annual report  accounts 2003
portfolio analytics solutions
deﬁning performance          wwwstatprocom
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  wwwstatprocom  page 1 
highlights
achieved ﬁrst pretax 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 
£74 million 2002 £63 million
whilst managing expansion strong operating cash inﬂow 
of £16 million generated 2002 outﬂow £05 million 
– cash positive for last eighteen months
strategic risk management solution acquired
year ended
31 december 
2003
year ended
31 december 
2002 change
turnover £84 million £72 million 17
proﬁtloss before tax £01 million £24 million
proﬁtloss before tax amortisation  £05 million £18 million
and exceptional items 
operating cash inﬂowoutﬂow    £16 million £05 million
basic earningsloss per share 06p 73p
operating cash inflowoutflow
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 profitloss before amortisation and exceptional items
5
4
3
2
1
0
1
£m
1999  2000 2001 2002 2003
 continuing operations page 2  wwwstatprocom
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 
oneproduct 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 addon 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 £500000 
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 sa 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    wwwstatprocom  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 
£84 million
we have increased our annualised 
recurring revenues by 15 to £79 
million whilst professional services 
revenues increased by 29 to £12 
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  wwwstatprocom
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 7000 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 “analysisready” 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 152 245 138
 percentage of respondents who chose statpro as one of their top 3 suppliers considered in system selection data hub
 wwwstatprocom  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 evergreater 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 
exante 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  wwwstatprocom
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 eg 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 inflationlinked 
bonds mortgagebacked securities 
or any other asset class this enables 
an asset manager to have say 
1000 portfolios with 30000 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 
300000 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
 wwwstatprocom  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 webbased 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  wwwstatprocom
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”  wwwstatprocom  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 
30000 clients swm will be able to build 
30000 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 “outofthebox” 
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  wwwstatprocom
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 transactionbased daily stock 
level attribution system most other 
systems on the market use the limited 
“buyhold” 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 topdown fund 
manager using a bottomup 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 “expost” 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”  wwwstatprocom  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 60000 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  wwwstatprocom
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 eg 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
 wwwstatprocom  page 13 
commitment
client services  training
in 2003 our client services team 
focused on ensuring our products 
are wellintegrated 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 
webbased 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  wwwstatprocom
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  wwwstatprocom  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  wwwstatprocom
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 £84 million 2002 
£72 million at the same time we 
have achieved our ﬁrst pretax proﬁt 
of £01 million 2002 loss of £24 
million it is perhaps more signiﬁcant 
that whilst managing this expansion 
we have generated an operating 
cash inﬂow for 2003 of £16 million 
against an operating cash outﬂow of 
£05 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 
wellpositioned 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”  wwwstatprocom  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  wwwstatprocom
annual report  accounts 2003
overview 
statpro has continued to grow its 
revenue for the eighth consecutive 
halfyear 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 
£843 million 2002 £723 million  
excluding the impact of the acquisition 
of riskmap srl renamed statpro italia 
which contributed £009 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 £738 million 
2002 £628 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 £019 million on euro 
priced contracts offset by a loss of 
£010 million on us dollar denominated 
contracts  overall foreign exchange 
movements resulted in a gain of £009 
million 1 on the revaluation of the 
net value of contracts to the 2003 
yearend rates compared with the 2002 
yearend rates  the revenue from the 
tap royalties reduced by 7 to £053 
million 2002 £057 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 
£75000 compared to £62000 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 £100000  
the proportion of recurring revenue on 
multiyear 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 £778 
million 2002 £883 million before 
exceptional items of £031 million 
following the full year beneﬁt of the 
restructuring in july 2002 
of the total operating expenses 
£014 million related to the operating 
expenses before goodwill amortisation 
of riskmap for the threemonth 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 £033 million 2002 
loss of £220 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 661 005 666 552 21
professional services 120 004 124 096 29
other recurring revenue 053  053 057 7
swiss agency      

     

     

018

na
total turnover 834


009


843


723


17  wwwstatprocom  page 19 
we achieved earnings before interest 
tax depreciation and amortisation 
‘ebitda’ of £089 million compared 
with a loss of £130 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 £778 
million before goodwill amortisation 
£117 million 2002 £141 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 £018 
million 2002 £017 million   
proﬁtloss before tax and taxation
the proﬁt before taxation was £015 
million 2002 loss before taxation of 
£237 million  a provision of £001 
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 628 081 020 009 738 18
other recurring revenue 057

004





053

7
total recurring revenue 685


077


020


009


791


15
analysis of operating proﬁtloss
year to
31 december
2003
£ million
year to
31 december
2002
£ million
change

revenue 843 723 17
operating expenses  754

853

12
ebitda 089 130 na
depreciation 024 030 21
goodwill amortisation     032

029

9
operating proﬁtloss before exceptional items 033 189 na
exceptional items 

031

na
operating proﬁtloss 033


220


na
 before depreciation goodwill amortisation and exceptional items
equity minority interests
the equity minority interests amounting 
to £007 million 2002 nil relate to the 
minorities’ share of losses in statpro 
australia and statpro italia  
earningsloss per share
basic earnings per share were 06p 2002 
loss per share 73p the earnings per 
share before goodwill amortisation and 
exceptional items were 16p 2002 loss 
per share 55p   the diluted earnings 
per share in 2003 are 06p based on 
potentially dilutive shares outstanding 
amounting to 308853  the diluted loss 
per share in 2002 was the same as the 
basic loss per share of 73p 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 halfyear period 
and achieved the first full year operating profit 
since the company’s flotation” page 20  wwwstatprocom
annual report  accounts 2003
balance sheet
the group’s net liabilities reduced to 
£271 million at 31 december 2003 from 
£281 million at 31 december 2002  
the balance sheet includes deferred 
income of £523 million 2002 £482 
million which is a noncash 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 £010 million in 2003 2002 £018 
million including £003 million acquired 
under ﬁnance leases goodwill aris
ing on the investment in statpro’s 
italian subsidiary amounted to £034 
million the other main component 
of the total goodwill balance of £074 
million 2002 £072 million arose 
on the acquisition of ams sa in 
2000 goodwill is amortised over a 
ﬁveyear period  
current assets
the level of debtors remained broadly 
unchanged at £303 million 2002 
£340 million  improvements in working 
capital management resulted in lower 
trade debtors amounting to £224 
million at the end of 2003 2002 £276 
million  the level of cash at bank and 
in hand increased by 54 to £229 
million 2002 £149 million  
creditors 
the level of shortterm creditors 
excluding deferred income and 
shortterm debt increased by 19 
to £161 million 2002 £135 million 
mainly as a result of creditors assumed 
with the acquisition  longterm 
creditors include £146 million of 
bank debt 2002 £160 million  
the convertible loan issued on 3 
july 2002 with a nominal value of 
£100 million was redeemed on 2 
january 2004 and is therefore shown 
as a current liability in the yearend 
balance sheet deferred income 
increased by 8 to £523 million 
from £482 million as a result of 
the continued growth in the annual 
recurring revenue base  of the £523 
million £508 million is expected to 
be recognised in 2004
cash ﬂow and ﬁnancing
we generated an operating cash 
inﬂow of £157 million during 2003 
2002 outﬂow of £048 million  net 
debt reduced from £143 million at 
31 december 2002 to £020 million 
at 31 december 2003 
share capital and reserves
the issued share capital amounted 
to £033 million 2002 £033 million 
representing 33089244 shares of 1p 
nominal value 2002 32810986 as 
a result of the issue of 278258 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 na  
other 2002 8  
software licence annualised values by product  december 2003  wwwstatprocom  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 £854 million to 
£856 million the equity minority 
interests of £007 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 £020 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 £050 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 nonsterling 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 ie 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  wwwstatprocom
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 jp 
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 subcommittee and 
exchair of the ipc veriﬁcation subcommittee 
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 sp for £17 million which was used to 
partly ﬁnance statpro’s growth he took statpro to ipo in may 2000 raising over £50 
million to build up statpro’s international operations he has daytoday 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  wwwstatprocom  page 23 
charles fairbairn aca  nonexecutive 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 nonexecutive 
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 startup 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  nonexecutive 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 cofounded 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 nonexecutive director of telecom 
plus plc and chairman of highway capital plc and kuju plc dominic chairs the 
group’s nominations committee
mark adorian  nonexecutive director
mark 41 was appointed to the board in 2002  he was previously managing director 
of standard  poor’s fund services mark cofounded 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 mcgrawhill 
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  wwwstatprocom
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   wwwstatprocom  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 sa  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
 wwwstatprocom  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 
£117 million 2002 £141 million
results dividends and transfers to reserves
the group’s retained proﬁt for the ﬁnancial year was £020 million 2002 loss of £237 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 nonexecutive director
mc fairbairn nonexecutive director
mc adorian nonexecutive director
all directors are subject to election at the ﬁrst opportunity after their appointment and to reelection 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 reelection 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  wwwstatprocom
annual report  accounts 2003
policy and practice on payment of creditors
the group recognises the importance of good relationships with its suppliers and subcontractors 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 6265000 189
pt borel 2650000 80
dmda wheatley 2139760 65
herald investment trust 1601000 48
hsbc global custody nominee uk ltd 1484210 45
mc adorian 1340000 40
in addition to the above holdings jmbt wheatley and dmda wheatley together with gfmt wheatley hold 255000 ordinary shares representing 
08 of the ordinary share capital in a family trust each of them being a trustee and potential beneﬁciary of the trust  172000 ordinary shares 
representing 05 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 35000 ordinary shares representing 01 of the ordinary share capital 
during the year but these were sold in january 2004 when wrc renand sa entered a voluntary liquidation arrangement  wwwstatprocom  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 reappoint 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  wwwstatprocom
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 nonexecutive 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 nonexecutive 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 d31 of the code which requires at least three nonexecutive 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 halfyear 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 nonaudit 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 
performancerelated bonus schemes and participation in the group’s long term share option schemes the remuneration committee is chaired 
by charles fairbairn and comprises the nonexecutive directors section b22 of the code requires the remuneration committee to comprise 
only independent nonexecutive directors dominic wheatley a nonexecutive 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 longterm 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   wwwstatprocom  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 misstatement 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 offsite 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  wwwstatprocom
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
ancerelated 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 
lossmaking 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 £108000 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 5000000 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 postﬂotation 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 3925p 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
performancerelated bonus scheme
in addition to basic salary executive directors and other senior executives participate in a performancerelated bonus scheme performance targets 
are designed to both stretch and encourage individuals whilst aligning their interests to that of the group  wwwstatprocom  page 33 
in 2003 the targets for performancerelated 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 £11000 2002 nil to justin wheatley and £7000 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
nonexecutive directors do not have service contracts the directors submitted for reelection 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
                                         18052000  31122003
              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 ﬁveyear 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  wwwstatprocom
annual report  accounts 2003
directors’ remuneration 
this part of the remuneration report is auditable
2003 performance total 
related discretionary excluding total
salaryfees 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
salaryfees 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 £20110 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 67 180 12 12
am fabian 10 132 13 13  wwwstatprocom  page 35 
directors’ interests
interests in shares
as at 31 december 2003 as at 31 december 2002 
number number
cr bacon                225000              190000
jmbt wheatley 6265000 6265000
am fabian 10000 10000
dmda wheatley              2139760                            2139760
mc fairbairn               162500              162500
mc adorian  1065000 715000
in addition to the above interests jmbt wheatley and dmda wheatley together with gfmt wheatley hold 255000 ordinary shares in a family 
trust each of them being a trustee and potential beneﬁciary of the trust 2002 255000 ordinary shares  172000 ordinary shares are held in a 
retirement beneﬁt scheme in which jmbt wheatley has a beneﬁcial interest 2002 172000  wrc renand sa in which jmbt wheatley has a 
46 interest owned 35000 ordinary shares representing 01 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 275000 ordinary shares and cr bacon acquired a further 10000 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 312500  312500  80 20042010
 425000  425000 60 20062010
24816

  24816

68 20062007
337316 449816
jmbt wheatley 24816  24816  68 20062007
am fabian 137931  137931  87 20042010
200000  200000  60 20042011
 77000  77000 60 20062013
 573000  573000 60 20062010
24816

  24816

68 20062007
362747 674816
dmda wheatley      
mc fairbairn 62500   62500 80 20042010
mc adorian 83333   83333 60 20052012
 saye scheme options
 performance criteria attached  in certain circumstances some of these options may be exercised in 2004 or 2005 page 36  wwwstatprocom
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 17500 17500
dmda wheatley 162500 162500
mc fairbairn 7500 7500
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 midmarket prices of the company’s ordinary shares during the year were 40p and 145p respectively and the midmarket 
price on 31 december 2003 was 31p
mc fairbairn
chairman of remuneration committee
26 march 2004  wwwstatprocom  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  wwwstatprocom
annual report  accounts 2003
note 2003 2002
£’000 £’000
group turnover
continuing operations 2 8340 7229
acquisition 2 86



2 8426 7229
operating expenses before goodwill amortisation and exceptional items 7775 8832
amortisation of goodwill 10 321 294
exceptional items 3  306
operating expenses 3 8096 9432
continuing operations 400 2203
acquisition after goodwill amortisation of £17000 70 
operating proﬁtloss 330 2203
net interest payable 4 184

170

proﬁtloss on ordinary activities before taxation 2 146 2373
taxation 5 14



proﬁtloss on ordinary activities after taxation 132 2373
equity minority interests 6 70



retained proﬁtloss for the ﬁnancial year 21 202


2373


earningsloss per share – basic and diluted 20 06p 73p
earningsloss per share – before amortisation of goodwill and exceptional items 20 16p 55p
the above results all relate to continuing activities
statement of group total recognised gains and losses
2003 2002
note £’000 £’000
retained proﬁtloss for the ﬁnancial year                                                 21 202 2373
exchange differences offset in reserves 52

19

total recognised gains and losses for the year 150


2392


consolidated proﬁt and loss account
for the year ended 31 december 2003  wwwstatprocom  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

1298 1390 380 66
current assets
debtors
 amounts falling due after one year 13 297 308 1286 2149
 amounts falling due within one year 13 2728 3087 27 1025
cash at bank and in hand 2292

1486

1645

906

5317 4881 2958 4080
creditors amounts falling due within one year 14 7690

6269

1347

514

net current liabilitiesassets 2373

1388

1611

3566

total assets less current liabilities 1075

2

1991

3632

creditors amounts falling due after more than one year
deferred income 15 150 213  
convertible loan 15  971  971
bank loans 15 1457 1602 1446 1602
finance lease obligations 15 27

26





1634

2812

1446

2573

net liabilitiesassets 2709


2810


545


1059


capital and reserves
called up share capital 19 331 328 331 328
share premium account 21 8559 8541 8559 8541
warrant reserve 21 424 424 424 424
proﬁt and loss account 21 11953

12103

8769

8234

equity shareholders’ deﬁcitfunds 2639 2810 545 1059
equity minority interests 6 70







capital employed 2709


2810


545


1059


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 inﬂowoutﬂow from operating activities 24 1572

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 inﬂowoutﬂow before management of liquid resources and ﬁnancing 1456 750
management of liquid resources 
increase in shortterm 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 

1000

net cash outﬂowinﬂow from ﬁnancing 650 1186
increase in cash in the year 25

358



285


page 40  wwwstatprocom
annual report  accounts 2003  wwwstatprocom  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 nondiscounted 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  wwwstatprocom
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 shortterm 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 assetsliabilities 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 2330  2330 2140
rest of europe 3971 86 4057 3500
north america 1350  1350 1213
rest of world 689



689

376

total 8340


86


8426


7229


 2003 2003 2003 2002
b turnover  by origin £’000 £’000 £’000 £’000
continuing operations acquisition total total
united kingdom 3895  3895 3180
rest of europe 3081 86 3167 2836
north america 1334  1334 1206
rest of world 30



30

  7

total 8340


86


8426


7229

  wwwstatprocom  page 43 
c results before tax and net assetsliabilities are analysed as follows proﬁtloss before tax net assetsliabilities
2003 2002 2003 2002
£’000 £’000 £’000 £’000
united kingdom 592 966 1725 1496
rest of europe
 continuing operations 215 565 1703 1996
 acquisition 70  54 
north america 509 831 2554 2325
rest of world 82

11

123

15

146


2373


2709


2810


3  operating expenses
 2003 2003 2002 2002
£’000 £’000 £’000 £’000
operating expenses relate to
 continuing operations 7940 9432
 acquisition including goodwill amortisation of £17000  156

       

total operating expenses 8096


9432


operating expenses relate to
staff costs
 research and development 1167 1414
 other staff costs 3947

4366

total staff costs 5114 5780
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 1633 2109
exchange differences      54

     18

total operating expenses 8096


9432


in addition fees amounting to £8000 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 £306000 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  wwwstatprocom
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 £14000 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
proﬁtloss on ordinary activities before taxation 146 2373
tax chargecredit on proﬁtloss 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 utilisedcarried 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     wwwstatprocom  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 4205 4634
social security 751 932
other pension 158

214

5114


5780


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 1521
addition 342

at 31 december 2003 1863


amortisation £’000
at 1 january 2003 805
charge in the year 321

at 31 december 2003 1126


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 sa 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  wwwstatprocom
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 1587
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


1039


1798


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


1237


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 £218000 and a net book value of nil 2002 
£32000
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 £314000 related to the investment including related costs in statpro’s 51owned italian subsidiary riskmap srl 
on 3 october 2003 see note 27  wwwstatprocom  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 2239 2760  
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 





1000

2728 3087 27        1025
amounts falling due after one year
rental deposits 297 308  
amounts owed by group undertakings 



1286

2149

total debtors 3025


3395


1313


3174


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 1000  1000 
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 5078

4606





7690


6269


1347


514

 page 48  wwwstatprocom
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 1457 1602 1446 1602
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





1634


2812


1446


2573


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 57 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 



2690

2839







2733


2886


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  wwwstatprocom  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 shortterm debtors and creditors from disclosure relating to ﬁnancial 
instruments shortterm debtors and creditors are however included in the currency exposure disclosures within this note
the group’s ﬁnancial assets at the yearend are analysed as follows
31 december 31 december
 2003 2002
£’000 £’000
cash at bank and in hand 2292 1486
rental deposits falling due after more than one year 297

308

2589


1794


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 
£18 million in order to redeem the outstanding component of the original convertible loan stock of £172 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 £15 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   1457 1457
convertible loan 1000





1000

1005


5


1479


2489


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 1177 1912
convertible loan 

971



971

315


1401


1198


2914

 page 50  wwwstatprocom
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 1530  21 1551 31
us dollar   294 294 
euro 125  604 729 12
swiss franc   15 15 
australian dollar 








1655





934


2589


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 1097 35
us dollar   223 223 
euro 215  190 405 13
swiss franc   52 52 
australian dollar 



17

17


1070





724


1794


floating rate ﬁnancial assets comprise cash rental deposits and shortterm bank deposits bearing interest based on bank base rates the non
interest bearing ﬁnancial assets represent rental deposits and cash balances held in noninterest 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 2150 32  2182 60 35
euro 307





307

26 
total 2457


32





2489


56 
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 2883


31





2914


60 45
fixed interest ﬁnancial liabilities comprise ﬁnance leases   wwwstatprocom  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 ie 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 
assetsliabilities 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 assetsliabilities
31 december 2003 sterling us dollar euro swiss franc australian dollar total
functional currency of group operation £’000 £’000 £’000 £’000 £’000 £’000
sterling  2831 1859 507 95 4278
us dollar 2526     2526
euro 2649   19  2668
swiss franc 507  19   526
australian dollar 99









99

total 4767


2831


1878


526


95


489


31 december 2002 sterling us dollar euro swiss franc total
functional currency of group operation £’000 £’000 £’000 £’000 £’000
sterling  2633 2167 91 4891
us dollar 2399    2399
euro 2282   404 2686
swiss franc 



398

97

301

total 4681


2633


2565


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 noncancellable 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  wwwstatprocom
annual report  accounts 2003
19  called up share capital
2003 2002
£’000 £’000
authorised
85000000 ordinary shares of 1p each
 2002 85000000 ordinary shares of 1p each
850


850


allotted called up and fully paid
33089244 ordinary shares of 1p each
2002 32810986 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 160000 3
shares issued under share plan 118258

18

278258


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


    wwwstatprocom  page 53 
other employee and executive share options number of dates
 shares option price exercisable
year ‘000
1997 no 2 unapproved scheme 100 25p 2004 
1998 approved scheme 166 175p 2004 to 2008
1999 approved scheme 502 175p 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 4171

  
 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

625p 2004 to 2006
total 721

  
in addition there are 425 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  earningsloss per share
basic earningsloss per share is calculated by dividing the proﬁtloss attributable to ordinary shareholders by the weighted average number of 
ordinary shares in issue during the year as set out below
earningsloss per share – basic and diluted
weighted weighted
average average
number of earningsloss number of earningsloss
proﬁtloss shares per share proﬁtloss shares per share
2003 2003 2003 2002 2002 2002
£’000 ’000 pence £’000 ’000 pence
earningsloss per share  basic 202 32913 06 2373 32486 73
potentially dilutive shares 

309









earningsloss per share  diluted 202


33222


06


2373


32486


73

 page 54  wwwstatprocom
annual report  accounts 2003
earningsloss per share before amortisation of goodwill and exceptional items
weighted weighted
average average
number of earningsloss number of earningsloss
proﬁtloss shares per share proﬁtloss shares per share 
2003 2003 2003 2002 2002 2002
£’000 ’000 pence £’000 ’000 pence
earningsloss per share  basic 202 32913 06 2373 32486 73
effect of goodwill amortisation 321  10 294  09
effect of exceptional items 





306



09

basic earningsloss per share excluding 
goodwill amortisation and exceptional items 523 32913 16 1773 32486 55
potentially dilutive shares  309    
diluted earningsloss per share excluding 
goodwill amortisation and exceptional items

523



33222



16



1773



32486



55


earningsloss 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 earningsloss 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 8541 12103 424 3138
shares issued note 19 18   18
proﬁt for the year  202  202
exchange differences offset in reserves 

52



52

at 31 december 2003 8559


11953


424


2970


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 8541 8234 424 731
shares issued note 19 18   18
proﬁtloss for the year 

535



535

at 31 december 2003 8559


8769


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 £535000 2002 £2028000  wwwstatprocom  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 £177002 and no purchases were made 2002 nil the yearend balance with wrc renand sa was nil 2002 £5786 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 £17595 2002 £22265 the yearend balance with buzzacott was nil 2002 £6004
during the year the group paid a fee of £20110 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 yearend 2002 nil
23  reconciliation of movements in shareholders’ deﬁcit and capital employed
2003 2002
£’000 £’000
proﬁtloss for the year 202 2373
exchange differences offset in reserves 52

19

150 2392
net proceeds from new share capital issued 21

48

net movement in shareholders’ funds 171 2344
opening shareholders’ deﬁcit 2810

466

closing shareholders’ deﬁcit  2639 2810
equity minority interests 70



capital employed 2709


2810


24  reconciliation of operating proﬁtloss to net cash inﬂowoutﬂow from operating activities
2003 2002
£’000 £’000
operating proﬁtloss 330 2203
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 1186
loss on disposal of tangible ﬁxed assets  58
exchange differences 52

19

net cash inﬂowoutﬂow from operating activities 1572


476

 page 56  wwwstatprocom
annual report  accounts 2003
25  analysis of changes in net debt
at acquisition at
1 january
excluding
noncash 31 december 
2003 cash ﬂow
 cash acquired
 changes 2003
£’000 £’000 £’000 £’000 £’000
cash at bank and in hand 1486 806   2292
shortterm deposits 751

448





1199

cash excluding shortterm deposits 735 358   1093
shortterm deposits 751 448   1199
finance leases 31 5  6 32
convertible loan net of issue costs deferred 971   29 1000
bank loans net of issue costs deferred 1912 499  44 1457
loan assumed on acquisition 

167

167





net debt 1428


1477


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 shortterm 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 noncash movements 79

67

movement in net debt 1231 699
net debt at beginning of year 1428

729

net debt at end of year 197


1428


   
    
27  acquisition
on 3 october 2003 the company invested £314000 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 productsservices  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 £86000 of revenue and operating losses of £70000 including goodwill amortisation of £17000  
the acquisition contributed £180000 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  wwwstatprocom  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 assetsliabilities 168


222


54


51 share of net liabilities acquired 28
goodwill 342

314


satisﬁed by 
cash consideration including costs of £32000 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 £158000 2002 £214000  contributions outstanding at the end of december 2003 amounted to 
£18000 2002 £18000   page 58  wwwstatprocom
annual report  accounts 2003
statpro group plc 2003 2002 2001 2000 1999
£’000 £’000 £’000 £’000 £’000
turnover
 continuing operations 8340 7229 6174 3172 1784
 acquisitions 86









8426 7229 6174 3172 1784
 discontinued operations       

       

       

       

1360

8426

7229

6174

3172

3144

operating proﬁtloss
 continuing operations 400 1897 4399 4929 1927
 acquisitions 70    
 exceptional items  306   
 discontinued operations    

         

         

         

234

330 2203 4399 4929 1693
proﬁt on disposal of discontinued operations     1467
net interest payablereceivable 184

170

343

50

43

proﬁtloss on ordinary activities before taxation 146 2373 4742 4879 183
taxation 14

         

         

       

95

proﬁtloss on ordinary activities after taxation 132 2373 4742 4879 278 
equity minority interests 70

         

         

         

      

proﬁtloss on ordinary activities after taxation 202


2373


4742


4879


278 


net assets
intangible ﬁxed assets 737 716 949 1241 
tangible ﬁxed assets 561 674 840 968 312
debtors 3025 3395 3542 2768 684
cash 2292 1486 1050 2390 2608
creditors amounts falling due within one year 7690 6269 5183 3373 651
creditors amounts falling due after more than one year 1634

2812

1664

1487

        

net liabilitiesassets 2709


2810


466


2507


2953


financed by
called up share capital 331 328 322 293 113
share premium account 8559 8541 8499 6830 2956
warrant reserve 424 424 424 424 
proﬁt and loss account 11953

12103

9711

5040

116

equity shareholders’ deﬁcitfunds 2639 2810 466 2507 2953
equity minority interests    70

         

      

       

       

capital employed 2709


2810


466


2507


2953


net debtcash 197 1428 729 844 2608
earningsloss per share  basic 06p 73p 153p 184p 14p 
five year record  wwwstatprocom  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    nonexecutive director
dmda wheatley    nonexecutive director
mc adorian    nonexecutive 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  wwwstatprocom
annual report  accounts 2003
notes  wwwstatprocom  page 61  page 62  wwwstatprocom
annual report  accounts 2003
notes
design  artwork coogoo    sterling financial print 59933 annual report  accounts 2003
 wwwstatprocom  page 63 
statpro ofﬁce locations
statpro limited
statpro house 81 87 hartﬁeld road wimbledon london sw19 3tj uk
tel 44 020 8410 9876    fax 44 020 8410 9877
statpro inc
185 madison avenue new york ny 10016 usa
tel 1 646 742 1200    fax 1 646 742 1201
statpro france sa
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 210 d60486 frankfurt germany
tel 49 69 977 8690    fax 49 69 977 86919
statpro italia srl
via gb vico 4 20123 milano italy
tel 39 02 4331 7510    fax  39 02 4391 1424
statpro benelux sa
148150 boulevard de la pétrusse l2330 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 07 5445 9852    fax 61 07 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 statprostatprocom


Summary:
 page 16  wwwstatprocom
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 £84 million 2002 
£72 million at the same time we 
have achieved our ﬁrst pretax proﬁt 
of £01 million 2002 loss of £24 
million it is perhaps more signiﬁcant 
that whilst managing this expansion 
we have generated an operating 
cash inﬂow for 2003 of £16 million 
against an operating cash outﬂow of 
£05 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 
wellpositioned 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”  wwwstatprocom  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