25 July 2024
APTITUDE SOFTWARE GROUP
plc
('Aptitude Software' or 'the
Group')
Interim Results for the six
months ended
30 June
2024
Aptitude Software Group plc (LSE:
APTD), a market leading provider of AI Autonomous Finance
solutions, providing a differentiated approach to finance
transformation and enabling finance teams to become strategic
partners to the business, reports its
unaudited results for the six months ended 30 June 2024.
Financial Highlights
Six months ended 30
June
|
H1 2024
|
H1 2023
|
%
Change
|
Annual Recurring Revenue ('ARR') at 30 June
|
|
|
|
Annual Recurring
Revenue1
|
£50.8m
|
£49.7m2
|
2%
|
- Software
ARR at 30 June1
|
£46.7m
|
£45.2m2
|
3%
|
- Assure
ARR at 30 June1
|
£4.1m
|
£4.5m2
|
(9%)
|
Revenue
|
|
|
|
Total Revenue
|
£35.3m
|
£37.5m
|
(6%)
|
-
Recurring Revenue3
|
£27.5m
|
£27.0m
|
2%
|
-
Implementation Revenue
|
£7.8m
|
£10.5m
|
(26%)
|
Profit
|
|
|
|
Adjusted Operating
Profit4
|
£4.2m
|
£4.2m
|
-
|
Statutory Operating
Profit
|
£2.5m
|
£1.7m
|
47%
|
Adjusted Operating
Margin4
|
11.9%
|
11.2%
|
0.7%
|
Cash and Balance Sheet
|
|
|
|
Cash and Cash
Equivalents
|
£24.4m
|
£24.5m
|
(0%)
|
Net Funds5
|
£13.8m
|
£12.2m
|
13%
|
Interim Ordinary Dividend per
Share
|
1.8p
|
1.8p
|
-
|
·
|
Increasing growth in Software ARR
of 3% (H1 2023 2%, FY 2023 0%), driven by a strong new business
performance to 30 June 2024, including wins in Fynapse and Revenue
Management.
|
·
|
Improved performance from the
software base, with the software net retention rate6
increasing to 99% (H1 2023 96%, FY 2023 96%) reflecting the revised
strategic focus and operational improvements taking
effect.
|
·
|
Recurring revenue accounted for
78% of the Group's total revenue (H1 2023 72%, FY 2023 71%), and
coupled with increasing cost efficiencies, are driving improving
operating margins across the Group.
|
·
|
Adjusted operating profit
maintained at £4.2m (H1 2023 £4.2m) despite non-recurring
implementation revenue reductions.
|
·
|
Continued balance sheet strength
with cash of £24.4 million (30 June 2023: £24.5 million) and net
funds5 of £13.8 million (30 June 2023: £12.2
million).
|
·
|
In the first quarter of 2024, the
Group commenced a share buy back programme providing enhanced
returns to shareholders.
|
Strategic and Operational Highlights:
·
|
Two additional Fynapse clients
signed in H1 2024, including one win in partnership with HSO and
Microsoft and one with a major existing Aptitude Accounting Hub
client.
|
·
|
Launch of global insurance
industry solution with HSO underpinned by Fynapse and Microsoft
Dynamics 365 demonstrating the increased take up of Fynapse by
partners and clients.
|
·
|
Growing pipeline of opportunities
for Fynapse, driven by our key strategic partnerships with
Microsoft, HSO and a big-4 accounting firm, and our focused direct
sales team.
|
·
|
Strong new business client wins
with Revenue Management in H1 demonstrating the continued value of
Aptitude's compliance suite.
|
·
|
Ongoing organisational
transformation programme to align the organisation to the Fynapse
opportunity is delivering operational improvements and cost
efficiencies across the Group and will be continuing throughout the
remainder of the year.
|
·
|
The Board remains confident that
the Group will meet market expectations for 2024.
|
Commenting on the results, Alex Curran, CEO, said:
-
'The Group has made strong
progress in the first half of 2024 across its core objectives to
deliver Fynapse clients, reduce client churn and begin to scale the
organisation through partnerships. The completion of two new
Fynapse deals in the first half of 2024 is starting to demonstrate
the adoption of the platform across existing and new clients, as
well as in combined offerings with our partners.
The robustness of the Group's
balance sheet, high levels of recurring revenue and strong cash
generation provide the Group with considerable financial strength
with which to execute on its growth strategy. Our ongoing work to
focus the organisation on the AI Autonomous Finance continues to
deliver both operational improvements and cost efficiencies. This
will set the business up to support the Fynapse opportunity as we
continue on our mission to deliver long-term sustainable
growth.'
Contacts
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
020-3405-0205
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
notice 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 Recurring Revenue includes revenues from the Group's solution
management services
4 Adjusted Operating Profit, Adjusted Operating Margin and
Adjusted Basic Earnings per Share exclude non-underlying operating
items, unless stated to the contrary. Further detail in respect of
the non-underlying operating items can be found within Note
6.
5 Net funds represents cash and cash equivalents less finance
obligations, which are currently limited to capital lease
obligations and a bank loan
6 Net retention rate is measured by the total value of on-going
ARR at the period-end from clients in place twelve months earlier
as a percentage of the opening ARR from those clients on a constant
currency basis. Software net retention rate is calculated on the
same basis but excluding Assure ARR.
Certain non-IFRS financial
measures (e.g. Adjusted Operating Profit) are included which assist
management in comparing performance on a consistent
basis
About Aptitude Software
Aptitude Software provides
software solutions that deliver fully autonomous finance to enable
its clients to drive sustainable growth and efficiency. Fynapse is
Aptitude's finance data platform designed to unlock the true power
of the finance function by transforming it into an AI-powered
strategic and trusted value creator. Fynapse achieves this in a
modular, incremental way, driving continuous improvement and rapid
time to value in stark contrast to traditional finance
transformation.
Strategic Progress
Overview
This is the first six-month
reporting period since the Group announced our revised strategic
focus under the formation of a new leadership team and the
initiation of the organisational realignment to deliver the Fynapse
opportunity. This realignment is centred on transitioning the Group
from directly selling regulatory and compliance software to a
partner-led platform organisation delivering AI Autonomous Finance,
underpinned by Fynapse.
While the transition is at an
early stage, we have already seen positive progress against our
strategic priorities of delivering against the Fynapse growth
opportunity, scaling the organisation through the strength of our
key strategic partnerships and improving client
retention.
AI Autonomous
Finance
The Fynapse platform enables the
expansion of the go-to-market opportunity for Aptitude, moving from
compliance and regulations to AI Autonomous Finance. Fynapse
unlocks the true power of the finance function by transforming it
into an AI-powered strategic and trusted value creator. Fynapse
provides a singular, trusted view of all granular business and
finance data. This improves accuracy, confidence and risk
management and enables AI-powered strategic insights.
Fynapse has a low total cost of
ownership, with rapid implementation cycles in stark contrast to
traditional finance transformation, which we believe makes the
platform commercially attractive to a wide range of organisations
varying in size and sector. Fynapse enables organisations to reduce
costs, improve operational efficiency, increase productivity, and
deliver business insights.
In the first half of the year, the
Group has signed a further two Fynapse clients across the Financial
Services sector, further enhancing the Fynapse base. One of the new
wins was achieved in partnership with HSO and Microsoft, as part of
a combined offering for Fynapse and Microsoft Dynamics 365,
demonstrating the power of our partnerships and underlining the
value of Fynapse to both prospects and partners. The second new win
was with a major existing Aptitude Accounting Hub client, a leading
global insurer. This organisation chose Fynapse due to its ability
to provide an alternative and lower risk approach to supporting
their finance transformation requirements. In each example, both
organisations have selected Fynapse to support their AI Autonomous
vision for their finance function.
The new Fynapse wins in the first
half of 2024 demonstrate the strength of the Group's partnerships
and existing base of clients. These wins are the start of our
journey to target the delivery of 80% of new Software ARR through
partners and convert a third of existing Aptitude Accounting Hub
users to Fynapse by the end of 2027.
Partner First Go To Market
Strategy
Partnerships are the key
foundation to Aptitude's scalable growth, and it is a key priority
for the Group to increase the proportion of ARR generated through a
more concentrated group of partners.
The opportunity for Fynapse is
expanded by Aptitude's partnership with Microsoft, which allows
both organisations to present an end-to-end solution to prospects,
increasing competitiveness against vendors providing single stack
functionality, as well as strengthening Microsoft's competitive
position. Fynapse is the only platform selected by Microsoft which
provides accounting hub and subledger functionality to support
Dynamics 365 and power Microsoft's AI vision with a granular,
trusted and single view of all business and finance data. Microsoft
and Aptitude's Autonomous Finance visions are complementary and the
AI functionality available in Microsoft's platforms further enable
Fynapse's capabilities and market opportunity.
In the first half of 2024,
Aptitude and HSO announced the launch of a global industry solution
underpinned by Fynapse and Microsoft Dynamics 365 to support the
Insurance industry. HSO is a key strategic partner, a reseller of
Microsoft Dynamics 365, and provides sector expertise and
implementation services in support of the combined offering. The
launch of this combined offering demonstrates the speed with which
partners can work with Fynapse, improving usability by clients and
partners alike.
Aptitude is aiming to achieve 30%
of its Software ARR bookings through partners by the end of 2024 on
the journey to deliver 80% of Software ARR through partners by the
end of 2027. In the first half of 2024, Aptitude signed 38% of new
Software ARR through partners, supported by both newer
relationships with HSO and longer relationships with a big-4
accountancy firm which has developed a managed services offering in
partnership with Aptitude and Microsoft.
The progress achieved in the first
half of 2024 is supporting accelerated momentum in the pipeline of
Fynapse opportunities through partners. Fynapse enables partners to
target multiple sectors and tier 1, 2 and 3 organisations, which in
time will support an increase in deal velocity. Fynapse also
supports multiple partner channel types, including co-sell,
referral, managed service and reseller commercial models through
its ease of use and short skill up time required from
partners.
Organisational Change and
Operational Efficiency
The Group continues to enact
necessary organisational change to support the transition toward AI
Autonomous Finance.
The foundations for this change
have been placed with a new and refreshed leadership team and a
flattened organisational structure. The Group's new objectives and
key results framework ('OKR's) has helped to drive performance
improvement across all functions in the first half of 2024 in the
key areas of Fynapse delivery, the reduction of client churn and
the scaling of the organisation through the strength of our key
strategic partnerships.
The Group has conducted reviews
across all functions to deliver the necessary process changes
required as the business transitions away from its traditional
compliance focus and towards a modern, SaaS-centric organisation.
These reviews have highlighted areas for improvement in both
effectiveness and efficiency, and the leadership team is focused on
delivering this change throughout 2024.
The continued focus on efficiency
has delivered improved margins in the first half of 2024, when
compared with the first half of 2023. Additionally, the net
retention rate for Software ARR in the year to 30 June 2024 has
also increased to 99% from 96% in the year to 30 June 2023. There
is further work to do to set up the organisation for success with
AI Autonomous Finance, but initial progress has demonstrated that
changes can deliver both increased efficiency and
effectiveness.
Products
AI Autonomous Finance and
Finance Transformation
AI Autonomous Finance and finance
transformation includes both the Fynapse platform and the Aptitude
Accounting Hub ('AAH').
Aptitude's vision for AI
Autonomous Finance enables the finance function to become
AI-powered strategic and trusted value creators, powering
sustainable growth and efficiency. This is achieved through a
singular, trusted view of all granular business and finance data,
which improves accuracy, confidence and risk management. This
enables AI-powered strategic insights and improved decision-making
and allows finance teams to power sustainable growth and
efficiency.
Fynapse, the Group's finance data management platform delivers on Autonomous
Finance, with a cloud native, highly performant and modular
solution that not only serves operational and regulatory accounting
requirements, but also delivers a granular data fabric upon the
extendable Fynapse data cloud. Fynapse provides the rich foundation
for AI tooling, enabling Aptitude's clients to realise the
efficiencies that may be achieved from emerging AI technologies and
the Autonomous Finance function.
Along with the overall Fynapse
platform, the Group has initially developed the accounting rules
and subledger engines which build upon the successful AAH product.
AAH is the Group's established heritage product which centralises
and automates finance, accounting and reporting processes, creating
a deep level of operational intelligence for our
clients.
Subscription
Management
eSuite, Aptitude's subscription
management tool, is a modular, cloud based end-to-end SaaS solution
for large, international, enterprise customers. The application is
targeted towards the subscription economy and provides identity
management, CRM, automated billing, payment processing, and churn
management capabilities, enabling businesses to acquire, monetise
and optimise customers subscriptions.
While macroeconomic conditions
have had a short-term effect on the predominantly media and
publishing dominated eSuite client base, the Group is confident in
the opportunity for eSuite. Investment levels in eSuite have been
managed to strengthen functionality, minimise churn and position
the product well as macroeconomic conditions improve. The Group
will take a targeted go-to-market approach, prioritising the key
media and publishing sectors in line with eSuite's
strengths.
Compliance
Suite
The compliance suite includes the
Aptitude Insurance Calculation Engine ("AICE"), Aptitude RevStream
("AREV"), the Aptitude Revenue Recognition Engine ("ARRE"), the
Aptitude Lease Accounting Engine ("ALAE"), Aptitude Calculate
("AC") and the Aptitude Platform ("APT").
The Group has achieved significant
historical success with its suite of compliance products. The
products have generated a sizeable amount of Annual Recurring
Revenue and demonstrated Aptitude's strength and credibility in
serving the office of the CFO and underpin the AI Autonomous
Finance vision. Aptitude's target for the compliance suite is in
maintaining client satisfaction, minimising client churn and
cross-selling Fynapse. The Group will take a selective go-to-market
approach and establish investment at appropriate levels to ensure
high levels of client satisfaction.
Assure and Implementation
Services
Aptitude Assure is a solution
management service from Aptitude's Innovation Centre in Poland. It
extends beyond traditional software maintenance, covering tasks
usually handled by clients' teams, such as release management,
processing support, client enablement and solution optimisation
through performance monitoring. Assure helps clients adopt new
product features, especially beneficial for Fynapse clients as the
product evolves. This high margin, recurring service offers a lower
cost of ownership for clients.
Aptitude also provides
implementation services, with the scale determined by the
application, opportunity size and the division of responsibilities
between Aptitude and its partners. These services are delivered by
highly skilled individuals with deep domain, technical and
functional expertise, setting Aptitude apart from
competitors.
The Group remains committed to
maintaining a high-quality delivery capability to support clients
and partners.
People and Locations
Aptitude has office locations
across the UK, US, Poland, Singapore, Australia and Canada, and the
Group's two technology centres are based in Poland and the
north-west of England. The Group's presence in Poland continues to
generate cost advantages for Aptitude.
Aptitude targets a
high-performance culture, where individuals can achieve their
potential in support of the Group's objectives. The Group regularly
assesses employees on a performance and potential basis, with an
aim to invest in and develop key talent. Through this assessment,
the Group is able to retain and develop key talent in support of
succession planning, actively manage lower performers to a better
outcome and increase efficiency.
Overall headcount decreased 14%
over the year to 452 (31 December 2023: 472, 30 June 2023: 524).
The reduction in headcount is a result of cost reduction action
taken in 2023 and ongoing effectiveness and efficiency reviews in
2024. The new structure is flatter, with a reduced management
layer, and more efficient. Of the total headcount, 246 (31 December
2023: 281, 30 June 2023: 226) are based at the innovation centres
and working on the design, implementation, and support of the
Group's products. The Group continues to monitor headcount closely,
with future roles hired in line with the revenue
opportunity.
In line with Aptitude's approach
to diversity and inclusion the Group has implemented structural
processes to ensure fairness in approach to promotions and
compensation in 2024. Additionally, the Group is continuing the
Women in Leadership initiative to help attract a diverse range of
talent to its leadership roles.
Summary
Aptitude has made demonstratable
progress against its core objectives of delivering Fynapse,
reducing client churn and scaling the organisation through
partnerships in the first half of 2024.
The Group continues to move
through a transitionary phase, away from regulation and compliance
and towards AI Autonomous Finance, which has required major
organisational change. Throughout this period, Aptitude has
continued to deliver growing ARR, increased recurring revenue
proportions and improving margins.
Work continues in 2024 to position
the organisation to effectively capitalise on the AI Autonomous
Finance opportunity, building on the firm foundations delivered in
H1.
Financial Performance
The Group delivered a solid
performance in the first half of 2024, with increasing recurring
revenues and cost efficiencies driving an improved margin
performance.
The Group's robust balance sheet,
high levels of recurring revenue and strong cash generation provide
the Group with considerable financial strength with which to
execute on its growth strategy.
Revenue
Recurring
Revenues
Recurring revenues recognised in
the six months ended 30 June 2024 increased by 2% to £27.5 million
(H1 2023: £27.0 million). These now represent 78% of overall
revenue (H1 2023: 72%). It is a key part of the Group's strategy to
increase this percentage whilst maximising the growth rate of
Aptitude Software's ARR. This strategy is delivering a growth in
operating margin.
Aptitude's ARR at 30 June 2024
totalled £50.8 million (31 December 2023: £51.2 million, 30 June
2023: £49.7 million both on a constant currency basis) representing
overall year-on-year growth of 2%. Included within ARR is the value
of the Group's recurring solution management services contracts
('Assure') of £4.1 million (31 December 2023: £4.9 million, 30 June
2023: £4.5 million both on a constant currency basis).
The net retention rate for
Software ARR for the 12 months to 30 June 2024 was 99% (H1 2023:
96%) The improvement in the software net retention rate reflects
the increased focus on reducing client churn and improving customer
outcomes. The overall net retention rate in the 12 months to 30
June 2024 was 98% (H1 2023: 98%) and was moderated by expected
reductions within Assure. Net retention rate is measured by the
total value of on-going ARR at the period-end from clients in place
twelve months earlier as a percentage of the opening ARR from those
clients on a constant currency basis.
A significant majority of the
Group's recurring revenue contracts include the ability to increase
ARR for clients by relevant consumer price index rises ('CPI'). The
majority of the Group's renewals fall in the second half of the
year, at which time CPI uplifts are processed, resulting in the
larger proportion of any price increases occurring in
H2.
Implementation
Services
Non-recurring implementation
services revenue totalled £7.8 million for the six months ended 30
June 2024 (H1 2023: £10.5 million). The reduction in implementation
services revenues reflects the Group's shift to a partner-led
services model and is in line with expectations.
Research and Development Expenditure
Total expenditure on product
management, research and development in the six months ended 30
June 2024 remained level at £8.6 million (H1 2023: £8.6 million).
The Group carefully manages its cost base to ensure that it is
operating efficiently and effectively while ensuring that strategic
product development is accelerated.
The Board has continued to
determine that none of the internal research and development costs
incurred during the first half of the year meet the criteria for
capitalisation. Consequently, these have been expensed as incurred
through the income statement.
Operating Profit and Margins
Adjusted Operating Profit for the
six months ended 30 June 2024 was £4.2 million (H1 2023: £4.2m).
Operating profit on a statutory basis was £2.5 million (H1 2023:
£1.7 million). Adjusted Operating Margin for the six months ended
30 June 2024 was 11.9% (H1 2023: 11.2%). The increase in margin
reflects both a transition to higher margin recurring revenues, as
well as a continued focus on cost efficiency.
Foreign Exchange
With 48% (H1 2023: 53%) of the
Group's revenues being generated from North American clients, the
majority of which are invoiced in US Dollars, the financial results
are impacted by changes in the US dollar exchange rate. Aptitude
Software's H1 2023 revenue and Adjusted Operating Profit would have
been reported at £37.4 million and £4.2 million respectively on a
constant currency basis (compared to actual result of £37.5 million
and £4.2 million). Constant currency is calculated by comparing the
2023 results with 2024 results retranslated at the rates of
exchange prevailing during 2024.
Non-Underlying Items
Non-underlying items of £1.7
million (H1 2023: £2.5 million) principally comprises of intangible
amortisation.
Taxation
The total tax charge of £0.5
million (H1 2023: £0.4 million) represents 21% of the Group's
profit before tax (H1 2023: 22%).
Statutory Results
The Group reported a profit for
the period attributable to equity shareholders of £2.0 million (H1
2023: £1.3 million).
Earnings per Share
Adjusted Basic Earnings per Share
and Basic Earnings per Share increased to 5.8 pence and 3.5 pence
(H1 2023: 5.7 pence and 2.3 pence).
Dividend
An interim dividend of 1.8 pence
per share is declared (2023: 1.8 pence). The interim dividend will
be payable on 23 August 2024 to shareholders on the register at the
close of business on 2 August 2024.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. General
information
Aptitude Software Group plc (the
'Company') and its subsidiaries (together, the 'Group') is a
specialist provider of AI Autonomous Finance solutions.
The Company is a public limited
company incorporated and domiciled in England and Wales with a
primary listing on the London Stock Exchange. The address of its
registered office is 8th Floor, 138 Cheapside, London
EC2V 6BJ.
These condensed consolidated
interim financial statements were approved for issue on 24 July
2024.
These condensed consolidated
interim financial statements do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2023 were
approved by the Board of directors on 20 March 2024 and delivered
to the Registrar of Companies. The report of the auditors on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of
the Companies Act 2006.
2. Basis of
preparation
These condensed consolidated
interim financial statements for the six months ended 30 June 2024
have not been audited or reviewed by the auditors. The interims
have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Services Authority and with IAS
34, 'Interim financial reporting'. These condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2023,
which have been prepared in accordance with UK adopted
international accounting standards and company law.
3. Accounting
policies
The accounting policies adopted
are consistent with those of the previous financial statements,
except as described below.
Taxes on income in the interim
periods are accrued using the tax rate that would be applicable to
expected total annual profits.
New and amended standards and
interpretations need to be adopted in the first interim financial
statements issued after their effective date. There are no new
IFRSs or IFRICs that are effective for the first time for this
interim period that would be expected to have a material impact on
the financial statements.
4.
Estimates
The preparation of interim
financial statements requires management to make judgements,
estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets, liabilities, income and expense. Actual results may differ
from these estimates. In preparing these condensed consolidated
interim financial statements, the significant judgements made by
management in applying the Group's accounting policies and the key
sources of estimation uncertainty were the same as those that
applied to the consolidated financial statements for the year ended
31 December 2023, with the exception of changes in estimates that
are required in determining the provision for income
taxes.
Fair value estimation
Financial instruments not measured at fair
value
Financial instruments not measured
at fair value includes cash and cash equivalents, trade and other
receivables, trade and other payables, and loans and borrowings.
However, due to their short-term nature and ability to be
liquidated at short notice their carrying value approximates to
their fair value.
Financial instruments measured at fair
value
The fair value hierarchy of the
financial instruments measured at fair value is provided
below.
|
Level 2
inputs
|
|
Unaudited
six months
ended
30 Jun 2024
£'000
|
Unaudited
six
months
ended
30 Jun
2023
£'000
|
Financial assets
|
|
|
Derivative financial assets
(designated hedge instruments)
|
574
|
1,558
|
|
|
|
The derivative financial assets
and liabilities have been valued using the market approach and are
considered to be Level 2 inputs. There were no changes to the
valuation techniques used in the year. There were no transfers
between levels during the year.
5. Segmental
information
Business
segments
The only business segment during
both periods presented was Aptitude Software and therefore certain
segmental analysis is not required.
Geographical
segments
The Group has two geographical
segments for reporting purposes, the United Kingdom and the Rest of
the World.
The following table provides an
analysis of the Group's sales by origin and by
destination.
|
Sales revenue by
origin
|
|
Sales revenue by
destination
|
|
Unaudited six months ended
30 June 2024
|
|
Unaudited six months ended 30 June 2023
|
|
Unaudited six months ended
30 June 2024
|
|
Unaudited six months ended 30 June 2023
|
Continuing operations
|
£000
|
|
£000
|
|
£000
|
|
£000
|
United Kingdom
|
20,589
|
|
19,607
|
|
6,315
|
|
5,990
|
Rest of World
|
14,671
|
|
17,929
|
|
28,945
|
|
31,546
|
|
35,260
|
|
37,536
|
|
35,260
|
|
37,536
|
The Group derives revenue from the
transfer of goods and services in the following major categories
and geographical regions, these being the United Kingdom ('UK') and
Rest of the World ('RoW'):
Unaudited six months ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring
revenue
|
|
Non-recurring
revenue
|
|
|
|
|
UK
|
|
RoW
|
|
Total
|
|
UK
|
|
RoW
|
|
Total
|
|
Total
|
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
Revenue from external clients
|
5,065
|
|
22,416
|
|
27,481
|
|
1,250
|
|
6,529
|
|
7,779
|
|
35,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited six months ended 30 June
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring revenue
|
|
Non-recurring revenue
|
|
|
|
|
UK
|
|
RoW
|
|
Total
|
|
UK
|
|
RoW
|
|
Total
|
|
Total
|
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
Revenue from external
clients
|
|
4,844
|
|
22,154
|
|
26,998
|
|
1,147
|
|
9,391
|
|
10,538
|
|
37,536
|
All of the revenue displayed in
the above table is recognised over time in line with the Group's
accounting policy detailed on pages 86 to 89 of the Aptitude
Software Group plc 2023 Annual Report and has been generated from
contracts with clients.
The following is an analysis of
the carrying amount of non-current assets (excluding deferred tax
assets), and additions to property, plant and equipment and
intangible assets (excluding right-of-use asset additions resulting
from property lease agreements) and intangible assets, analysed by
the geographical area in which the assets are located.
|
Carrying amount of
non-current assets
|
|
Capital
expenditure
|
|
Unaudited six months ended
30 June 2024
|
|
Unaudited six months ended 30 June 2023
|
|
Unaudited six months ended
30 June 2024
|
|
Unaudited six months ended 30 June 2023
|
|
£000
|
|
£000
|
|
£000
|
|
£000
|
United Kingdom
|
52,961
|
|
56,194
|
|
52
|
|
91
|
Rest of World
|
14,056
|
|
15,627
|
|
20
|
|
404
|
|
67,017
|
|
71,821
|
|
72
|
|
495
|
The Company's business is to
invest in its subsidiaries and, therefore, it operates in a single
segment.
6. Non-underlying
items
|
|
Unaudited six months ended
30 Jun 2024
|
|
Unaudited six months ended 30 Jun 2023
|
|
Audited
year ended 31 Dec 2023
|
|
|
£000
|
|
£000
|
|
£000
|
Continuing operations
|
|
|
|
|
|
Amortisation of acquired
intangibles
|
1,690
|
|
1,690
|
|
3,381
|
Share repurchase costs
|
12
|
|
-
|
|
-
|
Acquisition and associated
reorganisation costs
|
-
|
|
798
|
|
1,060
|
|
|
1,702
|
|
2,488
|
|
4,441
|
|
|
|
|
|
|
| |
7. Income tax
expense
Income tax expense is recognised
based on management's estimate of the weighted average income tax
rate expected for the full financial year of 21% (the estimated tax
rate for the six months ended 30 June 2023 was 22%).
8. Earnings per
share
|
Unaudited six months
ended
30 Jun
2024
|
|
Unaudited six months ended 30 Jun 2023
|
|
Audited
year
ended
31 Dec
2023
|
|
pence
|
|
pence
|
|
pence
|
|
|
|
|
|
|
Earnings per share
Basic
|
3.5
|
|
2.3
|
|
7.2
|
Diluted
|
3.5
|
|
2.2
|
|
7.1
|
|
Unaudited six months
ended
30 Jun
2024
|
|
Unaudited six months ended 30 Jun 2023
|
|
Audited
year
ended
31 Dec
2023
|
|
pence
|
|
pence
|
|
pence
|
|
|
|
|
|
|
Adjusted earnings per share
Basic
|
5.8
|
|
5.7
|
|
13.6
|
Diluted
|
5.8
|
|
5.5
|
|
13.5
|
To provide an indication of the
underlying operating performance the adjusted earnings per share
calculation above excludes intangible amortisation and other
non-underlying items and has a tax charge based on the effective
rate.
|
Unaudited six months
ended
30 Jun
2024
|
|
Unaudited six months ended 30 Jun 2023
|
|
Audited
year
ended
31 Dec
2023
|
|
pence
|
|
pence
|
|
pence
|
|
|
|
|
|
|
Basic earnings per share
|
3.5
|
|
2.3
|
|
7.2
|
Non-underlying items
|
2.3
|
|
3.4
|
|
6.2
|
Prior years' tax credit
|
-
|
|
-
|
|
0.5
|
Recognition of tax losses
|
-
|
|
-
|
|
(0.3)
|
Adjusted earnings per
share
|
5.8
|
|
5.7
|
|
13.6
|