momentum
annual report  accounts 2006   analytics on demand™  momentum
annual report  accounts 2006
3 statpro overview
4 highlights
6 our market
7 chairman’s statement
8 product overview
10 new products
12 product suite
16 coming in 2007
19 client services and training
20 chief executive’s review
24 financial review
30 board of directors
31 group executive board
31 other key executives
32 map and client references
35 directors’ report
38 corporate governance
41 remuneration report
45 independent auditors’ report
46 group income statement
46 group statement of
recognised income and expense
47 balance sheets
48 cash flow statements
49 notes to the financial statements
76 five year record
77 financial calendar
77 directors and advisers
79 statpro oﬃce locations “statpro fulﬁlled our dream of
ﬁnding a vendor that had the calibre
of a consultancy and with whom we
could work as partners”
baring asset management uk     3 statpro momentum annual report  accounts 2006
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 statpro subsequently developed 
a suite of products including statpro 
composites that is used to help fund 
managers comply with global investment 
performance standards “gips®” gips® are 
designed to ensure that the presentation 
by fund managers of their performance 
to investors is consistent 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 its acquisition of ams sa in 2000 
a product called statpro performance  
attribution spa was added since the 
acquisition annual recurring licence fees for 
spa have grown from around £01 million 
to over £47 million today 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 the sales 
infrastructure enabling the business to 
grow internationally  
in 2002 statpro invested in a 51 stake in 
an australian business that had developed 
a fixed income attribution system statpro 
exercised its option on 1 november 2005 
to acquire the remaining 49 not already 
owned the statpro fixed income solution 
sfi was greatly enhanced during 2005 
and has signiﬁcant potential to become 
a leading multicurrency ﬁxed income 
attribution system
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 2003 statpro invested in a 51 stake in 
an italian business riskmap srl renamed 
statpro italia statpro italia’s key product 
is statpro risk management srm  since 
the investment the annualised recurring 
revenues of srm have increased from 
around £02 million to around £23 million in 
march 2007 statpro acquired the remaining 
49 not already owned
in 2004 statpro invested in an advanced 
internetbased technology solution  statpro 
composites manager  by subscribing for 
a 51 stake in a french business sisoft 
sarl under the terms of the transaction 
statpro has an option exercisable between 
31 march 2009 and 31 december 2014 to 
acquire the remaining 49   
in 2005 statpro acquired 100 of delve 
limited which has developed a highly 
regarded enterprise and web reporting 
solution  
in april 2006 statpro acquired an australian 
business called alphai pty ltd that develops 
performance software this product is being 
integrated into the web service platform 
and is expected to be launched in late 2007 
this acquisition has also given statpro a 
foothold in the australian market
in may 2006 statpro acquired a south 
african business called kizen pty ltd based 
in cape town that develops compliance 
software the acquisition has helped 
reinforce statpro’s strong existing position 
in the south african asset management 
market
in october 2006 statpro completed its 
largest acquisition to date of a company 
called fri corporation “fri” based in 
canada fri has two principal lines of 
business one is a price feed service for 
asset managers and custodians the other 
a portfolio management system for asset 
managers statpro has identified that 
there is signiﬁcant synergy between the 
data requirements of existing clients and 
the fri service 
statpro is a leading provider of portfolio analytics and data solutions for the global asset management industry 
having grown from a oneproduct company we now oﬀer our clients eight core products including data and 
integrated enterprise reporting solutions this range of products enables statpro to provide a unique integrated 
product oﬀering with a strong competitive advantage 
analytics on demand…
statpro overview turnover free cash ﬂow proﬁt before tax
before exceptional items
proﬁt before tax
after exceptional items
wwwstatprocom 4
year ended
31 december
2006
year ended
31 december
2005 change
turnover £1460 million £1079 million 35
proﬁt before tax before exceptional items £256 million £164 million 56
proﬁt before tax after exceptional items £114 million £164 million 31
basic earnings per share 33p 46p 28
adjusted earnings per share 58p 46p 26
dividend per share – ﬁnal proposed for year 07p 05p 40
dividend per share – total proposed for year 10p 05p 100
financial highlights
• recurring annualised revenue up by 75 to £1766 million 2005 £1010 million
• recurring revenue recognised in the year of £1248 million
 2005 £913 million represents 85 of total revenue 2005 85
• net operating margin was 181 before exceptional items 2005 154 overall
 and 192 on continuing operations before exceptional items  
• strong free cash ﬂow cash generated from operations less investment in internally
 generated intangible assets of £195 million 2005 £142 million
• year end net debt of £768 million 2005 net cash £182 million lower than expected
 due to cash generation ahead of expectations and currency gain on debt 
• increased ﬁnal dividend recommended of 07p per share resulting in
 total dividend of 10p 2005  ﬁnal and total for year 05p
operational highlights
• completion of three strategic acquisitions in 2006 transforming the business resulting in
 • increased opportunities in large north american market
 • statpro’s widest ever range of products 
 • ability to oﬀer integrated data and software solutions
• fri integration and reduction of annualised costs by £10 million in
 line with expectations – active cross selling underway
• average number of products for top 30 clients is now 37 products per client
 adjusted earnings per share is deﬁned as earnings per share before exceptional items  see note 20 of ﬁnancial statements
highlights
statpro 2006… “we are convinced that we made the right 
decision in choosing statpro” kepler austria statpro’s products provide middle oﬃce´ portfolio analytics 
solutions for the global asset management industry 
approximately 55 trillion is now managed by asset management 
companies 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
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 regulation will remain the key driver as demand 
for more information on risk and return from complex instruments 
continues to increase
as the necessity for portfolio analytics solutions has grown so too 
has the number of companies supplying products however the 
breadth of the product oﬀering by each company varies greatly and 
statpro is one of the few companies that is able to oﬀer its clients a 
full range of integrated data and solutions to meet their needs
the acquisition of fri signiﬁcantly strengthens statpro’s position in 
the north american market and creates a number of crossselling 
opportunities to our clients fri is one of the leading sources of bond 
data and the acquisition will enable the group to provide a total 
solution for our clients the acquisition continues our stated strategy 
to grow by acquiring new products and investing in such products 
for growth rather than developing products from inception
measured performance…
our market     7 statpro momentum annual report  accounts 2006
acquisitions
your company acquired three businesses in 
2006 the most signiﬁcant of which was fri 
a company based in canada the acquisition 
of which completed in october 2006
fri provides data for asset managers and 
custodians and portfolio management 
systems for asset managers there are 
significant synergies bet ween the 
increasing data requirements of both 
our existing and prospective clients and 
the fri data service 
in may 2006 we acquired a business based 
in cape town called kizen which develops 
compliance software thus cementing our 
market leading position in south africa 
and adding an additional product we can 
distribute to existing clients
in april 2006 we acquired a business based 
in sydney called alphai that develops 
performance software providing an entry 
into the australian market and a further 
product that can be integrated into our 
web service platform 
financing
your company successfully raised further 
equity during the year amounting to 
£149 million and bank debt amounting 
to £12 million before expenses to finance 
the acquisition of fri
products
in my report for 2005 i commented on the 
launch of our fixed income attribution 
product sfi in january 2006 this proved 
to be successful and together with our 
risk product srm produced a good sales 
performance we are well placed to beneﬁt 
from the increasing demands generated by 
the growing market in complex assets       
board of directors
as previously reported dominic wheatley 
resigned from the board of directors in 
january 2007 dominic has been a non
executive director of statpro since 1999 and 
has helped guide your company through 
its major transition from an unquoted loss
making business to a successful proﬁtable 
dividend paying aim listed company i 
would like to express my deep gratitude 
to dominic for his contribution advice 
and support and wish him well in his other 
business ventures
people
it has been my good fortune to welcome 
many new employees to statpro during 
2006 our achievements rely heavily on 
the enthusiasm and commitment of all 
our employees and my thanks go to 
all of them
dividend
your board is proposing a ﬁnal dividend of 
07p per share for 2006 payable on 30 may 
2007 to those shareholders on the register 
on 27 april 2007 taking the total dividend 
to 10p per share 2005 05p per share 
an increase of 100 on the dividend for 
2005  we intend to maintain a progressive 
dividend policy reflecting the balance 
between the investment needs of the 
business and growth in underlying cash 
and earnings per share
prospects
we enter 2007 as we did in 2006 with 
considerable conﬁdence again we have 
a large pipeline of prospects a growing 
number of existing clients and a wider 
range of products and data that meet 
the complex requirements of increasingly 
demanding asset managers     
carl bacon chairman 
30 march 2007
progress 2006 proved to be a milestone year for statpro we increased turnover organically and via 
acquisition by 35 to £146 million 2005 £108 million increased total annualised recurring revenues by 
75 to £177 million 2005 £101 million and increased profit before tax and exceptional items by 56 to 
£26 million 2005 £16 million 
“it has been my good fortune to welcome
many new employees to statpro during 2006”
statpro momentum…
chairman’s statement statpro is a global provider of portfolio 
analytics for the asset management 
industry we offer data and software 
for risk management fixed income 
analysis performance measurement 
attribution analysis gips® compliance 
and reporting
our strategy remains to provide a coherent 
product platform that delivers both better 
value and analysis to our clients 
8
product overview in 2007 statpro will focus on the following areas
• expanding fixed income and risk opportunities
• developing asp solutions
• developing new data services 
“we are convinced of the quality of statpro’s software solutions
and see statpro as a strategic partner for our new developments”
erste sparinvest austria
statpro 2007 … wwwstatprocom 10
data security master data  prices  bonds  equities  derivatives  fx rates  indices
front oﬃce back oﬃce middle oﬃce reporting
• portfolio modelling
 • pretrade 
compliance
 • trade order 
management 
 • master module
 • general ledger 
 navs
 • security master
 • corporate actions
 • reconciliation
 • custodian 
notiﬁcation
 • audit central
 • performance 
 • equity attribution
 • fixed income 
attribution
 • risk management
 • ucits iii var
 • gips® composites
 • post trade 
compliance
 • client  portfolio 
managers’ 
reporting
 • web reporting 
portfolio management 
spm
market drivers
in today’s constantly changing global 
financial marketplace investment 
professionals are faced with new challenges 
every day demands created by increased 
international investing the proliferation 
of new security types and increased 
management and regulatory reporting 
are just some of the issues fund managers 
have to cope with on a daily basis 
as a result of the acquisitions made in 2006 statpro has incorporated three new products statpro portfolio 
management statpro data services and statpro portfolio compliance into the product suite and has another 
under development for late 2007
“we concluded that statpro portfolio management and statpro data services were
the best solution for our requirements” optimum asset management canada
central to our strategy…
product overview…continued 
product description
statpro portfolio management spm is a fully 
integrated suite of front middle and back
oﬃce applications for portfolio management 
and investment accounting spm uses an 
industrystandard scalable relational database 
resulting in eﬃcient realtime processing in 
a open environment all applications within 
spm are backed by a ﬂexible set of tools for 
creating customised reports or views of data 
and data interfaces  
modular and flexible in design statpro 
portfolio management is scalable for use by 
ﬁrms ranging in size from small enterprises 
to the largest of global institutions 
key features
• trade generationorder entry 
• securities and valuation 
• accounting 
statpro introduces…
new products market drivers
the valuation of complex assets is a key risk for 
asset managers and custodians regulators 
are pressing them to demonstrate they have 
multiple accurate and independent pricing 
for all valuations in order to minimise the 
risk of mispricing statpro is well placed 
to provide such a service not only with 
its existing service but also its expertise 
in complex assets
    11 statpro momentum annual report  accounts 2006
product description
statpro has inherited one of the leading 
sources of bond data through the acquisition 
of fri by providing data for the ﬁrst time 
we are now able to offer a total solution 
to our clients statpro data services oﬀers 
comprehensive timely and accurate end
ofday intraday and historical prices and 
valuations for clients’ complete securities 
universe statpro’s customised delivery 
allows clients to determine both when they 
receive the data and in what format the data 
is delivered to them sds can also be used for 
price conﬁrmations price challenges andor 
additional research on particular events
key features
• access to over 500000 securities
• both inhouse and broker
 contributed ﬁxed income pricing
• utilises client derived pricing
 algorithms to deliver ﬁnal
 valuation price
• supports all security identiﬁcation
 conventions and accepts clients’
 own internal identiﬁers
• flexible snap time 
• values “hard to price” securities
market drivers
as investment ﬁrms develop ever more 
complex products they in turn face 
increasing levels of scrutiny from vigilant 
regulators and discerning customers as a 
result the need to understand and manage 
risk better has moved rapidly to the top of 
the agenda for most investment ﬁrms   
one of the key challenges in achieving 
an integrated compliance process across 
the business is managing the different 
sources of data in the various business 
portfolio compliance 
spc
areas many compliance implementations 
have stumbled at this hurdle resulting in 
the compliance team feeling their ‘hands 
are tied’ by data limitations  
complete and accurate data for compliance 
purposes is one of the key challenges in 
successfully implementing a compliance 
system the system needs to have the 
ability to manage an extensive range of 
data from a potential variety of diﬀerent 
sources required to monitor all the rules and 
secure in the knowledge…
data services 
sds
new products…continued 
risks across the business data management 
should also include checks and balances 
to ensure the integrity of data with any 
exceptions being highlighted as part of the 
compliance process  further the complexity 
and varied nature of the diﬀerent monitoring 
rules mean that compliance systems require 
additional and enhanced data 
product description
statpro portfolio compliance manages and 
enriches the data required for compliance 
checks to ensure the accuracy and 
reliability of the source data this enables a 
successful compliance monitoring process 
providing results that stakeholders can 
have conﬁdence in
key features
• powerful and ﬂexible rule deﬁnition
• full support for all regulatory
 environments
• full audit trail of breaches
 and resolutions
• sophisticated breach
 management workﬂow
• customised reporting and
 enquiry management
 breach analysis enquiry   
portfolio holdings enquiry  wwwstatprocom 12
compliance and risk are increasingly 
important but without a fully integrated 
centralised performance database senior 
management may not identif y 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
product description
spa is a highly technical product that 
quantiﬁes the investment decision 
processes of asset managers thus providing 
a detailed analysis of the factors that add 
value in an investment portfolio spa 
can identify whether performance was 
due to stock selection asset allocation 
currency movements or other factors this 
enables fund managers to understand 
their performance better and assists a 
meaningful dialogue with clients 
performance  attribution 
spa version 50 series
lead by performance…
market drivers as the asset management industry has grown it 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 
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 less precise 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
key features 
• daily transactionbased
 performance analysis calculating
 highly accurate returns
• improved tree structure creation
 and maintenance allows users
 unlimited levels of analysis
 and mix of any attributes
• new attribution models enable closer
 integration of the management
 process with performance analysis
• segment and security results
 combine to allow the user to obtain
 all analytical answers in one place
• new net innovative
 architecture provides greater
 ﬂexibility and usability
product suite
“thanks to spa´s comprehensive
analysis capabilities we have been
able to analyse and evaluate our investment 
process in the way desired by us”
amb generali asset managers germany
tree structure     
 results grid
  monthly summary report   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
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
ﬁxed income 
sfi version 50 series
market drivers over the last few years many fund managers have increased their investments in ﬁxed 
interest securities as a result bond investments have grown rapidly and now often represent the bulk of 
asset managers’ portfolios 
 bond performance
attribution report   
 yield curve graph   
scenario screen showing yield curve settings    
  fixed income attribution  
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 userfriendly 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
key features
• 
one of sfi’s major strengths is
 precision and speed returns are
 calculated at security level on
 a daily basis and transactions
 are taken into account 
• 
net technology oﬀers
 increased speed in a highly
 ﬂexible user interface 
• 
all returns are fully timeweighted
• 
return for any type of asset can 
 be modelled and analysed into
 eﬀects depending on the precision
 required by asset managers
shift twist and butterﬂy…
    13 statpro momentum annual report  accounts 2006 wwwstatprocom 14
enterprise reporting 
ser
ser also manages 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 websites is often extremely complex 
and hard to adapt 
ser has the ability to generate and maintain 
as many websites as an asset manager has 
clients so if a private bank has 30000 clients 
ser will be able to build 30000 websites and 
populate each one with the precise reports 
tailored to each client’s requirements
ser can be customised to fit seamlessly 
into the asset manager’s existing website 
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 ser and statpro’s 
analytics makes a very powerful reporting 
solution ser also comes with an “outof
thebox” solution that will satisfy 90 of 
the needs of most asset managers without 
further modiﬁcation
“…a vast improvement in terms of the look and feel
of the design the functionality and also the depth
and breadth of information we provide”
j o hambro capital management uk
 web reporting   
 fund fact sheets   
 client valuation statement  
product description ser is a sophisticated ﬂexible reporting solution for asset managers ser generates and 
distributes customised factsheets personalised client reports and client valuations ser guarantees consistent 
communication and control of an asset manager’s internal information
elegant reporting…
product suite…continued      15 statpro momentum annual report  accounts 2006
these are good models for speciﬁc types of 
portfolios eg a pure equity portfolio but 
problems 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 
strong 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 outperform the return on 
cash rather than track the movements of 
an index such as ftse 100
with increasing regulations investment 
professionals regulatory authorities and 
investors now all require portfolio risk 
information the risk model must therefore 
be able to provide forwardlooking exante 
risk estimates at security and portfolio level 
with a variety of risk measures available 
for analysis srm aims to address these 
needs without necessarily replacing 
the need for the traditional risk systems 
outlined above
product description
srm v50 provides this functionality within 
a single system allowing a wide variety of 
portfolio risk analysis to be created on a daily 
automated basis underlying srm v50 is a 
worldclass risk model which provides very 
broad coverage of global markets backed by 
an expert team of quantitative analysts
risk management 
srm version 50 series
srm uses the new statpro historical simulation 
model which operates on all types of assets 
whether they are equities bonds options 
property credit derivatives inﬂationlinked 
bonds mortgagebacked securities or another 
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 in absolute and relative terms 
and which assets in those portfolios are 
responsible for the breach
key features 
• comprehensive coverage
 of global assets
• single integrated framework
 capturing the complex relations
 among market risk default risk
 and default correlation risk 
• daily security risk proﬁle update
 using statpro data services
• multiple exante risk measures 
• complete ucits iii risk reporting
 service to ensure compliance with
 ucits iii risk regulations in europe
indeed one of our clients uses srm to 
monitor 300000 portfolios on a daily basis 
given the recent controversies caused by 
volatile 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 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
statpro has gained a number of clients 
in the uk usa canada germany italy 
austria and luxembourg as a result of these 
initiatives as we provide a cost eﬀective 
way to meet these new regulations most 
managers see the positive benefits of 
improved risk control but are keen to 
implement solutions that are cost eﬀective 
therefore we see this as an important 
market opportunity for statpro
statvar
statvar is a service launched by statpro in 
2006  to take advantage of the market need 
for a cost eﬀective solution to meet these 
new regulations statvar provides a simple 
service whereby fund managers can send 
us their fund holdings and we will return 
the value at risk var report to meet the 
requirements of the regulations statvar 
also provides a range of enhanced portfolio 
and risk reports if required
market drivers the great majority of risk systems that are currently installed throughout the asset management 
industry are based on the capital asset pricing model “capm” and parametric models 
 portfolio overview   stress test decomposition    
power demands respect… wwwstatprocom 16
key features
spadirect can deliver cutting edge 
analytics to clients anywhere in the 
world  an internet connection is all 
that is needed for many customers the 
decision to implement a performance 
system is compounded by the need to 
procure implement and integrate new 
hardware and software statpro direct 
direct
performance  attribution
product description
spadirect is a webasp delivery of portfolio analytics through a secure website called statpro direct spadirect 
is expected to be launched towards the end of 2007 with a new performance attribution solution 
removes this concern as all hardware and 
software is hosted in the powerful and 
secure statpro data centre available 24 
hours a day 7 days a week another major 
attraction of spadirect is that it comes 
packaged with market data which is normally 
a huge cost to procure and implement for 
new performance customers like statpro 
portfolio management and statpro data 
services spadirect originated as a result 
of the strategic purchases of alphai and fri 
during 2006 alphai has provided a proven 
web based performance and attribution 
framework whilst fri has enabled the ﬂow 
of market indices and security level data 
from leading investment markets 
asset managers are also under increasing 
pressure to reduce costs sc provides tools 
that eﬃciently collate store and maintain 
performance data
product description
statpro composites sc is the market 
leading product for assisting asset managers 
to achieve and maintain compliance with 
composites 
sc version 50 series
market drivers gips® 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
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 
need 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
key features
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 100000 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
distinctive solutions…
product suite…continued 
a new solution…
coming in 2007
 composite details   
firm disclosures   direct
performance  attribution
“statpro’s system helps us maintain an environment of 
control which is critical to a successful composite process”
 brown brothers harriman usa “client services and support are the key to our positive
experience with statpro” turner investment partners usa     19 statpro momentum annual report  accounts 2006
clients remain the primary
inﬂuence on our product development… 
client services and training
user groups
we hold global user group meetings to 
ensure that clients remain the primary 
inﬂuence on our product development 
strategy these meetings are chaired and 
hosted by clients and provide them with 
a good networking opportunity user 
group meetings provide us with welcome 
feedback from clients regarding the service 
they have received and any suggestions 
they may have for further improvements 
the key beneﬁts of the user groups are 
the visibility they provide the clients on 
our development progress as well as the 
opportunities to interact with the product 
managers thereby inﬂuencing the order in 
which extra functionality is developed
account management
each statpro client has a dedicated account 
manager an experienced individual from 
the portfolio analytics industry who 
understands their needs the account 
manager is responsible for assessing how 
well our applications are integrated at client 
sites and advising clients how to automate 
processes and gain additional business 
eﬃciencies the account manager makes 
clients aware of additional analytics services 
available from statpro and coordinates 
statpro professional services
client support
we continue to meet our suppor t 
commitment response times and constantly 
monitor our performance in this area to 
ensure that we maintain our high standards 
of service and support in order for us 
to offer excellent ongoing support to 
our clients statpro has recruited staff 
with industry experience and expertise 
in portfolio analytics risk and reporting 
technologies
statpro provides clients with the option 
to log cases via telephone email or via 
esupport directly to our crm system 
statpro also hosts a forum for clients which 
centralises all product documentation 
and is a medium for them to discuss 
topics ask questions of industry leaders 
and contribute to current or upcoming 
functionality and methodology
project management
our project management team has extensive 
experience in software implementation 
and working with clients of all sizes globally 
and nationally we use the prince 2pnp 
methodologies which cover the project 
life cycle including preproject preparation 
milestones reached and project risks we 
always clearly communicate the project 
plans and have a full end of project´ review 
with the clients
our focus is on the clients’ implementation 
objectives and integrating the software in 
the most eﬃcient manner data quality is 
key to a successful implementation project 
statpro also oﬀers its services to assist with 
the analysis validation and migration of 
the client data
training
statpro has an excellent reputation for 
delivering training that enables clients 
to successfully utilise the full beneﬁts of 
statpro products many of our trainers are 
published authors and recognised leaders in 
their ﬁeld we have successfully developed 
and deployed training solutions for blue
chip clients around the world 
statpro also has a team of performance 
and risk consultants who provide specialist 
performance and risk consulting expertise for 
implementation and other client projects
our client services team focuses on ensuring statpro’s products are well integrated within our clients’ businesses 
this enables them to achieve the maximum beneﬁt from subscribing to statpro’s services typically this involves 
helping clients to implement automated portfolio analysis processes thereby improving their eﬃciency we continue 
to oﬀer functional enhancements in the form of upgrades to our applications as part of the software licence and 
support agreement in most instances statpro manages the upgrade process for the client
support is provided by
telephone  email  esupport  client forums wwwstatprocom 20
more importantly proﬁt before tax and 
exceptional items increased by 56 to 
£256 million 2005 £164 million and 
adjusted earnings per share increased 
by 26 to 58p 2005 46p the net 
operating margin in 2006 was 181 before 
exceptional items 2005 154 overall 
and 192 2005 154 on continuing 
operations before exceptional items  
the exceptional costs for 2006 totalling 
£142 million 2005 nil primarily relate to 
restructuring costs incurred as a result of 
the acquisition of fri prior to the acquisition 
we had identiﬁed a series of cost savings 
we could make and we acted swiftly to 
implement these initiatives reducing costs 
for the combined business going forward 
by approximately £10 million per annum 
following the acquisition we implemented 
our accounting policies on software revenue 
recognition at fri  this policy which is 
more conservative than fri’s in terms of 
revenue recognition has had the eﬀect 
of reducing its contribution compared to 
that expected at the time of the acquisition  
we issued 1525 million of new shares 
raising £1316 million before expenses in 
two placings of ordinary shares during the 
year to strengthen the balance sheet and 
to part fund the acquisition of fri and we 
welcome all our new shareholders
at the end of 2006 statpro’s annualised 
recurring revenue contracts amounted 
to £1766 million up from £1010 million 
at the start of the year and recognised 
recurring revenue accounted for 85 of 
total revenues 2005 85 cash generation 
was strong with £195 million free cash ﬂow 
2005 £142 million in october 2006 we 
borrowed £120 million to complete the 
acquisition of fri but net debt at the end 
of 2006 was lower than expected at £768 
million 2005 net cash £182 million due to 
improved cash generation and a currency 
gain on our canadian dollar debt
acquisitions 
fri  we made three acquisitions in 2006 
the most signiﬁcant of which was fri based 
in canada which was completed on 24 
october 2006 for a total consideration 
including expenses of cad5646 million 
£2662 million fri has two principal lines 
of business one is a price feed service for 
chief executive’s review
asset managers and custodians the other 
a portfolio management system for asset 
managers statpro has identiﬁed that there 
is signiﬁcant synergy between the data 
requirements of our existing clients and 
the fri service 
furthermore the directors believe we 
can develop a series of new services by 
combining statpro’s expertise with fri’s 
products most important amongst these 
is a planned service to price complex 
assets such as credit default swaps cds 
collateralised debt obligations cdo and 
overthecounter structured products 
otcs and many others besides there 
has been a signiﬁcant proliferation of these 
assets over the last few years to the extent 
that more and more asset managers use 
them having independent valuations of 
these assets is vital in order to comply with 
the many new regulations that have been 
introduced we are planning to launch this 
service at the end of 2007
we also will be providing our clients with 
other data services such as an index service 
and a ﬁxed income data feed for our product 
statpro fixed income sfi this is in addition 
to improving and expanding the existing 
excellent price feed service already oﬀered 
by fri early indications suggest that this 
data service will make a positive contribution 
to our numbers in 2007
fri’s portfolio management system raison 
has been renamed statpro portfolio 
management spm this is a market leading 
product with a strong client base in canada 
we intend to market this initially in north 
america only and we have changed the 
business model from a licence fee and 
support model to an annual licence model 
whilst this has a short term impact on 
the revenue the directors believe that in 
the long run this is the best way to build 
signiﬁcant shareholder value spm has a 
solid pipeline of prospects and is expected 
to make a positive contribution to our 
results for 2007
alphai in april 2006 we acquired an 
australian business called alphai that 
develops performance software we are 
integrating this product into our web 
service platform and we expect to launch 
this late in 2007 this acquisition has also 
given us a foothold in the australian market 
and we recently won a significant new 
client there for our spa and sfi products 
which we hope will be the ﬁrst of many 
in the territory
kizen in may 2006 we acquired this south 
african business based in cape town 
that develops compliance software the 
acquisition has helped reinforce statpro’s 
strong existing position in the south african 
asset management market where the group 
now has recurring revenues of around £14 
million we have been pleased with kizen’s 
progress to date having sold ﬁve systems 
since the acquisition and we expect to 
build on this in 2007
new business
sales were strong in all regions in 2006 
compared with 2005 and previous years 
in europe we had another good year with 
our risk fixed income and performance 
products all doing well in south africa we 
had an outstanding year with eight new 
clients and many sales to existing clients 
the uk market was good but a number of 
opportunities were delayed into 2007 the 
us market ﬁnally improved following a few 
diﬃcult years with new sales up strongly 
with a number of signiﬁcant deals signed 
with custodian banks
60 of new business by value came from 
new clients and 40 from existing clients 
the average number of products per client is 
16 following our acquisitions this ratio tends 
to fall as a result of an increased number 
of clients with initially only one product 
but the average number of products per 
client for our top 30 clients by total recurring 
revenue is now 37 products and those top 
30 represent about 50 of our recurring 
revenues
sales progress was made for all products 
but the best performers were risk srm 
and fixed income sfi indeed there is a 
strong interrelationship between these two 
products as they are both required by clients 
to help analyse the risk and return from 
complex credit instruments and statpro’s 
continued expertise in this domain has 
helped cement our position in the market 
as a leading supplier
highlights this year has been another one of solid performance by statpro with strong organic growth complemented 
by three signiﬁcant acquisitions organic revenue grew by 18 from £1079 million to £1274 million and including 
acquisitions revenue increased by 35 2005 19 to £1460 million  
another solid performance… “i warmly congratulate all my colleagues 
on an excellent performance in 2006” “…few competitors possess both the expertise and
the geographical infrastructure to deliver the 
level of global service that we oﬀer”     23 statpro momentum annual report  accounts 2006
since statpro was founded in 1994 we 
have made eight acquisitions in total all 
of them adding a new product new skills 
new clients and new territories
the acquisition of fri allows us to provide 
our clients with data for the ﬁrst time so 
that we will now be able to oﬀer a complete 
service as we expand our product base we 
believe that our oﬀering becomes more 
attractive not least because our critical 
mass is now such that we can oﬀer the 
highest quality service to asset managers 
of all sizes including fri our regional 
balance now means that approximately 
43 of our recurring revenue comes from 
north america and 48 from the uk and 
continental europe with the rest of the 
world predominantly south africa and 
australia having about 9
completing the acquisition of a company is 
the ﬁrst step integration and maximisation 
of efficiencies in the enlarged group is 
the vital process to generate value four 
months after completion the integration 
of fri is progressing well and we have a 
number of speciﬁc integration projects 
for each functional area of our business 
processes not least amongst these is to 
promote our existing products to the fri 
clients and the fri products to the statpro 
clients in order to achieve crosssales sales 
processes typically take an average of six 
months to a year so we are very pleased 
that we already have our ﬁrst cross sell of 
a statpro product to an fri client and that 
the pipeline for further cross sells is looking 
promising the integration stage will be 
substantially completed by the end of the 
third quarter of 2007 when we will be able 
to launch a new range of services which 
combine software with data
the focus of our expertise is now ﬁrmly on 
the burgeoning market of complex assets 
and we believe that statpro is very well 
placed to beneﬁt from the expertise and 
intellectual property that is vested in our 
software barriers to entry into this market are 
becoming higher and we believe that few 
competitors possess both the expertise and 
the geographical infrastructure to deliver 
the level of global service that we oﬀer we 
will seek to build on this lead in 2007
people
as previously announced dominic wheatley 
resigned from the board in january 2007 
dominic had been a nonexecutive 
director since 1999 helping guide the 
company through its major transition 
from an unquoted lossmaking business 
to a successful proﬁtable dividend paying 
aim listed company the business has been 
transformed over the past eight years 
and has grown both organically and by 
acquisition the board expresses its deep 
gratitude to dominic for his contribution 
advice and support and wishes him well 
in his other business ventures
statpro’s continuing success is all about 
people and the expertise in the business i 
welcome new colleagues who have recently 
joined and warmly congratulate all my 
colleagues on an excellent performance 
in 2006 and once more urge everyone to 
make 2007 statpro’s best year yet
dividend
we paid our maiden dividend for 2005 
in may 2006 of 05p per share and an 
interim dividend for 2006 of 03p per 
share in november 2006 and the board 
now recommends the payment of a ﬁnal 
dividend of 07p for 2006 on 30 may 2007 
to those shareholders on the register on 27 
april 2007 making a total dividend of 10p 
per share for 2006 2005 05p per share we 
intend to maintain a progressive dividend 
policy reﬂecting the balance between the 
investment needs of the business and 
growth in underlying cash and earnings 
per share
outlook
we enter 2007 as we did in 2006 with 
considerable conﬁdence  we have a large 
pipeline of prospects a growing number of 
clients and a wider range of products and 
data that meet the complex requirements 
of increasingly demanding asset managers 
who we believe are planning to increase 
investment in their portfolio analytics 
systems the average value of contracts 
is expected to be higher than in previous 
years and our goal remains to achieve net 
operating margins of over 20
statpro is now a truly international business 
with just 16 of recurring revenue deriving 
from uk based clients this has resulted 
in an increased exposure to currencies 
predominantly us dollar canadian 
dollar and euro whilst we have costs in 
all these currencies we have a residual 
profit exposure on the translation of 
results into sterling we will continue to 
take reasonable measures to hedge our 
exchange risk including matching currencies 
of loans against net overseas investments 
and expected cash ﬂows  
we have had a satisfactory start to the 
current ﬁnancial year with further progress 
on the integration of fri and our cross selling 
initiatives and overall performance is in line 
with our expectations we will provide a 
further update on trading at the agm on 
16 may 2007
justin wheatley chief executive
30 march 2007
strategy our strategy remains to build strong relationships with our clients and provide them with a coherent product 
platform that delivers both better value and better analysis this means that we have grown the group by acquiring 
new products and investing in such products for growth rather than developing products from inception    
chief executive’s review…continued
the focus of our expertise… wwwstatprocom 24
overview three acquisitions were completed during the year including a major transformational acquisition 
in north america fri the recurring annualised value of new contracts signed during 2006 was 52 higher 
than that achieved in 2005 
with organic revenue growth and through 
acquisitions the group has increased its 
recurring revenue substantially to £1766 
million 2005 £1010 million and there is 
now a greater weighting of contracts in the 
us and canada the group increased its 
operating proﬁt before exceptional items 
by 59 to £265 million 2005 £166 million 
and by 47 on the continuing operations 
before exceptional items    
acquisition of fri corporation
the acquisition of fri corporation was 
ﬁnanced through a mixture of debt and 
equity the balance sheet was strengthened 
by the issue of equity and the gearing 
was increased as a result of the bank debt 
ﬁnance but the directors believe that the 
shareholders will beneﬁt from the group’s 
ﬁnancial gearing  
turnover
group turnover increased to £1460 million 
2005 £1079 million of which £187 million 
related to acquired businesses statpro has 
maintained its record of growing revenue 
each year since its ﬂotation in 2000 and the 
growth rate has picked up in 2006 to 35 
2005 19 including the contribution from 
acquisitions of 17  
we have applied statpro’s more conservative 
accounting policy to fri in relation to revenue 
recognition the impact of exchange rates 
on revenue and proﬁt was not material to the 
group’s results for the year although the fall in 
the canadian dollar in the last quarter of 2006 
by around 9 combined with the change in 
accounting policy did impact fri’s reported 
revenue and proﬁt before tax compared to 
our original expectations  
recurring revenue
the annualised recurring revenue from 
software licences and data fees at the 
end of december 2006 grew to £1766 
million 2005 £1010 million an increase 
of 75 year on year 21 before impact 
of acquisitions and exchange rate 
movements included within recurring 
revenue is revenue from data which is not 
committed but relates to “overage” one 
of the initiatives since the completion 
of the acquisition of fri is to endeavour 
to secure as much of this uncommitted 
recurring revenue as possible and to 
move data contracts which tend to be 
only one year commitments to longer 
term contracts to secure the recurring 
revenue further
new contracts net of cancellations amounted 
to £210 million 2005 £137 million contracts 
acquired amounted to £651 million based on 
the exchange rate at the relevant acquisition 
date the net impact of the revaluation of 
contracts to the year end exchange rates 
amounted to a reduction of £105 million due 
to a signiﬁcant fall in the value of currencies 
principally the us dollar and canadian 
dollar against sterling at 31 december 2006 
compared with 31 december 2005
 
the proportion by value of recurring 
software licences on multiyear contracts 
licence agreements with more than one 
year remaining contractually committed 
increased to 57 at the end of 2006 from 
53 at the end of 2005  we now have 29 
2005 21 client groups each subscribing 
more than £150000 per annum  
the range of products in our current 
offering has been greatly enhanced in 
the last year with the addition of statpro 
portfolio management “spm” statpro 
portfolio compliance “spc” and statpro 
data service “sds” the directors believe 
that opportunities for selling data solutions 
in combination with our enhanced analytics 
product suite will lead to future growth for 
the business
   
year to
31 december
2006
£ million
year to
31 december
2005
£ million
growth 
year on
 year

group revenue
software licences 1166 913 28
data fees 082  na
total recurring fees 1248 913 37
professional services 212 166 28
1460 1079 35
software licence revenue grew by 28 to 
£1 166 million 2005 £913 million  around 60 
of new licence revenue was from new clients 
data revenue derived from the acquisition of 
fri amounted to £082 million for the two 
months since the acquisition total recurring 
fees represent 85 2005 85 of annual 
revenue the level of professional services 
revenues of £212 million was up by 28 
compared to the prior year 2005 £166 million 
due to the higher level of new business and 
the contribution from acquisitions 
 
recurring revenues
at
31 december
2005
£ million
new
contracted 
revenue net of 
cancellations
£ million
contracts
acquired with 
acquisitions
£ million
net
impact of 
exchange
rates
£ million
at
31 december
 2006
£ million
growth rate  
excluding 
contracts 
acquired and 
exchange rate 
movements 

net
growth rate   
including 
contracts 
acquired

annualised value
software licences and data fees 1010 210 651 105 1766 21 75
transformational acquisition…
financial review
the split of revenue for the year by type was as follows operating expenses and exceptional items
operating expenses before amortisation of intangibles and 
exceptional items increased by 29 to £1029 million 2005 £797 
million as a result of a 44 increase in the average number of 
employees during the year from 98 to 141 predominantly as a result 
of acquisitions the major increase resulted from the acquisition of fri 
which brought 1 10 people in two oﬃces toronto and montréal the 
alphai acquisition resulted in us acquiring ﬁve new employees and 
a sydney oﬃce and the kizen acquisition six additional employees 
allowed us to integrate our two oﬃces in cape town 
we ended 2006 with 233 employees 2005 105 situated in eleven 
oﬃces london paris milan frankfurt luxembourg toronto 
montréal new york san francisco cape town and sydney 
other costs for the business which have increased in the year 
relate to data acquired from third parties exchange fees and 
other costs such as telecommunications required to deliver an 
integrated data and software service
the operating expenses excluding exceptional items relating 
to the acquisitions amounted to £151 million  as part of the 
restructuring of the business operations we incurred exceptional 
costs amounting to £142 million 2005 nil  these costs relate to 
redundancies and other terminations onerous lease commitments 
and other integration and restructuring costs and are expected 
to result in reduced annual operating expenses going forward by 
around £10 million in line with expectations the cash element 
incurred in 2006 was approximately £033 million
investment in research and development
the group continues to increase its investment in research and 
development the carrying value of development costs including 
acquired technology and customer contracts amounted to £455 
million 2005 £231 million development expenditure is amortised 
over a three year period as this is the period which the directors 
expect the beneﬁts to arise from the investments the estimated 
useful life for customer contracts varies between three and seven 
years the amortisation of intangibles amounted to £167 million in 
2006 2005 £115 million the carrying values which are analysed 
by product are considered carefully by the board and if there has 
been any impairment in any development costs then the carrying 
value is written down accordingly  interest
prior to the acquisition of fri which was partly debt ﬁnanced 
the group was generating net interest income  as a result of the 
interest on the loan drawn down in october 2006 to ﬁnance the 
acquisition of fri there was a net interest expense for the year as 
a whole amounting to £009 million 2005 £002 million
proﬁt before tax
the proﬁt before taxation and exceptional items grew by 56 to £256 
million 2005 £164 million the proﬁt before taxation after exceptional 
items reduced by 31 to £114 million 2005 £164 million    
taxation
there was a net credit to taxation amounting to £008 million as a result 
of the deferred tax credit exceeding the current tax charge of £005 
million in 2005 there was a nil tax charge overall  the group level of 
deferred tax recognised increased mainly as a result of deferred tax 
arising on acquisitions in 2006 to £227 million 2005 £152 million in 
the opinion of the directors this deferred tax asset will be recoverable 
with reasonable certainty against tax on trading proﬁts in future years 
and the level of the deferred tax balance is considered reasonable 
in the light of future probability of recovery of the whole amount of 
deferred tax the recognised deferred tax asset amounts to 57 2005 
61 of the potential deferred tax asset for the group  
earnings per share
basic earnings per share amounted to 33p 2005 46p adjusted 
earnings per share before exceptional items were 58p 2005 46p  
fully diluted earnings per share in 2006 were 32p 2005 45p 
based on potentially dilutive shares outstanding amounting to 
1587334 2005 426591  
balance sheet
the group’s net assets increased substantially to £1797 million at 31 
december 2006 from £303 million at 31 december 2005 this was 
mainly as a result of an increase in equity during the year of £1494 
million including exchangeable shares on fri acquisition and the 
net proﬁts attributable to equity shareholders of £132 million      27 statpro momentum annual report  accounts 2006
noncurrent and current assets goodwill arising on acquisitions during the year amounted to £2876 million 
the principal component related to the acquisition of fri
the goodwill relating to the acquisition 
of delve which was completed in 2005 
has been adjusted by £024 million 
reﬂecting an adjustment to the estimated 
deferred consideration goodwill arising 
on all acquisitions has been reviewed 
and there have been no impairments to 
any goodwill  
total capital expenditure amounted to £030 
million in 2006 2005 £019 million included 
within noncurrent assets is deferred tax of 
£227 million 2005 £152 million deferred tax 
amounting to £049 million at 31 december 
2005 previously reported as current has been 
reclassiﬁed into noncurrent assets the level 
of current assets increased to £868 million 
2005 £561 million  increased new business 
and acquisitions resulted in an increase in 
trade debtors the largest component of 
debtors amounting to £378 million at the 
end of 2006 2005 £309 million  the level 
of cash and cash equivalents increased to 
£333 million 2005 £185 million    
current and noncurrent liabilities
the main movements in creditors have 
arisen following the increase in deferred 
income creditors and accruals relating to 
the exceptional charges and the bank debt 
arising in 2006 there is also an estimated 
£407 million deferred consideration arising 
on acquisitions which is the directors’ 
current projection of the fair value that 
will ultimately be due under the various 
transactions  however this amount is 
uncertain and the eventual payments may 
be higher or lower than this amount  the 
directors will review this estimate at each 
balance sheet date and adjustments if any 
will be made to the goodwill carrying value 
and the deferred consideration the level 
of trade and other payables excluding 
ﬁnance leases corporation tax and deferred 
income increased to £477 million 2005 
£199 million deferred income which is a 
noncash liability amounted to £867 million 
2005 £656 million   
cash ﬂow and ﬁnancing
there was another year of solid cash 
generation cash generated from operations 
before investment in internally generated 
intangible assets during 2006 amounted to 
£389 million 2005 £316 million the free 
cash ﬂow cash generated from operations 
less investment in internally generated 
intangible assets of £195 million 2005 
£142 million was 38 higher year on year 
see note 2e and this includes the impact of 
approximately £033 million of exceptional 
cash costs the net cash investment in 
acquisitions amounted to £2452 million 
during the year the bulk of which related 
to the cash consideration and associated 
costs payable for fri the net proceeds of 
share issues during the year amounted to 
£1284 million  
the acquisition of fri was part funded by a 
new £145 million facility with our existing 
bankers replacing our existing facility  £12 
million is a term loan repayable over ﬁve 
years in quarterly instalments of which 
approximately £186 million is repayable 
during 2007 the remainder is a £25 million 
working capital facility the net debt position 
at 31 december 2006 was £7 68 million 2005 
net cash £182 million this net debt was 
lower than expected due to an improved 
cash generation and a currency gain on 
the canadian dollar element of our debt 
the directors believe that the gearing up 
of the balance sheet is in the best interests 
of the shareholders
share capital and reserves 
the issued share capital amounted to £052 
million 2005 £035 million representing 
52168820 shares of 1p nominal value 2005 
35049744 and the share premium account 
has increased to £1357 million 2005 £089 
million as a result of the issue of 17119076 
shares during the year the bulk of this related 
to the two placings made in the year 325 
million shares were placed in may 2006 at 
80p per share to strengthen the balance 
sheet and 12 million shares were placed 
at 88p per share for the acquisition of fri 
as part of the acquisition of fri 1446573 
exchangeable shares in fri were created 
and retained by the sellers of fri which 
exchangeable shares are exchangeable for 
ordinary shares in statpro during november 
and december 2006 a total of 499905 
were exchanged resulting in the issue of 
an equivalent number of statpro shares 
946668 exchangeable shares in fri were 
outstanding at 31 december 2006 and 
are classiﬁed as shares to be issued on the 
balance sheet as part of the acquisition of 
alphai 1000000 shares were issued 
the equity minority interests amounting to 
a net loss of £011 million 2005 net proﬁt of 
£007 million relate to the minorities’ share 
of proﬁts less losses for the year the equity 
minority interests of £014 million 2005 £005 
million have been deducted in computing 
the total capital employed 
future growth for the business…
financial review…continued
the analysis of recurring software licence and data revenue by region currency and by product is as follows 
uk 2005 23 gbp 2005 29 performance  attribution 2005 45
rest of europe  2005 52 eur 2005 46 composites 2005 32
north america  2005 18 usd 2005 15 risk 2005 16
rest of the world  2005 7 cad 2005 2 fixed income 2005 3
others 2005 8 enterprise reporting 2005 3
compliance 2005 na
portfolio management 2005 na
data services 2005 na
other 2005 1
recurring software licence
and data revenue by region 
recurring software licence
and data revenue by currency recurring revenue by productservice
 performance  attribution includes revenues
  for max product acquired with alphai wwwstatprocom 28
dividend
the directors are recommending a ﬁnal 
dividend for 2006 of 07p per share 2005 
05p making a total dividend for 2006 of 
10p per share 2005 05p it is intended 
to pay the dividend on 30 may 2007 to 
all shareholders on the register at the 
close of business on 27 april 2007 under 
ifrs this dividend is not accrued in these 
ﬁnancial statements a dividend of the same 
amount per share will be payable by fri 
on each exchangeable share that remains 
outstanding subject to having suﬃcient 
distributable reserves in fri dividends 
paid in 2006 amounted to £030 million 
going forward we intend to maintain a 
progressive dividend policy reﬂecting the 
balance between the investment needs of 
the business and the growth in underlying 
cash and earnings per share
financial risk management 
the current and projected financial risks 
of the group are managed by the group 
finance team the primary risk relates to 
financing facilities and this is mitigated 
by ensuring very tight control of cash 
and detailed forecasting of the business 
cash flows  
the company has a committed bank facility 
amounting to £145 million from a prime 
bank on competitive terms £12 million of 
the facility is a term loan and was drawn 
down in october 2006 to part ﬁnance the 
fri acquisition the remaining £25 million 
facility is primarily available for working 
capital purposes and was undrawn at 31 
december 2006 the ﬁnancial risk proﬁle 
of the business has changed as the balance 
sheet is now geared but the directors believe 
that this ﬁnancial structure is in the best 
interests of the shareholders given the 
strong recurring revenue and operating 
cash inﬂow during the last four years 
foreign exchange risk management
the group is exposed to exchange rate 
ﬂuctuations given that the majority of its 
revenue is nonsterling based the group 
also has a signiﬁcant proportion of its costs 
in the same currencies as its revenues and 
therefore there is a reasonable degree of 
natural reduction in overall currency risk the 
group’s debt is predominantly denominated 
in canadian dollars in order to hedge the 
investment in the canadian operations fri 
all material 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 as the group continues to grow 
and generates proﬁts overseas in foreign 
currencies this exchange rate exposure 
will increase and the acquisitions made 
in 2006 in particular of fri corporation 
has increased the exposure of the group’s 
proﬁts to movements in exchange rates in 
particular to the us dollar  
interest rate risk management
the group’s interest rate risk has increased 
as a result of the £12 million debt arising in 
the year an increase in interest rates would 
increase the interest payable on the group’s 
banking facility  the company purchased 
an outofthemoney interest rate cap on 
a proportion of the debt to protect the 
group from a signiﬁcant increase in interest 
rates at a commercial cost the interest rate 
risk would also be partly mitigated by an 
increase in interest income from surplus 
cash and deposits where the policy is to 
seek to maximise interest return without 
exposure to inappropriate liquidity or 
counterparty risk 
key performance
indicators for the business
amongst the key performance indicators 
that are monitored both on an actual historic 
basis against budget and a forecast basis 
by the board as part of the regular monthly 
management reporting are
• level of recurring revenue and 
weighted average contract duration
• new sales of licences data 
and consulting
• notices of contract cancellations
• revenue and costs per employee
• net operating margin 
• operating cash ﬂow and 
working capital
principal risks and uncertainties
the directors have evaluated the principal 
business risks and uncertainties aﬀecting 
the group which are documented in a 
group risk manual the following is a 
summary of the principal business risks 
and uncertainties although it is not intended 
to be an exhaustive list
• loss of key customer contracts
• insuﬃcient level of new 
business contracted or delays 
in contract completion
• competitor products 
• inability to recruit or retain high 
calibre management and employees
• loss of good reputation 
• development failure or 
undetected errors in software
• technological change
• insuﬃcient working capital 
or other ﬁnancing 
for each category of risk the directors have 
identiﬁed means by which the risk can be 
managed or reduced in a cost eﬀective way 
whilst accepting that some risks cannot be 
completely eliminated
andrew fabian finance director
30 march 2007
post balance sheet events the company paid out £024 million of deferred consideration in early january 2007 
being the ﬁrst instalment of the deferred consideration for delve completed in july 2005 during march 2007 the 
company paid approximately £120 million consideration for the 49 of statpro italia that is not currently owned 
by the company of which approximately £012 million was reinvested by the recipients in statpro shares issued 
at 975 pence per share as announced on 21 december 2006 and the balance in cash  
progressive dividend…
financial review…continued “statpro has maintained its record of growing revenue each year since 
its ﬂotation in 2000 and the growth rate has picked up in 2006 to 35” wwwstatprocom 30
carl bacon cipm 
1 2  3
 
nonexecutive chairman
 
carl 44 was appointed chairman in 2000 
previously he worked as director of risk 
control and performance at fc investment 
management limited and prior to that 
was vice president – head of performance 
at j p morgan investment management 
inc he is a founder member of both the 
investment performance council and 
gips® an executive committee member 
of investmentperformancecom and an 
associate tutor for 7city learning carl is 
exchair of both the ipc interpretations and 
ipc veriﬁcation subcommittees and is a 
member of the advisory board of the journal 
of performance measurement carl is also the 
author of practical portfolio performance 
measurement  attribution´
justin wheatley
chief executive
justin 42 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 portfolio analysis 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 management of the group 
andrew fabian fca fct
finance director
andrew 45 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 institutions 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 is responsible for the 
ﬁnance and operations functions at statpro 
including hr and it
charles fairbairn aca 
1 2  3
nonexecutive director
charles 44 has many years’ experience 
in the media sector and in growing 
entrepreneurial companies previously 
he worked for pearson plc both as ﬁnance 
director of pearson new entertainment 
limited a startup division with interests 
in computer publishing which was sold 
to apax partners in 1998 for £142 million 
and as group chief accountant  charles is 
currently also a nonexecutive director of 
aim listed company research now plc and 
chairman of brightview group plc charles 
chairs the group’s audit committee and 
chaired the remuneration committee up 
to 1 january 2007
mark adorian 
1 2  3
nonexecutive director
mark 44 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 
with effect from 1 january 2007 mark 
now chairs the group’s nominations and 
remuneration committees
1 member of the audit committee
2  member of the remuneration committee
3  member of the nominations committee
strength to strength…
board of directors group executive board
other key executives
frédéric bardoux product strategy director
didier cabon director of product architecture
michael chan senior vice president development north america
simon cheung director client services north america
robert chung director south africa
dario cintioli director global head of risk
professor andrew colin fixed income research director
graeme condie uk sales director
karen dehlavi group development director
elke fidler internal projects consultant
bruce graham managing director australia
neil hampton director south africa
alison hughes senior vice president client services north america
robin kemper director south africa
laurent laclaverie director client services europe
sylvie leclerc vice president sales north america
andrew peddar managing director south africa
daryl peddar director south africa
carsten steimer managing director germany
eon williams cfo north america
justin wheatley
chief executive
andrew fabian
finance director
mark bramley
ceo north america
simon johns
chief operating oﬃcer
michel lempicki
ceo europe
domenic santini
executive vice president
and cto north america
robert strike
executive vice president
development north america
“we enter 2007 as we did in 2006 with 
considerable confidence we have a 
large pipeline of prospects a growing 
number of clients and a wider range of 
products and data…”
justin wheatley chief executive luxembourg
london
new york
san francisco
paris
frankfurt
milan
cape town
sydney
toronto
montreal
map and client references
statpro has eleven ofﬁces
supporting clients in 25 countries…
“having implemented the system all 
our project objectives have been 
met we are 200 ahead of where 
we were a year ago”
guardian group of funds
canada
“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”
rand merchant bank
south africa
“both during the implementation 
phase as well as in the ongoing client 
support whether it is of a technical or 
performance related nature we can 
only conﬁrm the positive experience 
we’ve had with statpro” 
amb generali asset managers 
germany  ﬁnancial statements     35 statpro momentum annual report  accounts 2006
directors’ report
for the year ended 31 december 2006
the directors present their annual report and the audited ﬁnancial statements for the year ended 31 december 2006
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 following the acquisition of fri corporation in october 2006 the group 
now provides data solutions to clients
review of business and future developments
the directors are pleased with the performance of the group which has achieved further growth in revenue an increase in proﬁt before tax and 
exceptional items and has generated increased operating cash inﬂow during 2006 a review of the business and likely future developments is 
contained in the chairman’s statement on page 7 and chief executive’s review on pages 20 to 23
business risks
the principal business risks and uncertainties are outlined in the financial review on page 28 
financial risk management
the principal ﬁnancial risks that the group is exposed to and the approach to risk management is described in the financial review on page 28
research and development 
the group continues to invest in developing improved software products development expenditure incurred during the year was £263 million 
2005 £197 million under ifrs development costs are capitalised where recognition criteria are met and written oﬀ over the useful life currently 
estimated by the directors at three years the amount capitalised in the year was £194 million 2005 £174 million and the amount amortised was 
£157 million 2005 £115 million the amount of amortisation relating to other intangibles customer contracts was £010 million 2005 nil
results dividends and transfers to reserves
the group’s proﬁt attributable to equity shareholders for the ﬁnancial year was £132 million 2005 £157 million a ﬁnal dividend of 07p per ordinary 
share 2005 05p has been recommended by the directors taking the total dividend for the year to 10p 2005 05p if approved by the passing of 
a resolution at the 2007 annual general meeting it is intended to pay the dividend on 30 may 2007 to all shareholders on the register at close of 
business on 27 april 2007 the proﬁt for the year has been transferred to reserves
shares issued in year
during 2006 the company issued 17119076 shares 2005 1850500 as detailed in note 19
post balance sheet events
post balance sheet events are described in the financial review on page 28
donations
the group made charitable donations of £5000 2005 nil during the year no political donations 2005 nil were made 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 resigned 17 january 2007
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 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 and share options are detailed on page 44
 
directors’ interests in signiﬁcant contracts
directors’ interests in signiﬁcant contracts are described in note 22 wwwstatprocom 36
directors’ report…continued
for the year ended 31 december 2006
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 2006 for the group was 43 days 2005 69 and for the parent company was 21 days 2005 32
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 and the cash ﬂows 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 have ensured that they have individually given all relevant information to the auditors and so far as each director is aware there is no 
relevant audit information of which the company’s auditors are unaware and each director has taken all the steps that he ought to have taken as a director 
in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information
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
the company has been notiﬁed of the following major shareholdings of over 3 in the company’s issued share capital as at 7 march 2007
in addition to the above holdings jmbt wheatley and dmda wheatley together with gfmt wheatley hold 255000 ordinary shares representing 
049 of the ordinary share capital in a family trust each of them being a trustee and potential beneﬁciary of the trust    
ordinary shares beneficially owned 
number of
shares
 of share
capital 
jmbt wheatley 6476772 1234
axa framlington 5203133 991
herald investment trust 4526228 862
merrill lynch  co inc 4259764 812
banque paribas suisse  pt borel 1830000 349
dmda wheatley 1827487 348     37 statpro momentum annual report  accounts 2006
employment policies
the group acknowledges the vital role that all employees play in its success through their skills initiative and commitment all operations are encouraged 
to provide the proper resources to maximise this potential through eﬃcient systems of recruitment communication training and development it 
is the group’s policy to give full and fair consideration to the employment and career development of disabled persons commensurate with their 
aptitudes and abilities the group’s policy in respect of staﬀ who become disabled whilst employed is to 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 london oﬃce of statpro the group’s head oﬃce and base of uk operations retains its investors in people “iip” award originally 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
legal form
the company is a public limited company incorporated and domiciled in england and wales 
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
30 march 2007 wwwstatprocom 38
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 2003 frc combined code during 
the year except as noted below
the workings of the board and its committees
the board
the board currently comprises the nonexecutive chairman the chief executive the finance director and three nonexecutive directors until 
dominic wheatley’s resignation on 17 january 2007 and is responsible to shareholders for the proper management of the group whilst the chairman 
has in the past had an executive role performs consulting services for the group and is a shareholder and option holder the board considers that 
he is independent the board considers charles fairbairn to be the senior independent director whilst charles was employed in the past by the 
company on a temporary parttime basis the directors consider him to be independent whilst mark adorian is a shareholder and option holder 
the board considers that he is also an independent director dominic wheatley a nonexecutive director until his resignation on 17 january 2007 
is the brother of justin wheatley chief executive but in all matters concerning the group acted independently directors’ biographies appear on 
page 30 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 
all directors have access to the company secretary who is responsible for all company secretarial matters and compliance with relevant statutory 
obligations all executive directors receive adequate training to enable them to comply with their duties as a director
to enable the board to discharge its duties all directors have full and timely access to all relevant information the board meets at least quarterly and 
has adopted a formal schedule of matters speciﬁcally reserved for decision by it thus ensuring that it exercises control over appropriate strategic 
ﬁnancial operational and compliance issues at 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 board has a process for evaluating the performance of each director the performance of the executive directors is reviewed by the nonexecutive 
directors the performance of the chairman and each of the nonexecutive directors is reviewed on an individual basis by the other directors the 
overall eﬀectiveness of the board and its subcommittees is reviewed by the board as a whole through completion of a formal questionnaire
the following committees have been established to deal with speciﬁc aspects of the group’s aﬀairs
group executive board
following the acquisition of fri which signiﬁcantly increased the north american operations of the group the executive boards and subcommittees were 
restructured the group executive board was established as an executive committee which comprises the executive directors together with other senior 
executives of the group who meet at least six times per annum to discuss strategic and operational matters regional executive boards were established 
to deal with executive decisions within the group’s regional operations within clearly deﬁned terms of reference established by the board  
audit committee
the audit committee is chaired by charles fairbairn and also comprises the chairman carl bacon and mark adorian and meets at least twice 
annually 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 the audit committee regularly reviews the level of nonaudit work being performed by the auditors to ensure that they remain 
independent and the audit committee is satisﬁed that the current level of nonaudit work being performed by the auditors is appropriate     39 statpro momentum annual report  accounts 2006
remuneration and nominations 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 incentive schemes the remuneration committee was chaired 
by charles fairbairn throughout 2006 and the other members are mark adorian and dominic wheatley with eﬀect from 1 april 2006 carl bacon 
was appointed to the remuneration committee and with eﬀect from 1 january 2007 mark adorian was appointed chairman of the remuneration 
committee section b21 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 was considered by 
the board to be independent 
the nominations committee was chaired by dominic wheatley throughout 2006 and comprises carl bacon charles fairbairn and mark adorian 
with eﬀect from 1 january 2007 mark adorian was appointed chairman of the nominations committee the nominations 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 41 to 44 
the number of full scheduled board meetings and main subcommittee meetings attended by each director during the year were as follows
scheduled
board
meetings
audit
committee 
meetings
remuneration 
committee 
meetings
cr bacon 7 3 1
jmbt wheatley 7
am fabian 7
dmda wheatley 4 2
mc fairbairn 7 3 2
mc adorian 7 3 2
there were no meetings of the nominations committee during 2006
the group executive board has three main subcommittees as follows
european and north american executive boards
operational decisions on implementing the group’s strategy including sales strategy and expenditure and recruitment plans are delegated to senior 
executives in the groups’ two main regions within clearly deﬁned terms of reference and overall budgets established by the board  
product strategy committee
the group’s global product and development strategy is reviewed and controlled at a series of product strategy committee meetings chaired by 
frédéric bardoux 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 
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 
during the year the board has formally reviewed and reported 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 which the directors consider 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 wwwstatprocom 40
corporate governance…continued
each senior executive 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 group executive 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 
a statement of the directors’ responsibilities in respect of the ﬁnancial statements is set out on page 36 and a statement on going concern is below 
risk awareness is further embedded within the business at a series of review meetings during the year extending to group executive board and 
regional executive 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
30 march 2007     41 statpro momentum annual report  accounts 2006
remuneration report
the group’s remuneration committee was chaired throughout 2006 by charles fairbairn and the other members are dominic wheatley until his 
resignation on 17 january 2007 mark adorian and with eﬀect from 1 april 2006 carl bacon with eﬀect from 1 january 2007 mark adorian was 
appointed chairman of the remuneration committee the remuneration of all executive directors and other senior executives is recommended 
to the board by the committee the remuneration of the nonexecutive 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 in 2003 the company is continuing to make disclosures of directors’ remuneration as detailed below on a voluntary basis 
remuneration policy
the group’s policy is to attract retain and motivate high calibre executives by rewarding them with remuneration packages which reflect both 
individual performance and the results of the operations under their control packages consist of basic salary benefits share options performance
related bonuses pensions and other benefits with a significant proportion based on performance and dependent upon achievement of demanding 
targets consideration is given to pay and employment policies elsewhere in the group details of the remuneration package of each director 
are set out on page 43
the group has needed to have a remuneration policy to steer the group towards the objectives of all its shareholders the current focus is on the 
achievement of group revenue growth and 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 with eﬀect from 1 january 2007 the nonexecutive fees for charles fairbairn and mark adorian 
were increased by £5000 per annum all other directors’ salaries and fees remain unchanged for 2007  
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 options outstanding under 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 include performance criteria as determined by the remuneration committee from 
time to time primarily being that exercise is dependent on achieving a minimum share price during 2006 justin wheatley was awarded 1000000 
options as detailed below no other awards of options were made to executive directors  in 2006 the committee introduced a new medium term 
performance related bonus scheme
annual 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  
in 2006 the targets for performancerelated bonuses for all main board executive directors related to the group exceeding a demanding target for 
revenue growth the committee continues to review bonus plans the committee may also award individual discretionary bonuses in 2006 an 
additional discretionary award of £36000 2005 nil was made to justin wheatley and an additional discretionary award of £26400 2005 £4000 
was made to andrew fabian due to the successful completion of the acquisition of fri bonuses do not form part of pensionable earnings 
for 2007 bonuses will also be payable based upon the level of growth in revenue subject to satisfactory performance for group proﬁts  it is anticipated 
that basic salary will be the substantial element of each package unless revenue and proﬁts are substantially higher than the target
three year performancerelated bonus scheme
in 2006 following a review of the impact of ifrs 2 share based payments the committee has decided to introduce a three year bonus scheme in addition 
to the current annual scheme for executive directors and other senior executives for the executive directors this will be a cash plan with at least half 
of each year’s annual bonus being deferred and the company increasing the amount by a further 50 such an amount will be paid to the executive in 
three years time providing the executive remains employed in the group in 2007 deferral will be voluntary but in 2008 it will be mandatory
in addition there will be a performance incentive element linked to the growth in earnings per share of the company over the three year deferral period 
should earnings have risen by compound rpi plus 5 per annum over the three year period approximately 25 at current rpi the executive will 
receive an amount that increases the payment up to twice the bonus initially deferred should earnings have risen by compound rpi plus 12 per 
annum over the three year period approximately 50 at current rpi the executive will receive an amount that increases the payment up to three 
times the bonus initially deferred a straight line interpolation will be applied between these levels wwwstatprocom 42
the company may at its option at the end of the period issue the executive shares in lieu of cash for executive directors the amount deferred will 
be limited to 50 of their annual salary the committee considers that three year schemes with performance criteria in common with this executive 
plc scheme can be applied relatively straight forwardly across senior executives in all territories across the increasingly international statpro group 
pensions and other beneﬁts
the company also operates a deﬁned contribution pension scheme for executive directors other beneﬁts include allowances life assurance 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
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 page 30
performance graph
  
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 ﬁveyear period from 31 december 2001 to 31 december 
2006 the total shareholder return for statpro was 1442  over the same period the ftse™ aim total shareholder return was 225  
remuneration report…continued
ftse aim 
statpro 
31 december 2001  100     43 statpro momentum annual report  accounts 2006
directors’ remuneration 
this part of the remuneration report is auditable
2006
salaryfees 
£’000
performance
related 
bonus
£’000 
discretionary 
bonus 
£’000
beneﬁts 
£’000
total 
excluding 
pensions
£’000 
pensions
£’000 
total
2006 
£’000
cr bacon 36   1 37  37
jmbt wheatley 180 75 36 23 314 12 326
am fabian 132 30 26 7 195 13 208
dmda wheatley 25    25  25
mc fairbairn 30    30  30
mc adorian 25    25  25
428 105 62 31 626 25 651
2005
salaryfees 
£’000
performance
related 
bonus
£’000
discretionary 
bonus 
£’000
beneﬁts 
£’000
total 
excluding 
pensions
£’000 
pensions
£’000
total
2005 
£’000
cr bacon 48   3 51 2 53
jmbt wheatley 180 48  23 251 12 263
am fabian 132 20 4 7 163 13 176
dmda wheatley 25    25  25
mc fairbairn 30    30  30
mc adorian 25    25  25
440 68 4 33 545 27 572
beneﬁts in kind for cr bacon jmbt wheatley and am fabian relate to travel and car allowances private healthcare and life assurance cr bacon 
became nonexecutive with eﬀect from 1 march 2005 
the remuneration of dmda wheatley consists wholly of fees paid to ideal partners of which he is a partner for the period from january to june 2005 
the remuneration of mc fairbairn consisted of £11000 fees paid to crunchwell services limited of which he is a director and £4000 paid direct to 
mc fairbairn from 1 july 2005 onwards the fees were paid direct to mc fairbairn 
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 
£’000
contributions 
2006
£’000
contributions 
2005 
£’000
cr bacon    2
jmbt wheatley 67 180 12 12
am fabian 10 132 13 13
with eﬀect from 1 january 2007 the contribution rate for jmbt wheatley was increased to 10 
cr bacon became nonexecutive with eﬀect from 1 march 2005 and the pension beneﬁts he received as an executive director ceased from that date  wwwstatprocom 44
remuneration report…continued
directors’ interests 
interests in shares
as at 
31 december 
2006 
number 
as at 
31 december 
2005 
number 
cr bacon 317727 295000
jmbt wheatley 6476772 6437000
am fabian 21363 10000
dmda wheatley 1827487 2204760
mc fairbairn 299590 265500
mc adorian 1533545 1340000
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 2005 255000 ordinary shares included in the total for jmbt wheatley are 211772 
2005 172000 ordinary shares are held in a retirement beneﬁt scheme in which jmbt wheatley has a beneﬁcial interest
interests in share options 
this part of the remuneration report is auditable
as at 
31 december 
2005
number 
granted
in year 
number 
exercised
in year 
number
lapsed
in year 
number 
as at 
31 december 
2006
number 
exercise 
price
pence
exercise
period
 
cr bacon 425000    425000 60 20062010
         
jmbt wheatley  1000000   1000000 975 20082013
am fabian 77000    77000 60 20062013
573000    573000 60 20062010
24816  24816   68 20062007
674816  24816  650000
dmda wheatley       
mc fairbairn 62500    62500 80 20032010
mc adorian 83333    83333 60 20052012
saye scheme options 
performance criteria are attached to these options with respect to the share price on exercise
gains made by directors on share options 
options over 24816 shares under a ﬁve year saye plan were exercised by am fabian in december 2006 and the gain arising was £7000 2005 nil 
no other director exercised any share options during the year ended 31 december 2006 
share price 
the highest and lowest midmarket prices of the company’s ordinary shares during the year were 1065p and 61p respectively and the midmarket 
price on 31 december 2006 was 104p at the date of this report the midmarket share price was 86p
mc adorian
chairman of remuneration committee 
30 march 2007     45 statpro momentum annual report  accounts 2006
we have audited the group and parent company ﬁnancial statements the “ﬁnancial statements” of statpro group plc for the year ended 31 december 
2006 which comprise the group income statement the group and parent company balance sheets the group and parent company cash flow statements 
the group statement of recognised income and expense and the related notes these ﬁnancial statements have been prepared under the accounting 
policies set out therein we have also audited the information in the directors’ remuneration report that is described as having been audited 
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report the directors’ remuneration report and the ﬁnancial statements in accordance with applicable 
law and international financial reporting standards ifrs as adopted by the european union are set out in the statement of directors’ responsibilities 
our responsibility is to audit the ﬁnancial statements and the part of the directors’ remuneration report to be audited in accordance with relevant legal 
and regulatory requirements and international standards on auditing uk  ireland 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 whether the ﬁnancial statements and the part of the 
directors’ remuneration report to be audited have been properly prepared in accordance with the companies act 1985 and as regards the group 
ﬁnancial statements article 4 of the ias regulation we also report to you whether in our opinion the information given in the directors’ report is 
consistent with the ﬁnancial statements 
in addition we report to you if in our opinion 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 other transactions is not disclosed
we review whether the corporate governance statement reﬂects the company’s compliance with the nine provisions of the combined code 2003 
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 form an opinion on the eﬀectiveness of the group’s corporate governance 
procedures or its risk and control procedures 
we read other information contained in the annual report and consider whether it is consistent with the audited ﬁnancial statements the other information 
comprises only the directors’ report the unaudited part of the directors’ remuneration report the chairman’s statement the chief executive’s review the 
financial review and the corporate governance statement we consider the implications for our report if we become aware of any apparent misstatements 
or material inconsistencies with the ﬁnancial statements our responsibilities do not extend to any other information
basis of audit opinion 
we conducted our audit in accordance with international standards on auditing uk and ireland 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 and the part of the directors’ 
remuneration report to be audited 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 group’s and 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 and the part of the directors’ remuneration report to be audited 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 and the part of the directors’ remuneration report to be audited 
opinion 
in our opinion 
 • the group ﬁnancial statements give a true and fair view in accordance with ifrs as adopted by the european union of 
  the state of the group’s aﬀairs as at 31 december 2006 and of its proﬁt and cash ﬂows for the year then ended
 • the parent company ﬁnancial statements give a true and fair view in accordance with ifrs as adopted by 
  the european union as applied in accordance with the provisions of the companies act 1985 of the state 
  of the parent company’s aﬀairs as at 31 december 2006 and cash ﬂows for the year then ended
 • the ﬁnancial statements and the part of the directors’ remuneration report to be audited have been properly prepared in
  accordance with the companies act 1985 and as regards the group ﬁnancial statements article 4 of the ias regulation and
 • the information given in the directors’ report is consistent with the ﬁnancial statements
pricewaterhousecoopers llp 
chartered accountants and registered auditors
london 
30 march 2007
independent auditors’ report
to the members of statpro group plc wwwstatprocom 46
group income statement
for the year ended 31 december 2006
notes 2006 2006 2006 2005
£’000 £’000 £’000 £’000
continuing 
operations acquisitions total
group revenue 2 12737 1867 14604 10786
operating expenses before amortisation of intangibles and 
exceptional items
8780 1508 10288 7969
amortisation of intangibles 10 1511 158 1669 1154
exceptional items 3 674 747 1421 
operating expenses 3 10965 2413 13378 9123
operating proﬁtloss 1772 546 1226 1663
interest receivable 6 106 18
interest payable 6 195 42
proﬁt before taxation 2 1137 1639
taxation 7 77 
proﬁt for the year 1214 1639
lossproﬁt attributable to minority interests 8 110 69
proﬁt attributable to equity shareholders 1324 1570
1214 1639
earnings per share from continuing operations – basic 20 33p 46p
                                                                                 – diluted 20 32p 45p
 2006
£’000
2005
£’000
proﬁt after tax 1214 1639
net exchange diﬀerences oﬀset in reserves net of tax 970 81
total recognised income for the year 244 1558
attributable to
minority interests 91 78
equity shareholders 335 1480
group statement of recognised income and expense      47 statpro momentum annual report  accounts 2006
balance sheets
as at 31 december 2006
notes  group
2006
£’000
group
2005
£’000
restated
company 
2006
£’000
company
2005
£’000
restated
assets 
noncurrent assets 
goodwill 10 29869 3053  
intangible assets 10 4550 2308 1674 1475
property plant and equipment 11 846 466  
other receivables 13 316 174 201 153
deferred tax assets 1316 2269 1522  279
investments 12   31963 2866
37850 7523 33838 4773
current assets 
trade and other receivables 13 5352 3759 113 23
cash and cash equivalents 25 3327 1853 1935 816
8679 5612 2048 839
liabilities 
current liabilities
financial liabilities  borrowings 14 1857 35 1822 
trade and other payables 14 4767 1987 2890 302
current tax liabilities 14 53 26  
deferred income 14 8562 6487  
provisions – contingent consideration 14 1484  1484 
14 16723 8535 6196 302
net current liabilitiesassets 8044 2923 4148 537
noncurrent liabilities 
financial liabilities – borrowings 15 9145  9145 
deferred income 15 109 75  
provisions – contingent consideration 15 2581 1500 2581 1500
15 11835 1575 11726 1500
net assets 2 17971 3025 17964 3810
shareholders’ equity 
ordinary shares 19 21 522 350 522 350
share premium 21 13570 891 13570 891
shares to be issued 21 896  63 
other reserves 21 116 90 1197 2
retained earnings 21 3008 1924 2612 2567
total shareholders’ equity 21 18112 3075 17964 3810
minority interest in equity 8 141 50  
total equity 21 17971 3025 17964 3810
the consolidated balance sheet for 31 december 2005 has been restated see note 1
the ﬁnancial statements on pages 46 to 75 were approved by the board of directors on 30 march 2007 and were signed on its behalf by 
directors
jmbt wheatley    am fabian wwwstatprocom 48
cash flow statements
for the year ended 31 december 2006
notes group
2006
£’000
group
2005
£’000
company
2006
£’000
company
2005
£’000
cash ﬂows from operating activities 
cash generated from operations 24 3889 3155 3920 2425
interest received 106 18 84 12
interest paid 12 13 12 1
issue costs in respect of bank loan  5  5
tax paid 105 31  
net cash from operating activities 3878 3124 3992 2431
cash ﬂows from investing activities 
acquisition ofincreased investment in subsidiaries net of 
cash acquired 27 24517 858 26231 880
investment in intangible assets – development costs 3 1939 1738 1175 1119
proceeds from sale of property plant and equipment  22  
purchase of property plant and equipment 11 302 188  
net cash used in investing activities 26758 2762 27406 1999
cash ﬂows from ﬁnancing activities 
repayment of bank loan  1200  1200
net proceeds from bank loan 25 11788  11788 
proceeds from issue of ordinary shares 19 12836 551 12836 551
capital element of ﬁnance lease payments  2  
dividends paid to equity shareholders 9 298  298 
net cash fromused in ﬁnancing activities 24326 651 24326 649
eﬀects of exchange rate changes 28 7 207 8
net increasedecrease in cash and cash equivalents 1474 296 1119 209
cash and cash equivalents at start of year 1853 2149 816 1025
cash and cash equivalents at end of year 25 3327 1853 1935 816     49 statpro momentum annual report  accounts 2006
notes to the financial statements
for the year ended 31 december 2006
1 principal accounting policies 
the principal accounting policies adopted in the preparation of these ﬁnancial statements are set out below these policies have been consistently 
applied to all the years presented unless otherwise stated
basis of preparation 
these ﬁnancial statements have been prepared in accordance with international financial reporting standards and ifric interpretations endorsed 
by the european union eu and with those parts of the companies act 1985 applicable to companies reporting under ifrs
the ﬁnancial statements have been prepared under the historical cost convention as modiﬁed by the revaluation of land and buildings available for sale 
investments ﬁnancial assets and liabilities held for trading a summary of the more important group accounting policies is set out below together with 
an explanation of where changes have been made to previous policies on the adoption of new accounting standards in the year
the preparation of ﬁnancial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions 
that aﬀect the reported amounts of assets and liabilities at the date of the ﬁnancial statements and the reported amounts of revenues and expenses 
during the reporting period although these estimates are based on management’s best knowledge of the amount event or actions actual results 
ultimately may diﬀer from those estimates
critical accounting estimates and judgments
the preparation of ﬁnancial statements under ifrs requires management to make estimates and assumptions concerning the future  the resulting 
accounting estimates will by deﬁnition therefore not necessarily equate to the actual outcome estimates are made by the directors based on 
experience and estimates believed to be reasonable expectations of future outcomes  critical accounting estimates and judgments are made in 
the following areas
 • goodwill
 • intangible assets
 • deferred consideration
 • deferred tax recognised
the accounting policies in respect of these items are set out below and further details can be found in notes 10 16 and 27
new accounting standards and interpretations 
new accounting standards and interpretations have been issued during the year the group’s approach to these is as follows
standards amendments and interpretations eﬀective in 2006 but not relevant 
the following standards amendments and interpretations are mandatory for accounting periods beginning on or after january 1 2006 but are not 
relevant to the group’s operations 
 • ias 39 amendment cash ﬂow hedge accounting of forecast intragroup transactions 
 • ias 39 amendment the fair value option 
 • ias 39 and ifrs 4 amendment financial guarantee contracts 
 • ifrs 4 financial guarantee contracts 
 • ifrs 6 exploration for and evaluation of mineral resources 
 • ifric 2 member share in cooperative entities and similar instruments 
 • ifric 5 rights to interests arising from decommissioning restoration and environmental rehabilitation funds   
interpretations to existing standards that are not yet eﬀective and have not been early adopted by the group     
the following interpretations to existing standards have been published that are mandatory for the group’s future accounting but which the group 
has not early adopted   
 • ifric 10 interim financial reporting and impairment eﬀective for accounting periods beginning on or after may 1 2006 
 • ifrs 7 financial instruments disclosure eﬀective for accounting periods beginning on or after january 1 2007 
interpretations to existing standards that are not yet eﬀective and not relevant for the group’s operations 
the following interpretations to existing standards have been published that are mandatory for the group’s accounting periods beginning on or 
after may 1 2006 or later periods but are not relevant for the group’s operations 
 • ifric 7 applying the restatement approach under ias 29 financial reporting in hyperinﬂationary economies 
 • ifric 8 scope of ifrs 2 
 • ifric 9 reassessment of embedded derivatives  wwwstatprocom 50
notes to the financial statements…continued
for the year ended 31 december 2006
turnover 
turnover represents the invoiced value of goods and services excluding value added tax as follows 
a  licence revenue and related software support contracts 
  licence revenue and software support contract income relating to obligations under the contract is recognised in the income statement 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  data fees
  data fee income is recognised in the income statement over the period of the contract on a monthly basis from the start of the month in
  which the contract commences
c  professional services revenue 
  income relating to consultancy projects is recognised in the income statement as a right to consideration is established as a result of performance
d  royalty revenue 
  income is recognised in the income statement as rights to consideration accrue
segmental reporting
the directors consider the business as operating as one operation managed under a regional reporting structure and therefore the segmental 
analysis is by region 
research and development 
expenditure on research and development comprises salaries and related costs of personnel involved in software programming and 
development activities development costs are capitalised where the appropriate recognition criteria are met as a result there is an intangible 
asset relating to capitalised development costs both internally developed and acquired recognised on the group’s balance sheet where 
the board expects the benefits to be recovered through incremental revenue from future sales development expenditure is amortised over 
a three year period as in the opinion of the directors this is estimated to be the useful economic life the carrying values which are analysed 
by product are considered carefully by the board and if there has been any impairment in any development costs then the carrying value is 
written down accordingly
intangible assets – customer contracts
customer contracts acquired with acquisitions are valued based on the net contribution expected to be realised over the estimated life of the 
contracts and discounted at an appropriate discount rate taking into account any tax eﬀects  the intangible assets created are then written oﬀ over 
the same useful life which range from 3 to 7 years depending on the type of contract
 
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 
business combinations
the results and net assets of subsidiary undertakings acquired are included in the group income statement and balance sheet using the acquisition 
method of accounting from the eﬀective date of acquisition the date control is gained over the subsidiary the results and net assets of subsidiary 
undertakings disposed of are included in the group income statement and balance sheet using the acquisition method of accounting to the eﬀective 
date of disposal income and expenditure relating to transactions between group undertakings are eliminated on consolidation 
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          33 per annum 
investments 
investments in subsidiary undertakings are stated at cost including estimated deferred contingent consideration less any provisions for impairment     51 statpro momentum annual report  accounts 2006
deferred taxation 
deferred taxation is recognised in respect of all temporary 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 temporary diﬀerences are diﬀerences 
between the group’s taxable proﬁts and its results as stated in the ﬁnancial statements deferred taxation assets are only recognised when their 
recoverability 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 temporary diﬀerences are expected to reverse based on tax rates and laws that have been enacted or substantially enacted at 
the balance sheet date recognised deferred tax is measured on a nondiscounted basis 
leased assets 
rentals applicable to operating leases are charged to the income statement on a straight line basis over the term of the lease 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 income statement over the period of the lease in proportion to 
the balance of the outstanding obligations 
goodwill 
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  goodwill is not amortised but is subject to annual impairment reviews goodwill arising on acquisitions 
prior to 1 january 2004 has been “frozen” with eﬀect from 1 january 2004 and is no longer amortised but subject to annual impairment reviews 
financial instruments 
in accordance with ias 32 – “financial instruments disclosure and presentation” and ias 39 – “financial instruments recognition and measurement” the group 
has taken advantage of the exemption available for shortterm debtors and creditors all other ﬁnancial assets and liabilities are recorded at historical cost 
cash and cash equivalents
the group considers all bank deposits and highly liquid investments of less than three months’ maturity to be cash equivalents
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 income statement
share based payments 
in common with many highgrowth technology enterprises statpro has issued a number of share options to executives and employees under ifrs 
the options must be valued based on a market or estimated market value at inception and this cost is spread over the option vesting period typically 
three years as there is no readily available market price for the options the board has used an independent model to evaluate the fair value of the 
options there are a number of assumptions which aﬀect the value and the board has considered carefully these assumptions in order to derive an 
appropriate charge for the cost of options see note 19 there is no cash impact to the group as a result of this accounting standard
dividend distribution
dividend distribution to the company’s shareholders is recognised as a liability in the group’s ﬁnancial statements in the period in which the dividend 
becomes a liability of the company  in the case of an interim dividend this is on the payment date for ﬁnal dividends this arises on the passing of 
the relevant resolution at the annual general meeting of the shareholders
exceptional items
amounts are disclosed as exceptional items when in the opinion of the directors the size or nature of the amounts are such that separate disclosure 
is considered necessary 
foreign currencies 
transactions in foreign currencies are recorded at the rate ruling at the date of the transaction monetary assets and liabilities denominated in foreign 
currencies are retranslated at the rate of exchange ruling at the balance sheet date all diﬀerences are taken to the income statement the 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 income statement 
related party transactions 
the group has taken advantage of the exemption under ias 24 – “related party disclosures” not to disclose transactions between group 
companies  wwwstatprocom 52
notes to the financial statements…continued
for the year ended 31 december 2006
restatement of 2005 group and company balance sheets
the balance sheets for 31 december 2005 have been restated as follows deferred tax amounting to £049 million for the group and £009 million for 
the company previously classiﬁed as current has been reclassiﬁed as noncurrent the translation reserve loss amounting to £009 million previously 
reported as part of retained earnings together with the warrant reserve amounting to £2000 have been included in other reserves 
2  segmental information
all turnover proﬁtloss before taxation and net assetsliabilities are attributable to the principal activity of the group being the development 
marketing and distribution of software data solutions and related professional services to the global asset management industry the directors consider 
the business as operating as one operation managed under a regional reporting structure and therefore the segmental analysis is by region 
a turnover by destination 2006
£’000
continuing 
operations 
2006
£’000
acquisitions
2006
£’000
total 
2005
£’000
total 
united kingdom 2784  2784 2478
continental europe 6668 168 6836 5559
north america 2193 1357 3550 1778
rest of the world 1092 342 1434 971
total 12737 1867 14604 10786
b turnover by origin 2006
£’000
continuing 
operations 
2006
£’000
acquisitions
2006
£’000
total 
2005
£’000
total 
united kingdom 4733  4733 3895
continental europe 5893  5893 5054
north america 2023 1267 3290 1735
rest of the world 88 600 688 102
total 12737 1867 14604 10786
c proﬁtloss before tax and net assetsliabilities are analysed as follows
                                                                               proﬁtloss before tax net assetsliabilities
2006
£’000
2005
£’000
2006
£’000
2005
£’000
united kingdom 1580 1490 5817 6380
continental europe 398 462 1149 72
north america 628 351 6962 3276
rest of the world 213 38 4043 151
1137 1639 17971 3025
d proﬁt before taxation and exceptional items
2006 2005
£’000 £’000
proﬁt before taxation 1137 1639
add back exceptional items 1421 
proﬁt before tax and exceptional items 2558 1639
the operating exceptional items of £1421000 included in total operating expenses in 2006 related to severance payments onerous leases and other 
contracts and costs relating to restructuring the operations of the combined group there were no exceptional items in 2005       53 statpro momentum annual report  accounts 2006
e free cash ﬂow – reconciliation from statutory heading to business performance measure
2006
£’000
2005
£’000
cash generated from operations 3889 3155
investment in intangible assets – development costs 1939 1738
cash generated from operations less investment in internally generated intangible assets 1950 1417
3 operating expenses 
2006
£’000
2006
£’000
2005
£’000
2005
£’000
operating expenses relate to
 continuing operations 10965 9123
 acquisition 2413 
total operating expenses 13378 9123
operating expenses relate to
staﬀ costs 
 research and development 2634 1969
 other staﬀ costs 5573 4091
 share based payment 58 59
 internal development costs capitalised see note 10        1939 1738
total staﬀ costs see note 4 6326 4381
depreciation of tangible ﬁxed assets 261 202
amortisation of intangibles 1669 1154
operating lease rentals in respect of
 hire of computer equipment 154 135
 other operating lease rentals 656 628
fees to group auditors see below 110 94
operating exceptional items 1421 
other operating expenses 3020 2511
exchange diﬀerences 239 18
total operating expenses 13378 9123
the operating exceptional items of £1421000 included in total operating expenses in 2006 related to severance payments onerous leases and other 
contracts and costs relating to restructuring the operations of the combined group  there were no exceptional items in 2005  
auditor remuneration
during the year the group including its overseas subsidiaries obtained the following services from the group’s auditor at costs as detailed below
2006
£’000
2006
£’000
2005
£’000
2005
£’000
fees to group auditors 
 group audit fees 44 34
 company audit fees 31 24
 tax compliance and advice 28 34
 other legal and accounting compliance 7 2
 total fees to group auditors 110 94
in addition fees amounting to £114000 were paid during 2006 2005 £12000 by the group to pricewaterhousecoopers llp and its aﬃliates in 
connection with the acquisitions and have been capitalised in the cost of the relevant investment  wwwstatprocom 54
notes to the financial statements…continued
for the year ended 31 december 2006
4 employees 
the average number of employees including directors employed by the group during the year was as follows 
2006
number 
2005
number 
by activity 
selling distribution and client services      59 40
research and development                                  49 35
operations management and administration          33 23
141 98
  
staﬀ costs were
2006 
£’000
2005
£’000
wages and salaries                                       6878 4880
share based payments see note 19 58 59
social security                                                     1162 1012
other pension                                  167 168
8265                  6119
capitalisation of development costs 1939 1738
employee costs charged to income statement 6326 4381
5 directors’ emoluments 
details of the remuneration of each director pension entitlements and share options are included in the remuneration report on pages 41 to 44
6 net interest payable 
2006
£’000
2005
£’000
bank interest payable including amortisation of issue costs 195 41
interest payable on ﬁnance leases  1
bank interest receivable 106 18
89 24
7 taxation 
there was a net credit to taxation amounting to £008 million as a result of the deferred tax credit exceeding the current tax charge of £005 
million in 2005 there was a nil tax charge overall the group level of deferred tax recognised increased mainly as a result of deferred tax arising on 
acquisitions in 2006 to £227 million 2005 £152 million in the opinion of the directors this deferred tax asset will be recoverable with reasonable 
certainty against tax on trading profits in future years and the level of the deferred tax balance is considered reasonable in the light of future 
probability of recovery of the whole amount of deferred tax the recognised deferred tax asset amounts to 57 2005 61 of the potential 
deferred tax asset for the group see note 16     55 statpro momentum annual report  accounts 2006
tax reconciliation 2006 2005
£’000 £’000
proﬁt before taxation 1137 1639
current tax
tax charge on proﬁt before tax at standard rate of corporation tax in the uk of 30 2005 30 341 492
eﬀects of
   items allowablenot deductible for tax purposes 140 111
   accelerated capital allowances 6 26
   other temporary diﬀerences 361 108
   diﬀerences in tax rates 6 
   tax losses utilised 497 471
total current tax on ordinary activities 53 50
deferred tax
   origination and reversal of temporary diﬀerences 130 50
total taxation creditcharge 77 
the tax impact of the exceptional items is as follows
2006 2005
£’000 £’000
tax charge on proﬁt before tax and exceptional items 349 
tax credit on exceptional items 426 
net tax credit on proﬁt before tax and after exceptional items 77 
8 equity minority interests 
equity minority interests at the year end relating to minority interests in statpro italia and sisoft were as follows 
2006
£’000
at 1 january 2006 50
income statement 110
exchange diﬀerences 19
at 31 december 2006 141 wwwstatprocom 56
notes to the financial statements…continued
for the year ended 31 december 2006
9 dividends 
dividends amounting to £030 million were paid during the year 2005 nil as follows
dividend dividend rate
pshare
number of 
shares
amount
£’000
final dividend 2005 05 36049744 180
interim dividend 2006 03 39394283 118
298
the directors are recommending a ﬁnal dividend of 07p per ordinary share 2005 05p making a total dividend for the year of 10p per ordinary share 
2005 05p if the dividend is approved at the annual general meeting in may 2007 then the dividend will be paid on 30 may 2007 to shareholders 
on the register at the close of business on 27 april 2007 under ifrs rules the dividend is not provided in the accounts until it becomes a legal liability 
of the company and will therefore be recorded in the interim and annual accounts for 2007 
10 intangible ﬁxed assets 
group 
goodwill
net book value 
goodwill
£’000
at 1 january 2005 708
additions 2345
at 31 december 2005 3053
additions 28764
adjustment on deferred consideration 240
exchange diﬀerences 1708
at 31 december 2006 29869
other intangible assets
cost 
development 
costs 
 internally 
generated 
£’000
development 
costs
 acquired 
£’000
customer 
contracts
£’000
intangible 
assets
 total 
£’000
at 1 january 2006 4597 249  4846
additions 1939 456 1515 3910
at 31 december 2006 6536 705 1515 8756
amortisation 
at 1 january 2006 2426 112  2538
chargeimpairment in the year 1435 138 96 1669
exchange diﬀerences   1 1
at 31 december 2006 3861 250 95 4206
net book value 
at 31 december 2006 2675 455 1420 4550     57 statpro momentum annual report  accounts 2006
cost
development 
costs 
 internally 
generated 
£’000
development 
costs
 acquired 
£’000
intangible 
assets
 total 
£’000
at 1 january 2005 2859 149 3008
additions 1738 100 1838
at 31 december 2005 4597 249 4846
amortisation 
at 1 january 2005 1338 46 1384
chargeimpairment in the year 1088 66 1154
at 31 december 2005 2426 112 2538
net book value 
at 31 december 2005 2171 137 2308
company
cost
development
costs
 internally 
generated 
£’000
at 1 january 2006 3448
additions 1175
at 31 december 2006 4623
amortisation 
at 1 january 2006 1973
chargeimpairment in the year 976
at 31 december 2006 2949
net book value 
at 31 december 2006 1674
company
cost 
development
costs
 internally 
generated 
£’000
at 1 january 2005 2329
additions 1119
at 31 december 2005 3448
amortisation 
at 1 january 2005 1126
chargeimpairment in the year 847
at 31 december 2005 1973
net book value 
at 31 december 2005 1475
goodwill arising on acquisitions during the year see note 27 amounted to £2876 million the principal component related to the acquisition of fri  
the goodwill relating to the acquisition of delve which was completed in 2005 has been adjusted by £024 million reﬂecting an adjustment to the 
estimated deferred consideration  wwwstatprocom 58
notes to the financial statements…continued
for the year ended 31 december 2006
impairment review 
the carrying value for goodwill on each acquisition is reviewed at each balance sheet date to ensure that there has been no impairment the value of 
the acquisition is assessed by considering the group’s share of the cash that is expected to be generated by the business or product that was acquired 
less the direct costs for the product the evaluation is based on management forecasts over the period up to seven years forward and assuming a 
terminal value based on zero growth thereafter the expected future cash ﬂows are discounted at a discount rate of 15 if the resultant value is less 
than the carrying value for goodwill the diﬀerence is written oﬀ through the income statement the goodwill on all acquisitions has been reviewed 
and in the opinion of the directors there are no impairments to the carrying values at 31 december 2006 
acquired and internally generated development costs
expenditure on research and development comprises salaries and related costs of personnel involved in software programming and development 
activities development costs are capitalised where recognition criteria are met as a result there is an intangible asset relating to capitalised 
development costs both internally developed and acquired recognised on the group’s balance sheet where the board expects the beneﬁts to be 
recovered through incremental revenue from future sales development expenditure is amortised over a three year period as in the opinion of the 
directors this is the estimated useful economic life the carrying values which are analysed by product are considered carefully by the board and if 
there has been any impairment in any development costs then the carrying value is written down accordingly 
customer contracts
customer contracts acquired are valued by estimating the future cash ﬂows deriving from those contracts over a period varying between three and 
seven years depending on the type of contract  the expected future cash ﬂows are discounted at 15 and adjusted for any tax impact the resultant 
fair value for the acquired customer contracts is amortised over the estimated useful life between three and seven years
11 property plant and equipment 
a group 
cost 
improvements to 
short leasehold 
property 
£’000
oﬃce 
equipment 
£’000
fixtures
and 
ﬁttings 
£’000
computer 
equipment
£’000
total 
£’000
at 1 january 2006 361 148 178 1101 1788
additions in the year 50 20 49 183 302
acquisitions 1  25 391 417
disposals 90 23 26 18 157
exchange diﬀerences 10 5 39 135 189
at 31 december 2006 312 140 187 1522 2161
depreciation 
at 1 january 2006 208 118 134 862   1322
charge for the year 41 20 28            172      261
disposals 64 21 21 16    122
exchange diﬀerences 4 3 35 104    146
at 31 december 2006 181 114 106 914   1315
net book value 
at 31 december 2006 131 26 81 608 846     59 statpro momentum annual report  accounts 2006
cost 
improvements to 
short leasehold 
property 
£’000
oﬃce 
equipment 
£’000
fixtures
and 
ﬁttings 
£’000
computer 
equipment
£’000
total 
£’000
at 1 january 2005 356 205 216 1135 1912
additions in the year  17 1 170 188
disposals  77 40 195 312
exchange diﬀerences 5 3 1 9 
at 31 december 2005 361 148 178 1101 1788
depreciation 
at 1 january 2005 166 144 145 948 1403
charge for the year 40 20 26 116 202
disposals  49 39 194 282
exchange diﬀerences 2 3 2 8 1
at 31 december 2005 208 118 134 862 1322
net book value 
at 31 december 2005 153 30 44 239 466
b company 
the company had no ﬁxed assets at 31 december 2006 2005 nil
12 investments in subsidiary undertakings 
company – cost and net book value £’000
at 1 january 2006 2866
additions 30309
less adjustment on delve 240
revaluation of investment loan 972
at 31 december 2006 31963
during the year the company acquired the entire share capital of alphai pty limited and kizen pty limited and the entire issued ordinary share 
capital of fri the additions in the year of £30309000 related to the investments including deferred consideration and related costs in these 
acquisitions see note 27 there was also a reduction to the carrying value for delve amounting to £240000 as a result of a change in the estimate 
of the deferred consideration 
the acquisition of fri was made by a combination of an investment and loan from statpro group plc through statpro north america inc a wholly 
owned subsidiary which was established to eﬀect the acquisition the investment loan amounting to cad288 million at inception has been revalued 
to the year end exchange rate in the company’s balance sheet wwwstatprocom 60
notes to the financial statements…continued
for the year ended 31 december 2006
the company’s subsidiary undertakings at 31 december 2006 comprised the following
country of incorporation
total 
percentage 
held by the 
group 
total 
percentage 
held by the 
company 
statpro limited england and wales 100 100
delve limited england and wales 100 100
statistical analysis software limited dormant england and wales 100 100
statpro australia pty ltd formerly alphai pty ltd australia 100 100
alphai pty ltd formerly statpro australia pty ltd australia 100 100
statpro benelux sa luxembourg 100 
statpro deutschland gmbh germany 100 
statpro france sarl france 100 
statpro inc usa 100 100
statpro suisse sarl switzerland 100 
statpro south africa pty ltd republic of south africa 100 100
statpro italia srl  italy 51 51
sisoft sarl france 51 51
kizen pty ltd republic of south africa 100 100
statpro canada inc formerly fri corporation canada 100 
statpro north america inc canada 100 100
 on 1 january 2007 the entire business and assets of kizen pty limited were transferred to statpro south africa pty ltd
 946668 exchangeable nonvoting shares in fri corporation are held by former holders of ordinary shares in fri corporation as at 31 december 
2006 these exchangeable shares can be exchanged for statpro shares at any time prior to 24 october 2011
 with eﬀect from 16 march 2007 statpro group plc now owns 100 of statpro italia srl see note 29
all trading subsidiaries are involved in either the development or marketing and distribution of software and data solutions and related professional 
services to the global asset management industry and have been included in the consolidation 
13 current and noncurrent assets
current assets 
group 
2006
£’000
group 
2005
£’000
company 
2006
£’000
company
2005
£’000
trade debtors 3783 3085  
other debtors 20 14  
prepayments and accrued income 968 501 36 18
vat recoverable 80 5 77 5
rental deposits  123  
tax recoverable 501 31  
5352 3759 113 23
noncurrent assets 
rental deposits 316 174  
deferred tax see note 16 2269 1522  279
receivables from subsidiaries   201 153
total debtors 7937 5455 314 455
deferred tax in 2005 amounting to £490000 for the group and £93000 for the company has been reclassiﬁed as noncurrent deferred tax     61 statpro momentum annual report  accounts 2006
14 current liabilities
group
2006
£’000
group 
2005
£’000
company 
2006 
£’000
company
2005
£’000
bank loans 1822  1822 
other loans 35 35  
trade creditors 928 321 168 36
corporation tax 53 26  
other creditors and accruals 3216 1104 801 245
other taxation and social security 623 562  21
deferred income 8562 6487  
payable to subsidiaries   1921 
provisions – contingent consideration 1484  1484 
16723 8535 6196 302
15 noncurrent liabilities 
group 
2006
£’000
group
2005
£’000
company
2006
£’000
company
2005
£’000
bank loan net of deferred issue costs note 17 9145  9145 
deferred income 109 75  
provisions – contingent consideration note 27 2581 1500 2581 1500
11835 1575 11726 1500
16 deferred taxation
deferred taxation  group 2006
recognised 
asset
£’000
2005
recognised 
asset
£’000
2006
unrecognised
asset
£’000
2005
unrecognised 
asset
£’000
depreciation in excess of capital allowances    71
tax eﬀect of losses carried forward 2269 1522 1738 915
2269 1522 1738 986
of the total potential deferred tax asset of £4007000 2005 £2508000 a total of £2269000 2005 £1522000 which represents 57 2005 61 
of the total potential asset was recognised at the end of the year see note 7 deferred tax has been calculated at a rate of 30 a proportion of the 
deferred taxation assets for the group has been recognised as in the opinion of the directors the recoverability of such losses can be determined 
with a reasonable degree of certainty 
deferred taxation  company 2006
recognised 
asset
£’000
2005
recognised 
asset
£’000
2006
unrecognised
asset
£’000
2005
unrecognised 
asset
£’000
depreciation in excess of capital allowances    
tax eﬀect of losses carried forward  279  
 279   wwwstatprocom 62
notes to the financial statements…continued
for the year ended 31 december 2006
17 financial instruments and ﬁnancial risk management
the group’s key ﬁnancial risks and its approach to managing these risks are described in the financial review on pages 28
a financial instruments
the group’s ﬁnancial instruments comprise cash money market deposits bank loans provisions derivative ﬁnancial instruments and various other 
items such as accounts receivable and accounts payable that arise directly from its operations
cash and money market deposits are subsequently carried at face value 
bank loans are recorded at the value of the proceeds received less any direct issue costs which due to the short term nature of these instruments 
approximates to fair value they are subsequently stated at cost plus accrued interest less any repayments which due to the short term nature of 
these instruments approximates to amortised cost using the eﬀective interest rate method 
further information on contingent deferred consideration can be found in note 27
derivative ﬁnancial assets are used by the group to hedge against various ﬁnancial risks such as foreign currency and interest rate risk they are 
initially recognised at fair value and are designated by the entity at fair value through proﬁt or loss
the company recognises ﬁnancial instruments in its accounts when it enters into a binding agreement to receive cash or other economic beneﬁts 
and derecognises them once all parties to the agreement have discharged all of their obligations 
financial assets comprise cash and rental deposits rental deposits have maturity proﬁles of greater than one year and are settled net in cash bank 
loans and provisions have maturity proﬁles of between one and ﬁve years 
interest income and expenses are recognised in the income statement on an accruals basis realised gains and losses upon expiry of derivative 
ﬁnancial instruments are recognised on settlement of the underlying contract 
the group has taken advantage of the exemption in ias32ias39 to exclude shortterm debtors and creditors from disclosure relating to ﬁnancial 
instruments shortterm debtors and creditors are however included in the currency exposure disclosure within this note
financial assets
the group’s ﬁnancial assets at the yearend are analysed as follows
31 december
2006
£’000
31 december
2005
£’000
cash and cash equivalents 3327 1853
rental deposits falling due after more than one year 316 174
3643 2027
financial liabilities
the group has a £145 million bank facility which is secured over the group’s assets the facility currently comprises a committed ﬁve year term loan 
amounting to nominal value of £120 million which was fully drawn down to fund the acquisition of fri corporation and a committed working 
capital facility amounting to £25 million which is currently undrawn the term loan attracts interest at a margin above the libor interest rate for the 
currency concerned this margin is dependent on the level of gearing for the group there are covenants associated with the facility relating to the 
level of trade debtors net worth and gearing net debtebitda and interest cover repayments of the loan are on a quarterly basis and approximately 
£186 million is repayable on loans in 2007  subject to compliance with the covenants the facility remains committed until october 2011     63 statpro momentum annual report  accounts 2006
the maturity of the group’s ﬁnancial liabilities as at 31 december 2006 is analysed as follows
payable in 1 
year or less
£’000
payable in 
more than 1 
but less than 
2 years
£’000
payable in 
more than 2 
but less than 
5 years
£’000
31 december 
2006
total
£’000
bank loans 1822 1822 7323 10967
other loans 35   35
provisions – contingent consideration 1484 1539 1042 4065
3341 3361 8365 15067
the maturity of the group’s ﬁnancial liabilities as at 31 december 2005 was as follows
payable in 1 
year or less
£’000
payable in 
more than 1 
but less than 
2 years
£’000
payable in 
more than 2 
but less than 
5 years
£’000
31 december 
2005
total
£’000
other loans 35   35
provisions – contingent consideration  131 1369 1500
35 131 1369 1535
b financial risk management
• interest rate risk
financial assets as at 31 december 2006
at ﬂoating  
interest rates
£’000
at ﬁxed 
interest rates
£’000
non interest 
bearing
£’000
total
£’000
weighted 
average 
interest rate

sterling 1338  71 1409 36
us dollar 36  30 66 44
euro 473  450 923 19
swiss franc   52 52 
australian dollar   3 3 
canadian dollar 774  154 928 38
south african rand 226  36 262 77
2847  796 3643
financial assets as at 31 december 2005
at ﬂoating  
interest rates
£’000
at ﬁxed 
interest rates
£’000
non interest 
bearing
£’000
total
£’000
weighted 
average 
interest rate

sterling 915  5 920 31
us dollar   213 213 33
euro 340  459 799 09
swiss franc   11 11 
australian dollar 20  1 21 
canadian dollar     
south african rand 56  7 63 57
1331  696 2027
floating rate ﬁnancial assets comprise cash rental deposits and shortterm bank deposits bearing interest based on bank base rates
the noninterest bearing ﬁnancial assets represent rental deposits and cash balances held in noninterest bearing accounts in overseas entities  wwwstatprocom 64
notes to the financial statements…continued
for the year ended 31 december 2006
financial liabilities as at 31 
december 2006
at ﬂoating 
interest rates
£’000
at ﬁxed 
interest rates
£’000
non interest
bearing
£’000
total
£’000
weighted 
average 
interest rate

weighted 
average period 
for which rates 
are ﬁxed
years
canadian dollar 10967   10967 71 
euro 35   35 24 
total 11002   11002
floating rate ﬁnancial liabilities predominantly relates to bank loans in canadian dollars the company entered a three year outofthemoney interest 
rate cap on an initial cad 17 million notional principal of loan the cap rate is based on cad libor of 6 and therefore if underlying canadian dollar 
interest rates increase above 6 on any 3 monthly rollover the eﬀective rate payable is capped at 6 plus the lending margin  in the directors’ opinion 
this was a cost eﬀective way of reducing the group’s interest rate risk  at 31 december 2006 approximately 20 of the canadian dollar denominated 
bank debt £221 million had been eﬀectively swapped into euros through the purchase of a forward foreign exchange contract
financial liabilities as at 31 
december 2005
at ﬂoating 
interest rates
£’000
at ﬁxed 
interest rates
£’000
non interest
bearing
£’000
total
£’000
weighted 
average 
interest rate

weighted 
average period 
for which rates 
are ﬁxed
years
euro 35   35 24 
total 35   35
• currency risk
the group’s principal exposure to exchange rate ﬂuctuations arises on the translation of overseas net assets and trading results into sterling for 
accounting purposes the group has a minimal transaction risk as most of the transactions are invoiced by the entities in their local currency where 
there are material exposures these are covered by taking out currency contracts to eliminate the exposure the currency exposure ie those transaction 
exposures that give rise to the net currency gains and losses recognised in the income statement 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 so that only the residual accounting proﬁt translation element 
is at risk the balance sheet exposures are minimised by reducing the net asset exposure for example by arranging borrowings in local currency 
where appropriate  where the resulting hedge qualiﬁes for hedge accounting under ias 39 the gains and losses on the translation of both the loan 
and the investment are deferred in equity  as the group continues to grow and generates greater net proﬁts overseas this exchange rate exposure 
will increase following the acquisition of fri and the increase in the percentage of the group’s operations that are overseas the exposure to us 
dollars and canadian dollars and euros in particular has increased       65 statpro momentum annual report  accounts 2006
net foreign currency monetary assetsliabilities 
31 december 2006
functional currency of group operation
sterling
£’000
us dollar
£’000
canadian 
dollar
£’000       
euro
£’000
swiss franc
£’000
australian 
dollar
£’000       
south
african
rand
£’000
total
£’000
sterling  3369 323 158 515 284 135 2540
us dollar 3813       3813
canadian dollar 431       431
euro 185       185
swiss franc 619       619
australian dollar 223       223
south african rand    176       176
total 2901 3369 323 158 515 284 135 361
31 december 2005
functional currency of group operation
sterling
£’000
us dollar
£’000
euro
£’000
swiss franc
£’000
australian 
dollar
£’000       
south
african
rand
£’000
total
£’000
sterling  3517 1044 555  217 4223
us dollar 3166      3166
euro 1100      1100
swiss franc 597      597
australian dollar       
south african rand 205      205
total 3874 3517 1044 555  217 349
the fair value of all ﬁnancial assets and liabilities is approximately equal to book value the group has a forward foreign exchange facility which allows 
the group to hedge foreign exchange exposures the group does not permit anyone in the group to trade in ﬁnancial instruments
• counterparty credit risk
this is the risk that a counterparty will be unable to pay amounts in full when due  credit risks are associated with deposits with banks and receivables 
from customers  the group takes into account the credit risk of the counterparty to any major bank deposits but currently the level of bank deposits 
is such that this is not a material risk  there is no large concentration of credit risk with customers as the largest customer group currently represents 
less than 5 of projected group revenues  
• liquidity risk
this is the risk that the group will have insuﬃcient funds to meet its cash obligations when due  the group manages this risk by close monitoring 
of projected cash collection from customers and cash obligations to suppliers and salary payments to staﬀ as well as all other cash commitments  
the group also has a £25 million committed working capital facility to reduce the risk that an unforeseen change in the group’s liquidity position 
will result in a breach of statutory or other payment obligations wwwstatprocom 66
notes to the financial statements…continued
for the year ended 31 december 2006
18 obligations under operating leases
the total commitments under noncancellable operating leases are
land and buildings
2006
£’000
2005
£’000
due within one year 758 486
due between one year and ﬁve years 1428 1243
due beyond ﬁve years  
2186 1729
other leases
2006
£’000
2005
£’000
due within one year 97 185
due between one year and ﬁve years 43 37
due beyond ﬁve years  
140 222
19 called up share capital
authorised
2006
£’000
2005
£’000
85000000 ordinary shares of 1p each 2005 85000000 ordinary shares of 1p each 850 850
allotted called up and fully paid
52168820 ordinary shares of 1p each 2005 35049744 ordinary shares of 1p each 522 350
the company has only one class of ordinary shares in issue and there are no restrictions regarding voting or other distribution or repayment rights
shares issued during 2006 comprised number of 
ordinary 
shares of 1p 
each
net 
proceeds
value 
£’000
share placings 15250000 12610
options exercised 369171 226
subtotal 15619171 12836
shares issued on acquisition of alphai 1000000 770
share issued in exchange for fri exchangeable shares 499905 440
subtotal 1499905 1210
total 17119076 14046
number of 
ordinary 
shares of 1p 
each
shares in issue at 1 january 2006 35049744
shares issued in year 17119076
shares in issue at 31 december 2006 52168820     67 statpro momentum annual report  accounts 2006
since 31 december 2006 465600 ordinary shares have been issued 125000 were issued to minority holders of statpro italia srl who subscribed for the shares 
on completion of the purchase of the minority interest 312500 ordinary shares were issued in relation to the exercise of share options held in relation to the 
2000 fundraising  28100 were issued in exchange for exchangeable shares in fri the total number of shares in issue is now 52634420
at 31 december 2006 the following options over shares in the company were outstanding
save as you earn options
year
number of 
shares at 31 
december 
2005
‘000
granted in 
year 
‘000
exercised in 
year
‘000
lapsed in 
year
‘000
number of 
shares at 31 
december 
2006
‘000
option 
price 
pence 
exercise
period
2001 save as you earn scheme 83  50 8 25 68 2006 to 2007
total 83  50 8 25
other employee and executive share options
year
number of 
shares at 31 
december 
2005
‘000
granted in 
year 
‘000
exercised in 
year
‘000
lapsed
in year
‘000
number of 
shares at 31 
december
2006
‘000
option 
price 
pence
exercise 
period
1998 approved scheme 96    96 175 2001 to 2008
1999 approved scheme 427    427 175 2002 to 2009
2000 directors’ options 77    77 175 2003 to 2010
2000 approved scheme 175  20  155 60 2003 to 2010
2000 directors’ options 220   200 20 60 2003 to 2010 
2000 directors’ options 363    363 80 2003 to 2010
2000 approved scheme 21    21 87 2003 to 2010
2000 unapproved scheme 56    56 87 2003 to 2010
2001 approved scheme 97  50 2 45 61 2004 to 2011
2001 unapproved scheme 70    70 61 2004 to 2011
2001 approved scheme 85  8  77 60 2004 to 2011
2001 unapproved scheme 257   2 255 60 2004 to 2011
2002 approved scheme 44  36  8 60 2005 to 2012
2002 unapproved scheme 470  5 47 418 60 2005 to 2012
2003 approved scheme 77    77 60 2006 to 2013
2003 unapproved scheme 47   40 7 60 2006 to 2013
2003 unapproved scheme
directors’ options 998    998 60 2006 to 2010
2004 emi approved options 200    200 60 2007 to 2014
2005 approved scheme 115    115 60 2008 to 2015
2005 unapproved scheme 258  13 15 230 60 2008 to 2015
2005 emi approved options 287  187  100 60 2008 to 2015
2005 individual option agreement 110    110 60 2007 to 2015
2006 unapproved scheme

897
 
897 975 2008 to 2013
2006 emi approved options

103
 
103 975 2008 to 2013
2006 individual option agreements

200
 
200 88 2009 to 2016
total 4550 1200 319 306 5125 wwwstatprocom 68
notes to the financial statements…continued
for the year ended 31 december 2006
other options
year
number of 
shares at 31 
december 
2005
‘000
granted in 
year 
‘000
exercised in 
year
‘000
lapsed in 
year
‘000
number of 
shares at 31 
december
2006
‘000
option 
price 
pence
exercise 
period
issued in relation to acquisition 278    278 60 2002 to 2010
issued in relation to fundraising 313    313 80 2000 to 2007
issued in relation to bank debt facility  130    130 625 2002 to 2007
total 721    721
 the expiry of the options granted to the bank under the debt facility in 2001 was extended to october 2007 as part of the terms of the debt facility 
negotiated in 2006
in addition there are 25000 warrants outstanding out of the original 425 million warrants 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
share based payments
under the approved and unapproved option schemes the remuneration committee can grant options to employees of the group options are 
granted with a ﬁxed exercise price which is equal to the market price but with a minimum price of 60 pence the contractual life is generally ten years 
from date of grant although occasionally a shorter period has been chosen options become exercisable after three years although exceptionally 
the period is shorter options issued to directors and senior executives carry performance criteria in line with the ifrs accounting standard on share 
based payments options which were issued before november 2002 have been ignored for the purposes of estimating the charge for share based 
payments options are valued using the blackscholes optionpricing model and the fair market value has been estimated using the following key 
assumptions 
average exercise price 74p
average market price at date of grant 61p
total number of options under grant 3346867
average vesting period years 3
expected volatility 2540
option life years 95
expected life years 67
risk free rate 4347
expected dividend yield 0520
expected lapse rate 10
fair value of option average 173p
fair value of options issued in year 290p
the risk free rate is based on the yield to maturity of a uk government bond for a term consistent with the assumed life of the options the weighted 
average share price in the year was 84p the average market price for options exercised during the year was 97p the expected volatility level was 
determined by comparing the historic and current volatility for the company and comparing with the average volatility for companies in the same 
sector to determine a reasonable estimate for the future volatility  the total charge in the year relating to employee share based payments was 
£58000 2005 £59000     69 statpro momentum annual report  accounts 2006
20 earnings per share
basic earnings per share is calculated by dividing the proﬁt attributable to ordinary shareholders by the weighted average number of ordinary shares 
in issue during the year as set out below
earnings per share – basic and diluted 
earnings
2006
£’000
weighted 
average 
number of 
shares 
2006
’000
earnings 
per share 
2006 
pence
earnings 
2005 
£’000
weighted 
average 
number of 
shares 
2005
’000
earnings
per share 
2005 
pence
earnings per share – basic 1324 40225 33 1570 34211 46
potentially dilutive shares  1587 01  427 01
earnings per share  diluted 1324 41812 32 1570 34638 45
adjusted earnings per share
earnings
2006
£’000
weighted 
average 
number of 
shares 
2006
’000
earnings 
per share 
2006 
pence
earnings 
2005 
£’000
weighted 
average 
number of 
shares 
2005
’000
earnings
per share 
2005 
pence
earnings per share – basic 1324 40225 33 1570 34211 46
eﬀect of operating exceptional items 1421  35   
eﬀect of tax on exceptional items 426  10   
adjusted earnings per share excluding 
exceptional items 2319 40225 58 1570 34211 46
potentially dilutive shares  1587 03  427 01
diluted earnings per share excluding 
exceptional items 2319 41812 55 1570 34638 45
the adjusted earnings per share information has been provided in order to assist the reader to understand the underlying performance of the 
business on a comparable basis
21 statement of changes in shareholders’ equity
share
capital
share 
premium 
account 
shares
to be
issued
retained 
earnings
other 
reserves
minority 
interests total
group £’000 £’000 £’000 £’000 £’000 £’000 £’000
at 1 january 2006 350 891  1924 90 50 3025
shares issued note 19 172 12679 896  1195  14942
proﬁt for the year    1324  110 1214
dividends paid    298   298
share based payments    58   58
exchange diﬀerences oﬀset 
in reserves     989 19 970
at 31 december 2006 522 13570 896 3008 116 141 17971 wwwstatprocom 70
notes to the financial statements…continued
for the year ended 31 december 2006
other reserves includes warrant reserve amounting to £2000 2005 £2000 merger reserve amounting to £1195000 2005 nil and translation 
reserve previously reported in retained earnings amounting to a deficit of £1081000 2005 £92000 the warrant reserve arose on the issue 
of warrants in 2000 on the company’s flotation and represents the notional value of warrants outstanding  following the restructuring of the 
warrants in 2005 there are 25000 remaining of the original warrants a registered holder of such warrants has rights to subscribe for ordinary 
shares at a price of 80p per ordinary share at any time up to 17 may 2007 the merger reserve arose during the year on the issue of shares on the 
alphai and fri acquisitions and represents the difference between the value of shares issued and the nominal value of the shares  the translation 
reserve incorporates the gains and losses on revaluation of the net assets and liabilities of subsidiary accounts and other currency gains and 
losses that are treated as part of the equity
share
capital
share 
premium 
account
shares
to be
issued
retained 
earnings
other 
reserves total
company £’000 £’000 £’000 £’000 £’000 £’000
at 1 january 2006 350 891  2567 2 3810
shares issued note 19 172 12679   1195 14046
shares to be issued   63   63
proﬁt for the year    265  265
dividends paid    298  298
share based payments    22  22
exchange diﬀerences oﬀset in 
reserves    56  56
at 31 december 2006 522 13570 63 2612 1197 17964
as permitted by section 230 of the companies act 1985 the company has not presented its own income statement or statement of recognised 
income and expense the proﬁt after taxation for the ﬁnancial year of the company was £265000 2005 £197000 the number of full time equivalent 
employees directly employed by the company is approximately 2 2005 2  
22 related party transactions
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 2006 amounted to £31130 2005 £23300 the yearend balance with buzzacott was £12749 
2005 £6756
during the year the group paid a fee of £35263 2005 £35950 for training courses and other services supplied by otos limited of which 
cr bacon is a director the yearend balance with otos limited was nil 2005 £5875
the parent company undertakes a range of transactions including management recharges with its subsidiaries     71 statpro momentum annual report  accounts 2006
23 reconciliation of movements in equity shareholders’ funds and capital employed
2006 2005
£’000 £’000
proﬁt for the year 1214 1639
share based payments 58 59
exchange diﬀerences oﬀset in reserves 970 81
dividends 298 
equity minority interests 91 69
95 1548
net proceedsvalue from new share capital issued 14942 551
net movement in equity shareholders’ funds 15037 2099
opening equity shareholders’ funds 3075 976
closing equity shareholders’ funds 18112 3075
equity minority interests 141 50
capital employed 17971 3025
24 reconciliation of operating proﬁt to net cash inﬂow from operating activities
2006 2005 2006 2005
group group company company
£’000 £’000 £’000 £’000
operating proﬁt 1226 1663 445 93
depreciation of tangible ﬁxed assets 261 202  
amortisation of intangibles 1669 1154 976 847
increasedecrease in debtors 490 1254 63 1374
increase in creditors excluding deferred income 898 193 2414 83
movement in deferred income 232 1130  
share based payments 58 59 22 28
net loss on disposal of ﬁxed assets 35 8  
net cash inﬂow from operating activities 3889 3155 3920 2425
25 analysis of changes in net cashdebt
at
1 january
2006
cash ﬂow noncash 
changes
exchange 
diﬀerences
at
31 december 
2006
£’000 £’000 £’000 £’000 £’000
cash and cash equivalents 1853 1474   3327
bank loans net of issue costs deferred  11788 4 825 10967
other loans 35    35
net cashdebt 1818 10314 4 825 7675 wwwstatprocom 72
notes to the financial statements…continued
for the year ended 31 december 2006
26 reconciliation of net cash ﬂow to movement in net cashdebt
2006 2005 2006 2005
group group company company
£’000 £’000 £’000 £’000
increasedecrease in cash and cash equivalents in the year 1474 296 1119 209
repayment on ﬁnance leases  2  
movement on bank loan 11788 1200 11788 1200
exchange gain on bank loan 825  825 
other noncash movements 4 14 4 9
movement in net debtcash 9493 920 9848 982
net cash at beginning of year 1818 898 816 166
net debtcash at end of year 7675 1818 9032 816
27 acquisitions
alphai
on 13 april 2006 the company acquired 100 of the ordinary shares 100 of the voting shares of alphai pty limited an australian business that 
develops performance software this product is being integrated into the web service platform and is expected to be launched in late 2007 this 
acquisition has also given statpro a foothold in the australian market
the consideration was a mixture of an initial cash payment of £843000 including related costs 1000000 shares with a market value of £770000 
based on the estimated market price of 77p per share at completion and deferred consideration over a three year period based on a multiple of 
recurring revenue of the performance product the provision for contingent deferred consideration is estimated at £102 million which is the directors’ 
current projection of the amount that will ultimately be due under the transaction however this amount is uncertain and the eventual payment 
may be higher or lower than this amount subject to a maximum of around £47 million
since the date of acquisition alphai contributed £016 million to operating proﬁts prior to intercompany recharges and amortisation of intangibles 
during the period since acquisition alphai contributed revenue amounting to £043 million the acquisition contributed £017 million operating 
cash inﬂow 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 it is impractical to determine the revenue and proﬁt before tax for the acquisition for the year from 1 january 2006 
as the company did not have a coterminous accounting period
the assets and liabilities of alphai pty ltd acquired were as follows
alphai  
book value
fair value 
adjustments
total  
fair value
£’000 £’000 £’000
intangible ﬁxed assets – development costs  100 100
intangible ﬁxed assets – customer contracts  250 250
fixed assets 17  17
debtors 89  89
other receivables 2  2
cash 336  336
creditors 350 10 360
net assets 94 340 434
share of net assets acquired 434
goodwill 2196
2630
satisﬁed by
initial cash consideration including costs and adjustments for net assets 843
share consideration 770
deferred consideration 1017
total consideration including costs 2630
the fair value adjustments relate to the valuation of intangible assets and recognition of unrecorded liabilities     73 statpro momentum annual report  accounts 2006
kizen
on 8 may 2006 the company acquired 100 of the ordinary shares 100 of the voting shares of kizen pty limited a south african business based 
in cape town that develops compliance software the acquisition has helped reinforce statpro’s strong existing position in the south african asset 
management market
the consideration was a mixture of an initial cash payment of £639000 including related costs and deferred consideration over a three year period 
based on a multiple of recurring revenue of the compliance product the provision for contingent deferred consideration is estimated at £125 million 
which is the directors’ current projection of the amount that will ultimately be due under the transaction however this amount is uncertain and the 
eventual payment may be higher or lower than this amount subject to a maximum of around £70 million
since the date of acquisition kizen contributed £003 million to operating proﬁts prior to intercompany recharges and amortisation of intangibles  
during the period since acquisition kizen contributed revenue amounting to £017 million the acquisition contributed £006 million operating 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 it is impractical to determine the revenue and proﬁt before tax for the acquisition for the year from 1 january 2006 
as the company did not have a coterminous accounting period
the assets and liabilities of kizen acquired were as follows
kizen  
book value
fair value 
adjustments
total  
fair value
£’000 £’000 £’000
intangible ﬁxed assets – development costs  100 100
fixed assets 14  14
debtors 103  103
other receivables 33  33
cash 98  98
creditors 186  186
net assets 62 100 162
share of net assets acquired 162
goodwill 1729
1891
satisﬁed by
initial cash consideration including costs and adjustments for net assets 639
deferred consideration 1252
total consideration including costs 1891
the fair value adjustments relate to the valuation of intangible assets
fri
on 24 october 2006 the company completed its largest acquisition to date of fri corporation based in canada the company acquired 100 of the 
ordinary shares 100 of the voting shares of fri
as part of the acquisition of fri 1446573 exchangeable shares in fri were created and retained by the vendors of fri which exchangeable shares 
are exchangeable for ordinary shares in statpro during november and december 2006 a total of 499905 were exchanged resulting in the issue of 
an equivalent number of statpro shares 946668 exchangeable shares in fri were outstanding at 31 december 2006 and are classiﬁed as shares 
to be issued in the consolidated balance sheet these exchangeable shares in issue in fri carry no voting rights although they have the rights to a 
dividend based upon the same level of dividend payable on a statpro group plc share and the right to be exchanged for a statpro group plc share 
up to 24 october 2011 the market value of the exchangeable shares based on the estimated market price of 88p per share immediately prior to the 
announcement of the transaction was £127 million
fri has two principal lines of business one is a price feed service for asset managers and custodians the other a portfolio management system for 
asset managers statpro has identiﬁed that there is signiﬁcant synergy between the data requirements of our existing clients and the fri service 
the total consideration was £26621000 including related costs this comprised a mixture of cash amounting to £24774000 including related costs 
shares to be issued of £1273000 and deferred consideration over a two year period the provision for contingent deferred consideration is estimated 
at £057 million which is the directors’ current projection of the amount that will ultimately be due under the transaction however this amount is 
uncertain and the eventual payment may be higher or lower than this amount subject to a maximum of around £063 million wwwstatprocom 74
since the date of acquisition fri contributed £026 million to operating proﬁts prior to intercompany recharges and amortisation of intangibles during 
the period since acquisition fri contributed revenue amounting to £127 million the acquisition contributed £014 million operating cash inﬂow 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  for the year from 1 january 2006 the revenue and proﬁt before tax and exceptional items for the acquisition were approximately cad 
161 million £73 million and cad 087 million £040 million respectively 
the assets and liabilities of fri acquired were as follows
fri  
book value
fair value 
adjustments
total  
fair value
£’000 £’000 £’000
goodwill 1955 1955 
intangible ﬁxed assets – development costs  256 256
intangible ﬁxed assets – customer contracts  1265 1265
fixed assets 1022 636 386
debtors 1268 653 615
other receivables 1809 466 1343
cash 1193  1193
creditors 2293 543 1750
deferred income 782 744 1526
net assets 4172 2390 1782
share of net assets acquired 1782
goodwill 24839
26621
satisﬁed by
initial cash consideration including costs and adjustments for net assets 24774
share consideration including shares to be issued 1273
deferred consideration 574
total consideration including costs 26621
the fair value adjustments relate to valuation of intangible assets writing down ﬁxed assets recognition of unrecorded liabilities and alignment of 
accounting policies
the acquisition of fri corporation was made by a combination of an investment and loan from statpro group plc through statpro north america 
inc a wholly owned subsidiary which was established to eﬀect the acquisition
summary 
a summary of all the acquisitions and the relating consideration and goodwill is provided below
total  
fair value
alphai
total  
fair value
kizen
total  
fair value
fri
total  
fair value
all
£’000 £’000 £’000 £’000
net assets 434 162 1782 2378
share of net assets acquired 434 162 1782 2378
goodwill 2196 1729 24839 28764
2630 1891 26621 31142
satisﬁed by
initial cash consideration including costs and adjustments for net assets 843 639 24774 26256
share consideration including shares to be issued 770  1273 2043
deferred consideration 1017 1252 574 2843
total consideration including costs 2630 1891 26621 31142
notes to the financial statements…continued
for the year ended 31 december 2006     75 statpro momentum annual report  accounts 2006
initial cash consideration including costs and adjustments for net assets
£’000
26256
less cash acquired 1627
less accrued costs 112
net cash consideration in year in cash ﬂow statement 24517
investment cost in parent company balance sheet
the acquisition of fri corporation was made by a combination of an investment and loan from statpro group plc through statpro north america 
inc a wholly owned subsidiary which was established to eﬀect the acquisition all the other acquisitions were made directly by statpro group plc 
in the parent company accounts the cost of all investments in the year was
initial cash consideration including costs and adjustments for net assets
£’000
31142
less shares to be issued 833
net cash consideration in year in cash ﬂow statement 30309
as part of the acquisition of fri 1446573 exchangeable shares in fri were created and retained by the vendors of fri which exchangeable shares 
are exchangeable for ordinary shares in statpro as described above the exchangeable shares are not recorded as an obligation of the company 
until exchanged for statpro group plc shares
deferred consideration
there is an estimated £407 million deferred consideration arising on acquisitions which is the directors’ current projection of the fair value that will 
ultimately be due under the various transactions  however this amount is uncertain and the eventual payments may be higher or lower than this 
amount the directors will review this estimate at each balance sheet date and adjustments if any will be made to the goodwill carrying value and 
the deferred consideration the provisional estimates for deferred consideration are based upon the contractual requirements under each acquisition 
agreement together with projected estimates for the revenues for the product or business the estimated deferred consideration is discounted at 
an annual discount rate of 7 resulting in the estimated carrying value for the contingent deferred consideration  
28 pensions
the company operates a deﬁned contribution pension scheme for directors and certain employees the total costs of pensions contributions during 
the year were £167000 2005 £168000 contributions outstanding at the end of december 2006 amounted to £16000 2005 £26000 
29 post balance sheet events
the company paid out £024 million of deferred consideration in early january 2007 being the ﬁrst instalment of the deferred consideration for delve 
completed in july 2005 during march 2007 the company paid approximately £120 million consideration for the 49 of statpro italia that was not 
then owned by the company of which approximately £012 million was reinvested by the recipients in statpro shares issued at 975 pence per share 
as announced on 21 december 2006  wwwstatprocom 76
statpro group plc 2006 2005 2004 2004 2003 2002
£’000 £’000 £’000 £’000 £’000 £’000
ifrs ifrs ifrs uk gaap uk gaap uk gaap
turnover
 continuing operations 12737 10786 9072 9072 8426 7229
 acquisitions 1867     
14604 10786 9072 9072 8426 7229
operating proﬁtloss
 continuing operations excluding exceptional items 2446 1752 1108 372 330 1897
 acquisitions 201 89    
 exceptional operating items 1421  93 93  306
1226 1663 1015 279 330 2203
net interest payable 89 24 117 117 184 170
proﬁtloss on ordinary activities before taxation 1137 1639 898 162 146 2373
taxation 77  37 37 14 
taxation exceptional deferred tax credit   1472 1472  
proﬁtloss on ordinary activities after taxation 1214 1639 2333 1597 132 2373
proﬁtloss attributable to equity shareholders 1324 1570 2496 1760 202 2373
proﬁtloss attributable to equity minority interests 110 69 163 163 70 
free cash ﬂow
 net cash generated from operations less investment 
  in intangibles ifrs
1950 1417 1456
 net cash inﬂow from operating activities uk gaap 1453 1572 476
net assets
goodwill and other intangible ﬁxed assets 34419 5361 2332 470 737 716
property plant and equipment 846 466 509 509 561 674
other assets and receivables 7937 5455 4108 4108 3025 3395
cash 3327 1853 2149 2149 2292 1486
current liabilities 16723 8535 7059 7059 7690 6269
noncurrent liabilities 11835 1575 1296 1296 1634 2812
net assetsliabilities 17971 3025 743 1119 2709 2810
shareholders’ equity
called up share capital 522 350 332 332 331 328
share premium account 13570 891 8562 8562 8559 8541
shares to be issued 896     
other reserves 116 90 424 424 424 424
retained earnings 3008 1924 8342 10204 11953 12103
equity shareholders’ fundsdeﬁcit 18112 3075 976 886 2639 2810
minority interest in equity 141 50 233 233 70 
capital employed 17971 3025 743 1119 2709 2810
net debtcash 7675 1818 898 898 197 1428
earningsloss per share  basic 33p 46p 75p 53p 06p 73p
earningsloss per share  diluted 32p 45p 75p 53p 06p 73p
adjusted earningsloss per share 58p 46p 34p 23p 16p 55p
dividends per share 10p 05p    
before exceptional items and under uk gaap before goodwill amortisation
the results for 20023 are stated as originally reported under uk gaap as it is considered impractical to restate the results for accounting years prior to 2004 under ifrs
five year record     77 statpro momentum annual report  accounts 2006
financial calendar
directors and advisers
annual general meeting           16 may 2007
final dividend for 2006            30 may 2007
interim report for 2007            august 2007
interim dividend for 2007           31 october 2007
preliminary announcements of 2007 results    march 2008
report and accounts for 2007         april 2008
directors
c r bacon      nonexecutive chairman
jmbt wheatley    chief executive
am fabian      finance director
mc fairbairn     nonexecutive director
mc adorian     nonexecutive director
secretary and registered oﬃce
gfmt wheatley
statpro house
8187 hartﬁeld road
wimbledon
london sw19 3tj
registrars
capita irg plc
northern house
woodsome park
fenay bridge
huddersﬁeld hd8 0la
financial adviser and broker
arbuthnot securities limited
arbuthnot house
20 ropemaker street
london ec2y 9ar
solicitors
faegre  benson llp
7 pilgrim street
london ec4v 6lb
registered auditors
pricewaterhousecoopers llp
1 embankment place
london wc2n 6rh
bankers
kaupthing singer  friedlander limited
1 hanover street
london w1s 1ax
coutts  co limited
440 strand
london wc2r 0qs
financial pr consultants
smithﬁeld
10 aldersgate street
london ec1a 4hj
company registration no 2910629 notes
design and artwork by coogoo   printed by sterling financial print 88543 78     79 statpro momentum annual report  accounts 2006
statpro office locations
statpro ltd
statpro house 81 87 hartfield road wimbledon london sw19 3tj united kingdom
tel 44 20 8410 9876   fax 44 20 8410 9877
statpro france sarl
30 rue de la victoire 75009 paris france
tel 33 1 40 20 1200   fax 33 1 40 20 1201
statpro benelux sa
148150 boulevard de la pétrusse l2330 luxembourg luxembourg
tel 352 30 74 24 1   fax 352 30 74 24 40
statpro italia srl
via gb vico 4 20123 milan italy
tel 39 02 9687 51   fax 39 02 9687 5605
statpro deutschland gmbh
hamburger allee 210 d60486 frankfurt germany
tel 49 69 977 8690   fax 49 69 977 86919
statpro inc
185 madison avenue new york ny 10016 usa
tel 1 646 742 1200   fax 1 646 742 1201
statpro inc
225 bush street suite 1655 san francisco ca 94104 usa
tel 1 415 439 8850   fax 1 415 439 8896
statpro canada inc 
200 wellington street west suite 300 box 165 toronto ontario m5v 3c7 canada
tel 1 416 598 9500   fax 1 416 598 9530
statpro canada inc 
1801 mcgill college avenuesuite 910 montreal quebec h3a 2n4 canada
tel 1 514 842 5091   fax 1 514 842 8809
statpro south africa pty ltd
po box 52162 va waterfront cape town 8002 south africa
switchboard 27 21 443 2140 fax 27 21 418 3835
statpro australia pty ltd
po box 5199 chatswood sydney 1515 australia
tel 61 2 9884 9045   fax 61 2 9475 4238
email statprostatprocom
web wwwstatprocom encore…
statpro house 81 87 hartfield road wimbledon london sw19 3tj united kingdom
t 44 20 8410 9876    f 44 20 8410 9877
wwwstatprocom


Summary:
 wwwstatprocom 20
more importantly proﬁt before tax and 
exceptional items increased by 56 to 
£256 million 2005 £164 million and 
adjusted earnings per share increased 
by 26 to 58p 2005 46p the net 
operating margin in 2006 was 181 before 
exceptional items 2005 154 overall 
and 192 2005 154 on continuing 
operations before exceptional items  
the exceptional costs for 2006 totalling 
£142 million 2005 nil primarily relate to 
restructuring costs incurred as a result of 
the acquisition of fri prior to the acquisition 
we had identiﬁed a series of cost savings 
we could make and we acted swiftly to 
implement these initiatives reducing costs 
for the combined business going forward 
by approximately £10 million per annum 
following the acquisition we implemented 
our accounting policies on software revenue 
recognition at fri  this policy which is 
more conservative than fri’s in terms of 
revenue recognition has had the eﬀect 
of reducing its contribution compared to 
that expected at the time of the acquisition  
we issued 1525 million of new shares 
raising £1316 million before expenses in 
two placings of ordinary shares during the 
year to strengthen the balance sheet and 
to part fund the acquisition of fri and we 
welcome all our new shareholders
at the end of 2006 statpro’s annualised 
recurring revenue contracts amounted 
to £1766 million up from £1010 million 
at the start of the year and recognised 
recurring revenue accounted for 85 of 
total revenues 2005 85 cash generation 
was strong with £195 million free cash ﬂow 
2005 £142 million in october 2006 we 
borrowed £120 million to complete the 
acquisition of fri but net debt at the end 
of 2006 was lower than expected at £768 
million 2005 net cash £182 million due to 
improved cash generation and a currency 
gain on our canadian dollar debt
acquisitions 
fri  we made three acquisitions in 2006 
the most signiﬁcant of which was fri based 
in canada which was completed on 24 
october 2006 for a total consideration 
including expenses of cad5646 million 
£2662 million fri has two principal lines 
of business one is a price feed service for 
chief executive’s review
asset managers and custodians the other 
a portfolio management system for asset 
managers statpro has identiﬁed that there 
is signiﬁcant synergy between the data 
requirements of our existing clients and 
the fri service 
furthermore the directors believe we 
can develop a series of new services by 
combining statpro’s expertise with fri’s 
products most important amongst these 
is a planned service to price complex 
assets such as credit default swaps cds 
collateralised debt obligations cdo and 
overthecounter structured products 
otcs and many others besides there 
has been a signiﬁcant proliferation of these 
assets over the last few years to the extent 
that more and more asset managers use 
them having independent valuations of 
these assets is vital in order to comply with 
the many new regulations that have been 
introduced we are planning to launch this 
service at the end of 2007
we also will be providing our clients with 
other data services such as an index service 
and a ﬁxed income data feed for our product 
statpro fixed income sfi this is in addition 
to improving and expanding the existing 
excellent price feed service already oﬀered 
by fri early indications suggest that this 
data service will make a positive contribution 
to our numbers in 2007
fri’s portfolio management system raison 
has been renamed statpro portfolio 
management spm this is a market leading 
product with a strong client base in canada 
we intend to market this initially in north 
america only and we have changed the 
business model from a licence fee and 
support model to an annual licence model 
whilst this has a short term impact on 
the revenue the directors believe that in 
the long run this is the best way to build 
signiﬁcant shareholder value spm has a 
solid pipeline of prospects and is expected 
to make a positive contribution to our 
results for 2007
alphai in april 2006 we acquired an 
australian business called alphai that 
develops performance software we are 
integrating this product into our web 
service platform and we expect to launch 
this late in 2007 this acquisition has also 
given us a foothold in the australian market 
and we recently won a significant new 
client there for our spa and sfi products 
which we hope will be the ﬁrst of many 
in the territory
kizen in may 2006 we acquired this south 
african business based in cape town 
that develops compliance software the 
acquisition has helped reinforce statpro’s 
strong existing position in the south african 
asset management market where the group 
now has recurring revenues of around £14 
million we have been pleased with kizen’s 
progress to date having sold ﬁve systems 
since the acquisition and we expect to 
build on this in 2007
new business
sales were strong in all regions in 2006 
compared with 2005 and previous years 
in europe we had another good year with 
our risk fixed income and performance 
products all doing well in south africa we 
had an outstanding year with eight new 
clients and many sales to existing clients 
the uk market was good but a number of 
opportunities were delayed into 2007 the 
us market ﬁnally improved following a few 
diﬃcult years with new sales up strongly 
with a number of signiﬁcant deals signed 
with custodian banks
60 of new business by value came from 
new clients and 40 from existing clients 
the average number of products per client is 
16 following our acquisitions this ratio tends 
to fall as a result of an increased number 
of clients with initially only one product 
but the average number of products per 
client for our top 30 clients by total recurring 
revenue is now 37 products and those top 
30 represent about 50 of our recurring 
revenues
sales progress was made for all products 
but the best performers were risk srm 
and fixed income sfi indeed there is a 
strong interrelationship between these two 
products as they are both required by clients 
to help analyse the risk and return from 
complex credit instruments and statpro’s 
continued expertise in this domain has 
helped cement our position in the market 
as a leading supplier
highlights this year has been another one of solid performance by statpro with strong organic growth complemented 
by three signiﬁcant acquisitions organic revenue grew by 18 from £1079 million to £1274 million and including 
acquisitions revenue increased by 35 2005 19 to £1460 million  
another solid performance… “i warmly congratulate all my colleagues 
on an excellent performance in 2006” “…few competitors possess both the expertise and
the geographical infrastructure to deliver the 
level of global service that we oﬀer”     23 statpro momentum annual report  accounts 2006
since statpro was founded in 1994 we 
have made eight acquisitions in total all 
of them adding a new product new skills 
new clients and new territories
the acquisition of fri allows us to provide 
our clients with data for the ﬁrst time so 
that we will now be able to oﬀer a complete 
service as we expand our product base we 
believe that our oﬀering becomes more 
attractive not least because our critical 
mass is now such that we can oﬀer the 
highest quality service to asset managers 
of all sizes including fri our regional 
balance now means that approximately 
43 of our recurring revenue comes from 
north america and 48 from the uk and 
continental europe with the rest of the 
world predominantly south africa and 
australia having about 9
completing the acquisition of a company is 
the ﬁrst step integration and maximisation 
of efficiencies in the enlarged group is 
the vital process to generate value four 
months after completion the integration 
of fri is progressing well and we have a 
number of speciﬁc integration projects 
for each functional area of our business 
processes not least amongst these is to 
promote our existing products to the fri 
clients and the fri products to the statpro 
clients in order to achieve crosssales sales 
processes typically take an average of six 
months to a year so we are very pleased 
that we already have our ﬁrst cross sell of 
a statpro product to an fri client and that 
the pipeline for further cross sells is looking 
promising the integration stage will be 
substantially completed by the end of the 
third quarter of 2007 when we will be able 
to launch a new range of services which 
combine software with data
the focus of our expertise is now ﬁrmly on 
the burgeoning market of complex assets 
and we believe that statpro is very well 
placed to beneﬁt from the expertise and 
intellectual property that is vested in our 
software barriers to entry into this market are 
becoming higher and we believe that few 
competitors possess both the expertise and 
the geographical infrastructure to deliver 
the level of global service that we oﬀer we 
will seek to build on this lead in 2007
people
as previously announced dominic wheatley 
resigned from the board in january 2007 
dominic had been a nonexecutive 
director since 1999 helping guide the 
company through its major transition 
from an unquoted lossmaking business 
to a successful proﬁtable dividend paying 
aim listed company the business has been 
transformed over the past eight years 
and has grown both organically and by 
acquisition the board expresses its deep 
gratitude to dominic for his contribution 
advice and support and wishes him well 
in his other business ventures
statpro’s continuing success is all about 
people and the expertise in the business i 
welcome new colleagues who have recently 
joined and warmly congratulate all my 
colleagues on an excellent performance 
in 2006 and once more urge everyone to 
make 2007 statpro’s best year yet
dividend
we paid our maiden dividend for 2005 
in may 2006 of 05p per share and an 
interim dividend for 2006 of 03p per 
share in november 2006 and the board 
now recommends the payment of a ﬁnal 
dividend of 07p for 2006 on 30 may 2007 
to those shareholders on the register on 27 
april 2007 making a total dividend of 10p 
per share for 2006 2005 05p per share we 
intend to maintain a progressive dividend 
policy reﬂecting the balance between the 
investment needs of the business and 
growth in underlying cash and earnings 
per share
outlook
we enter 2007 as we did in 2006 with 
considerable conﬁdence  we have a large 
pipeline of prospects a growing number of 
clients and a wider range of products and 
data that meet the complex requirements 
of increasingly demanding asset managers 
who we believe are planning to increase 
investment in their portfolio analytics 
systems the average value of contracts 
is expected to be higher than in previous 
years and our goal remains to achieve net 
operating margins of over 20
statpro is now a truly international business 
with just 16 of recurring revenue deriving 
from uk based clients this has resulted 
in an increased exposure to currencies 
predominantly us dollar canadian 
dollar and euro whilst we have costs in 
all these currencies we have a residual 
profit exposure on the translation of 
results into sterling we will continue to 
take reasonable measures to hedge our 
exchange risk including matching currencies 
of loans against net overseas investments 
and expected cash ﬂows  
we have had a satisfactory start to the 
current ﬁnancial year with further progress 
on the integration of fri and our cross selling 
initiatives and overall performance is in line 
with our expectations we will provide a 
further update on trading at the agm on 
16 may 2007
justin wheatley chief executive
30 march 2007
strategy our strategy remains to build strong relationships with our clients and provide them with a coherent product 
platform that delivers both better value and better analysis this means that we have grown the group by acquiring 
new products and investing in such products for growth rather than developing products from inception    
chief executive’s review…continued
the focus of our expertise…