue from subsidiaries 10,561 12,058
Expenses recharged from subsidiaries (11,963) (10,684)
Expenses recharged to subsidiaries 2,232 3,383
Interest paid to subsidiaries (799) (723)
Interest received from subsidiaries 884 839
Dividends received from subsidiaries 545 900
Key management includes the executive directors and other members of the Group Executive Board. The compensation 
paid or payable to the executive directors is shown in the directors’ Remuneration Report on pages 38 and 39 and the 
share based payment charge relating to the executive directors is £35,000 (2013: £40,000). The compensation paid or 
payable to key management for employee services is shown below:
Key management compensation
Year to
31 December
2014
£’000s
Year to
31 December
2013
£’000s
Salaries and other short-term employee benefits 1,446 1,393
Defined contribution pension benefits 43 46
1,489 1,439
Share based payment 55 108
1,544 1,547 Strategic Report Governance Financial Statements
80
22 Reconciliation of profit before tax to net cash inflow from operating activities
Group
2014
£’000s
Group
2013
£’000s
Company
2014
£’000s
Company
2013
£’000s
Profit before taxation 2,370 3,113 2,373 4,855
Dividends received – – (545) (900)
Net finance expense 291 273 211 159
Operating profit 2,661 3,386 2,039 4,114
Exceptional item – 347 – 389
Operating profit before exceptional items 2,661 3,733 2,039 4,503
Depreciation of property, plant and equipment 1,192 898 – –
Loss on disposal of property, plant and equipment 42 – – –
Amortisation of intangible assets 3,828 4,041 508 1,123
(Increase)/decrease in receivables (1,597) 993 (32) (79)
Increase/(decrease) in payables and provisions 1,364 (107) (820) (1,325)
Increase/(decrease) in deferred income 189 (347) – –
Share based payments 26 192 3 13
Net cash inflow from operating activities 7,705 9,403 1,698 4,235
23 Analysis of changes in net cash
At
1 January 
2014
£’000s
Cash flow
£’000s
Non-cash 
changes
£’000s
Exchange 
differences
£’000s
At
31 December 
2014
£’000s
Cash and cash equivalents (per balance sheet) 4,014 (1,269) – (53) 2,692
Overdrafts – – – – –
Cash and cash equivalents (per statement of cash flows) 4,014 (1,269) – (53) 2,692
Bank and other loans (12) – – – (12)
Net cash 4,002 (1,269) – (53) 2,680
At
1 January 
2013
£’000s
Cash flow
£’000s
Non-cash 
changes
£’000s
Exchange 
differences
£’000s
At
31 December 
2013
£’000s
Cash and cash equivalents (per balance sheet) 3,681 431 – (98) 4,014
Overdrafts – – – – –
Cash and cash equivalents (per statement of cash flows) 3,681 431 – (98) 4,014
Bank loans (net of issue costs deferred) (14) – – 2 (12)
Net cash 3,667 431 – (96) 4,002
24 Reconciliation of net cash flow to movement in net cash
2014
Group
£’000s
2013
Group
£’000s
2014
Company
£’000s
2013
Company
£’000s
(Decrease)/increase in cash and cash equivalents in the year (1,269) 431 (434) 326
Exchange movements (53) (96) – –
Movement in net cash (1,322) 335 (434) 326
Net cash at beginning of year 4,002 3,667 1,331 1,005
Net cash at end of year 2,680 4,002 897 1,331
25 Pensions
The Company operates a defined contribution pension scheme for directors and certain employees. The total costs  
of pension contributions during the year were £447,000 (2013: £446,000). Contributions outstanding at the end of 
December 2014 were £60,000 (2013: £27,000). 
NOTES TO THE FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 DECEMBER 2014
(CONTINUED...) 81
26 Contingent liabilities
As is normal for a group of this size and scope of operations, Group companies are involved in a number of potential legal 
claims and disputes from time to time arising from our activities, none of which are expected to have a material impact on 
the Group’s financial results.
The Board expects the remaining contingent consideration payable to the 45% minority shareholder (22% of total shares) in 
Sisoft to be in the range of €0.7 million – €1.1 million (approximately £0.6 million – £0.9 million). It is possible that it will not be 
fully resolved during 2015. There is also a risk that the final consideration determined by the Court including related costs 
will be higher than the amount provided, although the Board’s estimate of the measurement of the liability has not changed 
(allowing for fluctuations in exchange rates). 
27 Capital commitments
At 31 December 2014, the Group had no expenditure committed but not yet incurred (2013: £0.46 million).  Strategic Report Governance Financial Statements
82
FIVE YEAR RECORD
StatPro Group plc
2014
£’000s
2013
£’000s
2012
£’000s
2011
£’000s
2010
£’000s
Revenue
– Continuing operations 32,018 32,486 32,001 31,715 33,131
– Annualised recurring contract revenue (year end value 
 at 2014 fx rates) 29,390 28,300 28,120 27,020 26,120
Operating profit
– Continuing operations (before exceptional items) 2,661 3,733 5,253 4,490 6,785
– Exceptional operating items – (347) (978) – (456)
2,661 3,386 4,275 4,490 6,329
Net finance expense (291) (273) (493) (627) (708)
Profit before taxation 2,370 3,113 3,782 3,863 5,621
Taxation (774) (1,030) (1,102) (955) (1,480)
Profit after taxation 1,596 2,083 2,680 2,908 4,141
Profit attributable to equity shareholders 1,596 2,083 2,680 2,908 4,106
Profit/(loss) attributable to non-controlling interests – – – – 35
Adjusted EBITDA* 4,359 5,463 6,728 6,118 8,452
Cash inflow from operating activities 7,705 9,403 9,233 9,925 10,522
Free cash flow 606 3,277 3,476 3,865 4,647
Net assets
Goodwill and other intangible assets 52,546 53,524 57,683 59,045 59,378
Property, plant and equipment 2,470 1,883 1,974 2,390 2,490
Other assets and receivables 8,846 6,883 7,609 7,227 8,969
Cash 2,692 4,014 3,681 2,447 1,757
Current liabilities (20,271) (18,514) (19,927) (19,445) (20,724)
Non-current liabilities (598) (882) (1,400) (7,834) (8,741)
Net assets 45,685 46,908 49,620 43,830 43,129
Shareholders’ equity
Share capital 677 677 677 616 610
Share premium 23,474 23,472 23,472 17,675 17,176
Shares to be issued 63 63 63 63 528
Treasury shares (249) (249) (249) (249) (249)
Other reserves 6,704 7,650 10,776 11,760 12,551
Retained earnings 15,016 15,295 14,881 13,965 12,513
Total shareholders’ equity 45,685 46,908 49,620 43,830 43,129
Net cash/(debt) 2,680 4,002 3,667 (3,399) (5,523)
Earnings per share – basic 2.4p 3.1p 4.3p 4.8p 6.8p
Earnings per share – diluted 2.4p 3.1p 4.3p 4.7p 6.6p
Adjusted earnings per share* 2.7p 4.5p 5.9p 5.7p 8.2p
Dividends per share 2.9p 2.8p 2.7p 2.6p 2.4p
* Adjusted for amortisation of acquired intangibles, share based payments and exceptional items.  83
FINANCIAL CALENDAR
Annual General Meeting 20 May 2015 
Final dividend for 2014 27 May 2015 
Interim Report for 2015 August 2015 
Interim dividend for 2015 4 November 2015
Preliminary announcement of 2015 results March 2016 
Report and Accounts for 2015 April 2016 Strategic Report Governance Financial Statements
84
DIRECTORS AND ADVISERS
Directors
CR Bacon Non-Executive Chairman
JMBT Wheatley Group Chief Executive
AM Fabian Group Finance Director
MC Adorian Non-Executive Director
SJ Clark  Non-Executive Director
JE Tozer  Non-Executive Director
Secretary and registered office
AM Fabian 
Mansel Court
Mansel Road
Wimbledon
London SW19 4AA
Registrars
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
NOMAD and Broker
Cenkos Securities Plc
6.7.8 Tokenhouse Yard
London EC2R 7AS
Solicitors
Boyes Turner 
Abbots House
Abbey Street
Reading RG1 3BD
Registered Auditors
Ernst and Young LLP
1 More London Place
London SE1 2AF
Bankers
The Royal Bank of Scotland plc
280 Bishopsgate
London EC2M 4RB
Financial PR Consultants
Instinctif Partners
65 Gresham Street  
London 
EC2V 7NQ
Company Registration no: 2910629
Incorporated in England & Wales +44 (0)1244 304 030
STATPRO OFFICE LOCATIONS
StatPro Ltd.
Mansel Court
Mansel Road
Wimbledon
London
SW19 4AA
United Kingdom
T: +44 20 8410 9876
StatPro France SARL
62 Rue de la Chaussée d’Antin
75009 Paris
France
T: +33 1 40 20 1200
StatPro International S.a.r.l.
148-150 Boulevard de la Pétrusse
L -2330 Luxembourg
Luxembourg
T: +352 28 37 14 48
StatPro S.A.
148-150 Boulevard de la Pétrusse
L -2330 Luxembourg
Luxembourg
T: +352 30 74 24 1
StatPro Italia Srl
Via Edmondo
De Amicis 53
20123 Milan
Italy
T: +39 02 00 693 1
StatPro (Deutschland) GmbH
Kirchnerstraße 6-8
D-60311 Frankfurt am Main
Germany
T: +49 69 244 322 000
StatPro Inc.
100 High Street
Suite 1550
Boston
MA 02110
USA
T: +1 617 692 1150
StatPro Canada Inc.
 33 Yonge Street
Suite 271
Toronto
Ontario M5E 1G4
Canada
T: +1 416 598 9500
StatPro Canada Inc.
1801 McGill College Avenue
Suite 750
Montréal
Quebec H3A 2N4
Canada
T: +1 514 842 5091
StatPro South Africa Pty Ltd.
Suite 303, 3rd Floor
Clock Tower Offices
V&A Waterfront
Cape Town 8001
South Africa
T: +27 21 443 2140
StatPro Australia Pty Ltd.
Chatswood Chambers
Level 10
815 Pacific Highway
Chatswood
NSW 2067 Sydney
Australia
T: +61 2 9884 9045
StatPro Asia Ltd.
Unit 4607-11
Level 46
The Center
99 Queen’s Road Central
Hong Kong
China
T: +852 3796 7065
For enquiries please email:
info@statpro.com
www.statpro.com StatPro Group plc
Mansel Court
Mansel Road
Wimbledon 
London
SW19 4AA
United Kingdom
T: +44 20 8410 9876
F: +44 20 8410 9877
info@statpro.com
www.statpro.com
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STATPRO GROUP PLC ANNUAL REPORT & ACCOUNTS 2014