15 July
2024
Aptitude Software Group
plc
("Aptitude", "the Group")
Trading Update and Notice of
Results
Aptitude (LSE: APTD), a market
leading provider of finance transformation software solutions,
specialising in delivering fully autonomous finance, provides an
update on trading for the six month period ended 30 June 2024 ('H1
24').
Trading
Update
Aptitude's results for the six month
period ended 30 June 2024 will be in line with the Board's
expectations and the Board remains confident that the Group will
meet market expectations for FY 2024.
Six
months ended 30 June
|
H1 2024
|
H1 2023
|
% Change
|
Annual Recurring Revenue
('ARR')1
|
£50.8m
|
£49.7m2
|
2%
|
- Software
ARR
|
£46.7m
|
£45.2m2
|
3%
|
- Assure
ARR
|
£4.1m
|
£4.5m2
|
(9%)
|
Cash
|
£24.4m
|
£24.5m
|
-
|
Net Funds3
|
£13.8m
|
£12.2m
|
13%
|
A growing pipeline of Fynapse
opportunities, as well as an increasing take up from our strategic
partners supports the Board's confidence in driving continued
growth in H2 and beyond. As signalled in May, ARR growth has been
moderated by expected client reductions within Assure, Aptitude's
recurring managed service offering. Software ARR growth improved to
3% (H1 2023: 2%) following a strong end to H1 24, including the two
new Fynapse wins previously announced supplemented by continued new
business success within Revenue Management.
The Group expects adjusted operating
profit for H1 2024 to be in line with the result achieved in H1
2023 but on lower total revenues, driven by a reduction in
non-recurring implementation revenues, as the Group continues to
transition toward a partner-led implementation model. Increasing
recurring revenues and cost efficiencies continue to achieve higher
margins for the Group. The Group also continues to enact necessary
organisational change to support the transition toward AI
Autonomous Finance and produce operational benefits.
Aptitude remains financially robust
and continues to deliver enhanced returns to shareholders through
its share buy back programme.
Alex Curran, CEO of Aptitude commented:
"We are pleased with the positive early progress
we are making, in line with our plan, as we continue our
organisational transformation to capitalise on the opportunity
across AI Autonomous Finance. Market traction for Fynapse is
growing, with wins secured during the period across new clients and
our installed base, and the acceleration of our partner strategy is
driving positive pipeline progression.
The market opportunity is
significant, and we have a clear strategy in place. Our innovative
and cutting-edge Fynapse solution, supported by key industry
partners, positions us well for future success. This together with
a robust financial position and a growing base of recurring
revenues, means we are confident in continued progress against our
plan."
Notice of
Results
Aptitude anticipates issuing its
Interim Results for the six months ended 30 June 2024 on Thursday
25 July 2024.
A virtual presentation for analysts
will take place at 11:00 a.m. (BST) on the day. Analysts wishing to
attend the webinar should contact aptitude@almastrategic.com
to register.
The person responsible for releasing
this announcement is Mike Johns, Chief Financial
Officer.
Aptitude Software Group plc
Ivan Martin,
Chairman
020-3687-3200
Alex Curran, Chief Executive
Officer
Mike Johns, Chief Financial
Officer
Alma
Strategic Communications
Caroline Forde / Hilary Buchanan /
Will Ellis
Hancock
020-3405-0205
About Aptitude Software
Aptitude Software provides software
solutions that deliver fully autonomous finance to enable its
clients to drive growth, efficiency and sustainability. Fynapse is
Aptitude's intelligent finance data management and accounting
platform designed to increase productivity and lower costs for
finance teams globally. Fynapse provides a single view of
finance and business data, unparalleled performance and automation,
faster and better insights, user-friendly functionality and
market-leading total cost of ownership.
Throughout this
announcement:
1 Annual Recurring Revenue ('ARR') is the value of Aptitude
Software's recurring revenue at a specific point in time,
normalised to a one-year period. ARR includes recurring revenues
contracted but yet to commence and excludes recurring revenues
which are currently being received but for which formal termination
has been received. Included in ARR are recurring revenues from the
Group's solution management services.
2 Constant currency is calculated by comparing the H1 2024
results with H1 2023 results retranslated at the rates of exchange
prevailing during H1 2024. Items within the Financial Highlights
table indicated by this superscript reference are calculated on a
constant currency basis.
3 Net funds represents cash and cash equivalents less finance
obligations, which are currently limited to capital lease
obligations and a bank loan