Annual Report & Accounts 2003
PORTFOLIO ANALYTICS SOLUTIONS
deﬁning performance          www.statpro.com
Annual Report & Accounts 2003
Contents
      Page
Highlights 1
About StatPro 2
Chairman’s Statement 3
Our Market 4
Product Concepts - StatPro Data Hub 5
Launch of StatPro Risk Management 6
StatPro’s New Reporting Platform 8
Our Other Products 10
Client Services & Training 13
Map and Client References 14
Chief Executive’s Review  16
Operating and Financial Review 18
Board of Directors 22
Key Executives 24
Directors’ Report  27
Corporate Governance  30
Remuneration Report  32
Independent Auditors’ Report 37
Consolidated Proﬁt and Loss Account 38
Statement of Group Total Recognised Gains and Losses 38
Balance Sheets   39
Consolidated Cash Flow Statement 40
Notes to the Financial Statements 41
Five Year Record 58
Financial Calendar 59
Directors and Advisers 59
StatPro Ofﬁce Locations 63  www.statpro.com | Page 1 
Highlights
Achieved ﬁrst pre-tax proﬁt during the year as a result of:
the cost cutting programme initiated in 2002
the resilience of the recurring revenue business model– 
annualised recurring software revenues up by 18% to 
£7.4 million (2002: £6.3 million)
Whilst managing expansion, strong operating cash inﬂow 
of £1.6 million generated (2002: outﬂow £0.5 million) 
– cash positive for last eighteen months
Strategic risk management solution acquired
Year ended
31 December 
2003
Year ended
31 December 
2002 Change
Turnover £8.4 million £7.2 million +17%
Proﬁt/(loss) before tax £0.1 million (£2.4) million
Proﬁt/(loss) before tax, amortisation  £0.5 million (£1.8) million
and exceptional items 
Operating cash inﬂow/(outﬂow)    £1.6 million (£0.5) million
Basic earnings/(loss) per share 0.6p (7.3p)
Operating cash inflow/(outflow)
(5)
(4)
(3)
(2)
(1)
0
1
2
£m
1999 2000 2001 2002 2003
Turnover
0
2
4
6
8
10
£m
1999 * 2000 2001 2002 2003
Operating profit/(loss) (before amortisation and exceptional items)
(5)
(4)
(3)
(2)
(1)
0
1
£m
1999 * 2000 2001 2002 2003
* Continuing operations Page 2 | www.statpro.com
Annual Report & Accounts 2003
About StatPro
Deﬁning Performance
StatPro is a leading provider of portfolio 
analytics for the global asset manage-
ment industry. Having grown from a 
one-product company we now offer 
our clients ﬁve core products based 
around a data hub and we supply three 
separate, but complementary, reporting 
solutions. This range of products enables 
StatPro to provide a service that can 
completely automate the process of 
portfolio report production.
StatPro was founded in 1994 by Justin 
Wheatley. The Company’s initial 
product was TAP, which was sold as 
an add-on module to the Standard 
& Poor’s Micropal database service 
and was used for sophisticated fund 
analysis. Although StatPro no longer 
develops TAP, it continues to generate 
royalty revenues of around £500,000 
per annum.
StatPro subsequently developed a 
suite of products including StatPro 
Composites that is used to help fund 
managers comply with Global Invest-
ment Performance Standards (“GIPS”). 
GIPS are designed to ensure that the 
presentation by fund managers of their 
performance to investors is consist-
ent, complete and ethical. StatPro 
Composites adds value by centralising 
the required data and having signiﬁcant 
scalability. It allows fund managers to 
produce tailored and sophisticated 
reports analysing and benchmarking 
their performance.
With our acquisition of AMS S.A. in 
March 2000, we added a product called 
StatPro Performance & Attribution 
(SPA). Since the acquisition annual 
licence fees for SPA have grown over 
20 times. We believe this is due in 
large part to the extensive functionality 
of the system. Financial markets are 
constantly developing new investment 
products and SPA’s proven ability to 
deal with the most exotic instruments 
has secured us many clients.
In May 2000, StatPro ﬂoated on the 
Official List of the London Stock 
Exchange and raised the ﬁnance to 
build our sales infrastructure to grow 
the business. 
In November 2002, we invested in a 
51% stake in an Australian business 
that had developed a Fixed Income 
Attribution system, now renamed 
StatPro Fixed Income (SFI). StatPro 
has the option to acquire the remaining 
49% between 1 September 2005 and 
31 October 2015.
 In June 2003, StatPro’s listing was 
transferred to the Alternative Investment 
Market of the London Stock Exchange 
(“AIM”) from the Ofﬁcial List of the 
UK Listing Authority. The directors 
believe this move has allowed, and 
will continue to allow, the Company 
to take advantage of the greater 
degree of ﬂexibility afforded by AIM in 
implementing its strategy of acquiring 
additional products.
In October 2003, we invested in a 51% 
stake in an Italian business RiskMap 
Srl (renamed StatPro Italia) and have 
an option to acquire the remaining 
49% between 31 December 2006 
and 31 December 2013. StatPro 
Italia has two key products: StatPro 
Risk Management (SRM) and StatPro 
Portfolio Insurance (SPI).    www.statpro.com | Page 3 
growth
Chairman’s Statement
Progress
I am pleased to report that your 
Company continued to make further 
steady progress throughout 2003 
achieving both its main objectives of 
generating cash and operating proﬁts, 
whilst increasing turnover by 17% to 
£8.4 million.
We have increased our annualised 
recurring revenues by 15% to £7.9 
million whilst professional services 
revenues increased by 29% to £1.2 
million.
Transfer to the Alternative
Investment Market (“AIM”)
On 16
th
 June 2003, your Company’s 
listing was transferred to the Alternative 
Investment Market of the London 
Stock Exchange (“AIM”) from the 
Ofﬁcial List of the UK Listing Authority. 
The directors believe this move has 
allowed, and will continue to allow, the 
Company to take advantage of the 
greater degree of ﬂexibility afforded 
by AIM in implementing its strategy 
of acquiring additional products.
Acquisitions
In October 2003, we purchased a 
majority stake (with an option to buy the 
remaining shares) in an Italian ﬁnancial 
software development company with 
complementary risk management and 
portfolio insurance products.
We anticipate interest in these products 
both from our existing client base 
and from prospective asset managers 
globally as they seek to improve their 
portfolio performance reporting and 
risk analysis capabilities.
People 
I continue to be impressed by the 
commitment of StatPro’s employees to 
meet the objectives of our clients and 
would like to congratulate them on their 
continued efforts throughout 2003.
Prospects
Whilst asset managers continue to 
be cautious about initiating new IT 
projects we are beginning to see the 
welcome signs of increased activity 
and remain in a good position to take 
advantage of any upturn. 
Carl Bacon 
Chairman 
26 March 2004
“I continue to be 
impressed by the
commitment of
StatPro’s employees to
meet the objectives
of our clients” Page 4 | www.statpro.com
Annual Report & Accounts 2003
Our Market
Portfolio Analytics Solutions
Extract from Spaulding Group “Performance Measurement Technology survey” of 33 suppliers 
StatPro’s products provide “middle 
ofﬁce” portfolio analytics solutions for 
the global asset management industry. 
There are an estimated 7,000 asset 
managers managing approximately 
$27 trillion globally. All of them need 
to analyse the portfolios they manage 
whether those portfolios are large or 
small. Some asset managers have only 
a few portfolios; while others, such as 
private banks, have thousands. The 
challenge for all asset managers is to 
extract clean, “analysis-ready” data 
and then measure performance and 
risk in a wide variety of ways.
The analysis is used to keep their 
clients informed, to control and monitor 
individual fund managers, to calculate 
commissions and bonuses, to meet 
regulatory requirements and to market the 
asset manager’s products to prospects. 
Historically, asset managers have used 
internal systems and spreadsheets, but 
as the scale of assets has climbed and 
complexity increased, it has become 
essential to have efﬁcient systems to 
reduce the manual workﬂow and to 
manage the process of generating 
this information. 
As the necessity for portfolio analytics 
solutions has grown, so has the number 
of companies supplying products. 
A recent survey by the Spaulding 
Group, an independent consulting, 
research and publishing ﬁrm, mentions 
33 different suppliers. However, the 
breadth of the product offering by each 
company varies greatly and StatPro 
is one of the few companies to offer 
a wide range of products focusing 
on the middle ofﬁce. We believe that 
this is one of the keys to the success 
of StatPro’s marketing to date; by 
offering a broad range of products to 
a highly focused market we are able 
to cross sell more efﬁciently.
In the Spaulding survey, asset managers 
were asked: “Which three suppliers 
would you consider selecting for a 
Performance system, a Composite 
system and an Attribution system?” 
It is very gratifying that, out of the 
33 suppliers, StatPro came top in all 
three categories.
“It is very gratifying that, 
out of
the 33 suppliers,
StatPro came top in all 
three
categories”
Type of system Portfolio level analysis Composites Attribution analysis
StatPro ranking 1 1 1
Chosen as top 3 supplier* 15.2% 24.5% 13.8%
* Percentage of respondents who chose StatPro as one of their top 3 suppliers considered in system selection Data Hub
 www.statpro.com | Page 5 
Product Concepts -
StatPro Data Hub
strategy
When StatPro first started selling its 
systems, performance measurement 
requirements were in their early 
stages of development. However, the 
increasing demands now made on asset 
managers mean that they require ever 
more powerful databases to assimilate 
the ever-greater quantities of data to 
be processed. Some managers have 
thousands of portfolios investing in 
thousands of assets. The values of 
all these assets have to be computed 
daily and the results measured.  This 
results in the need to calculate millions 
of results and StatPro Data Hub (SDH) 
is designed for high performance to 
do just this and much more.
For example, if just one set of input 
data is wrong, then the calculation 
results will also be incorrect. So it 
is easy to understand that asset 
managers need to have systems that 
can automate the process of checking 
for data input errors. SDH performs 
this function. Its purpose is to collate 
all the data required for analysis and 
then “scrub” it clean. Errors sometimes 
occur in accounting systems; missing 
trades, missing cash balances and 
incorrectly posted transaction prices 
are frequent issues. SDH also stores 
market data (equity prices, yields, 
bond ratings etc.) and index data 
which also require verification.
At the moment, one of the main chal-
lenges facing asset managers is the 
proliferation of databases attached to 
different analytics packages.
The risk is that data might vary from 
one database to another and it is also 
extremely time consuming to maintain 
each database.  StatPro’s Data Hub 
enables asset managers to store this 
valuable data centrally and then feed 
any other analytics package from 
it, including StatPro’s own analysis 
products. In this way, they can reduce 
overall costs of database administration 
and improve the quality and quantity 
of their performance analysis.
The Data Hub is central to our strategy 
to expand the range of products 
we offer our existing and potential 
clients, whilst remaining focused 
on the type of product we wish to 
offer. In line with this objective, we 
have added fixed income attribution, 
ex-ante risk and portfolio insurance 
to our composite and performance 
attribution modules.
Once the client has performed the 
required analysis the results can be 
published using any of our reporting 
products. These reporting systems vary 
in functionality and scalability and are 
suitable for our whole client base and 
include the added functionality of being 
able to manage investor web sites. The 
combination of all our products allows 
a client to automate the process of 
collecting, cleaning, calculating and 
publishing analysis on each of their 
portfolios. Thus StatPro now offers 
asset managers a strategic solution 
to their portfolio analysis needs. Dario Cintioli | CEO, StatPro Milan
Page 6 | www.statpro.com
Annual Report & Accounts 2003
Launch of
StatPro Risk Management
StatPro had been actively seeking to 
acquire a risk system, but although we 
reviewed a number of different products, 
none met our requirements quite like 
the one offered by Riskmap (now 
StatPro Italia). This product - StatPro 
Risk Management (SRM) - provides 
two key advantages, namely:
• the underlying risk model is able 
to assess the risk of any type of 
asset; and
• it provides clients with risk data on a 
daily basis to power the system.
The great majority of risk systems 
that are currently installed throughout 
the asset management industry are 
based on the CAPM and Parametric 
models. These are good models for 
specific types of portfolios e.g. a 
pure equity portfolio, but problems 
can arise when options or other 
types of more exotic instruments are 
incorporated. Currently the demand 
in the market is for asset managers 
to quantify the general level of risk 
for all their portfolios. There is also 
a general trend towards looking at 
absolute risk rather than at relative 
risk. This is evidenced by the rapid 
growth of hedge funds, which generally 
aim to beat cash rather than track 
the movements of an index such as 
FTSE 100.
SRM aims to address these needs 
without necessarily replacing the 
need for the traditional risk systems 
outlined above.  SRM uses the Historical 
Simulation model, which operates on 
all types of assets whether they are 
equities, bonds, options, property, 
credit derivatives, inflation-linked 
bonds, mortgage-backed securities 
or any other asset class. This enables 
an asset manager to have, say, 
1,000 portfolios with 30,000 different 
assets and be able to quantify which 
portfolios are breaching their risk limits 
(both absolutely and relatively) and 
which assets in those portfolios are 
responsible for the breach. Indeed, 
one of our clients uses SRM to monitor 
300,000 portfolios on a daily basis.
Given the recent controversies caused 
by reducing asset values, authorities 
globally are looking to force asset 
managers not only to demonstrate 
that they can control the level of risk 
taken, but also to inform their clients 
“Fund managers are more likely to
implement risk systems for all of their funds early
in order to gain a marketing advantage” Risk Management
 www.statpro.com | Page 7 
control
“The underlying risk model is able to assess
the risk of any type of asset”
about it. UCITS III (a European directive 
that regulates unit trusts and mutual 
funds) stipulates that all unit trusts 
will have to communicate the level 
of risk in the fund by 2007. Germany 
has decided to adopt this regulation 
early and any new fund registered in 
Germany from January 2004 has to 
show how much “Value at Risk” it 
has. Funds that are already registered 
must do this by 2007. 
We believe that fund managers are 
more likely to implement risk systems 
for all of their funds early in order to 
gain a marketing advantage. These 
rules are likely to affect most fund 
managers in Europe and also many 
in the US.
Amongst its many other benefits, SRM 
is a web-based product and therefore 
smaller asset managers who may have 
a limited IT infrastructure are able 
to use it remotely. This also means 
that larger clients can centralise their 
internal risk service on an “intranet”. 
Clients have responded positively to 
SRM with its cutting edge technology 
and we believe that the product will 
be very successful.
“Thanks to our
partnership,
today we can claim
that Banca Sella
is on the frontier
of risk management”
- Banca Sella Page 8 | www.statpro.com
Annual Report & Accounts 2003
StatPro’s New
Reporting Platform
StatPro has always offered reporting 
tools, but we have focused in the past 
on producing the analysis rather than 
the ﬁnished report. However, we are 
now able to offer three separate and 
complementary reporting solutions to 
provide our clients with a complete 
reporting platform. At the end of 
2003, we launched our product StatPro 
Interactive (SI). In early 2004, we signed 
an exclusive deal with Artech SA to 
resell their innovative reporting product 
under the banner StatPro Enterprise 
Reporting (SER). 
We also signed a deal with Delve Ltd 
to acquire the exclusive rights within 
the global asset management market 
to resell their unique web solutions 
product – now marketed as StatPro 
Web Management (SWM). We have 
taken this route so that we can offer 
our clients a ‘best of breed’ range of 
reporting systems that can handle the 
speciﬁc needs of asset managers.
StatPro Interactive (SI)
This product enables our clients 
to extract data and analysis from 
any of our products and combine 
them together. This means that 
clients can automatically create 
Data Warehouses of information for 
immediate connection to established 
reporting systems. SI can also 
produce data straight into Excel
®
 
and Crystal Reports
®
 and other 
common reporting tools. As StatPro’s 
range of products grows, so each 
new product will be connected to 
SI so that interfaces that clients 
build will not have to be rebuilt for 
each new product.
StatPro Enterprise Reports (SER)
SER is a Business Intelligence (BI) 
tool. The key difference between SER 
and other major BI systems is that it 
does not require technical expertise to 
operate it. Anybody who knows how 
to use Microsoft Ofﬁce® products 
such as Power Point®, Excel®, and 
Word® can use SER. 
One of the major problems clients 
have when they try to implement a 
BI solution is that they have to build 
everything themselves. The result 
is that reporting projects are often 
delivered late and sometimes even 
cancelled. With SER, we are offering 
a reporting solution that is already 
compatible with our systems and is 
easy to customise for the particular 
client’s requirements. Not only will this 
reduce the potential cost for our clients, 
it will also ensure that they receive a 
fully operational end product.
Furthermore, SER can link to any other 
data within an organisation. For asset 
managers that means that SER can 
link to output from their front ofﬁce 
and back ofﬁce systems and their 
CRM systems, as well as all the other 
products they use. 
     The Complete
Reporting Solution
“We are offering a reporting solution
that is already compatible with our systems
and is easy to customise for the
particular client’s
requirements”  www.statpro.com | Page 9 
integrated
The Integrated Solution
StatPro clients can thus use SI to 
generate complex data warehouses, 
link those to SER and then get SWM to 
publish them on the Web, all of which 
can be automated. We believe that 
providing solutions such as these to 
our clients will represent better value to 
the client than trying to patch together 
solutions from different vendors.
Web Management
StatPro Web Management (SWM)
SWM’s function is to manage reporting 
to an asset manager’s clients via the 
web. All asset managers have built 
some kind of web site to communicate 
externally and some are already able to 
present portfolio data to their clients. 
However, the maintenance of these 
web sites is often extremely complex 
and hard to adapt. SWM has the 
ability to generate and maintain as 
many web sites as an asset manager 
has clients. So if a private bank has 
30,000 clients, SWM will be able to build 
30,000 web sites and populate each 
one with the precise reports tailored 
to each client’s requirements. SWM 
can be customised to ﬁt seamlessly 
into the asset manager’s existing web 
site, maintaining the asset manager’s 
unique brand identity, and it can 
automatically deliver emails to each 
client with information from the asset 
manager.
The combination of SWM and StatPro’s 
analytics makes a very powerful and 
secure web reporting solution. SWM 
also comes with an “out-of-the-box” 
solution that will satisfy 90% of the 
needs of most asset managers without 
further modiﬁcation. 
Interactive Enterprise Reports
“The combination
of SWM and
StatPro’s analytics
makes a very powerful
and secure
web reporting
solution” Page 10 | www.statpro.com
Annual Report & Accounts 2003
Our Other Products
Product description
StatPro Performance & Attribution (SPA) is 
a highly technical product that quantiﬁes 
the investment decision processes of 
asset managers, thus enabling a detailed 
analysis of the factors that added value 
in an investment portfolio. SPA can 
identify whether performance was due 
to stock selection, asset allocation, cur-
rency movements or other factors. This 
enables fund managers to understand 
their performance better and assists a 
meaningful dialogue with clients. Whether 
the markets are stable or volatile, this is 
extremely useful information.
Product description
SPA has an Application Programme 
Interface (API), which enables a program-
mer to use all the functionality in SPA 
with other programmes. 
Product’s key beneﬁts
Our clients can use the API to automate 
many processes. It can also be used 
to develop functions that SPA does 
not have. For example, one client 
has used it to feed a web site with 
performance data automatically.  
Another client uses the API to produce 
complex reports that combine data 
from SPA and several other sources. 
The result is the client can have one 
source for performance calculations 
and many interfaces, each undertaking 
different tasks.
Market drivers
The API is being successfully sold to 
our new and existing clients because 
automation reduces their costs. The 
increase in ﬂexibility means they can 
control how they use the system without 
having to rely on StatPro to develop 
enhancements. Technology needs to 
be far more integrated to be efﬁcient, 
but no one company can programme 
everything. Thus the ability to share 
functionality will be an increasingly 
important requirement of all systems.
Product’s key beneﬁts
SPA is a transaction-based, daily, stock 
level attribution system. Most other 
systems on the market use the limited 
“Buy-Hold” or top level methodologies, 
which are inherently inaccurate. SPA has 
an extremely ﬂexible way of categorising 
assets, which allows the analysis to follow 
the investment process. This is vital as it 
is pointless assessing a top-down fund 
manager using a bottom-up model. Whilst 
there are many fund managers, they all 
seek to differentiate themselves by using 
various investment methods and SPA 
can deal with virtually all of these.
Market drivers
The asset management industry has 
grown rapidly but has also become more 
competitive. Fund managers need to 
provide a better service to their clients. 
That means better quality, more detailed 
analysis, faster. SPA enables a fund 
manager to do just this. Compliance and 
risk are increasingly important, but without 
a fully integrated centralised performance 
database, senior management may not 
identify risks and trends in sufﬁcient time 
to take appropriate action. SPA provides 
a full range of “ex-post” risk statistics 
that assist the control and assessment 
of a fund manager’s activities.
StatPro Performance & Attribution (SPA) SPA API
“StatPro
Performance & Attribution 
provides versatility and
productivity in analysing
your portfolio’s
performance”  www.statpro.com | Page 11 
strength
Composites
Product description
StatPro Composites is the market leading 
product for assisting asset managers to 
achieve and maintain compliance with 
Global Investment Performance Standards 
(GIPS) or Association for Investment 
Management and Research (AIMR) 
standards. SC also assists in the efﬁcient 
and effective distribution of performance 
data and statistics within ﬁrms.
Fund managers are under increasing 
pressure to provide compliant performance 
statistics. GIPS requires that managers 
group together portfolios with similar 
investment strategies into composites to 
avoid the charge of ‘cherry picking’ good 
performing portfolios to demonstrate 
a superior track record. GIPS provides 
guidelines on how this should be done 
and SC is ﬂexible enough to handle 
the different styles of each manager 
and provide an audit trail to allow the 
effective independent veriﬁcation of 
these track records.
Performance & Attribution API
“StatPro Composites is the market
leading product for assisting asset managers”
Product’s key beneﬁts
SC is able to take data from multiple 
sources, normalise the data and put 
it into appropriate composites, whilst 
maintaining audit trails and appropriate 
controls on the presentation of returns. 
Some of StatPro’s clients are processing 
in excess of 60,000 accounts, whilst 
others are using as many as 12 sources of 
data. SC has a remarkable reporting tool 
that provides customisable reports of a 
very sophisticated nature. These reports 
enable the fund manager to turn GIPS 
into a marketing advantage instead of 
being simply a regulatory burden.
Market drivers
GIPS and AIMR have established a 
new global standard for presenting 
performance data to prospective clients. 
Asset managers are realising that to 
participate in the global market they 
will have to achieve GIPS compliance. 
Asset managers are also under increasing 
pressure to reduce costs. SC provides 
tools that efﬁciently collate, store and 
maintain performance data.
SPA API StatPro Composites (SC) Fixed Income
Page 12 | www.statpro.com
Annual Report & Accounts 2003
Our Other Products (cont’d)
Product description
StatPro Fixed Income is a performance 
measurement and portfolio analysis 
system, speciﬁcally designed for bond 
managers. It allows the user to decide 
what level of analysis can be performed 
for each portfolio and provides a set of 
reports to describe each aspect of the 
bond universe management process. 
SFI is able to analyse speciﬁc ﬁxed 
interest management processes, which 
are usually quite different from the 
stock processes. With the help of SFI, 
ﬁxed income managers can relate their 
performance to the various management 
decisions they have made based on their 
yield curve movement strategies (shift, 
twist and butterﬂy) and on other choices. 
Using a standard set of reports, they 
can organise the information to report 
to their clients or to devise investment 
strategies.
“One of StatPro Fixed Income Attribution’s major 
strengths is precision”
Product’s key beneﬁts
One of SFI’s major strengths is precision. 
Returns are calculated at security level 
on a daily basis and transactions are 
taken into account. All returns are fully 
time weighted.
Any type of asset’s returns can be 
modelled and analysed into effects 
depending on the precision required 
by asset managers.
It is well known in the performance 
industry that a large part of the excess 
return comes from price differences, 
but very few models can identify this 
effect like SFI does.
To replicate each single asset manager’s 
investment process precisely, SFI comes 
with a choice of different attribution 
models (e.g. duration based, yield curve 
positioning, contribution of yield curve 
movements, spread management) and 
different yield curve ﬁtting techniques. 
Allocation and currency overlay decisions 
can be measured separately whenever 
required. 
Market conditions with low yields 
have forced managers to invest in 
riskier bonds. SFI, therefore, focuses 
particularly on analysing spread effects 
by ratings, economic sectors or using 
swap yield curves.
SFI is an extremely user friendly and 
ﬂexible system that enables the user 
to roll up or drill down into data and 
to group data by any combination of 
factors. This speeds up analysis as the 
desired information is always just a few 
clicks away.
Market drivers
Over the last few years, due to the 
slump in equity markets, many fund 
managers have switched some or all 
of their investments to fixed interest 
securities for safety. As a result, bond 
investments have grown rapidly and 
now often represent the bulk of asset 
managers’ portfolios. In the meantime 
the industry has innovated with more 
and more complex instruments. This 
in turn has made investment strategy 
more complex and analysis more 
important. In this environment, SFI 
can help managers to identify areas of 
risk in their investments and improve 
their investment decisions.
StatPro Fixed Income Attribution (SFI) Client Services
 www.statpro.com | Page 13 
commitment
Client Services & Training
In 2003, our Client Services team 
focused on ensuring our products 
are well-integrated within our clients’ 
operations. This is to enable us to assist 
clients in every way possible to achieve 
the maximum beneﬁt from subscribing to 
StatPro services. Typically, this involves 
helping clients implement automated 
portfolio analysis processes and therefore 
improve their efﬁciency. 
Our commitment to this goal is reﬂected 
through the large number of clients willing 
to offer testimonies to the success of 
their projects. 
User Groups
In 2003 we expanded our global user 
group meetings to ensure that clients 
remain the primary inﬂuence on our 
product development strategy. At these 
meetings we welcome feedback from 
clients regarding the service they have 
received and any suggestions they may 
have for further improvements. 
A key beneﬁt of the user groups, which 
our clients appreciate, is our ability to 
forecast accurately the availability of new 
software releases. We have established 
guidelines that mean that clients have 
good visibility on our development progress 
and can inﬂuence the order in which 
extra functionality is developed. 
Client Support 
We take our support commitment 
extremely seriously and respond to in 
excess of 99% of support calls within the  
deﬁned response times. We constantly 
monitor our performance in this area 
to ensure that we maintain our high 
standards of service and support.
Clients can also log and monitor cases 
via eSupport, and view and comment 
on current or upcoming functionality 
and methodology via StatPro Forums, a 
web-based client discussion area. This 
service enhancement is a good example 
of how StatPro strives to add value to 
system subscription beyond simply 
offering functionality enhancements 
to our applications.
Project Management
We continue to achieve low cost 
software implementations by focus-
ing on the client’s objectives and 
executing our project plans in the most 
efﬁcient manner. We use “Prince 2” 
methodologies of Project Management 
and we always clearly communicate 
the milestones that must be achieved 
and any risks of delays.
“We expanded our
global user group
meetings to ensure that 
clients remain the primary 
inﬂuence on our product 
development strategy” Page 14 | www.statpro.com
Annual Report & Accounts 2003
Map and Client References
London
New York
Paris
Frankfurt
Luxembourg
Milan
Brisbane
Cape Town
“The local support is both expert and technical and is truly 
exceptional” - Union
“Having implemented the system, all our project objectives 
have been met. We are 200% ahead of where we were a 
year ago” - GGOF
“StatPro is a group of very
talented young people who
have taken over the Performance
& Attribution marketplace and
they are really going places” - Sanlam
“We have
had a very positive
experience with StatPro”
- Baillie Gifford
“We value the StatPro
user group meetings
as they reassure us that
StatPro is continuing to
develop their products in
line with client and industry
requirements” - RMB  www.statpro.com | Page 15 
“With our new South African office opening in Cape Town
in April 2004 we will have eight offices supporting our clients
in 25 countries”
“We are convinced that we made the right decision 
in choosing StatPro” - Kepler
“We are impressed
with the high level
of skills of the local
support. People really 
know the product and 
performance attribution” 
- Natexis AM
“We now have total conﬁdence in the quality of the data 
we produce. We are less reliant on people, which has 
eliminated a huge business risk” - J O Hambro
“We chose StatPro because they were clearly the market 
leaders” - African Harvest Page 16 | www.statpro.com
Annual Report & Accounts 2003
Chief Executive’s Review
Highlights of 2003
This year’s results show the resilience 
of our recurring revenue business 
model, together with beneﬁts of the 
cost reduction in 2002. Whilst 2003 was 
a tough year for software businesses, 
with clients’ budgets remaining very 
tight, we have been able to increase 
revenues by 17% to £8.4 million (2002: 
£7.2 million). At the same time we 
have achieved our ﬁrst pre-tax proﬁt 
of £0.1 million (2002: loss of £2.4 
million). It is perhaps more signiﬁcant 
that whilst managing this expansion 
we have generated an operating 
cash inﬂow for 2003 of £1.6 million, 
against an operating cash outﬂow of 
£0.5 million for 2002. 
Regional Performance and Outlook
Sales of our products were made in 
Belgium, Canada, Denmark, France, 
Ireland, Italy, the Netherlands, Norway, 
Singapore, South Africa, the US and 
the UK. In total there were 39 sales 
including 24 contract extensions.   
Although the absolute level of additional 
sales was lower than in 2002, our 
cancellation rate was also lower. This 
reﬂects the change in culture amongst 
clients from the more aggressive cost 
reductions in 2002, to a more balanced 
approach in 2003, with the lower sales 
reﬂecting their reluctance to take on 
new projects but a willingness to stick 
with existing operations.
We believe that optimism has replaced 
pessimism with the majority of our 
clients. However, we still believe that 
in the short term this may result only in 
increased “window shopping”, rather 
than a signiﬁcant increase in projects. 
That being the case, we are approaching 
2004 with caution and a clear focus on 
cost control, whilst ensuring we remain 
well-positioned to respond positively 
to growth opportunities.
Acquisition
In October 2003, we acquired a 51% 
stake in RiskMap Srl (renamed StatPro 
Italia) and have an option to buy the 
remaining 49% between 31 December 
2006 and 31 December 2013. StatPro 
Italia has two key products – StatPro 
Risk Management (SRM) and StatPro 
Portfolio Insurance (SPI). These have 
been integrated with our Data Hub 
and are being actively promoted to 
our clients and prospects. In February 
2004, we signed our ﬁrst new client for 
SRM and we have built a signiﬁcant 
pipeline of prospects for the product. 
Clients have responded positively to 
SRM and SPI and we believe that both 
products will be successful.
Strategy
Our strategy remains to provide our 
clients with the best value possible 
for their portfolio analysis needs. By 
developing and building on our original 
systems, we now offer a product 
structure that can be conﬁgured to 
suit the needs of any type of asset 
manager, large or small. 
The core of the product strategy is 
the StatPro Data Hub (SDH), which 
centralises, cleans and prepares all 
the data required for analysis. On 
top of SDH, ﬁve other products can 
be added: StatPro Performance & 
Attribution (SPA), StatPro Composites 
(SC), StatPro Risk Management 
(SRM), StatPro Portfolio Insurance 
(SPI) and StatPro Fixed Income (SFI). 
These products produce a very wide 
range of analysis that covers the 
majority of current needs of most 
asset managers. 
At the start of 2004, we implemented 
two revenue sharing partnership 
agreements to create a new reporting 
platform. The ﬁrst is with Artech SA 
(France) to create StatPro Enterprise 
Reports (SER) and the second is with 
“Our strategy
remains to
provide
our clients
with the best
value possible
for their portfolio
analysis needs”  www.statpro.com | Page 17 
“We achieved our two objectives for
2003 of generating positive operating
cash flow and making a profit”
success
Delve Ltd (UK) to make StatPro Web 
Management (SWM). Rather than 
seeking to build or buy reporting 
solutions, we have taken this route so 
that we can offer our clients a “best 
of breed” range of reporting systems 
that can handle the speciﬁc needs 
of asset managers, whether they are 
hedge funds, private banks, mutual 
fund companies or institutional asset 
managers. By layering these products 
over our data hub and analytics products, 
clients can automate every aspect of 
their reporting requirements.
As asset managers seek to rationalise 
costs and improve their internal 
systems, we believe they will work with 
suppliers who can provide the best 
platform with the broadest array of 
analysis modules. StatPro’s approach 
of acquiring market leading products 
and integrating them through the 
StatPro Data Hub provides both a 
“best of breed” and an integrated 
solution. Therefore, we should be 
well placed to take advantage of any 
upturn in the market.
Market Survey
Shareholders will be pleased to learn 
that a recent independent survey 
conducted by the Spaulding Group 
put StatPro top of the list of 33 
suppliers for Composite, Performance 
and Attribution systems in response 
to the question: “Which three sup-
pliers would you consider in your 
system selection?” We believe that 
this reflects not only our success in 
selling over 150 systems but also 
the quality of our reputation in our 
market place. We are determined to 
maintain our position.
Summary
We achieved our two objectives for 
2003 of generating positive operating 
cash ﬂow and making a proﬁt and 
I would like to thank all the staff 
and directors for all their hard work 
during 2003. However, 2003 was 
difﬁcult and 2004 could also prove 
a challenge. Our objectives for 2004 
are to increase proﬁts and to generate 
further operating cashﬂow. We will 
launch our new reporting platform 
and aim to win clients for each of 
our new products, concentrating on 
building our core revenues through 
organic growth. By strengthening the 
ﬁnancial position of StatPro we hope 
to be in a position to take advantage 
of any opportunities that may occur 
in the market.
Justin Wheatley
Chief Executive
26 March 2004 Operating and Financial Review
Page 18 | www.statpro.com
Annual Report & Accounts 2003
Overview 
StatPro has continued to grow its 
revenue for the eighth consecutive 
half-year period and achieved the 
ﬁrst full year operating proﬁt since 
the Company’s ﬂotation in May 2000.  
We also generated an operating cash 
inﬂow during the year and we have 
now done so for over 18 months.  
Turnover
Group turnover increased by 17% to 
£8.43 million (2002: £7.23 million).  
Excluding the impact of the acquisition 
of RiskMap Srl (renamed StatPro Italia), 
which contributed £0.09 million of revenue 
for the three months to 31 December 
2003, the revenue growth was 15%.   
Whilst additional sales of licences were 
modest, a lower rate of cancellations in 
2003 compared to 2002 resulted in an 
overall growth of 21% in software licence 
revenue.  Despite lower levels of new 
business and related implementation 
requirements, the professional services 
revenues grew by 29%.  Other recurring 
revenue from the TAP royalties fell by 7% 
and there was no revenue contribution 
from the Swiss agency during 2003 as 
the agency agreement was terminated 
in August 2002.
Recurring revenue 
The underlying recurring revenue 
from software licences at the end of 
December 2003 grew to £7.38 million 
(2002: £6.28 million), an increase of 
18% year on year. Part of the increase 
was due to the acquisition of the risk 
product (3%).  The impact of exchange 
rates on recurring revenues amounted 
to a gain of £0.19 million on euro 
priced contracts, offset by a loss of 
£0.10 million on US dollar denominated 
contracts.  Overall, foreign exchange 
movements resulted in a gain of £0.09 
million (1%) on the revaluation of the 
net value of contracts to the 2003 
year-end rates compared with the 2002 
year-end rates.  The revenue from the 
TAP royalties reduced by 7% to £0.53 
million (2002: £0.57 million). 
The restructuring of our Account 
Management and Client Services 
function during 2002 yielded ﬁnancial 
beneﬁts in 2003. The proportion of 
consulting to existing clients increased 
to approximately 70%.  The total 
incremental revenue (including new 
modules and users) per additional 
contract increased to approximately 
£75,000 compared to £62,000 in 2002 
mainly as the result of an increase in 
the value of additional modules sold to 
existing contracts. The average value was 
also boosted by the addition of the two 
acquired contracts from RiskMap with 
an average annual value of £100,000.  
The proportion of recurring revenue on 
multi-year contracts increased from 
18% at the end of 2002 to 33% at the 
end of 2003.
Operating expenses 
Operating expenses (before goodwill 
amortisation) decreased to £7.78 
million (2002: £8.83 million before 
exceptional items of £0.31 million) 
following the full year beneﬁt of the 
restructuring in July 2002. 
Of the total operating expenses, 
£0.14 million related to the operating 
expenses (before goodwill amortisation) 
of RiskMap, for the three-month period 
following its acquisition in October 
2003.  The combination of increased 
revenue and reduced operating expenses 
allowed us to report our ﬁrst full year 
operating proﬁt of £0.33 million (2002: 
loss of £2.20 million).
Analysis of revenue by type
Year to
31 December
2003
£ million
Year to
31 December
2003
£ million
Year to
31 December
2003
£ million
Year to
31 December
2002
£ million
Growth 
year on year
%
Continuing operations Acquisition Total
Turnover
Software licences 6.61 0.05 6.66 5.52 +21
Professional services 1.20 0.04 1.24 0.96 +29
Other recurring revenue 0.53 - 0.53 0.57 -7
Swiss agency      -
_________
     -
_________
     -
_________
0.18
_________
n/a
Total turnover 8.34
_________
_________
0.09
_________
_________
8.43
_________
_________
7.23
_________
_________
+17  www.statpro.com | Page 19 
We achieved earnings before interest, 
tax, depreciation and amortisation 
(‘EBITDA’) of £0.89 million compared 
with a loss of £1.30 million in 2002 
(before exceptional costs).
Our strategy is to continue to invest a 
signiﬁcant proportion of our revenue in 
new and improved products to ensure 
we remain at the forefront of perform-
ance and risk analytics technology.  
Within our operating expenses of £7.78 
million (before goodwill amortisation), 
£1.17 million (2002: £1.41 million) was 
spent on research and development to 
improve our products continually and 
to upgrade the software for increased 
functionality. 
Employees
There was a reduction in the average 
number of employees during the year 
from 97 to 77 following the restructuring 
in July 2002.  In acquiring a majority 
stake in RiskMap, we added seven new 
employees in October 2003. We ended 
the year with a total of 82 employees, 
situated in seven locations (London, 
Paris, New York, Milan, Frankfurt, 
Luxembourg and Brisbane).  
Interest 
Net interest expense, which results 
from interest accrued on the bank 
loans, on the convertible loan notes 
(redeemed on 2 January 2004), including 
related ﬁnancing costs, and ﬁnance 
leases, less interest earned on cash 
and deposits, amounted to £0.18 
million (2002: £0.17 million).   
Proﬁt/(loss) before tax and Taxation
The proﬁt before taxation was £0.15 
million (2002: loss before taxation of 
£2.37 million).  A provision of £0.01 
million has been made for corporation 
tax for an overseas subsidiary.  There 
is no current or deferred charge for UK 
corporation tax for 2003 (2002: nil) 
due to accumulated tax losses. 
Analysis of recurring revenue
Annualised value
At
31 December
2002
New
contracted
revenue
(net of
cancellations) Acquisition
Net
impact of 
exchange
rates
At
31 December
2003
Growth 
year on year
%
£ million £ million £ million £ million £ million
Recurring revenue
Software licences 6.28 0.81 0.20 0.09 7.38 +18
Other recurring revenue 0.57
_________
(0.04)
_________
-
_________
-
_________
0.53
_________
-7
Total recurring revenue 6.85
_________
_________
0.77
_________
_________
0.20
_________
_________
0.09
_________
_________
7.91
_________
_________
+15
Analysis of operating proﬁt/(loss)
Year to
31 December
2003
£ million
Year to
31 December
2002
£ million
Change
%
Revenue 8.43 7.23 +17
Operating expenses * (7.54)
_________
(8.53)
_________
-12
EBITDA 0.89 (1.30) n/a
Depreciation (0.24) (0.30) -21
Goodwill amortisation     (0.32)
_________
(0.29)
_________
+9
Operating proﬁt/(loss) (before exceptional items) 0.33 (1.89) n/a
Exceptional items -
_________
(0.31)
_________
n/a
Operating proﬁt/(loss) 0.33
_________
_________
(2.20)
_________
_________
n/a
* before depreciation, goodwill amortisation and exceptional items
Equity minority interests
The equity minority interests amounting 
to £0.07 million (2002: nil) relate to the 
minorities’ share of losses in StatPro 
Australia and StatPro Italia.  
Earnings/(loss) per share
Basic earnings per share were 0.6p (2002: 
loss per share 7.3p). The earnings per 
share before goodwill amortisation and 
exceptional items were 1.6p (2002: loss 
per share 5.5p).   The diluted earnings 
per share in 2003 are 0.6p based on 
potentially dilutive shares outstanding 
amounting to 308,853.  The diluted loss 
per share in 2002 was the same as the 
basic loss per share of 7.3p as there were 
no potentially dilutive shares outstanding 
since the Group was making losses.
“StatPro has continued to grow its revenue
for the eighth consecutive half-year period 
and achieved the first full year operating profit 
since the Company’s flotation” Page 20 | www.statpro.com
Annual Report & Accounts 2003
Balance Sheet
The Group’s net liabilities reduced to 
£2.71 million at 31 December 2003 from 
£2.81 million at 31 December 2002.  
The balance sheet includes deferred 
income of £5.23 million (2002: £4.82 
million), which is a non-cash liability 
and has a signiﬁcant adverse impact 
on the reported net liability position 
of the Group balance sheet.   
Fixed assets
Total capital expenditure amounted 
to £0.10 million in 2003 (2002: £0.18 
million including £0.03 million acquired 
under ﬁnance leases). Goodwill aris-
ing on the investment in StatPro’s 
Italian subsidiary amounted to £0.34 
million. The other main component 
of the total goodwill balance of £0.74 
million (2002: £0.72 million) arose 
on the acquisition of AMS S.A. in 
2000. Goodwill is amortised over a 
ﬁve-year period.  
Current assets
The level of debtors remained broadly 
unchanged at £3.03 million (2002: 
£3.40 million).  Improvements in working 
capital management resulted in lower 
trade debtors amounting to £2.24 
million at the end of 2003 (2002: £2.76 
million).  The level of cash at bank and 
in hand increased by 54% to £2.29 
million (2002: £1.49 million).  
Creditors 
The level of short-term creditors 
(excluding deferred income and 
short-term debt) increased by 19% 
to £1.61 million (2002: £1.35 million) 
mainly as a result of creditors assumed 
with the acquisition.  Long-term 
creditors include £1.46 million of 
bank debt (2002: £1.60 million).  
The convertible loan issued on 3 
July 2002 with a nominal value of 
£1.00 million was redeemed on 2 
January 2004 and is therefore shown 
as a current liability in the year-end 
balance sheet. Deferred income 
increased by 8% to £5.23 million 
from £4.82 million as a result of 
the continued growth in the annual 
recurring revenue base.  Of the £5.23 
million, £5.08 million is expected to 
be recognised in 2004.
Cash ﬂow and ﬁnancing
We generated an operating cash 
inﬂow of £1.57 million during 2003 
(2002: outﬂow of £0.48 million).  Net 
debt reduced from £1.43 million at 
31 December 2002 to £0.20 million 
at 31 December 2003. 
Share capital and reserves
The issued share capital amounted 
to £0.33 million (2002: £0.33 million) 
representing 33,089,244 shares of 1p 
nominal value (2002: 32,810,986) as 
a result of the issue of 278,258 shares 
issued under the Share Plan and on 
exercise of options under employee 
share option schemes.
8%
26%
16%
50%
UK (2002: 32%)  
North America (2002: 16%)  
Rest of Europe (2002: 45%)  
Rest of World (2002: 7%)  
Software licence annualised values by region - December 2003
3%
5%
48%
44%
Performance & Attribution
(2002: 47%)  
Composites (2002: 45%)  
Risk (2002: n/a)  
Other (2002: 8%)  
Software licence annualised values by product - December 2003  www.statpro.com | Page 21 
“Our strategy is to continue to invest to
ensure we remain at the forefront of
performance and risk analytics technology”
progress
As a result, the share premium account 
has increased from £8.54 million to 
£8.56 million. The equity minority 
interests of £0.07 million (2002: nil) 
have been deducted in computing 
the total capital employed.
Financial risk management 
The current and projected ﬁnancial 
risks of the Group are managed by the 
central 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 the business cash ﬂows.  
The Company has a committed bank 
facility primarily available for working 
capital purposes with a prime bank on 
competitive terms.  At 31 December 
2003, our net debt was £0.20 million 
including the convertible loan, which 
has now been redeemed on 2 January 
2004.  In line with our cash generation 
and reduced cash requirements we 
repaid £0.50 million of the amount 
outstanding on the bank facility in 
2003.  
Given the recurring revenue levels 
of the business are now at a level 
which exceeds our total operating 
expenses before depreciation and 
goodwill amortisation, and there was 
a signiﬁcant operating cash inﬂow 
during 2003, the directors consider 
that the ﬁnancial risk proﬁle of the 
business has been further reduced 
compared to a year ago.
Foreign exchange risk management
The Group is exposed to exchange rate 
fluctuations given that the majority 
of its revenue is non-sterling based. 
On the other hand, the Group 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 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 
translation exposures.
The balance sheet exposures are 
minimised by reducing the net asset 
exposure, for example, by arranging 
borrowings in local currency where 
appropriate.  As the Group continues 
to grow and generates net profits 
overseas this exchange rate exposure 
will increase.  
Interest rate risk management
The Group’s interest rate risk is not 
material although increasing interest 
rates would increase the interest pay-
able on the Group’s banking facility, 
but this would be partly mitigated by 
an increase in interest income from 
cash and deposits. 
Dividend
The directors currently propose continued 
investment in growing the business 
and are not proposing to recommend 
any dividend at present.
Andrew Fabian
Finance Director
26 March 2004 Page 22 | www.statpro.com
Annual Report & Accounts 2003
Board of Directors
Carl Bacon | Chairman
Carl, 41, was appointed Chairman in 2000. He previously worked as Director of 
Risk Control and Performance at Foreign & Colonial Investment Management 
Limited and prior to this he was Vice President - Head of Performance at J.P. 
Morgan Investment Management Inc. He is a member of the UK Investment 
Performance Committee, the European Investment Performance Committee, 
the Advisory Board of the Journal of Performance Measurement and an original 
member of the GIPS Committee. He is a member of the Investment Performance 
Council (IPC), Chair of the IPC Interpretation Standing sub-committee and 
ex-Chair of the IPC Veriﬁcation sub-committee. 
Justin Wheatley | Chief Executive
Justin, 39, began his career in the ﬁnancial services industry in 1988 with Micropal, 
selling performance measurement software to fund managers in the UK. In 1991, he 
founded an agency in Switzerland to distribute Micropal products and in 1993 he wrote 
the ﬁrst version of TAP, after identifying a requirement for such a product in the market. 
In 1994, he founded StatPro to develop Middle Ofﬁce reporting software systems. The 
same year he also took over Micropal’s French business through the acquisition of 
Micropal France SA, and turned around the business, increasing its turnover four fold 
in 4 years. In 1999, he sold Micropal France to S&P for £1.7 million, which was used to 
partly ﬁnance StatPro’s growth. He took StatPro to IPO in May 2000 raising over £5.0 
million to build up StatPro’s international operations. He has day-to-day responsibility 
for the running of the Group and is Chairman of the Group’s Operating Board. 
Andrew Fabian FCA FCT | Finance Director
Andrew, 42, was appointed Finance Director in 2000.  Prior to joining StatPro, 
he was Group Financial Controller at William Baird PLC. Andrew has signiﬁcant 
experience in the ﬁnancial services sector, both through senior ﬁnance roles at 
William Baird PLC and De La Rue plc, and also through advising ﬁnancial institu-
tions as a management consultant at Deloitte & Touche. Andrew is a chartered 
accountant and qualiﬁed corporate treasurer. He is a Fellow of the Association of 
Corporate Treasurers and served for three years on the ACT’s governing council.  
Andrew chairs the Group’s Operations and Budgets Committee.  www.statpro.com | Page 23 
Charles Fairbairn ACA | Non-Executive Director
Charles, 41, was appointed to the Board in 2000 as an interim Finance Director, 
having previously worked for the Group as a Financial Consultant.  On the appoint-
ment of Andrew Fabian as Finance Director, Charles took the role of Non-Executive 
Director. Charles is a chartered accountant with many years’ experience in the 
media sector and in growing entrepreneurial companies.  He worked for Pearson 
Plc, both as Finance Director of Pearson New Entertainment, a start-up division with 
interests in computer publishing, and as Group Chief Accountant. Pearson New 
Entertainment Limited was sold in 1998; since then he has provided accountancy 
advice to small and growing companies.  He is also a director of Advance Capital 
Invest plc. Charles chairs the Group’s Audit and Remuneration Committees.
Dominic Wheatley | Non-Executive Director
Dominic, 44, graduated from the Royal Military Academy of Sandhurst in 1978 
and served a short service commission in the Irish Guards. After several years 
at an advertising agency in 1984, he co-founded Domark Limited, the software 
entertainment developer and publisher for the home computer market. Domark 
Limited reversed into Eidos plc, the data compression software developer, in 1995 
and Dominic served as Chief Operating Ofﬁcer of Eidos plc and Chief Executive 
of Eidos Inc in the USA until 1997. He is a non-executive director of Telecom 
plus plc and Chairman of Highway Capital plc and Kuju plc. Dominic chairs the 
Group’s Nominations Committee.
Mark Adorian | Non-Executive Director
Mark, 41, was appointed to the Board in 2002.  He 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, a business created through the merger of Micropal together 
with two existing Standard & Poor’s businesses and another acquisition. His speciﬁc 
responsibilities included the global development of the enlarged entity.  Page 24 | www.statpro.com
Annual Report & Accounts 2003
Key Executives
Mark Bramley | CEO, US
Mark joined StatPro in 1999 having gained signiﬁcant experience of client 
needs through his previous positions leading the performance measurement 
teams at both Frank Russell and Deutsche Asset Management. Mark is a key 
player in formulating StatPro’s product strategy and anticipating the future 
trends of GIPS.  He is recognised as an expert in this ﬁeld and continues to 
inﬂuence views and trends in the market place.  In 2002, he was appointed 
CEO of our US operations.         
Karen Dehlavi | Group Development Director
Karen joined StatPro in 1995 from Bank of America. She held the positions 
of Quality Assurance Manager and Client Services Manager before being 
appointed Development Director in November 2000. She is responsible for 
overseeing the design and development of our software applications. Karen 
has an Honours degree in Physics from the University of Nottingham. 
    
Elke Fidler | Group Operations Director
Elke is responsible for global operations at StatPro. Elke joined StatPro in 
1994 as an Account Manager and later became Operations Manager, where 
she was responsible for managing the IT and Human Resources teams. Elke 
was appointed Operations Director in May 1999. Prior to joining StatPro, Elke 
trained at the Standard Bank of South Africa and was a Marketing Executive 
at EPIC, a Vienna based consulting ﬁrm. Elke holds an Economics Degree 
from Natal University, South Africa. 
Simon Johns | Group Client Services Director
Simon began his career at Standard & Poor’s Funds Services, UK in 1988, 
where he was Client Support Manager, responsible for clients and agents 
globally.  In 1994 he joined Standard & Poor’s Fund Services, Switzerland 
as General Manager. In 1996 he was recruited as Commercial Director of 
StatPro Ltd. In 1999, Simon founded StatPro Inc. and became CEO in the 
United States. In 2002, he was appointed Group Client Services Director 
based in London.   www.statpro.com | Page 25 
Michel Lempicki | CEO, Europe
In 1990, Michel graduated from the IEA Paris with a diploma in Finance.   
Michel joined Standard & Poor’s Fund Services France in 1993 and founded 
Standard & Poor’s Fund Services Luxembourg in 1996. Michel established 
StatPro Luxembourg in 1998, StatPro France in 1999 and StatPro Germany 
in 2000 and is responsible for StatPro’s European operations.  
 Recently appointed members of the Operating Board
Didier Cabon | Director of Product Architecture
Didier is Director of Product Architecture, based in Paris. He is responsible for the 
overall architecture of StatPro’s products. He originally developed StatPro Perform-
ance & Attribution in early 1994. In 2000, Didier sold his business to StatPro and 
his product has become the core component of StatPro’s product range. Prior to 
joining StatPro, Didier worked in performance measurement from 1977 with Société 
Générale and Crédit Commercial de France.  He has worked on equity attribution 
models since 1990 and was one of the founders of the GRAP, a think tank that 
sets standards for attribution analysis for large French asset managers.
Frédéric Bardoux | Product Strategy Director
Frédéric is the Product Strategy Director at StatPro. He manages a team of 
Product Champions and is responsible for deﬁning our overall product strategy 
as well as the functional content of our products. Before his appointment as 
Product Strategy Director in 2003, Frédéric held the post of Head of Performance 
Measurement and Managing Director of StatPro France S.A.  Prior to joining 
StatPro in 2000, Frédéric worked for 6 years at BNP Gestion in Paris where he 
began his career as a statistical modeller and a fund manager.  He then set up 
and directed the BNP Performance Measurement and Reporting team.
Graeme Condie | UK Sales Director
Graeme was recently appointed UK Sales Director at StatPro, but he also covers 
Scandinavia, South Africa, the Middle East and Far East.  Prior to joining StatPro in 
July 2001 Graeme worked at WM for 15 years.  During his time at WM, he started 
as a data analyst and then moved to the Client Services team. He later became an 
executive director responsible for senior relationships, business development and sales 
in the Middle and Far East.  His mandate at WM was to ensure that performance 
measurement maintained its important role within the investment community. Annual Report & Accounts 2003
Financial Information Directors’ Report for the year ended 31 December 2003
 www.statpro.com | Page 27 
The directors present their annual report and the audited ﬁnancial statements for the year ended 31 December 2003.
Principal activity
The principal activity of the Company and its subsidiaries during the year was the development, marketing and distribution of software systems 
and related professional services to the global asset management industry.  
Review of business and future developments
The directors are pleased with the performance of the Group, which has achieved further growth in revenue and has generated a proﬁt and 
operating cash inﬂow during 2003.   A review of the business and likely future development is contained in the Chairman’s Statement on page 3 
and Chief Executive’s Review on pages 16 to 17.
Research and development 
The Group continues to invest in developing improved software products.  Development expenditure incurred and written off during the year was 
£1.17 million (2002: £1.41 million).
Results, dividends and transfers to reserves
The Group’s retained proﬁt for the ﬁnancial year was £0.20 million (2002: loss of £2.37 million).  The directors do not propose to pay a dividend 
in respect of 2003 (2002: nil).  The proﬁt for the year has been transferred to reserves.
Donations
The Group made no charitable donations (2002: nil) or political donations (2002: nil) during the year.
Directors and their interests
The directors who held ofﬁce during the year were:
CR Bacon Chairman
JMBT Wheatley Chief Executive
AM Fabian Finance Director
DMDA Wheatley Non-executive Director
MC Fairbairn Non-executive Director
MC Adorian 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 also require that one third of the 
directors, or the number nearest to one third, are to retire from ofﬁce by rotation. Accordingly, MC Fairbairn and MC Adorian seek re-election at 
the forthcoming Annual General Meeting. 
Directors’ interests in the Company’s share capital, share options, warrants and convertible loan stock are detailed on pages 35 and 36.
Directors’ interests in signiﬁcant contracts
Directors’ interests in signiﬁcant contracts are described in note 22 on page 55.
Overseas branch of the Company
During the year the Group operated overseas through a branch in Luxembourg. Page 28 | www.statpro.com
Annual Report & Accounts 2003
Policy and practice on payment of creditors
The Group recognises the importance of good relationships with its suppliers and sub-contractors and has established the following 
payment policy:
(a) agree payment terms in advance of any commitment being entered into;
(b) ensure suppliers are made aware of these terms by inclusion of the terms of payment on the purchase order or the contract;
(c) ensure that payments are made in accordance with the terms of the contract or order providing that the presented documentation is complete 
and accurate.
The number of days purchases outstanding at 31 December 2003 for the parent Company was 21 (2002: 23).
Statement of directors’ responsibilities 
Company law requires the directors to prepare ﬁnancial statements for each ﬁnancial year, which give a true and fair view of the state of affairs 
of the Company and the Group as at the end of the ﬁnancial period and of the proﬁt or loss of the Group for that period. In preparing those 
ﬁnancial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed subject to any material departures being disclosed and explained in 
the ﬁnancial statements; 
• prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Group will continue in 
business.
The directors conﬁrm that they have complied with the above requirements in preparing the ﬁnancial statements.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the ﬁnancial position of 
the Company and the Group and to enable them to ensure that the ﬁnancial statements comply with the Companies Act 1985.  They are also 
responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection 
of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the Company’s website. Information published on the internet is accessible 
in many countries with different legal requirements. Legislation in the United Kingdom governing the preparation and dissemination of ﬁnancial 
statements may differ from legislation in other jurisdictions.
Substantial shareholdings
Major shareholdings of over 3% in the Company’s issued share capital as at 21 March 2004 are as follows:
Ordinary shares beneﬁcially owned 
Number of
shares
% of share
capital 
JMBT Wheatley 6,265,000 18.9%
PT Borel 2,650,000 8.0%
DMDA Wheatley 2,139,760 6.5%
Herald Investment Trust 1,601,000 4.8%
HSBC Global Custody Nominee (UK) Ltd 1,484,210 4.5%
MC Adorian 1,340,000 4.0%
In addition to the above holdings, JMBT Wheatley and DMDA Wheatley together with GFMT Wheatley, hold 255,000 ordinary shares (representing 
0.8% of the ordinary share capital) in a family trust, each of them being a trustee and potential beneﬁciary of the trust.  172,000 ordinary shares 
(representing 0.5% of the ordinary share capital) are held in a retirement beneﬁt scheme, in which JMBT Wheatley has a beneﬁcial interest.  
WRC Renand SA, in which JMBT Wheatley has a 46% interest, owned 35,000 ordinary shares (representing 0.1% of the ordinary share capital) 
during the year but these were sold in January 2004 when WRC Renand SA entered a voluntary liquidation arrangement.  www.statpro.com | Page 29 
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, com-
mensurate with their aptitudes and abilities. The Group’s policy in respect of staff who become disabled whilst employed is to seek to train and 
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 Group operates share option schemes, including a SAYE 
scheme. These schemes are available to all employees after the initial qualifying period of employment, and subject to the local tax regulations. 
The London ofﬁce of StatPro, where the majority of our employees are based, maintained the Investors in People (“IIP”) award achieved in 2001 
in recognition of the investment the Company has made in its people.  The award demonstrates that we believe in and recognise the value of our 
staff, their performance and their contribution to the success of the business. 
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.
Auditors
A resolution to re-appoint PricewaterhouseCoopers LLP as auditors to the Company will be proposed at the Annual General Meeting.
By order of the Board
GFMT Wheatley
Company Secretary
26 March 2004 Page 30 | www.statpro.com
Annual Report & Accounts 2003
Corporate Governance
Compliance with the Combined Code
The Company transferred its listing on 16 June 2003 from the London Stock Exchange Main List to the Alternative Investment Market of the 
London Stock Exchange (“AIM”).  The directors believe that it was appropriate for the Company to move to AIM to take advantage of the greater 
degree of ﬂexibility afforded by this market.  As a result, the Company is not required to follow the Combined 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 for good corporate governance. This statement describes how the principles of corporate governance are applied to the 
Company and the Company’s compliance with the Code provisions.  The Company has been in full compliance with the provisions set out in the 
Combined Code during the year except as noted below.
The Workings of the Board and its Committees
The Board
The Board currently comprises the Chairman, the Chief Executive, the Finance Director and three non-executive directors and is responsible to 
shareholders for the proper management of the Group.  The Board considers Charles Fairbairn to be the senior independent director. Dominic 
Wheatley, a non-executive director, is the brother of Justin Wheatley, Chief Executive, but in all matters concerning the Group acts independently. 
Directors’ biographies appear on pages 22 and 23 and demonstrate a range of relevant experience bringing independent judgement to bear on 
issues of strategy, performance, resources, industry knowledge and standards of conduct, which is vital to the success of the Group. 
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 these 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 following committees have been established to deal with 
speciﬁc aspects of the Group’s affairs.
Operating Board
The Board has established an executive committee (“the Operating Board”), which comprises the executive directors together with other senior 
executives of the Group who meet once a month to discuss operational and strategic matters. 
Audit Committee
The Audit Committee comprises the Chairman (an executive director), Charles Fairbairn and Mark Adorian, and meets at least twice annually. 
The Company therefore did not comply during the year with D.3.1 of the Code, which requires at least three non-executive directors, a majority 
of whom should be independent.  However, whilst the Chairman’s role is executive, his operational role with the core business is limited, and as 
such, the Board considers the composition of this committee appropriate.  The Audit Committee provides a forum for reporting by the Group’s 
external auditors. Meetings are also attended, by invitation, by the Finance Director.   
The Audit Committee is responsible for reviewing a wide range of ﬁnancial matters including the half-year and annual accounts before their 
submission to the Board and monitoring the controls, which are in force to ensure the integrity of the ﬁnancial information, reported to shareholders. 
The Audit Committee reviews the appointment of external auditors and their remuneration both for audit and non-audit work and discusses the 
nature and scope of the audit.
Remuneration and Nomination 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 Share Option Schemes. The Remuneration Committee is chaired 
by Charles Fairbairn and comprises the non-executive directors. Section B.2.2 of the Code requires the Remuneration Committee to comprise 
only independent non-executive directors. Dominic Wheatley, a non-executive director, is the brother of Justin Wheatley, Chief Executive, but in 
all matters concerning the Group is considered by the Board to be  independent. 
The Nomination Committee is chaired by Dominic Wheatley and currently comprises Carl Bacon, Charles Fairbairn and Mark Adorian. The 
Nomination Committee undertakes the function of nominating appointments to the Board, although all such appointments are reviewed and 
approved by the full Board. 
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 32 to 36. 
Sales Strategy Committee
The Group’s sales strategy is reviewed and controlled at a series of Sales Strategy Committee meetings. This committee ensures that the sales 
and marketing effort is invested in the most appropriate regions and distribution channels to maximise the long-term commercial potential of 
sales of our products and services.
Product Strategy Committee
The Group’s product and development strategy is reviewed and controlled at a series of Product Strategy Committee meetings. This committee 
ensures products, whether acquired or developed internally, are designed to meet clients’ current and future requirements, and are developed in 
a cost effective manner.   www.statpro.com | Page 31 
Relations with shareholders
Communications with shareholders are given high priority. There is regular dialogue with institutional shareholders and market analysts including 
presentations after the Company’s preliminary announcement of the annual and interim results and other major announcements. 
Internal controls and risk management 
The Board is formally required to review and report on the effectiveness of the Group’s system of internal controls in accordance with the Combined 
Code.  This review is required to address not only internal ﬁnancial controls but 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, appropriate to a group of its size and complexity, and during the year, the internal 
controls and risk management procedures were reviewed by the directors.  The Company has a Group Risk Manual, which sets out the key risks by 
function and by region and the controls in place to manage the risks and identiﬁes actions to be taken to improve risk management processes. Given 
the size and nature of the business the directors consider that the Group is compliant with the requirements of The Turnbull Report. A statement 
of the directors’ responsibilities in respect of the ﬁnancial statements is set out on page 28 and a statement on going concern is shown below. 
Each director is responsible for managing risks in his or her function or region and making regular reports on risk issues to both the main Board 
and Operating Board. This risk analysis 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. The Board is thus able to monitor the risk proﬁle for all 
signiﬁcant business risks. Recommendations on internal controls and risk improvement are reviewed by the Audit Committee and the Board.  Risk 
awareness is further embedded within the business at a series of off-site review meetings during the year extending to Operating Board members 
and other senior managers.
 
Financial controls
The Group has established written expenditure approval, delegation of authority and authorisation levels, segregation of duties and other control 
procedures together with accounting policies and procedures, which are approved by the Board.
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 together with information on the 
key risk areas.
Investment appraisal 
Major capital and other project expenditure is controlled by a budgetary process and authorisation levels. For capital expenditure above speciﬁed 
levels, and for acquisitions and disposals, detailed written proposals have to 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 current size of the Group. 
However, this situation will be reviewed by the Board from time to time.
Going concern
After making reasonable enquiries, 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. 
GFMT Wheatley
Company Secretary
26 March 2004 Page 32 | www.statpro.com
Annual Report & Accounts 2003
Remuneration Report
The Group’s Remuneration Committee is chaired by Charles Fairbairn and the other members are Dominic Wheatley and Mark Adorian. 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 but has taken no external advice.  Following the Company’s transfer to AIM, the Company is continuing to make disclosures 
of directors’ remuneration as detailed below on a voluntary basis. 
Remuneration policy
The Company’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, beneﬁts, share options, perform-
ance-related bonuses, pensions and other beneﬁts, with a signiﬁcant proportion based on performance and dependent upon achievement of 
demanding targets. Consideration is given to pay and employment policies elsewhere in the Group. Details of the remuneration package of each 
director are set out on page 34.
The Company has needed to have a remuneration policy to steer the Company towards the objectives of all its shareholders. As a previously 
loss-making Company seeking to achieve high sales growth there had been a reliance on basic salaries, share options and commission plans.  
Now the Company has emerged from that phase there will be more focus on the achievement of Group proﬁt targets and bonuses will form a 
greater part of the overall remuneration package.
Basic salary and beneﬁts
Salaries are established by reference to prevailing market rates, adjusted to reﬂect individual performance, experience, responsibilities and skills. 
Salaries are normally reviewed annually in January.  From February 2004, Carl Bacon has increased his time commitment to the Company and as 
a result his annual fee has been increased to £108,000 per annum.  Other directors’ salaries remain unchanged. 
Share options 
Share options are granted to directors and eligible employees under established approved and unapproved employee share option schemes 
as the Company places emphasis on the encouragement and motivation of staff. Details of the schemes are provided in note 19. Options are 
awarded at the higher of market value at the date of grant and a minimum level established by the Remuneration Committee as being acceptable 
to all shareholders.  The Remuneration Committee ensures that awards are made within the overall limits authorised by shareholders and at an 
appropriate level for the individual, taking into account their role and contribution to the business, previous option grants and market practice. 
Share options issued to directors and senior managers during the year include performance criteria, primarily being that exercise is dependent on 
achieving a minimum share price, and it is intended that all future awards to executives under the share option schemes will include performance 
criteria as determined by the Remuneration Committee.  
The Remuneration Committee decided to grant during the year new executive share options to Carl Bacon and Andrew Fabian.  Their previous 
interest in executive share options are shown in the table on page 35.  Such share options and awards were made at a time when conditions in the 
sector were signiﬁcantly different.  The options were no longer serving the incentive function for which they were intended despite the Company 
having evolved substantially from the Company that ﬂoated in May 2000. The Remuneration Committee carefully considered the balance of 
shareholders’ interests and maintained the limit under the Approved and Unapproved Share Option Schemes of 5,000,000 options approved by 
shareholders at the 2001 Annual General Meeting.  The Remuneration Committee has also established an exercise price of 60p and the Company 
has not granted any options post-ﬂotation below this price, despite the market price having been substantially below this level. The exercise price 
of 60p represented a premium of 53 per cent to the middle market closing share price of 39.25p on 13 August 2003, the date immediately prior 
to their announcement.
The Remuneration Committee agreed that existing executive options over shares held by these directors be cancelled and new options be granted 
as shown in the table on page 35. The options become exercisable in three tranches; 25 per cent after 12 months from grant, a further 25 per 
cent after 24 months from grant and the balance after 36 months from grant.  All options would have to be exercised by the seventh anniversary 
of the date of grant.  In respect of both the ﬁrst and second tranches, the middle market closing price of StatPro shares would need to have 
equalled the exercise price for at least 20 consecutive business days in the period prior to the ﬁrst exercise date, otherwise the options become 
exercisable after 36 months.
The awards represented approximately three times annual salary based on the exercise price but approximately two times annual salary based 
on the share price on the date of grant.
Performance-related bonus scheme
In addition to basic salary, executive directors and other senior executives participate in a performance-related bonus scheme. Performance targets 
are designed to both stretch and encourage individuals whilst aligning their interests to that of the Group.  www.statpro.com | Page 33 
In 2003, the targets for performance-related bonuses for all main board executive directors related to the Group exceeding a demanding target 
for proﬁts before depreciation and amortisation. For 2004, the bonuses will also be payable based upon the level of Group proﬁts before deprecia-
tion and goodwill amortisation achieved.  It is anticipated that basic salary will be the substantial element of each package, unless proﬁts are 
substantially higher than the target.  The Committee continues to review bonus plans. The Committee may also award individual discretionary 
bonuses. In 2003, awards were made of £11,000 (2002: nil) to Justin Wheatley and £7,000 (2002: nil) to Andrew Fabian due to the level of cash 
generated during the year.   Bonuses do not form part of pensionable earnings. 
Pensions and other beneﬁts
The Company also operates a deﬁned contribution pension scheme for executive directors.  Other beneﬁts include allowances, life insurance 
cover of four times basic salary and membership of a private healthcare scheme. 
Service contracts
Each of the executive directors has a rolling contract of service, which is terminable by no more than twelve 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
CR Bacon  3 April 2000 3 months
JMBT Wheatley 18 June 1999 6 months
AM Fabian 10 July 2000 12 months
Non-executive directors do not have service contracts. The directors submitted for re-election at the forthcoming Annual General Meeting are 
MC Fairbairn and MC Adorian. Biographical details of all directors can be found on pages 22 and 23.
Performance graph                 Share Price Comparison (Rebased to 100)
                                         18/05/2000 - 31/12/2003
              StatPro Group plc
              FTSE AIM
StatPro ﬂoated on the London Stock Exchange in May 2000 but transferred to AIM on 16 June 2003.  Therefore, in the opinion of the directors, 
the FTSE™ AIM index is the most appropriate benchmark for total shareholder return comparatives.  For the period from 18 May 2000 to end 
December 2003 the total shareholder return for StatPro was –61%.  Over the same period the index fell by 52%.  This graph shows the performance 
since ﬂotation rather than the normal ﬁve-year period.
May 00 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03
0
20
40
60
80
100
120 Page 34 | www.statpro.com
Annual Report & Accounts 2003
Directors’ remuneration 
This part of the Remuneration Report is auditable.
2003 Performance- Total 
related Discretionary excluding Total
Salary/Fees bonus bonus Beneﬁts pensions Pensions 2003
£’000 £’000 £’000 £’000 £’000 £’000 £’000
CR Bacon  80 8 - 2 90 8 98
JMBT Wheatley 180 20 11 23 234 12 246
AM Fabian 132 14 7 7 160 13 173
DMDA Wheatley                                                                      25 - - - 25 - 25
MC Fairbairn 30 - - - 30 - 30
MC Adorian 25 - - - 25 - 25
__________
472
__________
__________
__________
42
__________
__________
__________
18
__________
__________
__________
32
__________
__________
__________
564
__________
__________
__________
33
__________
__________
__________
597
__________
__________
2002 Performance- Total 
related Discretionary excluding Total
Salary/Fees bonus bonus Beneﬁts pensions Pensions 2002
£’000 £’000 £’000 £’000 £’000 £’000 £’000
CR Bacon  80 - - 1 81 8 89
JMBT Wheatley 180 - - 20 200 12 212
AM Fabian 132 - - 6 138 13 151
DMDA Wheatley                                                                      25 - - - 25 - 25
MC Fairbairn 30 - - - 30 - 30
MC Adorian 25 - - - 25 - 25
__________
472
__________
__________
__________
-
__________
__________
__________
-
__________
__________
__________
27
__________
__________
__________
499
__________
__________
__________
33
__________
__________
__________
532
__________
__________
The remuneration of DMDA Wheatley consists wholly of fees paid to Ideal Partners, of which he is a partner.  The remuneration of MC Fairbairn 
consists wholly of fees paid to Crunchwell Limited, of which he is a director.  During the year the Group paid a fee of £20,110 (2002: nil) as 
part of a revenue sharing arrangement on performance training courses supplied by Otos Limited, of which CR Bacon is a director.
Directors’ pension arrangements 
This part of the Remuneration Report is auditable.
The table below shows directors’ pension arrangements in respect of a deﬁned contribution scheme.
Contribution 
Rate 
Relevant
Salary
Contributions
2003 
Contributions
2002
£’000 £’000 £’000
CR Bacon 10% 80 8 8
JMBT Wheatley 6.7% 180 12 12
AM Fabian 10% 132 13 13  www.statpro.com | Page 35 
Directors’ interests
Interests in shares
As at 31 December 2003 As at 31 December 2002 
Number Number
CR Bacon *               225,000              190,000
JMBT Wheatley 6,265,000 6,265,000
AM Fabian 10,000 10,000
DMDA Wheatley              2,139,760                            2,139,760
MC Fairbairn               162,500              162,500
MC Adorian * 1,065,000 715,000
In addition to the above interests, JMBT Wheatley and DMDA Wheatley together with GFMT Wheatley hold 255,000 ordinary shares in a family 
trust, each of them being a trustee and potential beneﬁciary of the trust (2002: 255,000 ordinary shares).  172,000 ordinary shares are held in a 
retirement beneﬁt scheme, in which JMBT Wheatley has a beneﬁcial interest (2002: 172,000).  WRC Renand SA, in which JMBT Wheatley has a 
46% interest, owned 35,000 ordinary shares (representing 0.1% of the ordinary share capital) during the year but these were sold in January 2004 
when WRC Renand SA entered a voluntary liquidation arrangement.
* In March 2004, MC Adorian acquired a further 275,000 ordinary shares and CR Bacon acquired a further 10,000 ordinary shares.
Interests in share options 
This part of the Remuneration Report is auditable.
As at Cancelled/ As at
31 December Granted Lapsed 31 December Exercise Dates
2002 in Year in Year  2003 Price exercisable
Number Number Number Number pence
CR Bacon 312,500 - (312,500) - 80 2004-2010
- 425,000 - 425,000** 60 2006-2010
24,816*
__________
- - 24,816*
__________
68 2006-2007
337,316 449,816
JMBT Wheatley 24,816* - (24,816*) - 68 2006-2007
AM Fabian 137,931 - (137,931) - 87 2004-2010
200,000 - (200,000) - 60 2004-2011
- 77,000 - 77,000 60 2006-2013
- 573,000 - 573,000** 60 2006-2010
24,816*
__________
- - 24,816*
__________
68 2006-2007
362,747 674,816
DMDA Wheatley - - - - - -
MC Fairbairn 62,500 - - 62,500 80 2004-2010
MC Adorian 83,333 - - 83,333 60 2005-2012
* SAYE scheme options
** performance criteria attached.  In certain circumstances some of these options may be exercised in 2004 or 2005. Page 36 | www.statpro.com
Annual Report & Accounts 2003
Interests in warrants 
This part of the Remuneration Report is auditable.
Warrants Warrants 
at 31 December 2003 at 31 December 2002 
Number Number
CR Bacon 17,500 17,500
DMDA Wheatley 162,500 162,500
MC Fairbairn 7,500 7,500
Warrants carry the rights to subscribe for ordinary shares at a price of 80p per ordinary share at any time up to 17 May 2007.
Interests in unsecured convertible loan stock 2004 
Holding in convertible Holding in convertible
loan stock 2004 loan stock 2004
at 31 December 2003 at 31 December 2002
£’000 £’000
JMBT Wheatley 100 100
DMDA Wheatley 250 250
MC Adorian 250 250
The convertible loan stock 2004 was repaid in full on 2 January 2004.
Gains made by Directors on Share Options 
No director exercised any share options during the year ended 31 December 2003 (2002: nil). 
Share Price 
The highest and lowest mid-market prices of the Company’s ordinary shares during the year were 40p and 14.5p respectively, and the mid-market 
price on 31 December 2003 was 31p.
MC Fairbairn
Chairman of Remuneration Committee
26 March 2004  www.statpro.com | Page 37 
Independent Auditors’ Report to the
Members of StatPro Group plc
We have audited the ﬁnancial statements, which comprise the consolidated proﬁt and loss account, the balance sheets, the consolidated cash 
ﬂow statement, the statement of Group total recognised gains and losses and the related notes. 
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the ﬁnancial statements in accordance with applicable United Kingdom law and 
accounting standards are set out in the statement of directors’ responsibilities. 
Our responsibility is to audit the ﬁnancial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing 
Standards issued by the Auditing Practices Board.  This report, including the opinion, has been prepared for and only for the Company’s members 
as a body in accordance with Section 235 of the Companies Act 1985 and for no other purpose.  We do not, in giving this opinion, accept or 
assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing.
We report to you our opinion as to whether the ﬁnancial statements give a true and fair view and are properly prepared in accordance with the 
Companies Act 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the ﬁnancial statements, if the Company 
has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information 
speciﬁed by law regarding directors’ remuneration and transactions is not disclosed.
We read the other information contained in the annual report and consider the implications for our report if we become aware of any apparent 
misstatements or material inconsistencies with the ﬁnancial statements. The other information comprises only the Chairman’s Statement, Chief 
Executive’s Review, Operating and Financial Review, Directors’ Report, Corporate Governance Statement, Remuneration Report and other 
information for shareholders.
We also, at the request of the directors (because the Company applies the Financial Services Authority listing rules as if it were a fully listed 
company), review whether the Corporate Governance Statement reﬂects the Company’s compliance with the seven provisions of the Combined 
Code speciﬁed for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not required to consider 
whether the Board’s statements on internal control cover all risks and controls, or to form an opinion on the effectiveness of the Group’s corporate 
governance procedures or its risk and control procedures. 
Basis of audit opinion
We conducted our audit in accordance with auditing standards issued by the Auditing Practices Board. An audit includes examination, on a test 
basis, of evidence relevant to the amounts and disclosures in the ﬁnancial statements. It also includes an assessment of the signiﬁcant estimates 
and judgements made by the directors in the preparation of the ﬁnancial statements, and of whether the accounting policies are appropriate to 
the Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us 
with sufﬁcient evidence to give reasonable assurance that the ﬁnancial statements are free from material misstatement, whether caused by fraud 
or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the ﬁnancial 
statements.
Opinion
In our opinion the ﬁnancial statements give a true and fair view of the state of affairs of the Company and the Group at 31 December 2003 and of 
the proﬁt and cash ﬂows of the Group for the year then ended and have  been properly prepared in accordance with the Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London
26 March 2004 Page 38 | www.statpro.com
Annual Report & Accounts 2003
Note 2003 2002
£’000 £’000
Group Turnover
Continuing operations 2 8,340 7,229
Acquisition 2 86
__________
-
__________
2 8,426 7,229
Operating expenses before goodwill amortisation and exceptional items (7,775) (8,832)
Amortisation of goodwill 10 (321) (294)
Exceptional items 3 - (306)
Operating expenses 3 (8,096) (9,432)
Continuing operations 400 (2,203)
Acquisition (after goodwill amortisation of £17,000) (70) -
Operating proﬁt/(loss) 330 (2,203)
Net interest payable 4 (184)
__________
(170)
__________
Proﬁt/(loss) on ordinary activities before taxation 2 146 (2,373)
Taxation 5 (14)
__________
-
__________
Proﬁt/(loss) on ordinary activities after taxation 132 (2,373)
Equity minority interests 6 70
__________
-
__________
Retained proﬁt/(loss) for the ﬁnancial year 21 202
__________
__________
(2,373)
__________
__________
Earnings/(loss) per share – basic and diluted 20 0.6p (7.3)p
Earnings/(loss) per share – before amortisation of goodwill and exceptional items 20 1.6p (5.5)p
The above results all relate to continuing activities.
Statement of Group Total Recognised Gains and Losses
2003 2002
Note £’000 £’000
Retained proﬁt/(loss) for the ﬁnancial year                                                 21 202 (2,373)
Exchange differences offset in reserves (52)
__________
(19)
__________
Total recognised gains and losses for the year 150
__________
__________
(2,392)
__________
__________
Consolidated Proﬁt and Loss Account
for the year ended 31 December 2003  www.statpro.com | Page 39 
Balance Sheets at 31 December 2003
          Group                Company
Note 2003 2002 2003 2002
£’000 £’000 £’000 £’000
Fixed assets
Intangible assets 10 737 716 - -
Tangible assets 11 561 674 - -
Investments 12 -
__________
-
__________
380
__________
66
__________
1,298 1,390 380 66
Current assets
Debtors
- Amounts falling due after one year 13 297 308 1,286 2,149
- Amounts falling due within one year 13 2,728 3,087 27 1,025
Cash at bank and in hand 2,292
__________
1,486
__________
1,645
__________
906
__________
5,317 4,881 2,958 4,080
Creditors: amounts falling due within one year 14 (7,690)
__________
(6,269)
__________
(1,347)
__________
(514)
__________
Net current (liabilities)/assets (2,373)
__________
(1,388)
__________
1,611
__________
3,566
__________
Total assets less current liabilities (1,075)
__________
2
__________
1,991
__________
3,632
__________
Creditors: amounts falling due after more than one year
Deferred income 15 (150) (213) - -
Convertible loan 15 - (971) - (971)
Bank loans 15 (1,457) (1,602) (1,446) (1,602)
Finance lease obligations 15 (27)
__________
(26)
__________
-
__________
-
__________
(1,634)
__________
(2,812)
__________
(1,446)
__________
(2,573)
__________
Net (liabilities)/assets (2,709)
__________
__________
(2,810)
__________
__________
545
__________
__________
1,059
__________
__________
Capital and reserves
Called up share capital 19 331 328 331 328
Share premium account 21 8,559 8,541 8,559 8,541
Warrant reserve 21 424 424 424 424
Proﬁt and loss account 21 (11,953)
__________
(12,103)
__________
(8,769)
__________
(8,234)
__________
Equity shareholders’ (deﬁcit)/funds (2,639) (2,810) 545 1,059
Equity minority interests 6 (70)
__________
-
__________
-
__________
-
__________
Capital employed (2,709)
__________
__________
(2,810)
__________
__________
545
__________
__________
1,059
__________
__________
The ﬁnancial statements on pages 38 to 57 were approved by the Board of Directors on 26 March 2004 and were signed on its behalf by:
Directors
JMBT Wheatley  AM Fabian Consolidated Cash Flow Statement
for the year ended 31 December 2003
Note 2003 2002
£’000 £’000
Net cash inﬂow/(outﬂow) from operating activities 24 1,572
__________
(476)
__________
Returns on investments and servicing of ﬁnance
Interest received 34 22
Interest paid (138) (143)
Issue costs in respect of bank loan (10) (27)
Issue costs in respect of convertible loan -
__________
(43)
__________
Net cash outﬂow from returns on investments and servicing of ﬁnance (114)
__________
(191)
__________
Taxation -
__________
-
__________
Capital expenditure and ﬁnancial investment
Purchase of tangible ﬁxed assets (99)
__________
(162)
__________
Net cash outﬂow from capital expenditure and ﬁnancial investment (99)
__________
(162)
__________
Acquisitions and disposals
Deferred consideration proceeds from disposal of subsidiary undertaking - 89
Cash subscription on acquisition of subsidiary undertaking 27 (282) (53)
Costs incurred on acquisition of subsidiary undertaking 27 (32) (12)
Cash acquired on acquisition of subsidiary undertaking 27 411
__________
55
__________
Net cash inﬂow from acquisitions and disposals 97
__________
79
__________
Net cash inﬂow/(outﬂow) before management of liquid resources and ﬁnancing 1,456 (750)
Management of liquid resources 
Increase in short-term deposits (448) (151)
Financing
Proceeds from bank facility - 250
Repayment of bank facility (499) (51)
Repayment of debt assumed on acquisition 27 (167) -
Proceeds from issue of ordinary shares 21 48
Capital element of ﬁnance lease payments (5) (61)
Proceeds from issue of convertible loan -
__________
1,000
__________
Net cash (outﬂow)/inﬂow from ﬁnancing (650) 1,186
Increase in cash in the year 25
__________
358
__________
__________
__________
285
__________
__________
Page 40 | www.statpro.com
Annual Report & Accounts 2003  www.statpro.com | Page 41 
Notes to the Financial Statements
for the year ended 31 December 2003
1 | Principal accounting policies
The ﬁnancial statements have been prepared in accordance with applicable accounting standards in the United Kingdom under the historical cost 
convention.  The principal accounting policies, which have been applied consistently, are set out below.  In accordance with Financial Reporting 
Standard 18 (FRS18) – “Accounting Policies”, the directors have reviewed the Group’s accounting policies and consider that the accounting 
policies adopted are the most appropriate. 
Turnover
Turnover represents the invoiced value of goods and services, excluding value added tax, as follows:
a) Licence revenue -  Licence revenue is recognised in the proﬁt and loss account over the period of the licence, 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 
in the balance sheet.
 
b) Software and software design contracts - These contracts are only included as income upon acceptance by the client. Direct costs of labour 
in respect of these contracts, where these arise, are carried forward as work in progress until this time.
c) Software support contracts - Software support contract income relating to obligations under the contract is recognised in the proﬁt and loss account 
over the period of the contract. Any balance not relating to the accounting period is carried forward as deferred income in the balance sheet.
d) Royalty revenue - Income is recognised in the proﬁt and loss account as rights to consideration accrue.
e) Professional services revenue - Income relating to consultancy projects is recognised in the proﬁt and loss account as a right to consideration 
is established as a result of performance.
Research and development
Expenditure on research and development comprises salaries and related costs of personnel involved in software programming and development 
activities and is written off in the year in which it is incurred.
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. The results and net assets of subsidiary undertakings acquired are included in the Group proﬁt and loss account and balance sheet using 
the acquisition method of accounting from the effective date of acquisition. The results, and net assets of subsidiary undertakings disposed of, 
are included in the Group proﬁt and loss account 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. 
Depreciation
The cost of ﬁxed assets 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
Ofﬁce equipment    - between 10% and 20% per annum
Fixtures and ﬁttings    - between 10% and 20% per annum
Computer equipment and software  - 33% per annum
Investments
Investments in subsidiary undertakings are stated at cost less any provisions for impairment.
Deferred taxation
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed 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. Timing 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 can be determined with a degree of certainty. Deferred taxation is measured at the average tax rates that are expected to apply in 
the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantially enacted 
at the balance sheet date. Deferred tax is measured on a non-discounted basis.
Leased assets
Rentals applicable to operating leases are charged to the proﬁt and loss account on a straight line basis over the term of the lease. 
Assets acquired under ﬁnance lease arrangements are capitalised and depreciated on a straight line basis over the shorter of the term of the lease 
and the economic life of the relevant asset. The interest element of the rental obligation is charged to the proﬁt and loss account over the period 
of the lease in proportion to the balance of the outstanding obligations.  Page 42 | www.statpro.com
Annual Report & Accounts 2003
Goodwill 
The goodwill arising on acquisitions has been capitalised and amortised on a straight line basis over ﬁve years from the date of acquisition. The 
amortisation period is considered by the directors to be a reasonable estimate of the useful economic life. Goodwill is based on the difference 
between the fair value of the consideration including all costs relating to the acquisition and the net assets of the acquired entity (after fair value 
adjustments).
Financial instruments 
In accordance with FRS13 - “Derivatives and other ﬁnancial instruments: disclosures”, the Group has taken advantage of the exemption available 
for short-term debtors and creditors. In accordance with FRS4 - “Capital Instruments”, the proceeds of the convertible debt with warrants attached 
issued in 2000 were allocated between the debt and warrants.  The costs of issue of convertible loan stock issued in 2002 and bank debt are 
amortised over the period of the relevant debt in accordance with FRS4.  All other ﬁnancial assets and liabilities are recorded at historical cost.
Pensions
The Company provides contributions on behalf of certain directors and employees to a deﬁned contribution pension scheme.  Contributions 
payable in the year are charged to the proﬁt and loss account.  
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 proﬁt and loss account.  
The ﬁnancial statements 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 directly to reserves.  The difference between the proﬁt and loss at the average rate and closing rate are taken directly to reserves. All other 
translation differences are taken to the proﬁt and loss account.
Related party transactions 
The Group has taken advantage of the exemption under FRS8 – “Related Party Disclosures” not to disclose transactions between 
Group companies.
2 | Segmental information
All turnover, results before taxation and net assets/(liabilities) are attributable to the principal activity of the Group, being the development, 
marketing and distribution of software and related professional services to the global asset management industry.  
 2003 2003 2003 2002
a) Turnover by destination: £’000 £’000 £’000 £’000
Continuing operations Acquisition Total Total
United Kingdom 2,330 - 2,330 2,140
Rest of Europe 3,971 86 4,057 3,500
North America 1,350 - 1,350 1,213
Rest of World 689
__________
-
__________
689
__________
376
__________
Total 8,340
__________
__________
86
__________
__________
8,426
__________
__________
7,229
__________
__________
 2003 2003 2003 2002
b) Turnover  by origin: £’000 £’000 £’000 £’000
Continuing operations Acquisition Total Total
United Kingdom 3,895 - 3,895 3,180
Rest of Europe 3,081 86 3,167 2,836
North America 1,334 - 1,334 1,206
Rest of World 30
__________
-
__________
30
__________
  7
__________
Total 8,340
__________
__________
86
__________
__________
8,426
__________
__________
7,229
__________
__________  www.statpro.com | Page 43 
c) Results before tax and net assets/(liabilities) are analysed as follows: Proﬁt/(loss) before tax Net assets/(liabilities)
2003 2002 2003 2002
£’000 £’000 £’000 £’000
United Kingdom 592 (966) 1,725 1,496
Rest of Europe
- continuing operations 215 (565) (1,703) (1,996)
- acquisition (70) - (54) -
North America (509) (831) (2,554) (2,325)
Rest of World (82)
__________
(11)
__________
(123)
__________
15
__________
146
__________
__________
(2,373)
__________
__________
(2,709)
__________
__________
(2,810)
__________
__________
3 | Operating expenses
 2003 2003 2002 2002
£’000 £’000 £’000 £’000
Operating expenses relate to:
- Continuing operations 7,940 9,432
- Acquisition (including goodwill amortisation of £17,000)  156
__________
       -
__________
Total operating expenses 8,096
__________
__________
9,432
__________
__________
Operating expenses relate to:
Staff costs
- Research and development 1,167 1,414
- Other staff costs 3,947
__________
4,366
__________
Total staff costs 5,114 5,780
Depreciation of tangible ﬁxed assets:
- Leased ﬁxed assets 12 62
- Other ﬁxed assets 227 239
Loss on disposal of tangible ﬁxed assets - 58
Goodwill amortisation 321 294
Operating lease rentals in respect of:
- hire of computer equipment 98 125
- other operating lease rentals 565 630
Fees to Group auditors (PricewaterhouseCoopers LLP)
- Group audit fees 15 15
- Company audit fees 27 27
- Tax compliance and advice 16 12
- Transaction services - 51
- Other legal and accounting compliance 14
__________
12
__________
- Total fees to Group auditors 72 117
Other operating expenses 1,633 2,109
Exchange differences      54
__________
     18
__________
Total operating expenses 8,096
__________
__________
9,432
__________
__________
In addition, fees amounting to £8,000 were paid during 2003 by the Group to PricewaterhouseCoopers LLP in connection with the acquisition of 
RiskMap Srl, and have been capitalised in the cost of investment. The operating exceptional item of £306,000 included in total operating expenses 
in 2002 related to the expenses of the restructuring undertaken including redundancy costs, onerous leases and asset write offs.  Page 44 | www.statpro.com
Annual Report & Accounts 2003
4 | Net interest payable
 2003 2002
£’000 £’000
Interest payable on convertible debt (including issue costs) (87) (44)
Other bank interest payable (including issue costs) (136) (142)
Interest payable on ﬁnance leases (1) (6)
Bank interest receivable 40
__________
22
__________
(184)
__________
__________
(170)
__________
__________
5 | Tax on proﬁt on ordinary activities 
A provision of £14,000 has been made for corporation tax for an overseas subsidiary.  There is no current or deferred charge for UK corporation 
tax for 2003 (2002: nil) due to accumulated tax losses.
Tax reconciliation 2003 2002
£’000 £’000
Proﬁt/(loss) on ordinary activities before taxation 146 (2,373)
Tax (charge)/credit on proﬁt/(loss) on ordinary activities at standard rate of corporation tax in the UK of 30% (44) 712
(2002: 30%)
Effects of:
- Goodwill amortisation (88) (88)
- Expenses not deductible for tax purposes (35) (20)
- Timing differences between depreciation and capital allowances 4 (28)
- Tax losses utilised/(carried forward) 149
__________
(576)
__________
Total current tax on ordinary activities (14)
__________
__________
-
__________
__________
6 | Equity minority interests
Equity minority interests arose during the year relating to minority interests in StatPro Australia and StatPro Italia as follows:
2003
£’000
At 1 January 2003 -
Proﬁt and loss account 70
__________
At 31 December 2003 70
__________
__________
7 | Dividends
No dividends were paid or proposed during the year (2002: nil).     www.statpro.com | Page 45 
8 | Employees
The average number of employees, including directors, employed by the Group during the year was as follows: 2003 2002
Number Number
By activity
Selling, distribution and client services 35 44
Research and development 21 26
Operations, management and administration 21
__________
27
__________
77
__________
__________
97
__________
__________
2003 2002
Staff costs were: £’000 £’000
Wages and salaries 4,205 4,634
Social security 751 932
Other pension 158
__________
214
__________
5,114
__________
__________
5,780
__________
__________
9 | Directors’ emoluments
Details of the remuneration of each director, pension entitlements and share options are included in the Remuneration Report on pages 32 to 36. 
10 | Intangible ﬁxed assets - Goodwill
Group
Cost £’000
At 1 January 2003 1,521
Addition 342
__________
At 31 December 2003 1,863
__________
__________
Amortisation £’000
At 1 January 2003 805
Charge in the year 321
__________
At 31 December 2003 1,126
__________
__________
Net book value £’000
At 31 December 2003 737
__________
__________
At 31 December 2002 716
__________
__________
The addition to the goodwill balance arose on the acquisition of RiskMap Srl (now incorporated as StatPro Italia Srl) on 3 October 2003 (see 
note 27). The remainder of the goodwill arose from the acquisition of AMS S.A. (now incorporated as StatPro France SA) in March 2000 and the 
acquisition of Flametree Software Pty Ltd (now incorporated as StatPro Australia Pty Ltd) in November 2002. The goodwill on all three acquisi-
tions is being amortised over ﬁve years as, in the opinion of the directors, this is the period over which the beneﬁts resulting from the purchased 
goodwill are expected to arise.  Page 46 | www.statpro.com
Annual Report & Accounts 2003
11 | Tangible ﬁxed assets 
Computer
Improvements to Fixtures equipment
short leasehold Ofﬁce and  and
a) Group
  property equipment ﬁttings software Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 January 2003 354 168 203 862 1,587
Additions in the year - 2 3 94 99
Acquisition 8 20 - 67 95
Exchange differences (4)
__________
4
__________
1
__________
16
__________
17
__________
At 31 December 2003 358
__________
__________
194
__________
__________
207
__________
__________
1,039
__________
__________
1,798
__________
__________
Depreciation
At 1 January 2003 88 70 91 664 913
Charge for the year 37 31 28 143 239
Acquisition 5 15 - 55 75
Exchange differences (1)
__________
-
__________
1
__________
10
__________
10
__________
At 31 December 2003 129
__________
__________
116
__________
__________
120
__________
__________
872
__________
__________
1,237
__________
__________
Net book value
At 31 December 2003 229
__________
__________
78
__________
__________
87
__________
__________
167
__________
__________
561
__________
__________
At 31 December 2002
266
__________
__________
98
__________
__________
112
__________
__________
198
__________
__________
674
__________
__________
Included within ﬁxed assets are assets capitalised under ﬁnance leases with an historic cost of £218,000 and a net book value of nil (2002: 
£32,000).
b) Company
The Company had no ﬁxed assets at 31 December 2003 (2002: nil).  
12 | Investments in subsidiary undertakings
Company – cost and net book value £’000
At 1 January 2003 66
Addition 314
__________
At 31 December 2003 380
__________
__________
The movement in the year of £314,000 related to the investment including related costs in StatPro’s 51%-owned Italian subsidiary, RiskMap Srl, 
on 3 October 2003 (see note 27).  www.statpro.com | Page 47 
The Company’s subsidiary undertakings at 31 December 2003 comprised the following:
Total Total
percentage percentage
held by the held by the
Country of incorporation Group Company 
StatPro Limited  England and Wales 100% 100%
Statistical Analysis Software Limited (dormant) England and Wales 100% 100%
StatPro Benelux SA Luxembourg 100% -
StatPro (Deutschland) GmbH  Germany 100% -
StatPro France SA France 100% -
StatPro Inc USA 100% 100%
StatPro Suisse SARL (previously StatPro Suisse SA) Switzerland 100% -
StatPro Australia Pty Ltd  Australia 51% 51%
StatPro Italia Srl (previously called RiskMap Srl) Italy 51% 51%
All trading subsidiaries are involved in the development, marketing or distribution of software and related professional services to the global asset 
management industry and have been included in the consolidation.
13 | Debtors
          Group                Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Amounts falling due within one year
Trade debtors 2,239 2,760 - -
Other debtors 129 62 7 -
Prepayments 325 247 20 25
VAT recoverable - 5 - -
Rental deposits 11 13 - -
Tax recoverable 24 - - -
Amounts owed by Group undertakings -
__________
-
__________
-
__________
1,000
__________
2,728 3,087 27        1,025
Amounts falling due after one year
Rental deposits 297 308 - -
Amounts owed by Group undertakings -
__________
-
__________
1,286
__________
2,149
__________
Total debtors 3,025
__________
__________
3,395
__________
__________
1,313
__________
__________
3,174
__________
__________
14 | Creditors: amounts falling due within one year
          Group               Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Bank loan (net of deferred issue costs) - 310 - 310
Convertible loan (note 17) 1,000 - 1,000 -
Finance leases 5 5 - -
Trade creditors 335 240 7 27
Corporation tax 14 - - -
Other creditors and accruals 857 690 321 152
Other taxation and social security 401 418 19 25
Deferred income 5,078
__________
4,606
__________
-
__________
-
__________
7,690
__________
__________
6,269
__________
__________
1,347
__________
__________
514
__________
__________ Page 48 | www.statpro.com
Annual Report & Accounts 2003
15 | Creditors: amounts falling due after more than one year
          Group               Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Bank loan (net of deferred issue costs) 1,457 1,602 1,446 1,602
Convertible loan (note 17) - 971 - 971
Finance leases payable in more than one but less than two years 5 5 - -
Finance leases payable in more than two but less than ﬁve years 22 21 - -
Deferred income 150
__________
213
__________
-
__________
-
__________
1,634
__________
__________
2,812
__________
__________
1,446
__________
__________
2,573
__________
__________
The convertible loan incurred interest at 2% over bank base rate and as a result the Company paid interest on the principal amount at the rate 
of 5.7% per annum calculated on a daily basis.  At the option of the holders, the convertible loan had been convertible into ordinary shares at a 
rate of 60p per share but the convertible loan was redeemed on 2 January 2004.
Details on the bank loan are given in note 17 on page 49. 
16 | Deferred taxation 
Deferred taxation - Group 2003 2002 2003 2002
Provided Provided (Unrecognised (Unrecognised
   asset) asset)
£’000 £’000 £’000 £’000
Depreciation in excess of capital allowances - - (43) (47)
Tax effect of losses carried forward -
__________
-
__________
(2,690)
__________
(2,839)
__________
-
__________
__________
-
__________
__________
(2,733)
__________
__________
(2,886)
__________
__________
Deferred taxation - Company 2003 2002 2003 2002
Provided Provided (Unrecognised (Unrecognised
 asset) asset)
£’000 £’000 £’000 £’000
Depreciation in excess of capital allowances - - - -
Tax effect of losses carried forward -
__________
-
__________
(483)
__________
(976)
__________
-
__________
__________
-
__________
__________
(483)
__________
__________
(976)
__________
__________
Deferred tax has been calculated at a rate of 30%. Deferred taxation assets have not been recognised in the Group or Company balance sheets 
as in the opinion of the directors the recoverability of such losses cannot yet be determined with a signiﬁcant degree of certainty. The reduction 
in the deferred tax asset in the Company includes the impact of the transfer of tax losses to StatPro Limited, another Group company.  www.statpro.com | Page 49 
17 | Financial instruments and ﬁnancial risk management 
The Group’s key ﬁnancial risks and its approach to managing these risks are described in the Operating and Financial Review on page 21.
a) Financial instruments
The Group’s ﬁnancial instruments comprise cash, money market deposits, bank loans, convertible loan, ﬁnance leases and various other items, 
such as accounts receivable and accounts payable, that arise directly from its operations.
The Group has taken advantage of the exemption in FRS13 to exclude short-term debtors and creditors from disclosure relating to ﬁnancial 
instruments. Short-term debtors and creditors are, however, included in the currency exposure disclosures within this note.
The Group’s ﬁnancial assets at the year-end are analysed as follows:
31 December 31 December
 2003 2002
£’000 £’000
Cash at bank and in hand 2,292 1,486
Rental deposits falling due after more than one year 297
__________
308
__________
2,589
__________
__________
1,794
__________
__________
The Group has a bank debt facility, which is secured over the Group’s assets. The facility was originally drawn down on 17 August 2001 
(£1.8 million) in order to redeem the outstanding component of the original convertible loan stock of £1.72 million nominal value. The facility 
attracts interest at a variable rate above LIBOR.  There are covenants associated with the facility relating to the level of trade debtors, net 
worth and gearing (adjusted for deferred income) and interest cover.  As planned, the Company started repaying part of the bank loan in 
November 2002.  In February 2003, the Company cancelled part of the then available limit with the bank to reduce the limit to £1.5 million 
in order to reduce the costs of the committed facility and in line with the reduced projected headroom required. Subject to an annual review 
in February 2005 and compliance with the covenants, the facility remains committed until February 2006.  
The maturity of the Group’s ﬁnancial liabilities as at 31 December 2003 is analysed as follows:
Payable in Payable in
more than more than 31 December
Payable in 1 1 but less 2 but less 2003 
 year or less than 2 years than 5 years Total
£’000 £’000 £’000 £’000
Finance leases 5 5 22 32
Bank loans - - 1,457 1,457
Convertible loan 1,000
__________
-
__________
-
__________
1,000
__________
1,005
__________
__________
5
__________
__________
1,479
__________
__________
2,489
__________
__________
The maturity of the Group’s ﬁnancial liabilities as at 31 December 2002 was as follows:
Payable in Payable in
more than more than 31 December
Payable in 1 1 but less 2 but less 2002
 year or less than 2 years than 5 years Total
£’000 £’000 £’000 £’000
Finance leases 5 5 21 31
Bank loans 310 425 1,177 1,912
Convertible loan -
__________
971
__________
-
__________
971
__________
315
__________
__________
1,401
__________
__________
1,198
__________
__________
2,914
__________
__________ Page 50 | www.statpro.com
Annual Report & Accounts 2003
b) Financial risk management 
• Interest rate risk At ﬂoating At ﬁxed Non Weighted
interest interest interest- average
Financial assets as at 31 December 2003 rates rates bearing Total interest rate
£’000 £’000 £’000 £’000 %
Sterling 1,530 - 21 1,551 3.1
US Dollar - - 294 294 -
Euro 125 - 604 729 1.2
Swiss Franc - - 15 15 -
Australian Dollar -
__________
-
__________
-
__________
-
__________
-
1,655
__________
__________
-
__________
__________
934
__________
__________
2,589
__________
__________
At ﬂoating At ﬁxed Non Weighted
interest interest interest- average
Financial assets as at 31 December 2002  rates rates bearing Total interest rate
£’000 £’000 £’000 £’000 %
Sterling 855 - 242 1,097 3.5
US Dollar - - 223 223 -
Euro 215 - 190 405 1.3
Swiss Franc - - 52 52 -
Australian Dollar -
__________
-
__________
17
__________
17
__________
-
1,070
__________
__________
-
__________
__________
724
__________
__________
1,794
__________
__________
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 bank accounts in overseas entities.
 
Financial liabilities as at Weighted
31 December 2003 Weighted average period
At ﬂoating At ﬁxed Non interest- average interest for which rates
 interest rates interest rates bearing Total rate   are ﬁxed
£’000 £’000 £’000 £’000 % Years
Sterling 2,150 32 - 2,182 6.0 3.5
Euro 307
__________
-
__________
-
__________
307
__________
2.6 -
Total 2,457
__________
__________
32
__________
__________
-
__________
__________
2,489
__________
__________
5.6 -
Fixed interest ﬁnancial liabilities comprise ﬁnance leases. 
Financial liabilities as at Weighted
31 December 2002 Weighted average period
At ﬂoating At ﬁxed Non interest- average interest for which rates
 interest rates interest rates bearing Total rate   are ﬁxed
£’000 £’000 £’000 £’000 % Years
Sterling 2,883
__________
__________
31
__________
__________
-
__________
__________
2,914
__________
__________
6.0 4.5
Fixed interest ﬁnancial liabilities comprise ﬁnance leases.   www.statpro.com | Page 51 
• Currency exposures
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. The currency exposure (i.e. those 
transaction exposures that give rise to the net currency gains and losses recognised in the proﬁt and loss account) of the Group’s net monetary 
assets/(liabilities) are shown below.  Such exposures comprise the monetary assets and monetary liabilities of the Group that are not denominated 
in the operating (or ‘functional’) currencies of the operating units involved. The Group does not make use of foreign currency hedges to manage 
currency translation risk.  However, offsetting revenues against costs in the same currency reduces this risk.  The balance sheet exposures are 
minimised by reducing the net asset exposure, for example, by arranging borrowings in local currency where appropriate.  As the Group continues 
to grow and generates net proﬁts overseas this exchange rate exposure will increase.  
Net foreign currency monetary assets/(liabilities)
31 December 2003 Sterling US Dollar Euro Swiss Franc Australian Dollar Total
Functional currency of Group operation £’000 £’000 £’000 £’000 £’000 £’000
Sterling - 2,831 1,859 (507) 95 4,278
US Dollar (2,526) - - - - (2,526)
Euro (2,649) - - (19) - (2,668)
Swiss Franc 507 - 19 - - 526
Australian Dollar (99)
__________
-
__________
-
__________
-
__________
-
__________
(99)
__________
Total (4,767)
__________
__________
2,831
__________
__________
1,878
__________
__________
(526)
__________
__________
95
__________
__________
(489)
__________
__________
31 December 2002 Sterling US Dollar Euro Swiss Franc Total
Functional currency of Group operation £’000 £’000 £’000 £’000 £’000
Sterling - 2,633 2,167 91 4,891
US Dollar (2,399) - - - (2,399)
Euro (2,282) - - (404) (2,686)
Swiss Franc -
__________
-
__________
398
__________
(97)
__________
301
__________
Total (4,681)
__________
__________
2,633
__________
__________
2,565
__________
__________
(410)
__________
__________
107
__________
__________
The fair value of all ﬁnancial assets and liabilities is approximately equal to book value. The Group does not permit anyone in the Group to trade 
in ﬁnancial instruments.
18 | Obligations under operating leases
The annual commitments under non-cancellable operating leases are: 2003 2002
Land and buildings £’000 £’000
Expiring:
Within one year 45 128
Between two and ﬁve years 143 76
In more than ﬁve years 329
__________
337
__________
517
__________
__________
541
__________
__________
Other leases
Expiring:
Within one year 42 44
Between two and ﬁve years 15
__________
42
__________
57
__________
__________
86
__________
__________ Page 52 | www.statpro.com
Annual Report & Accounts 2003
19 | Called up share capital
2003 2002
£’000 £’000
Authorised
85,000,000 ordinary shares of 1p each
 (2002: 85,000,000 ordinary shares of 1p each)
850
__________
__________
850
__________
__________
Allotted, called up and fully paid
33,089,244 ordinary shares of 1p each
(2002: 32,810,986 ordinary shares of 1p each)
331
__________
__________
328
__________
__________
Shares issued during 2003 comprised shares issued under the Share Plan and the exercise of share options under employee share option schemes 
as follows:
Number of Net
ordinary shares proceeds
Detail of 1p each £’000
Options exercised 160,000 3
Shares issued under Share Plan 118,258
__________
18
__________
278,258
__________
__________
21
__________
__________
Analysis of Share Capital and Share Premium on shares issued during 2003:
Share Share
Capital Premium Total
Detail £’000 £’000              £’000
Options exercised 2 1 3
Shares issued under Share Plan 1
__________
17
__________
18
__________
Total 3
__________
__________
18
__________
__________
21
__________
__________
At 31 December 2003, the following options over shares in the Company were outstanding:
Save As You Earn options
Number of
shares Option Dates
Year ‘000 price exercisable
2001 Save As You Earn scheme 43 68p 2004 to 2005
2001 Save As You Earn scheme 104
__________
68p 2006 to 2007
Total 147
__________
__________
    www.statpro.com | Page 53 
Other employee and executive share options Number of Dates
 shares Option price exercisable
Year ‘000
1997 No 2 Unapproved Scheme 100 2.5p 2004 
1998 Approved Scheme 166 17.5p 2004 to 2008
1999 Approved Scheme 502 17.5p 2004 to 2009
2000 Approved Scheme 224 60p 2004 to 2010
2000 Directors’ options 297 60p 2004 to 2010
2000 Directors’ options 363 80p 2004 to 2010
2000 Approved Scheme 52 87p 2004 to 2010
2000 Unapproved Scheme 85 87p 2004 to 2010
2001 Approved Scheme 149 61p 2004 to 2011
2001 Unapproved Scheme 120 61p 2004 to 2011
2001 Approved Scheme 124 60p 2004 to 2011
2001 Unapproved Scheme 320 60p 2004 to 2011
2002 Approved Scheme 65 60p 2005 to 2012
2002 Unapproved Scheme 482 60p 2005 to 2012
2003 Approved Scheme 77 60p 2006 to 2013
2003 Unapproved Scheme 47 60p 2006 to 2013
2003 Unapproved Scheme – directors’ options 998
__________
60p 2006 to 2010*
Total 4,171
__________
__________  
* In certain circumstances some of these options may be exercised in 2004 or 2005.
Other options Number of Dates
shares Option price exercisable
Year ‘000
2000 Issued in relation to acquisition 278 60p 2004 to 2010
2000 Issued in relation to fundraising 313 80p 2004 to 2007
2001 Issued in relation to bank debt facility 130
__________
62.5p 2004 to 2006
Total 721
__________
__________  
In addition, there are 4.25 million warrants outstanding which were issued on the Company’s ﬂotation in May 2000 and which can be converted 
into 1p ordinary shares at 80p per share at any time up to 17 May 2007 by the warrant holders. 
20 | Earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the proﬁt/(loss) attributable to ordinary shareholders by the weighted average number of 
ordinary shares in issue during the year as set out below.
Earnings/(loss) per share – basic and diluted
Weighted Weighted
average average
number of Earnings/(loss) number of Earnings/(loss)
Proﬁt/(loss) shares per share Proﬁt/(loss) shares per share
2003 2003 2003 2002 2002 2002
£’000 ’000 Pence £’000 ’000 Pence
Earnings/(loss) per share - basic 202 32,913 0.6 (2,373) 32,486 (7.3)
Potentially dilutive shares -
__________
309
__________
-
__________
-
__________
-
__________
-
__________
Earnings/(loss) per share - diluted 202
__________
__________
33,222
__________
__________
0.6
__________
__________
(2,373)
__________
__________
32,486
__________
__________
(7.3)
__________
__________ Page 54 | www.statpro.com
Annual Report & Accounts 2003
Earnings/(loss) per share before amortisation of goodwill and exceptional items
Weighted Weighted
average average
number of Earnings/(loss) number of Earnings/(loss)
Proﬁt/(loss) shares per share Proﬁt/(loss) shares per share 
2003 2003 2003 2002 2002 2002
£’000 ’000 Pence £’000 ’000 Pence
Earnings/(loss) per share - basic 202 32,913 0.6 (2,373) 32,486 (7.3)
Effect of goodwill amortisation 321 - 1.0 294 - 0.9
Effect of exceptional items -
__________
-
__________
-
__________
306
__________
-
__________
0.9
__________
Basic earnings/(loss) per share excluding 
goodwill amortisation and exceptional items 523 32,913 1.6 (1,773) 32,486 (5.5)
Potentially dilutive shares - 309 - - - -
Diluted earnings/(loss) per share excluding 
goodwill amortisation and exceptional items
__________
523
__________
__________
__________
33,222
__________
__________
__________
1.6
__________
__________
__________
(1,773)
__________
__________
__________
32,486
__________
__________
__________
(5.5)
__________
__________
Earnings/(loss) per share before amortisation of goodwill and exceptional items has been calculated to exclude the effect of goodwill amortisation 
and to exclude exceptional items. The adjusted earnings/(loss) per share information has been provided in order to assist the reader to understand 
the underlying performance of the business on a comparable basis. 
21 | Reserves
Share Proﬁt
premium and  loss Warrant
 account account reserve Total
Group £’000 £’000 £’000 £’000
At 1 January 2003 8,541 (12,103) 424 (3,138)
Shares issued (note 19) 18 - - 18
Proﬁt for the year - 202 - 202
Exchange differences offset in reserves -
__________
(52)
__________
-
__________
(52)
__________
At 31 December 2003 8,559
__________
__________
(11,953)
__________
__________
424
__________
__________
(2,970)
__________
__________
A registered holder of warrants has rights to subscribe for ordinary shares at a price of 80p per ordinary share at any time up to 17 May 2007.
Share Proﬁt
premium and  loss Warrant
      account account reserve Total
Company £’000 £’000 £’000 £’000
At 1 January 2003 8,541 (8,234) 424 731
Shares issued (note 19) 18 - - 18
Proﬁt/(loss) for the year -
__________
(535)
__________
-
__________
(535)
__________
At 31 December 2003 8,559
__________
__________
(8,769)
__________
__________
424
__________
__________
214
__________
__________
As permitted by Section 230 of the Companies Act 1985, the Company has not presented its own proﬁt and loss account. The loss after taxation 
for the ﬁnancial year of the Company was £535,000 (2002: £2,028,000).  www.statpro.com | Page 55 
22 | Related party transactions
The Company had an agreement established in 1998 with WRC Renand SA, a Swiss company that is controlled by JMBT Wheatley and DMDA 
Wheatley. They have shareholdings of 46% and 20% respectively in WRC Renand SA.  Sales in 2003 to WRC Renand SA amounted to nil 
(2002: £177,002) and no purchases were made (2002: nil). The year-end balance with WRC Renand SA was nil (2002: £5,786). The directors 
consider the transactions to be at arm’s length.  On 1 August 2002 the agreement was terminated as part of the restructuring of the business 
carried out in 2002.
During the year the Group used the services of Buzzacott, Chartered Accountants, of which GFMT Wheatley (Company Secretary) is a partner.  
The purchases from Buzzacott in 2003 amounted to £17,595 (2002: £22,265). The year-end balance with Buzzacott was nil (2002: £6,004).
During the year the Group paid a fee of £20,110 (2002: nil) as part of a revenue sharing arrangement on performance training courses supplied 
by Otos Limited, of which CR Bacon is a director. There was no outstanding balance at the year-end (2002: nil).
23 | Reconciliation of movements in shareholders’ deﬁcit and capital employed
2003 2002
£’000 £’000
Proﬁt/(loss) for the year 202 (2,373)
Exchange differences offset in reserves (52)
__________
(19)
__________
150 (2,392)
Net proceeds from new share capital issued 21
__________
48
__________
Net movement in shareholders’ funds 171 (2,344)
Opening shareholders’ deﬁcit (2,810)
__________
(466)
__________
Closing shareholders’ deﬁcit  (2,639) (2,810)
Equity minority interests (70)
__________
-
__________
Capital employed (2,709)
__________
__________
(2,810)
__________
__________
24 | Reconciliation of operating proﬁt/(loss) to net cash inﬂow/(outﬂow) from operating activities
2003 2002
£’000 £’000
Operating proﬁt/(loss) 330 (2,203)
Depreciation of tangible ﬁxed assets 239 301
Amortisation of goodwill 321 294
Decrease in debtors 461 58
(Decrease) in creditors (excluding deferred income) (9) (151)
Movement in deferred income 282 1,186
Loss on disposal of tangible ﬁxed assets - 58
Exchange differences (52)
__________
(19)
__________
Net cash inﬂow/(outﬂow) from operating activities 1,572
__________
__________
(476)
__________
__________ Page 56 | www.statpro.com
Annual Report & Accounts 2003
25 | Analysis of changes in net debt
At Acquisition At
1 January
(excluding
Non-cash 31 December 
2003 Cash ﬂow
 cash acquired)
 changes 2003
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 1,486 806 - - 2,292
Short-term deposits (751)
__________
(448)
__________
-
__________
-
__________
(1,199)
__________
Cash (excluding short-term deposits) 735 358 - - 1,093
Short-term deposits 751 448 - - 1,199
Finance leases (31) 5 - (6) (32)
Convertible loan (net of issue costs deferred) (971) - - (29) (1,000)
Bank loans (net of issue costs deferred) (1,912) 499 - (44) (1,457)
Loan assumed on acquisition -
__________
167
__________
(167)
__________
-
__________
-
__________
Net debt (1,428)
__________
__________
1,477
__________
__________
(167)
__________
__________
(79)
__________
__________
(197)
__________
__________
26 | Reconciliation of net cash ﬂow to movement in net debt
2003 2002
£’000 £’000
Increase in cash in the year 358 285
Movement in short-term deposits 448 151
Issue of convertible loan (net of issue costs) - (957)
Repayment on ﬁnance leases 5 61
Bank loan (net of issue costs) - (223)
Bank loan repayment 499 51
Loan assumed on acquisition (167) -
Repayment of loan assumed on acquisition 167 -
Other non-cash movements (79)
__________
(67)
__________
Movement in net debt 1,231 (699)
Net debt at beginning of year (1,428)
__________
(729)
__________
Net debt at end of year (197)
__________
__________
(1,428)
__________
__________
   
    
27 | Acquisition
On 3 October 2003, the Company invested £314,000 including related costs in acquiring a 51% stake in an Italian company, RiskMap Srl, which has 
developed a risk management system (now marketed as StatPro Risk Management or SRM).  RiskMap Srl has now been renamed StatPro Italia Srl 
and receives commissions on sales of SRM and other products/services.  StatPro has a call option to acquire (and the minority shareholders have 
a put option to sell) the remaining 49% between 31 December 2006 and 31 December 2013.  To determine the amount payable under the option 
the value of StatPro Italia Srl will be derived by applying a formula of one times the annual recurring revenue generated by the RiskMap products 
globally.  This will be adjusted by additional increments for revenue generated in Italy and adjusted for the net assets on exercise of the option. 
Since the date of acquisition RiskMap contributed £86,000 of revenue and operating losses of £70,000 (including goodwill amortisation of £17,000).  
The acquisition contributed £180,000 cash outﬂow to the Group’s operating cashﬂows and there were no material payments in respect of returns 
on investment and servicing of ﬁnance, taxation or capital expenditure.  www.statpro.com | Page 57 
The assets and liabilities of RiskMap Srl acquired at 3 October 2003 were as follows:
RiskMap Srl Fair value Total
      Book value adjustments Fair  value 
£’000 £’000 £’000
Tangible ﬁxed assets 20 - 20
Debtors 191 (127) 64
Cash 411 - 411
Creditors (195) (59) (254)
Loan (167) - (167)
Deferred income (92)
__________
(36)
__________
(128)
__________
Net assets/(liabilities) 168
__________
__________
(222)
__________
__________
(54)
__________
__________
51% Share of net liabilities acquired (28)
Goodwill 342
__________
314
__________
__________
Satisﬁed by: 
Cash consideration (including costs of £32,000) 314
__________
__________
The fair value adjustments relate to writing off deferred tax assets, adjusting for unrecorded liabilities and the alignment of accounting policy on 
deferring licence revenue. 
28 | Pensions
The Company operates a defined contribution pension scheme for directors and certain employees.  The total costs of the pension 
contributions during the year were £158,000 (2002: £214,000).  Contributions outstanding at the end of December 2003 amounted to 
£18,000 (2002: £18,000).   Page 58 | www.statpro.com
Annual Report & Accounts 2003
StatPro Group plc 2003 2002 2001 2000 1999
£’000 £’000 £’000 £’000 £’000
Turnover
- Continuing operations 8,340 7,229 6,174 3,172 1,784
- Acquisitions 86
__________
-
__________
-
__________
-
__________
-
__________
8,426 7,229 6,174 3,172 1,784
- Discontinued operations       -
__________
       -
__________
       -
__________
       -
__________
1,360
__________
8,426
__________
7,229
__________
6,174
__________
3,172
__________
3,144
__________
Operating proﬁt/(loss)
- Continuing operations 400 (1,897) (4,399) (4,929) (1,927)
- Acquisitions (70) - - - -
- Exceptional items - (306) - - -
- Discontinued operations    -
__________
         -
__________
         -
__________
         -
__________
234
__________
330 (2,203) (4,399) (4,929) (1,693)
Proﬁt on disposal of discontinued operations - - - - 1,467
Net interest (payable)/receivable (184)
__________
(170)
__________
(343)
__________
50
__________
43
__________
Proﬁt/(loss) on ordinary activities before taxation 146 (2,373) (4,742) (4,879) (183)
Taxation (14)
__________
         -
__________
         -
__________
       -
__________
(95)
__________
Proﬁt/(loss) on ordinary activities after taxation 132 (2,373) (4,742) (4,879) (278) 
Equity minority interests 70
__________
         -
__________
         -
__________
         -
__________
      -
__________
Proﬁt/(loss) on ordinary activities after taxation 202
__________
__________
(2,373)
__________
__________
(4,742)
__________
__________
(4,879)
__________
__________
(278) 
__________
__________
Net assets
Intangible ﬁxed assets 737 716 949 1,241 -
Tangible ﬁxed assets 561 674 840 968 312
Debtors 3,025 3,395 3,542 2,768 684
Cash 2,292 1,486 1,050 2,390 2,608
Creditors: amounts falling due within one year (7,690) (6,269) (5,183) (3,373) (651)
Creditors: amounts falling due after more than one year (1,634)
__________
(2,812)
__________
(1,664)
__________
(1,487)
__________
        -
__________
Net (liabilities)/assets (2,709)
__________
__________
(2,810)
__________
__________
(466)
__________
__________
2,507
__________
__________
2,953
__________
__________
Financed by
Called up share capital 331 328 322 293 113
Share premium account 8,559 8,541 8,499 6,830 2,956
Warrant reserve 424 424 424 424 -
Proﬁt and loss account (11,953)
__________
(12,103)
__________
(9,711)
__________
(5,040)
__________
(116)
__________
Equity shareholders’ (deﬁcit)/funds (2,639) (2,810) (466) 2,507 2,953
Equity minority interests    (70)
__________
         -
__________
      -
__________
       -
__________
       -
__________
Capital employed (2,709)
__________
__________
(2,810)
__________
__________
(466)
__________
__________
2,507
__________
__________
2,953
__________
__________
Net (debt)/cash (197) (1,428) (729) 844 2,608
Earnings/(loss) per share - basic 0.6p (7.3p) (15.3p) (18.4p) (1.4p) 
Five Year Record  www.statpro.com | Page 59 
Financial Calendar
Annual General Meeting   12 May 2004
Interim Report for 2004   August 2004
Preliminary announcement of 2004 results  March 2005
Report and Accounts for 2004   April 2005
Directors and Advisers
Directors
C R Bacon     (Chairman)
JMBT Wheatley    (Chief Executive)
AM Fabian     (Finance Director)
MC Fairbairn    (Non-executive Director)
DMDA Wheatley    (Non-executive Director)
MC Adorian    (Non-executive Director)
Secretary and registered ofﬁce 
GFMT Wheatley
StatPro House 
81- 87 Hartﬁeld Road 
Wimbledon
London SW19 3TJ
Registrars 
Capita IRG Plc
Northern House, Woodsome Park
Fenay Bridge
Huddersﬁeld  HD8 0LA
Financial Adviser and Broker 
Credit Lyonnais Securities 
Broadwalk House
5 Appold Street 
London EC2A 2DA 
Solicitors
Faegre Benson Hobson Audley LLP
7 Pilgrim Street
London EC4V 6LB
Registered Auditors
PricewaterhouseCoopers LLP
1 Embankment Place
London WC2N 6RH
Bankers
Singer & Friedlander Limited
21 New Street
Bishopsgate
London EC2M 4HR
Coutts & Co Limited
440 Strand
London WC2R 0QS
Financial PR Consultants
Weber Shandwick Square Mile 
Fox Court
14 Grays Inn Road
London WC1X 8WS
Company Registration no: 2910629 Page 60 | www.statpro.com
Annual Report & Accounts 2003
Notes  www.statpro.com | Page 61  Page 62 | www.statpro.com
Annual Report & Accounts 2003
Notes
Design & Artwork: CooGoo    Sterling Financial Print 59933 Annual Report & Accounts 2003
 www.statpro.com | Page 63 
StatPro Ofﬁce Locations
StatPro Limited
StatPro House, 81- 87 Hartﬁeld Road, Wimbledon, London SW19 3TJ, UK
Tel: +44 (0)20 8410 9876    Fax: +44 (0)20 8410 9877
StatPro Inc
185 Madison Avenue, New York, NY 10016, USA
Tel: +1 646 742 1200    Fax: +1 646 742 1201
StatPro France S.A.
26 avenue de l’Opéra, 75001 Paris, France
Tel: +33 1 40 20 1200    Fax: +33 1 40 20 1201
StatPro (Deutschland) GmbH
Hamburger Allee 2-10, D-60486 Frankfurt, Germany
Tel: +49 69 977 8690    Fax: +49 69 977 86919
StatPro Italia Srl
Via G.B. Vico 4, 20123 Milano, Italy
Tel: +39 02 4331 7510    Fax:  +39 02 4391 1424
StatPro Benelux S.A.
148-150 boulevard de la Pétrusse, L-2330 Luxembourg, Luxembourg
Tel: +352 30 74 24 1    Fax: +352 30 74 24 40
StatPro Australia Pty Ltd 
PO Box 228, EUDLO, Queensland 4554, Australia
Tel: +61 (0)7 5445 9852    Fax: +61 (0)7 5445 9752
StatPro South Africa (Pty) Ltd
No 1 Waterford Place, Century Boulevard, Century City, 7441, South Africa
Tel: +27 (0) 21 551 6986    Fax: +27 (0) 21 551 3726
Email: statpro@statpro.com