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StaPro posts interim profits rise, Revolution product well-received by market

StatPro (LON:SOG), the maker of software used by the fund management industry, said its profit margins fell slightly as it invested in new products such as its Revolution platform.

But with sales up 9 per cent at £15.5 million in the six months ended June 30, the group posted a 6 per cent rise in pre-tax profits ton £3.59 million.

Net debt fell to £6.31 million in the period from £8.89 million, while increased product development costs saw operating margins edge down to 22.2 per cent from 23.5 per cent.

However, its new software platforms have been well received, and as already revealed the group is committing a further £700,000 to Revolution development this year.

"Early market reaction to StatPro Revolution has been very positive and sales of Seven continue to be solid, we are confident therefore of a successful outcome to the year," said chief executive Justin Wheatley.

Elsewhere, the group painted a mixed picture of trading, saying its markets had been affected by the turmoil on the bond and equity markets.

However the chief executive reckons there are opportunities as new banking and financial regulation is introduced in Europe and the US.

"We consider such regulation to be an opportunity for StatPro to make further sales, especially of our acclaimed Risk and Compliance capacity," Wheatley added.

"In addition, we have seen renewed interest in our Complex Asset Pricing capability especially in respect of illiquid bonds, of which there are an increasing number."

Underlining StatPro’s confidence in the future, it is paying an interim dividend of 0.7p, a rise of 17 per cent.