REG - Aptitude Software - Audited Results for Year Ended 31 December 2024
26/03/2025 07:16
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250326:nRSZ1457Ca&default-theme=true
RNS Number : 1457C Aptitude Software Group PLC 26 March 2025
26 March 2025
APTITUDE SOFTWARE GROUP PLC
('Aptitude' or 'the Group')
Audited Results for the Year Ended
31 December 2024
Aptitude (LSE: APTD), a market-leading provider of finance transformation
software solutions, specialising in autonomous finance, reports its Audited
Results for the year ended 31 December 2024.
The Group has delivered a robust performance amidst an ongoing strategic
transition of the business, demonstrating continued Annual Recurring Revenue
('ARR') growth, strong pipeline progression and operational efficiency while
building the foundations for accelerated success in the future.
Financial Highlights
Year ended 31 December 2024 2023 % Change
Annual Recurring Revenue(1, 2) ('ARR') at year end £52.1m £51.3m 2%
- AI Autonomous Finance(6) £17.1m £15.3m 12%
- Other Software £29.8m £31.0m (4%)
- Assure £5.2m £5.0m 4%
Revenue
Total Revenue £70.0m £74.7m (6%)
- Recurring Revenue(3) £54.4m £53.4m 2%
- Non-Recurring Revenue £15.6m £21.3m (26%)
Recurring Revenue proportion 78% 71% 7%
Profit and EPS
Adjusted Operating Profit(4) £9.9m £9.7m 2%
Statutory Operating Profit £5.7m £5.3m 8%
Adjusted Operating Margin(4) 14% 13% 1%
Basic Earnings per Share 8.8p 7.2p 22%
Cash and Balance Sheet
Cash and cash equivalents at year end £30.4m £34.1m (11%)
Net funds(5) £20.3m £22.7m (11%)
Share buyback completed £4.0m - N/A
Final Ordinary Dividend per Share 3.6p 3.6p -
Full Year Ordinary Dividend per Share 5.4p 5.4p -
· ARR growth within AI Autonomous Finance, the Group's strategic focus, of 12%
reflecting significant market opportunity and a well-positioned product
portfolio.
· Adjusted operating margin of 14% (2023: 13%), driven by robust cost control
and increasing margins through an improving revenue mix.
· Strong cash position, with £30.4m cash (2023: £34.1m) and £20.3m net funds
(2023: £22.7m), enabling continued enhanced shareholder returns through the
share buyback programme. A total of £4.0m shares were bought back by the
Company in 2024.
· Maintained full year dividend of 5.4p per share.
Operational Highlights
We are fundamentally transforming the business to enable long-term, scalable
growth - embedding a new operating model across go-to-market, product and
engineering, client experience, and our partner ecosystem.
Key successes include:
· Expanding the Pipeline - Grew the Fynapse pipeline 15x in active opportunities
and 10x in value since July 2023.
· Securing Enterprise Clients - Signed six major Fynapse clients: T-Mobile,
HCSC, KPMG, Inspired, One Digital, and Chubb, including three AAH migrations.
· Driving Cross-Sell & Upsell - Revamped Client Experience function, leading
to 21 client expansions in 2024, reinforcing future Fynapse adoption, and
reducing software churn to 8% in 2024 (2023: 10%).
· Strengthening Go-to-Market Execution - Rebuilt and refined go to market
("GTM") execution for greater market traction.
· Scaling Partner-Led Sales - Streamlined from 60 partners to six managed
partners (Microsoft, Deloitte, EY, KPMG, Capgemini, HSO), exceeding our
initial 30% ARR partner-sourced target.
· Transforming Product & Engineering - Appointed a Chief Product &
Technology Officer ("CPTO") and implemented a Product vs. Project Management
approach, significantly improving efficiency and output.
· Good new business success across other products - Large Australian bank taking
the Aptitude Accounting Hub ('AAH') and several US organisations taking
Aptitude Revenue Management ('ARM').
· Extended engagement with 21 clients in 2024 taking expanded offerings and
reinforcing stronger client relationships - All are clients with the potential
for future Fynapse adoption.
Outlook
· Strong growth in Fynapse pipeline value and opportunities, with 70% of
pipeline connected to the partner channel.
· The Board has decided to accelerate the transition from being dependent on
in-house implementation services to a partner-led model which we expect will
in due course result in partners delivering implement services.
· This is a deliberate acceleration of the model already in motion - because
partner-led execution delivers scale, efficiency, and access to faster-moving
Tier 2 and 3 opportunities.
· While this will impact short-term revenue, this is a necessary step toward a
higher-margin, better quality ARR model. As a result, 2025 revenues and
profits are expected to remain similar to 2024, before returning to growth in
2026.
With strong leadership, a SaaS-first, partner-led model, and disciplined
execution, Aptitude is well-positioned to unlock the full value of the Fynapse
opportunity - driving scalable growth, margin expansion, and market
leadership. We believe this partner-led model will be underpinned by
high-quality recurring revenue, growing profitability over time, and strong
cash generation.
Commenting on the results, Alex Curran, Chief Executive Officer, said: -
"2024 has been a year of rapid and deliberate transformation. In a short space
of time, we've reshaped the business and put Aptitude firmly on the path to
becoming a high-margin, SaaS leader in autonomous finance transformation.
We've delivered double-digit growth in AI Autonomous Finance ARR and
significantly expanded the Fynapse pipeline through our shift to a
partner-first model.
These proof points underpin our confidence as we accelerate
execution-committing fully to a partner-led strategy that drives scale,
improves revenue quality, and expands margins. We're building a business
designed for long-term growth, market leadership, and a defining role in the
future of AI-powered finance."
Analyst Presentation
A presentation for analysts will take place at 09:00 today. Analysts wishing
to attend should contact aptitude@almastrategic.com
(mailto:aptitude@almastrategic.com) to register.
Aptitude Software Group
plc
020-3687-3200
Alex Curran, Chief Executive Officer
Ivan Martin, Chairman
Mike Johns, Chief Financial Officer
Canaccord Genuity
Limited
020-7523-8000
Simon Bridges / Andrew Potts
Alma Strategic
Communications
020-3405-0205
Caroline Forde / Hilary Buchanan
Prior to publication the information communicated in this announcement was
deemed by the Company to constitute inside information for the purposes of
article 7 of the Market Abuse Regulations (EU) No 596/2014 as amended by
regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations No
2019/310 ('MAR'). With the publication of this announcement, this information
is now considered to be in the public domain.
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'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 2024 results with 2023
results retranslated at the rates of exchange prevailing during 2024. 2023 ARR
has been restated to reflect constant currency.
3 Recurring Revenue includes revenues from the Group's solution management
services.
4 Adjusted Operating Profit and Adjusted Operating Margin exclude
non-underlying operating items, unless stated to the contrary, but includes
share-based payments. Further detail in respect of the non-underlying
operating items can be found within Note 2.
5 Net Funds represents cash and cash equivalents less finance obligations,
which includes capital lease obligations and a loan.
6 AI Autonomous Finance ARR includes ARR from the Aptitude Accounting Hub
('AAH') and Fynapse.
Certain non-IFRS financial measures (e.g. Adjusted Operating Profit) are
included which assist management in comparing performance on a consistent
basis.
Chairman's Statement
Reflecting on a Decade of Transformation
As I enter my final year as Chairman of Aptitude, I reflect on nearly a decade
of strategic change. The Company has transformed from a multi-asset
organisation into a regulatory and compliance software business and now into a
SaaS-driven, CFO-focused leader, poised to lead the next phase of AI-powered
finance transformation.
Strengthening Our Market Position
Aptitude has always anticipated market shifts, but the scale of our current
transformation is unmatched during my time as Chairman. In 2024, we took
decisive steps to transition to a partner-first, SaaS-led model. We recognised
that a services-heavy approach would constrain scalability, slow Fynapse
adoption, and limit long-term revenue growth. In 2025, we are accelerating the
shift further, making the necessary adjustments to fully embed this model and
ensure long-term scalability, profitability, and competitive strength.
Executing the Business Model Shift
As Fynapse implementations become faster and demand for AI-powered finance
transformation grows, it is critical that we transition more services to
partners. This approach maximises scalability, strengthens partner engagement,
and drives sustainable ARR growth ensuring Aptitude is fully aligned with a
high-margin SaaS business model.
To drive long-term success, we are:
· Prioritizing strategic partners that can accelerate adoption at scale.
· Continuing the restructuring of our operating model to fully support a
partner-first SaaS strategy.
· Investing in go-to-market execution to capitalise on the growing Fynapse
pipeline.
These structural changes will continue throughout 2025. This transition
positions us to capitalise on the £3bn+ market opportunity, ensuring
sustainable growth and reinforcing Aptitude's leadership in AI-powered finance
transformation.
Board and Leadership Evolution
As previously announced, Barbara Moorhouse will step down at this year's AGM,
and on behalf of the Board I would like to express my gratitude for the hard
work, talent and support she has put into the business since her appointment
as Non-Executive Director ('NED') and Audit Chair in April 2017, and her
subsequent role as Senior Independent Director and Remuneration Committee
Chair in April 2022. Her contributions have been invaluable, and I wish her
the very best for the future.
Our CFO, Mike Johns, will also be stepping down from his position following
the publication of the Annual Report and Accounts, and we wish him all the
very best and thank him for his support over his seven years with the Group.
The Board has engaged the services of a leading executive search firm to
appoint both a new NED and CFO. The search for a new NED and potential future
Chairperson is well progressed. The search for a CFO is at an earlier stage
but Aptitude has a strong finance function to support the business in the
interim.
Looking Ahead with Confidence
The transformation we have embarked on is ambitious, necessary, and built for
long-term value creation. 2024 was a year of foundational change refining
our partnership model, operational structure, and go-to-market strategy.
As we move into 2025, the focus is clear:
· Strengthen execution, embedding a partner-first mindset across every part of
the business.
· Drive profitable, scalable growth, leveraging our first-mover advantage in
AI-powered finance transformation.
· Continue operational discipline, balancing investment with cost control to
maintain sustainable financial performance.
As I enter my final year as Chairman, I do so with confidence in Aptitude's
trajectory. With a clear strategy, strong leadership, and increasing market
adoption of Fynapse, the Company is well-positioned to deliver long-term value
for its customers, partners, and shareholders. I extend my sincere thanks to
all who have contributed to and supported Aptitude's success.
Dividend and Share Buyback
The Board has proposed an unchanged final dividend of 3.60 pence per share
(2023 3.60 pence), making a total ordinary dividend of 5.40 pence per share
for the year (2023: 5.40 pence). Subject to shareholder approval at the
Group's Annual General Meeting on 28 May, the proposed final dividend will be
paid on 13 June 2025 to shareholders on the register at 23 May 2025.
In 2024, the Group operated a share buyback programme and repurchased £4.0m
of its own Ordinary Share Capital to 31 December 2024. The buyback programme
is in accordance with the Group's authority to make market purchases of its
own Ordinary Shares granted to it by shareholders on 14 May 2024. The share
buyback programme is for £20m over a three-year period and the Group intends
to continue with the buyback as originally stated.
Outlook
Aptitude is entering 2025 with a sharpened focus on scalability,
profitability, and long-term growth. The foundational shifts made in 2024
embedding a partner-first, SaaS-led model, refining go-to-market execution and
accelerating Fynapse adoption position the Company to capitalise on the £3bn+
market opportunity in AI-powered finance transformation. While the transition
from a services-heavy approach will impact short-term revenue, it is a
necessary step toward a higher-margin, better quality ARR model. With strong
leadership, strategic partnerships, and disciplined execution, Aptitude is
well-positioned for sustained growth and market leadership in the years ahead.
Ivan Martin
Chairman
25 March 2025
Chief Executive Officer's Report
Overview
Aptitude is accelerating its transformation. In 2024, we were in line with
market consensus expectations while shifting rapidly from an on-premise
compliance model to a partner-first, SaaS-led business. We overhauled
go-to-market execution, product development, client experience, and partner
engagement. Fynapse is gaining traction, our pipeline is expanding, and a
smaller number of key partners are fully engaged.
We now face a choice: maintain a services-heavy model for short-term stability
or accelerate toward scalable, high-margin growth. We choose acceleration. In
2025, we are doubling down on our partner-first strategy to drive Fynapse
adoption, scale ARR, and strengthen revenue and profitability over time.
This is an intensification of our plan to achieve 80% of ARR through partners
by 2027, maximising growth and driving competitive advantage. To succeed, we
now know we must shift more services to partners and prioritise software
revenues, creating a more predictable and scalable business.
Aptitude is targeting a £3bn+ market opportunity as finance functions embrace
AI-powered, real-time decision-making. With Fynapse, we are positioned to lead
this transformation across Tier 1, 2, and 3 organisations through a
partner-first, SaaS-led model.
We are now midway through this transition, with further structural changes
planned in 2025 to fully align our organisation and operations. Without this
shift, long-term growth will be constrained, impacting partner momentum and
competitiveness. While this transformation requires short-term adjustments, it
ensures we will build a stronger, more resilient business for the future.
2024 Achievements: Driving Momentum
In just 12 months, we have fundamentally rewired the business to scale
efficiently and align with our partner-first, SaaS-first strategy. Key
achievements include:
· Expanding the Pipeline - Grew the Fynapse pipeline 15x in active opportunities
and 10x in value since July 2023, with 70% of opportunities tied to partners.
· Securing Enterprise Clients - Signed six major Fynapse clients: T-Mobile,
HCSC, KPMG, Inspired, One Digital, and Chubb, including three AAH migrations.
· Driving Cross-Sell & Upsell - Revamped Client Experience function, leading
to 21 client expansions in 2024, reinforcing future Fynapse adoption.
· Strengthening Go-to-Market Execution - Rebuilt and refined GTM execution for
greater market traction.
· Scaling Partner-Led Sales - Streamlined from 60 partners to six managed
partners (Microsoft, Deloitte, EY, KPMG, Capgemini, HSO), exceeding our
initial 30% ARR partner-sourced target.
· Transforming Product & Engineering - Appointed a CPTO and implemented a
Product vs. Project Management approach, significantly improving efficiency
and output.
These changes have strengthened our foundation, but they have also underscored
the urgency of accelerating our partner-led model.
Accelerating the Business Model Shift
Aptitude's transition to a partner-first, SaaS-led model is reshaping our
business for greater scalability, efficiency, and profitability. Faster
Fynapse implementations, a shift to high-margin ARR revenue, and deeper
partner enablement are key drivers of this evolution. To sustain momentum, we
are investing in partner execution, sales acceleration, and product
differentiation, ensuring long-term growth.
Scaling for Growth
To capitalise on the £3bn+ opportunity, we are embedding a partner-first
approach that expands market reach, accelerates adoption, and enhances
efficiency. By reducing implementation risk, freeing internal resources for
innovation, and prioritising software ARR, we will strengthen revenue
predictability and competitive positioning. While this requires upfront
investment, it cements Aptitude's leadership in AI-powered finance and builds
a high-growth, high-margin SaaS business.
Executing with Discipline: Scaling Fynapse for the Future
The transition to AI-powered, autonomous finance is an industry-defining
moment, and Aptitude is at the forefront. We are not just launching a product;
we are defining a category. The steps taken in 2024, combined with our
partner-first approach, ensure we are positioned to drive this market shift.
A High-Performance Culture: Our People Drive Success
Aptitude's success is driven by its people, and I want to thank our team for
their dedication during this transformation.
We continue to foster a high-performance, results-driven culture retaining key
talent while actively managing underperformance to maximise efficiency and
impact.
Outlook: Accelerating Execution in 2025 & Beyond
Aptitude is advancing its transformation, building on the decisive shifts made
in 2024. We have embedded a partner-first, SaaS-led model, significantly
expanded our pipeline, and secured major enterprise clients, reinforcing our
market position.
In 2025 we are accelerating execution - moving from a services-heavy model to
a fully partner-driven approach that scales Fynapse adoption, strengthens
margins, and enhances long-term revenue quality. While this transition will
impact short-term services revenue, it will over time:
· Improve profitability
· Increase revenue predictability
· Align us to achieve 80% of ARR through partners by 2027
With these strategic changes in motion, 2025 revenues and profits are expected
to remain similar to 2024, returning to growth in 2026. We look ahead with
confidence in our journey, underpinned by a robust, profitable business
foundation with high levels of recurring revenue and a strong financial
position to invest in our growth opportunity.
Alex Curran
Chief Executive
Officer
25 March 2025
Group Financial Performance
Revenue
Recurring Revenues
Annual Recurring Revenue ('ARR') grew by 2% on a constant currency basis in
the year to £52.1 million at 31 December 2024 (31 December 2023: £51.3
million, restated for the prevailing exchange rate at 31 December 2024).
ARR is the key financial metric for the Group. Included within ARR are
Aptitude's annual licence fees and maintenance for its on-premise clients,
subscription fees for the Group's SaaS clients and revenues from its Solution
Management Service offering ('Aptitude Assure'), this offering contributed ARR
at 31 December 2024 of £5.2 million (31 December 2023: £5.0 million).
Net Retention Rate in the year was 99% (2023: 98%), measured by the total
value of on-going ARR at the year-end from clients in place at the start of
the year as a percentage of the opening ARR from those clients on a constant
currency basis. The Group continues to benefit from standard inflationary
clauses in most of its contracts, albeit at a lower level than in previous
periods due to the reduction in prevailing inflation rates.
Recurring revenues recognised in 2024 increased by 2% to £54.4 million (2023:
£53.4 million). Recurring revenues are a strategic priority for the Group and
now represent 78% of overall revenue (2023: 71%). A key part of the Group's
strategy is to increase this percentage whilst maximising the growth rate of
Aptitude's ARR, increasing both the overall quality of revenue and operating
margin.
Non-Recurring Revenue
Non-recurring revenue, comprised of implementation services, software
development and non-recurring software fees, totalled £15.6 million for the
year ended 31 December 2024 (2023: £21.3 million) representing a 26%
reduction. The reduction in non-recurring revenues is in line with the Group's
expectation as it works more closely with its partners in this area and as a
result of shorter implementation cycles for Fynapse. The reduction in
non-recurring revenues from 2023 is also a result of the successful go-lives
of a large number of Aptitude Insurance Calculation Engine clients following
the passing of the compliance deadline at the end of 2023.
Research & Development Expenditure
Total expenditure on product management, research & development decreased
1% in the year ended 31 December 2024 to £17.7 million (2023: £17.8
million). Research and development investment continues to be monitored by the
Group in line with overall return on investment for each product. In December
2024, the Product and Technology functions were restructured to further
support the AI Autonomous Finance opportunity and drive efficiency across the
function. Research & development costs represent 25% of revenue for the
year ended 31 December 2024 (2023: 24%), with the proportion of research and
development costs expected to reduce in future periods.
The Board has continued to determine that none of the internal research &
development costs incurred during 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 year ended 31 December 2024 was in line with
expectations at £9.9 million (2023: £9.7 million). Adjusted Operating Margin
increased to 14% (2023: 13%), strengthened by the Group's improving revenue
mix and disciplined cost control. Operating profit on a statutory basis was
£5.7 million (2023: £5.3 million). The continued success of Fynapse, with
its cloud-native capabilities, is expected to further enhance margins and
profitability.
Foreign Exchange
With 50% (2023: 50%) 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's 2023 revenue and Adjusted Operating Profit would have been reported
at £74.2 million and £9.6 million respectively on a constant currency basis
(compared to actual result of £74.7 million and £9.7 million). Constant
currency is calculated by comparing the 2024 results with 2023 results
retranslated at the rates of exchange prevailing during 2024.
Non-Underlying Items
Non-underlying items of £4.2 million (2023: £4.4 million) are principally
related to the £0.9 million of Product and Technology function restructuring
(2023: £0.2 million) and intangible amortisation of £3.4 million (2023:
£3.4 million). There were no further restructuring costs in relation to the
integration of MPP with the wider business in 2024 (2023: £0.8m).
Taxation
The total tax charge before adjusting for the impact of non-underlying and
other sundry items of £2.0 million (2023: £1.7 million) represents 20.09% of
the Group's profit before tax (2023: 17.95%).
Statutory Results
The Group reported a profit for the year attributable to equity shareholders
of £5.0 million (2023: £4.1 million).
Earnings per Share
Adjusted Basic Earnings per Share increased by 2% to 13.9 pence (2023: 13.6
pence) and Basic Earnings per Share increased 22% to 8.8 pence (2023: 7.2
pence).
Dividend
A final ordinary dividend of 3.60 pence per share is proposed (2023: 3.60
pence), making a total ordinary dividend of 5.40 pence per share for the year
(2023: 5.40 pence).
Balance Sheet
The Group continues to have a strong balance sheet with net assets at 31
December 2024 of £57.9 million (2023: £60.3 million). Cash at 31 December
2024 was £30.4 million (31 December 2023: £34.1 million) and net funds of
£20.3 million (31 December 2023: £22.7 million). The Group continued to fund
both the ordinary dividend of £3.1m (2023: £3.1m) and the share buyback
programme £4.0m (2023: nil) in the year, providing enhanced returns to
shareholders.
Trade receivables (net) at 31 December 2024 increased to £12.1 million (2023:
£10.3 million) of which £6.8 million (2023: £5.0 million) were overdue for
payment at the year end. Of these overdue balances £3.7 million has been
collected at 24 March 2024. DSO (debtor days) increased to 55 at 31 December
2024 (2023: 53). The growth in the Group's Annual Recurring Revenue resulted
in deferred income at 31 December 2024 increasing to £32.2 million (2023:
£31.5 million).
Capital Allocation Policy
Aptitude aims to deliver high returns to shareholders through targeting
sustainable profit growth and strong free cash flow. The Group invests in
developing its business driven by the opportunity with Fynapse, while
maintaining robust liquidity to manage the working capital cycle. Aptitude's
capital allocation priorities are as follows:
· Managing working capital - The first priority of the Group is to maintain
sufficient cash reserves to manage the annual working capital cycle, while
maintaining appropriate levels of net funds. A level of net cash not less than
1.5 x adjusted EBITDA is the Group's stated minimum.
· Investment for organic growth - The Group continues to invest in the organic
growth of the business including the need to continue to invest in our people
and technology and through capital expenditure where required.
· Maintenance of the Group's progressive dividend - The Group is committed to
provide progressive dividends to shareholders, and this remains the preferred
ongoing method to return cash to shareholders without impacting on the
investment required to grow the business.
· Enhanced returns to shareholders - As the Group continues to generate excess
cash after the above priorities, the Group will look to make enhanced returns
to shareholders, including through the existing share buyback programme.
While the above framework is intended to guide decision making for the
allocation of capital, the Board may choose to exercise discretion in its
application should there be a business requirement.
Mike Johns
Chief Financial Officer
25 March 2025
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Year ended 31 Dec 2024 Year ended 31 Dec 2023
Note Before non-underlying items Non- underlying items Total Before non-underlying items Non- underlying items Total
Continuing operations £000 £000 £000 £000 £000 £000
Revenue 1 70,044 - 70,044 74,685 - 74,685
Operating costs 2 (60,126) (4,243) (64,369) (64,959) (4,441) (69,400)
Operating profit 9,918 (4,243) 5,675 9,726 (4,441) 5,285
Finance income 368 - 368 282 - 282
Finance costs (450) - (450) (527) - (527)
Net finance costs (82) - (82) (245) - (245)
Profit before income tax 9,836 (4,243) 5,593 9,481 (4,441) 5,040
Income tax expense 3 (1,484) 871 (613) (1,786) 871 (915)
Profit for the period 8,352 (3,372) 4,980 7,695 (3,570) 4,125
Earnings per share
Basic 4 8.8p 7.2p
Diluted 4 8.6p 7.1p
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Year ended 31 Dec 2024 Year ended 31 Dec 2023
£000 £000
Profit for the year 4,980 4,125
Other comprehensive income/(expense)
Items that will or may be reclassified to profit or loss:
Cash flow hedges reclassified to income statement (713) (1,242)
(Loss)/gain on effective cash flow hedges (254) 1,044
Deferred tax on cash flow hedges 242 50
Currency translation difference (247) (954)
Other comprehensive expense for the year, net of tax (972) (1,102)
Total comprehensive income for the year 4,008 3,023
GROUP BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2024
As at As at
31 Dec 2024 31 Dec 2023
Notes £000 £000
ASSETS
Non-current assets
Property, plant and equipment including right-of-use assets 6 4,016 4,484
Goodwill 7 46,006 46,006
Intangible assets 8 15,412 17,739
Other long-term assets 730 1,016
Deferred tax assets 1,250 1,379
67,414 70,624
Current assets
Trade and other receivables 9 14,861 12,526
Financial assets - derivative financial instruments 387 1,141
Current income tax assets 1,721 1,037
Cash and cash equivalents 30,400 34,085
47,369 48,789
Total assets 114,783 119,413
LIABILITIES
Current liabilities
Financial liabilities
- borrowings 10 (7,180) (1,250)
- derivative financial instruments (214) -
Trade and other payables 11 (40,622) (40,773)
Lease liabilities 12 (527) (426)
Current income tax liabilities (1,802) (1,588)
Provisions 13 (25) (100)
(50,370) (44,137)
Net current (liabilities)/assets (3,001) 4,652
Non-current liabilities
Financial liabilities - borrowings 10 - (7,139)
Lease liabilities 12 (2,416) (2,588)
Provisions 13 (358) (268)
Deferred tax liabilities (3,722) (4,967)
(6,496) (14,962)
NET ASSETS 57,917 60,314
GROUP BALANCE SHEET
FOR THE YEAR ENDED 31 DECEMBER 2024
As at As at
31 Dec 2024 31 Dec 2023
£000 £000
SHAREHOLDERS' EQUITY
Share capital 14 4,204 4,204
Share premium account 11,959 11,959
Capital redemption reserve 12,372 12,372
Other reserves 34,325 34,989
Treasury shares reserve 15 (3,812) -
Accumulated losses (23) (2,349)
Foreign currency translation reserve (1,108) (861)
TOTAL EQUITY 57,917 60,314
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Attributable to owners of the Parent
Foreign currency translation reserve
Share capital Share premium Accumulated losses
Capital redemption reserve Other reserves Treasury shares reserves Total
equity
£000 £000 £000 £000 £000 £000 £000 £000
Group
Balance at 1 January 2024 4,204 11,959 (2,349) (861) 12,372 34,989 - 60,314
Profit for the year - - 4,980 - - - - 4,980
Cash flow hedges reclassified to income statement - - - - - (713) - (713)
Loss on effective cash flow hedges - - - - - (254) - (254)
Deferred tax on cash flow hedges - - - - - 242 - 242
Exchange rate adjustments - - - (247) - - - (247)
Total comprehensive income for the year - - 4,980 (247) - (725) - 4,008
Share options - value of employee service - - 611 - - - - 611
Transfer on exercise of options - - (287) - - 85 202 -
Purchase of own shares - - - - - (24) (4,014) (4,038)
Deferred tax on share options - - 103 - - - - 103
Dividends to equity holders of the company - - (3,081) - - - - (3,081)
Total Contributions by and distributions to owners of the company recognised - - (2,654) - - 61 (3,812) (6,405)
directly in equity
Balance at 31 December 2024 4,204 11,959 (23) (1,108) 12,372 34,325 (3,812) 57,917
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
Year ended Year ended
31 Dec 2024 31 Dec 2023
Note £000 £000
Cash flows from operating activities
Cash generated from operations 16 8,852 11,945
Interest paid (226) (316)
Income tax paid (1,854) (635)
Net cash flows generated from operating activities 6,772 10,994
Cash flows from investing activities
Purchase of property, plant and equipment, excluding (481) (601)
right-of-use assets
Interest received 368 282
Purchase of intangible assets (1,120) -
Net cash used in investing activities (1,233) (319)
Cash flows from financing activities
Dividends paid to company's shareholders 5 (3,081) (3,096)
Purchase of own shares (4,058) (186)
Repayments of loan (1,250) (1,250)
Extension fee on loan - (40)
Repayment of capital lease obligations (592) (534)
Net cash generated used in financing activities (8,981) (5,106)
Net (decrease)/increase in cash and cash equivalents (3,442) 5,569
Cash, cash equivalents and bank overdrafts at beginning of year 34,085 29,245
Exchange rate gains/(losses) on cash and cash equivalents (243) (729)
Cash and cash equivalents at end of year 30,400 34,085
Notes to the Audited preliminary results for the year ended 31 December 2024
1. Segmental analysis
Business segments
The Board has determined the operating segments based on the reports it
receives from management to make strategic decisions.
The only business segment for both periods was Aptitude and therefore no
segmental analysis is provided for this period.
The principal activity of the Group throughout 2023 and 2024 was the provision
of business-critical software and services.
1 (a) Geographical analysis
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
Year ended Year ended Year ended Year ended
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
£000 £000 £000 £000
United Kingdom 38,430 41,087 12,220 11,747
Rest of World 31,614 33,598 57,824 62,938
70,044 74,685 70,044 74,685
2. Non-underlying items
31 Dec 2024 31 Dec 2023
£000 £000
Amortisation of intangibles 3,381 3,381
Reorganisation costs 862 1,060
4,243 4,441
3. Income tax expense
Year ended Year ended
31 Dec 2024 31 Dec 2023
Analysis of charge in the year £000 £000
Current tax:
- tax charge on underlying items (1,562) (2,463)
- adjustment to tax in respect of prior periods on underlying items 192 (241)
Total current tax (1,370) (2,704)
Deferred tax:
- tax (charge)/credit on underlying items (114) 951
- tax credit on non-underlying items 871 871
- adjustment to tax in respect of prior periods on underlying items - (33)
Total deferred tax 757 1,789
Income tax expense (613) (915)
The net adjustment to tax in respect of prior periods on underlying items
totalling £192,000 (2023: £274,000) relates to the reduction in the assumed
benefit from research and development relief in the UK.
The total tax charge of £613,000 (2023: £915,000) represents 11.0% (2023:
18.2%) of the Group profit before tax of £5,593,000 (2023: £5,040,000). The
change in effective tax rate is due to research and development tax relief.
After adjusting for the impact of non-underlying items, tax losses and prior
year tax charge, the tax charge for the year of £1,976,000 (2023:
£1,702,000) represents 20.09% (2023: 17.95%), which is the tax rate used for
calculating the adjusted earnings per share.
The difference between the total tax charge and the amount calculated by
applying the effective United Kingdom corporation tax rate of 25% (2023:
23.50%) to the profit on ordinary activities before tax is as follows:
Year ended Year ended
31 Dec 2024 31 Dec 2023
£000 £000
Profit before tax 5,593 5,040
Tax at the United Kingdom corporation tax rate of 25% (2023: 23.50%) (1,398) (1,185)
Effects of:
Adjustment to tax in respect of prior periods 192 (274)
Adjustment in respect of foreign tax rates 67 62
Non-underlying expenses not deductible for tax purposes (69) (138)
Other 190 166
Research and development tax relief 124 226
Polish research and development tax relief 300 190
Change in future tax rates (19) 38
Total taxation (613) (915)
United Kingdom corporation tax is calculated at 25% (2023: 23.50%) of the
estimated assessable profit for the year. Taxation for other jurisdictions is
calculated at the rates prevailing in the respective jurisdictions.
4. Earnings per share
To provide an indication of the underlying operating performance per share,
the adjusted profit after tax figure shown below excludes non-underlying items
and has a tax charge using the effective rate of 20.09% (2023: 17.95%).
Year ended Year ended
31 Dec 2024 31 Dec 2023
£000 £000
Profit before tax and non-underlying items 9,836 9,481
Tax charge at a rate of 20.09% (2023: 17.95%) (1,976) (1,702)
7,860 7,779
Tax adjustments in respect of prior years 192 (274)
Non-underlying items net of tax (3,372) (3,570)
Recognition of tax losses 300 190
Profit on ordinary activities after tax 4,980 4,125
2024 2023
Number Number
(thousands) (thousands)
Weighted average number of shares 56,837 57,338
Effect of dilutive share options 1,010 670
57,847 58,008
2024 2024 2023 2023
Basic EPS pence Diluted EPS pence Basic EPS pence Diluted EPS pence
Earnings per share 8.8 8.6 7.2 7.1
Non-underlying items net of tax 5.9 5.8 6.2 6.2
Prior years' tax charge/(credit) (0.3) (0.3) 0.5 0.5
Recognition of tax losses (0.5) (0.5) (0.3) (0.3)
Adjusted earnings per share 13.9 13.6 13.6 13.5
Adjusted earnings per share are calculated using adjusted profit after tax.
5. Dividends
2024 pence 2023 pence per share 2024 2023
per share
£000 £000
Dividends paid:
Interim dividend 1.80 1.80 1,024 1,032
Final dividend (prior year) 3.60 3.60 2,057 2,064
5.40 5.40 3,081 3,096
Proposed but not recognised as a liability:
Final dividend (current year) 3.60 3.60 2,006 2,064
The proposed final dividend was approved by the Board on 25 March 2025 but was
not included as a liability as at 31 December 2024, in accordance with IAS 10
'Events after the Balance Sheet date'. If approved by the shareholders at the
Annual General Meeting this final dividend will be payable on 13 June 2025 to
shareholders on the register at the close of business on 23 May 2025. The
final dividend will be subject to changes for the value of the buyback
completed when payable.
6. Property, plant and equipment including right-of-use assets
31 Dec 2024 31 Dec 2023
£000 £000
Opening net book value 1 January 4,484 5,103
Additions 879 601
Net disposals (14) (117)
Exchange movements (29) (54)
Depreciation (1,304) (1,049)
4,016 4,484
7. Goodwill
31 Dec 2024 31 Dec 2023
£000 £000
Opening net book value 1 January 46,006 46,006
46,006 46,006
8. Intangible assets
31 Dec 2024 31 Dec 2023
£000 £000
Opening net book value 1 January 17,739 21,120
Additions 1,120 -
Amortisation (3,447) (3,381)
15,412 17,739
In the year, the Group purchased perpetual software licenses and determined a
useful economic life of 10 years. The amortisation charge has been shown in
underlying costs.
9. Trade and other receivables
31 Dec 2024 31 Dec 2023
£000 £000
Trade receivables 13,197 10,678
Less: provision for impairment of receivables (1,107) (358)
Trade receivables - net 12,090 10,320
Other receivables 216 14
Prepayments 1,754 1,796
Accrued income 801 396
14,861 12,526
Within the trade receivables balance of £13,197,000 (2023: £10,678,000)
there are balances totalling £6,755,000 (2023: £5,036 ,000) which, at 31
December 2024, were overdue for payment. Of this balance, 55% (2023: 34%) has
been collected at 24 March 2025 (2023: 18 March 2024).
10. Financial liabilities
31 Dec 2024 31 Dec 2023
£000 £000
Bank loan 7,180 8,389
The borrowings are repayable as follows:
Within one year 7,188 1,250
In the second year - 7,188
7,188 8,438
Unamortised prepaid facility arrangement fees (8) (49)
At 31 December 7,180 8,389
On 15 October 2021, the Group and Company entered into a loan agreement with
Bank of Ireland consisting of a £10 million term loan in addition to a
revolving credit facility of £10 million. The loan is secured on all the
assets of the Group. Operating covenants are limited to the Group's net debt
leverage of 2.0 : 1 and interest cover of 4.0 : 1. At 31 December 2024, the
Group's net debt leverage was -2.41 : 1 and interest cover was 17.23 : 1. The
term loan is repayable over three years with an initial 12-month repayment
holiday followed by annual capital repayments of £1,250,000. The term loan
contains two one-year extension options, one of which was exercised in 2023.
In 2024, Bank of Ireland announced its withdrawal from the UK market, and as a
result the additional one year extension was not sought, in line with other UK
clients of the organisation. In light of the decision by the Bank of Ireland
the loan is now repayable, in full, within 12 months of the balance sheet
date. Accordingly, the amount of £5.9m that would have been disclosed as a
long term liability is now reported as a current liability. The loan is
denominated in Pounds Sterling and carries interest at SONIA-5 NCCR LAG plus
1.75%. The Group entered into an interest swap on 2 November 2021, effectively
fixing the interest rate at 2.95% over the original term of the loan.
11. Trade and other payables
31 Dec 2024 31 Dec 2023
£000 £000
Trade payables 405 482
Other tax and social security payable 929 1,614
Other payables 154 168
Accruals 6,909 7,034
Deferred income 32,225 31,475
40,622 40,773
31 Dec 2024 31 Dec 2023
£000 £000
Amounts payable under capital lease agreements:
Within one year 633 538
Within two to five years 2,111 1,997
After five years 544 906
Total 3,288 3,441
Less: future finance charges (345) (427)
Present value of lease obligations 2,943 3,014
Less: Amount due for settlement within 12 months (shown under current (527) (426)
liabilities)
2,416 2,588
12. Lease obligations
31 Dec 2024 31 Dec 2023
£000 £000
The present value of financial lease liabilities is split as follows:
Within one year 527 426
Within two to five years 1,890 1,728
After five years 526 860
2,943 3,014
13. Provisions
Provisions
31 Dec 2024 31 Dec 2023
£000 £000
At 1 January 368 316
Charged/(released) to income statement 19 158
Utilised in period - (114)
Foreign exchange movement (4) 8
At 31 December 383 368
£307,000 (2023: £288,000) of the total provision at 31 December 2024 of
£383,000 (2023: £368,000) relates to the cost of dilapidations in respect of
its occupied leasehold premises.
14. Share capital
Ordinary shares of 7 1/3p each Number £000
Issued and fully paid:
At 1 January 2024 57,337,611 4,204
At 31 December 2024 57,337,611 4,204
15. Treasury shares reserve
31 Dec 2024 31 Dec 2023
£000 £000
At 1 January - -
Purchase of own shares (4,014) -
Transfer of exercise of options 202 -
At 31 December (3,812) -
1,185,400 shares were purchased by the Company in 2024 for a total cost of
£4.0m under the Company's share buyback programme.
16. Cash flows from operating activities
Reconciliation of profit before tax to net cash generated from operations:
Year ended Year ended
31 Dec 2024 31 Dec 2023
£000 £000
Profit before tax for the year 5,593 5,040
Adjustments for:
Depreciation 1,304 1,049
Amortisation 3,447 3,381
Share-based payment expense 611 125
Finance income (368) (282)
Finance costs 450 527
Changes in working capital:
(Increase)/decrease in receivables (2,049) 63
(Decrease)/increase in payables (136) 2,042
Cash generated from operations 8,852 11,945
17. Statement by the directors
The preliminary results for the year ended 31 December 2024 are prepared in
accordance with UK adopted International Accounting Standards (IAS) and
interpretations by the IFRS Interpretations Committee applicable to companies
reporting under UK adopted IFRS. They do not include all the information
required for full annual statements and should be read in conjunction with the
2024 Annual Report. The accounting policies adopted in this preliminary
announcement are consistent with the Annual Report for the year ended 31
December 2024.
The comparative figures for the financial year 31 December 2023 have been
extracted from the Group's statutory accounts for that financial year. The
2023 financial statements, which were prepared in accordance with UK adopted
international accounting standards and company law, have been reported on by
the Group's auditors and delivered to the registrar of companies.
The financial information set out in this preliminary announcement does not
constitute the Company's statutory accounts for the years ended 31 December
2024 or 31 December 2023. The Annual Report for 2024 will be delivered to the
Registrar of Companies in due course. The auditors' report on those accounts
was unqualified and neither drew attention to any matters by way of emphasis
nor contained a statement under either section 498(2) of Companies Act 2006
(accounting records or returns inadequate or accounts not agreeing with
records and returns), or section 498(3) of Companies Act 2006 (failure to
obtain necessary information and explanations).
The Board of Aptitude Software Group plc approved the release of this audited
preliminary announcement on 25 March 2025.
The Annual Report for the year ended 31 December 2024 will be posted to
shareholders in due course and will be delivered to the Registrar of Companies
following the Annual General Meeting of the Company. The report will also be
available on the investor relations page of our web site
(www.aptitudesoftware.com). Further copies will be available on request and
free of charge from the Company Secretary at 8th Floor, 138 Cheapside, London,
EC2V 6BJ.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FFFSIVSIEFIERecent news on Aptitude Software
See all newsREG - Aptitude Software - Transaction in Own Shares
AnnouncementREG - Aptitude Software - Grant of awards under the Aptitude 2020 DBP
AnnouncementREG - Aptitude Software - Total Voting Rights
AnnouncementREG - Aptitude Software - Transaction in Own Shares
AnnouncementREG - Aptitude Software - Notice of 2025 Annual General Meeting
Announcement