REG - Aptitude Software - Audited Results for Year Ended 31 December 2025
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RNS Number : 5382Z Aptitude Software Group PLC 08 April 2026
8 April 2026
APTITUDE SOFTWARE GROUP PLC
('Aptitude' or 'the Group')
Audited Results for the Year Ended 31 December 2025
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 2025.
The Group has delivered a resilient performance during a period of strategic
focus despite ongoing geopolitical and macroeconomic uncertainty and elongated
sales cycles. We maintained strong profitability and cash generation, improved
pipeline progression and disciplined execution, while positioning the business
for future growth.
Financial Highlights
Year ended 31 December 2025 2024 % Change
Annual Recurring Revenue(1, 2) ('ARR') at year end £49.8m £50.3m (1%)
- AI Autonomous Finance(6) £17.9m £16.8m 7%
- Other Software £27.5m £28.5m (4%)
- Assure £4.4m £5.0m (12%)
Revenue
Total Revenue £65.0m £70.0m (7%)
- Recurring Revenue(3) £54.0m £54.4m (1%)
- Non-Recurring Revenue £11.0m £15.6m (29%)
Recurring Revenue proportion 83% 78% 5%
Profit and EPS
Adjusted Operating Profit(4) £10.0m £9.9m 1%
Statutory Operating Profit £4.8m £5.7m (15%)
Adjusted Operating Margin(4) 15% 14% 1%
Basic Earnings per Share 7.3p 8.8p (17%)
Cash and Balance Sheet
Cash and cash equivalents at year end £29.6m £30.4m (3%)
Net funds(5) £21.2m £20.3m 4%
Share buyback completed £5.1m £4.0m 28%
Final Ordinary Dividend per Share 3.6p 3.6p -
Full Year Ordinary Dividend per Share 5.4p 5.4p -
· 2025 closing ARR of £49.8m was slightly lower (1%) than the prior year (2024:
£50.3m) as a gross ARR increase of 10% was offset by expected churn in legacy
products.
· ARR growth within AI Autonomous Finance, the Group's strategic focus, of 7%
(2024: 12%).
· Adjusted operating margin of 15% (2024: 14%), driven by robust cost control
and increasing margins through an improving revenue mix, with recurring
revenues increasing to 83% in 2025 (2024: 78%).
· Significant number of renewals completed in the year providing increased
visibility of future revenues, with the total value of future contracted
revenues at 31 December 2025 increasing to £83.4m (2024: £78m).
· Continue to maintain a strong cash position, with £29.6m cash (2024: £30.4m)
and £21.2m net funds (2024: £20.3m), enabling continued enhanced shareholder
returns through the share buyback programme. A total of £5.1m of shares in
value (2024: £4.0m) were bought back by the Company in 2025.
· Full year dividend of 5.4p (2024: 5.4p) per share maintained.
Operational Highlights
Following the formal relaunch of Fynapse, the actions taken over the past year
are now delivering measurable outcomes, with stronger pipeline quality,
increased partner engagement and continued commercial momentum. Key successes
include:
· Fynapse ARR grew approximately 70% year-on-year, reflecting strong momentum
following its formal relaunch at the end of 2024.
· Pipeline value increased c.65% year-on-year, with expansion in later-stage
opportunities improving visibility into FY26.
· Partner-led execution strengthened, with 83% of pipeline partner-influenced
and 84% related to Fynapse, which currently represents the majority of FY26
new customer opportunities.
· AI Autonomous Finance ARR growth of 7% driven by expansion and renewal across
existing customers, including a large US telecommunications client and a
global insurance group, alongside new wins in healthcare insurance, payments
and managed services.
· Implementation timelines reduced significantly, with deployments increasingly
delivered in weeks rather than months or years, accelerating time to value for
customers.
· Two new Fynapse customer wins in telecommunications and financial services in
Q1 2026 reflecting continued progress in target markets.
· Across both new wins and expansion activity, customers are increasingly
selecting Aptitude where they are seeking faster time to value, greater
flexibility in their architecture, and the ability to modernise finance
without requiring full ERP replacement.
Strategic Review
Momentum behind Fynapse continues to build, with strong pipeline growth,
increasing partner engagement resulting in improved visibility into future
periods, as the Group becomes more focused and aligned around Fynapse and the
emerging Finance ERP market. Structural market shifts, driven by AI and demand
for real‑time financial insight, are creating a clear opportunity for
enterprise‑grade, finance‑focused platforms such as Fynapse. Against this
backdrop, and as announced separately today, the Board has initiated a
strategic review to assess the optimal path to accelerate the Group's strategy
and maximise long‑term value for shareholders and other stakeholders.
Aptitude remains a very profitable and cash‑generative business, which
against the backdrop of macroeconomic uncertainty provides resilience and the
flexibility to invest selectively while maintaining strong financial
discipline. Further detail on the strategic review is set out in a separate
announcement published by the Group today.
Commenting on the results, Alex Curran, Chief Executive Officer, said:
"We have made strong progress over the past year, refining our positioning,
strengthening our go-to-market approach and building momentum behind Fynapse.
The response we are seeing from customers and partners reinforces our view
that the market is moving toward a new model of finance, and that Fynapse is
well positioned within it. As AI accelerates adoption of next‑generation
finance platforms, we see a clear Finance ERP opportunity emerging, where
solutions like Fynapse provide the real‑time, finance‑grade data, control
and orchestration to enable successful AI implementations.
As we look ahead, our focus is on scaling this opportunity. The strategic
review we have initiated is an important step in determining the best way to
accelerate our progress and support the next phase of growth.
We are building a more focused, scalable and efficient business, underpinned
by strong fundamentals, and positioned to play a leading role in the future of
AI-first finance."
Aptitude Software Group 020-3687-3200
plc
Alex Curran, Chief Executive Officer
Ivan Martin, Chairman
Canaccord Genuity Limited 020-7523-8000
(Broker)
Simon Bridges / Andrew Potts
Alma Strategic Communications (Financial PR Adviser) 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 Assure services (formerly known as solution management services).
2 Constant Currency is calculated by comparing the 2025 results with 2024
results retranslated at the rates of exchange prevailing during 2025. 2024 ARR
has been restated to reflect constant currency.
3 Recurring Revenue includes revenues from the Group's Assure services
(formerly known as 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
Positioned for the AI Era
As I approach the conclusion of my tenure as Chairman of Aptitude, I reflect
on a period of sustained and, at times, significant transformation. Over the
past decade, the Group has evolved from a diversified software business into a
focused, finance-oriented software provider, and more recently into a SaaS-led
organisation aligned to the needs of the modern CFO.
We are now entering a new phase of the market, shaped by rapid advances in AI
and the increasing demand for real-time financial insight. The Board and
management team is increasingly aligning the business around a clear
opportunity centered on Fynapse and the emerging Finance ERP market.
The progress made over recent years, combined with the Group's strong
profitability and cash-generative characteristics, leaves Aptitude well
positioned against this backdrop.
Supporting a Clear Strategic Direction
During the year, the Board has worked closely with management as the Group has
continued to simplify its operating model and sharpen its strategic focus.
The decision taken in January 2026 to position Fynapse more explicitly as a
Finance ERP solution reflected both market feedback and the evolution of
customer requirements and marked an important point in this transition. Since
then, through continued engagement with customers and partners, we have
further reinforced our view of the scale of the opportunity and the importance
of continued investment to support its development. This points to a more
scalable, higher-margin, software-led business model, which we believe is
important for long-term value creation.
The Board recognises the importance of maintaining an appropriate balance. The
Group remains very profitable and cash-generative, providing a strong
foundation from which to invest. The Board is considering how best to allocate
capital and resources toward areas of highest strategic value, including the
continued development and scaling of Fynapse, and this will be assessed as
part of the Strategic Review.
Market Context and Positioning
The market in which Aptitude operates is undergoing a period of structural
change. Traditional ERP systems remain deeply embedded but are not designed
for the demands of real-time, AI-enabled finance. At the same time, newer
entrants are bringing innovation but often lack the scale, control, and
regulatory credibility required by large, complex organisations.
We are also seeing increased investment in modern finance platforms,
particularly among newer entrants, as capital is deployed toward solutions
designed for this next generation of finance systems.
This dynamic is contributing to the emergence of a distinct Finance ERP
market. The Board believes Aptitude is well positioned within this space,
given its heritage in financial control, its deep domain expertise, and the
capabilities developed within Fynapse.
We are encouraged by early market validation, including improvements in
pipeline quality, increasing partner engagement, positive customer feedback
and recent new wins.
Governance and Board Succession
The Board continues to evolve to support the next phase of the Company's
development.
As previously communicated, I had intended to step down as Chairman following
the 2026 AGM. However, in light of the Strategic Review, the Board has
concluded that it is appropriate to extend my tenure as Non-Executive Chairman
until its conclusion. A further update on Chair succession will be provided in
due course, subject to the outcome of the strategic review. The search for a
new Chief Financial Officer remains ongoing.
The Board remains focused on ensuring that the appropriate leadership and
governance structure is in place to support the Company's strategic direction
and long-term growth ambitions.
Strategic Review
Given the scale of the Fynapse opportunity and the investment required to
accelerate development, the Board has taken the decision to undertake a formal
Strategic Review at this time. In the current macroeconomic environment, the
Board believe it is appropriate to consider the full range of options to
ensure the business is optimally positioned for long-term growth.
Accordingly, the Board is reviewing the strategic options available to
Aptitude, including the launch of a formal sale process, with the aim of
maximising value for shareholders, employees and other stakeholders. Options
under consideration include capital raising, strategic partnerships, portfolio
optimisation and potential corporate transactions.
Capital Allocation
In 2025, the Group operated a share buyback programme and repurchased £5.1m
of its own Ordinary Share Capital to 31 December 2025. The programme is in
accordance with the authority granted by shareholders on 28 May 2025 to make
market purchases of the Company's Ordinary Shares and forms part of a £20m
share buyback programme over a three-year period.
The Board has decided that the share buyback programme announced on 29 May
2025 should be suspended as a result of the strategic review. This reflects
the Board's commitment to maintaining flexibility in capital allocation while
the strategic review is underway, ensuring that all options are considered to
maximise shareholder value.
The Board has proposed an unchanged final dividend of 3.60 pence per share
(2024: 3.60 pence), making a total ordinary dividend of 5.40 pence per share
for the year (2024: 5.40 pence). Subject to shareholder approval at the
Group's Annual General Meeting on 27 May, the proposed final dividend will be
paid on 12 June 2026 to shareholders on the register at 22 May 2026.
Looking Ahead
As the Company enters its next phase, the priorities are clear. The focus will
be on strengthening Aptitude's position within the emerging Finance ERP
market, deepening partner-led execution and ensuring that investment is
directed toward the highest-value opportunities.
The Board believes that the strategic review will provide a clear framework
for determining the optimal path forward to support the next stage of our
growth.
A Personal Reflection
I would like to take the opportunity to thank the Board, the executive team,
and all colleagues across Aptitude for their commitment and contribution
during a period of significant change. Their dedication, skill, and
considerable effort have been outstanding throughout my period as Chair.
The business today is more focused, more aligned to market demand, and better
positioned for the future than at any point during my tenure. While there
remains work to do, the foundations that have been put in place give me
confidence in the Company's direction and long-term potential.
I would also like to thank our shareholders for their continued support.
We believe the Group is well positioned to capitalise on the opportunities
ahead, while continuing to evaluate additional investment avenues as part of
the ongoing Strategic Review.
Ivan Martin
Chairman
7 April 2026
Chief Executive Officer's Report
Transformation and Strategic Focus
Aptitude has continued to make strong progress over the past year, simplifying
the business, sharpening our strategic priorities and aligning the
organisation around Fynapse. This reflects a continued shift toward a more
scalable, higher-margin, software-led model.
Following the relaunch of Fynapse at the end of 2024, our focus in 2025 has
been on testing its positioning in the market, validating demand and refining
how we go to market. This has provided clear feedback from customers and
partners, which is shaping how we now position the business and where we
invest going forward.
Fynapse Relaunch and Positioning
We formally relaunched Fynapse to the market at the end of 2024, with
dedicated teams and a focused go-to-market approach, marking the first time
the product was properly taken to market. As a result, Fynapse has only been
in the market for a limited period, during which ARR has grown 70%
year-on-year.
During 2025, our focus has been on sharpening its positioning, strengthening
how we go to market, securing new customers and validating its role within
modern finance architectures through direct engagement with customers and
partners. This has provided clear and consistent feedback, reinforcing both
the strength of the platform and the scale of the opportunity ahead.
One of the key insights from customer, prospect and partner engagement has
been that positioning Fynapse as a subledger understates the breadth of value
it can deliver. As the market evolves, driven by advances in AI and demand
for real‑time financial insight, we are expanding this positioning to
Fynapse as a Finance ERP - better reflecting both the needs of the market and
the role Fynapse can play as a finance-grade system of record and action.
In parallel, we are simplifying how we present the business and our range of
products. Rather than describing multiple products and use cases, we now lead
with a clear, single proposition aligned to where the market is moving.
Financial Strength and Discipline
While the macroeconomic and geopolitical environment remains uncertain and has
impacted the timing and progression of some deals, we have continued to
execute with discipline. Aptitude remains a very profitable and
cash-generative business, providing resilience in the current environment and
a strong platform to invest and grow.
Market Evolution and Structural Shift
The market we operate in is undergoing rapid structural change, driven by
advances in AI and increasing demand for real-time financial insight.
Traditional ERP platforms remain important but are not AI-native and were not
designed for real-time, event-driven finance. Built around batch processing,
periodic reporting and retrospective analysis, these systems are difficult to
adapt to an AI-enabled model without fundamental re-architecture.
At the other end of the market, newer entrants are building AI-native
solutions but typically lack the scale, control and regulatory credibility
required by enterprise organisations. This is creating a clear gap for
Fynapse, where organisations require both modern, AI-ready architecture and
enterprise-grade control.
Emergence of the Finance ERP Market
We are seeing the emergence of a new market - Finance ERP - a modular,
finance-focused layer that sits alongside existing systems, enabling
real-time, governed financial data and supporting AI-driven decision-making.
This is changing how finance operates. Teams can move from periodic reporting
to continuous insight - improving in-period visibility of profitability, cash
and risk, and enabling outcomes such as real-time decision-making, reduced
manual processes and faster close cycles. Over time, this supports the
evolution of finance from a reporting function to an active driver of business
performance.
At the same time, this is driving a separation between operational ERP systems
and finance capabilities. Operational systems continue to support areas such
as HR, procurement and supply chain, while finance is increasingly implemented
as a distinct layer focused on financial data, control and decision-making.
Fynapse Differentiation and AI Defensibility and Leadership
We believe Aptitude is uniquely positioned to lead in this space. Our heritage
in subledger, accounting hub and financial control systems, combined with
vertical specialisation, means Fynapse is built on proven foundations already
embedded within complex, regulated organisations. This allows us to extend an
established position at the core of finance into a broader role as both the
system of record and system of action for finance.
This foundation of finance-grade, auditable data creates a strong point of
defensibility, particularly in an AI context where outcomes are only as
reliable as the underlying data. This is especially important in complex,
high-volume and regulated environments, where accuracy, control and
auditability are critical.
As AI evolves, including the emergence of agentic AI, its effective use in
finance will depend on access to structured, governed data and pre-configured,
sector-specific capabilities - areas where we believe Fynapse is well
positioned.
Market Validation and Customer Response
Importantly, we are seeing this reflected in the market. Despite being early
in our go-to-market journey with Fynapse, customer and partner feedback has
been strong, and the product is resonating as organisations reassess their
finance architecture.
This validation is now translating into measurable progress across the
business, with improvements in pipeline quality, partner engagement and
commercial performance during 2025.
What is also becoming clear is a change in how organisations approach finance
transformation. Rather than treating finance as part of broader ERP
replacement programmes, it is increasingly being addressed independently. This
is reflected in how solutions are being bought and deployed, with
organisations prioritising targeted investment in finance capabilities
alongside existing systems.
This is particularly evident in financial services, where organisations are
reassessing large-scale ERP transformation programmes and increasingly
prioritising more targeted approaches to modernising finance.
2025 Achievements: Driving Momentum
Building on this progress, we have continued to strengthen the business and
build momentum across product, go-to-market and partner execution. Key
achievements include:
· Pipeline value increased c.65% year-on-year, with expansion in
later-stage opportunities improving visibility into FY26
· Partner-led execution strengthened, with 83% of pipeline connected to
partners and Fynapse representing the majority of FY26 opportunities
· Growth driven by expansion and renewal across existing customers,
including a large US telecommunications client and a global insurance group,
alongside new wins in healthcare insurance, payments and managed services
· Implementation timelines reduced significantly, with deployments
increasingly delivered in weeks rather than months or years, accelerating time
to value for customers
These developments reflect a clear improvement in pipeline quality,
progression of opportunities and alignment with partners.
Accelerating Strategic Focus
As we progress, we are taking clear action to simplify and focus the business.
We are prioritising Fynapse as our core growth engine and aligning our product
portfolio accordingly. Mature and non-core products are being placed into
maintenance, enabling us to concentrate resource and investment on areas that
will drive long-term value. At the same time, we are maintaining a disciplined
approach to the cost base, driving efficiencies across the organization. This
reflects the scale of the opportunity ahead as AI reshapes the finance systems
market. Maintaining a broad portfolio would dilute our ability to capture it.
By concentrating on Fynapse and the Finance ERP market, we are creating a
clearer, more scalable and more efficient business.
Accelerating Fynapse: Strategic Review and Investment
Aptitude continues to operate with a strong focus on profitability and cash
generation. This provides resilience in the current environment and
flexibility in how we invest.
However, given the scale of the Fynapse opportunity, the progress we have
made, and the strength of feedback from customers and partners, it is clear
further investment is required to accelerate its development and
commercialisation.
The Board has taken the decision to undertake a strategic review of the
options available to Aptitude. In the current macroeconomic environment, the
Board believe it is appropriate to consider the full range of options to
ensure we identify the best path forward to support our strategy and long-term
growth, whilst maximising value for shareholders, employees and other
stakeholders. Further details are set out in a separate announcement released
alongside the Group's FY25 results.
A High-Performance, AI-Enabled Organisation
We are building a high-performance organisation aligned around clear
priorities, while increasingly leveraging AI to improve productivity, reduce
manual effort and accelerate delivery across the business.
This will enable us to operate more efficiently and scale without
proportionate increases in cost, while strengthening our ability to attract
and retain high-quality talent aligned to an AI-led environment.
Outlook
Aptitude is entering a more focused and strategically aligned phase of its
transformation. We have simplified our proposition, strengthened our
positioning and improved the quality of our pipeline and partner engagement.
The market is evolving in a direction that increasingly supports our strategy.
We remain mindful of ongoing macroeconomic and geopolitical conditions but
continue to see underlying growth in demand for modern, AI-native finance
architecture.
As we move into the next phase, we are undertaking a strategic review to
assess the options available to further accelerate our strategy, with a
particular focus on identifying the optimal path to scale Fynapse and maximise
long-term value.
In 2026 and beyond, our priorities are clear:
· Define the future corporate strategy for the Group
· Scale Fynapse within the emerging Finance ERP market
· Deepen partner-led execution
· Maintain strong profitability and cash generation
· Invest selectively to accelerate growth
Alex Curran
Chief Executive
Officer
7 April 2026
Group Financial Performance
Revenue
Revenue for the year was £65.0 million (2024: £70.0 million). On a constant
currency basis, revenue was approximately £65.0 million compared with £69.2
million in the prior year. The reduction primarily reflects lower levels of
non-recurring implementation activity as the Group continues to transition
towards a more partner-led delivery model, while recurring revenues remained
broadly stable.
Recurring Revenues
Annual Recurring Revenue ('ARR') reduced by 1% to £49.8 million at 31
December 2025 (31 December 2024: £50.3 million, restated for the prevailing
exchange rate at 31 December 2025), on a constant currency basis, as a gross
ARR increase of 10% was offset by expected churn in legacy products.
ARR is the key financial metrics for the Group. Included within ARR are
Aptitude's annual licence fees and maintenance for its on-premises clients,
subscription fees for the Group's SaaS clients and revenues from its Solution
Management Service offering ('Aptitude Assure'). Aptitude Assure contributed
ARR at 31 December 2025 of £4.4 million (31 December 2024: £5.0 million).
Net Retention Rate in the year was 98% (2024: 99%), 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 inflation-linked
clauses in many of its contracts, although the level of indexation applied
during the year was lower than in the prior period, reflecting the current
lower inflation environment relative to the elevated levels experienced in
recent years.
Recurring revenues recognised in the income statement under IFRS decreased by
1% to £54.0 million (2024: £54.4 million). Recurring revenue represented 83%
of total Group revenue in 2025 (2024: 78%). Increasing the proportion of
recurring revenues are a strategic priority for the Group, alongside driving
growth in ARR, as this enhances the visibility and quality of revenue and
supports the long-term expansion of operating margins.
Non-Recurring Revenue
Non-recurring revenue recognised in the year under IFRS 15 - Revenue from
Contracts with Customers, comprising implementation services, configuration
activities and non-recurring software licence fees, totalled £11.0 million
for the year ended 31 December 2025 (2024: £15.6 million), representing a 29%
decrease year on year. The reduction in non-recurring revenue is consistent
with the Group's strategic shift towards higher levels of partner-led
implementation activity and reflects shorter implementation cycles for
Fynapse.
Foreign Exchange
With 54% (2024: 50%) of the Group's revenues generated from North American
clients, the majority of which are invoiced in US dollars and translated into
sterling for reporting purposes, the Group's reported financial results are
exposed to movements in the US dollar exchange rate.
Research & Development Expenditure
Total expenditure on product management, research and development decreased by
25.4% to £13.2 million for the year ended 31 December 2025 (2024: £17.7
million). The reduction reflects a combination of organisational efficiencies
following the restructuring of the Product and Technology functions during
2025 and a continued focus on prioritising investment in the Group's highest
value product initiatives, including those supporting the AI Autonomous
Finance strategy.
Research and development investment continues to be actively managed to ensure
an appropriate balance between product innovation and overall return on
investment across the Group's product portfolio. Research and development
costs represented 20.3% of Group revenue in 2025 (2024: 25.3%).
The Board has determined that none of the internally generated research and
development expenditure incurred during the year met the criteria for
capitalisation under IAS 38 - Intangible Assets, and accordingly these costs
have been expensed as incurred through the income statement.
Operating Profit and Margins
Adjusted Operating Profit for the year ended 31 December 2025 was £10.0
million (2024: £9.9 million), in line with expectations. Adjusted Operating
Margin increased to 15.4% (2024: 14.1%), reflecting the Group's improving
revenue mix and continued focus on disciplined cost management.
Statutory operating profit, reported under IFRS, was £4.8 million (2024:
£5.7 million). Adjusted Operating Profit is presented before certain items
which management considers non-underlying in nature in order to provide a
clearer view of the Group's underlying operating performance. Adjusted
Operating Profit is presented before certain items which management considers
non-underlying in nature in order to provide a clearer view of the Group's
underlying operating performance.
The improvement in adjusted operating margin was supported by the continued
progress of Fynapse, whose cloud-native architecture is expected to further
enhance the Group's margin profile and long-term profitability.
Non-Underlying Items
Non-underlying items for the year totalled £5.2 million (2024: £4.2
million), comprising primarily £1.8 million of costs associated with the
restructuring of the Product and Technology functions (2024: £0.9 million),
which relates to a specific programme and is not expected to recur on an
ongoing basis and amortisation of acquired intangible assets of £3.4 million
(2024: £3.4 million).
Taxation
The total tax charge before adjusting for the impact of non-underlying and
other sundry items of £1.9 million (2024: £1.5 million) represents 19.7% of
the Group's profit before tax (2024: 15.1%).
Statutory Results
The Group reported a profit for the year attributable to equity shareholders
of £4.0 million (2024: £5.0 million).
Earnings per Share
Adjusted Basic Earnings per Share decreased by 3.6% to 13.4 pence (2024: 13.9
pence) and Basic Earnings per Share decreased 17.0% to 7.3 pence (2024: 8.8
pence).
Dividend
A final ordinary dividend of 3.60 pence per share is proposed (2024: 3.60
pence), making a total ordinary dividend of 5.40 pence per share for the year
(2024: 5.40 pence).
Balance Sheet
The Group continues to have a strong balance sheet with net assets at 31
December 2025 of £54.2 million (2024: £57.9 million). Cash at 31 December
2025 was £29.6 million (31 December 2024: £30.4 million) and net funds of
£21.2 million (31 December 2024: £20.3 million). The Group continued to fund
both the ordinary dividend of £3.0 million (2024: £3.1 million) and the
share buyback programme of £5.1 million (2024: £4.0 million) in the year,
providing enhanced returns to shareholders.
Trade receivables (net) at 31 December 2025 decreased to £6.6 million (2024:
£12.1 million) of which £3.7 million (2024: £6.8 million) were overdue for
payment at the end of the year. Of these overdue balances £3.2 million has
been collected at 13th March 2026. DSO (debtor days) decreased to 34 at 31
December 2025 (2024: 55) as a result of improved collections at year-end
combined with a detailed focus on a small number of long-running disputes
being settled prior to 31 December 2025. Deferred income at 31 December 2025
decreased to £28.2 million (2024: £32.2 million), reflecting the recognition
of revenue from prior‑year invoicing outpacing new billings during the year.
Alex Curran
Chief Executive Officer
7 April 2026
consolidated income statement
for the year ended 31 December 2025
Year ended 31 Dec 2025 Year ended 31 Dec 2024
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 64,954 - 64,954 70,044 - 70,044
Operating costs 2 (54,922) (5,226) (60,148) (60,126) (4,243) (64,369)
Operating profit 10,032 (5,226) 4,806 9,918 (4,243) 5,675
Finance income 146 - 146 368 - 368
Finance costs (312) - (312) (450) - (450)
Net finance costs (166) - (166) (82) - (82)
Profit before income tax 9,866 (5,226) 4,640 9,836 (4,243) 5,593
Income tax expense 3 (1,948) 1,332 (616) (1,484) 871 (613)
Profit for the period 7,918 (3,894) 4,024 8,352 (3,372) 4,980
Earnings per share
Basic 4 7.3 p 8.8p
Diluted 4 7.1 p 8.6p
group statement of comprehensive income
for the year ended 31 December 2025
Year ended 31 Dec 2024
Year ended 31 Dec 2025
£'000 £'000
Profit for the year 4,024 4,980
Other comprehensive income/(expense)
Items that will or may be reclassified to profit or loss:
Cash flow hedges reclassified to income statement (847) (713)
(Loss)/gain on effective cash flow hedges 830 (254)
Deferred tax on cash flow hedges (70) 242
Currency translation difference (197) (247)
Other comprehensive expense for the year, net of tax (284) (972)
Total comprehensive income for the year 3,740 4,008
Group Balance Sheet
for the year ended 31 December 2025
As at As at
31 Dec 2025 31 Dec 2024
Note £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment including right-of-use assets 6 3,575 4,016
Goodwill 7 46,006 46,006
Intangible assets 8 11,965 15,412
Investment in subsidiaries - -
Other long-term assets 530 730
Deferred tax assets 852 1,250
62,928 67,414
Current assets
Trade and other receivables 9 11,140 14,861
Financial assets - derivative financial instruments 272 387
Current income tax assets 2,486 1,721
Cash and cash equivalents 29,558 30,400
43,456 47,369
Total assets 106,384 114,783
LIABILITIES
Current liabilities
Financial liabilities
- borrowings 10 (1,250) (7,180)
- derivative financial instruments - (214)
Trade and other payables 11 (9,735) (8,397)
Contract liabilities / deferred revenue (28,227) (32,225)
Capital lease obligations 12 (543) (527)
Current income tax liabilities (3,064) (1,802)
Provisions 13 - (25)
(42,819) (50,370)
Net current (liabilities)/assets 637 (3,001)
Non-current liabilities
Financial liabilities - borrowings 10 (4,690) -
Lease liabilities 12 (1,854) (2,416)
Provisions 13 (377) (358)
Deferred tax liabilities (2,432) (3,722)
(9,353) (6,496)
NET ASSETS 54,212 57,917
Group Balance Sheet
for the year ended 31 December 2025
As at As at
31 Dec 2025 31 Dec 2024
£'000 £'000
SHAREHOLDERS' EQUITY
Share capital 14 4,115 4,204
Share premium account 11,959 11,959
Capital redemption reserve 12,461 12,372
Other reserves 30,951 34,325
Treasury shares reserve 15 (1,613) (3,812)
Accumulated losses (2,356) (23)
Foreign currency translation reserve (1,305) (1,108)
TOTAL EQUITY 54,212 57,917
group statement of changes in shareholders' equity
for the year ended 31 December 2025
Capital redemption reserve Other reserves Treasury shares reserves
Foreign currency translation reserve Total
equity
Accumulated losses
Share capital Share premium
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Group
Balance at 1 January 2025 4,204 11,959 (23) (1,108) 12,372 34,325 (3,812) 57,917
Profit for the year - - 4,024 - - - - 4,024
Cash flow hedges reclassified to income statement - - - - - (847) - (847)
Loss on effective cash flow hedges - - - - - 830 - 830
Deferred tax on cash flow hedges - - - - - (70) (70)
Exchange rate adjustments - - - (197) - - - (197)
Total comprehensive income for the year - - 4,024 (197) - (87) - 3,740
Share options - value of employee service - - 379 - - - - 379
Transfer on exercise of options - - (10) - - 1 9 -
Purchase of own shares - - - - - - (5,051) (5,051)
Deferred tax on share options - - 226 - - - - 226
Dividends to equity holders of the company - - (2,999) - - - - (2,999)
Total Contributions by and distributions to owners of the company recognised - - (2,404) - - 1 (5,042) (7,445)
directly in equity
Transfers to EBT - - - - - (3,288) 3,288 -
Cancellation of shares (89) - (3,953) - 89 - 3,953 -
Balance at 31 December 2025 4,115 11,959 (2,356) (1,305) 12,461 30,951 (1,613) 54,212
group cash flow statement
for the year ended 31 December 2025
Year ended Year ended
Note 31 Dec 2025 31 Dec 2024
£'000 £'000
Cash flows from operating activities
Cash generated from operations 16 10,895 8,852
Interest paid (135) (226)
Income tax paid (680) (1,854)
Net cash flows generated from operating activities 10,080 6,772
Cash flows from investing activities
Purchase of property, plant and equipment, excluding right-of-use assets (736) (481)
Interest received 146 368
Purchase of intangible assets (1,120)
Net cash used in investing activities (590) (1,233)
Cash flows from financing activities
Dividends paid to company shareholders 5 (2,999) (3,081)
Purchase of own shares (5,051) (4,058)
Proceeds from new borrowings 5,940 -
Repayment of loans (7,128) (1,250)
Repayment of capital lease obligations (625) (592)
Net cash generated used in financing activities (9,863) (8,981)
Net (decrease)/increase in cash and cash equivalents (373) (3,442)
Cash, cash equivalents and bank overdrafts at the beginning of year 30,400 34,085
Exchange rate gains/losses on cash and cash equivalents (469) (243)
Cash and cash equivalents 29,558 30,400
Notes to the Audited preliminary results for the year ended 31 December 2025
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 reports from management consist of one segment, the Aptitude business.
Therefore, the only business segment for both periods was Aptitude and
therefore no segmental analysis is provided for this or the corresponding
period.
The principal activity of the Group throughout 2024 and 2025 was the provision
of business-critical software and services.
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 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024
£'000 £'000 £'000 £'000
United Kingdom 32,578 38,430 10,586 12,220
Rest of World 32,376 31,614 54,368 57,824
64,954 70,044 64,954 70,044
2. Non-underlying items
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Amortisation of intangibles 3,447 3,381
Reorganisation costs 1,779 862
5,226 4,243
3. Income tax expense
Analysis of charge in the year Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Current tax:
- tax charge on underlying items (1,763) (1,562)
- tax credit on non-underlying items 445 -
- adjustment to tax in respect of prior periods on underlying items 105 192
Total current tax (1,213) (1,370)
Deferred tax
- tax charge on underlying items (189) (114)
- tax credit on non-underlying items 887 871
- adjustment to tax in respect of prior periods on underlying items (101) -
Total deferred tax 597 757
Income tax expense (616) (613)
The total tax charge on underlying items of £2.0 million (2024: £1.5
million) comprises current tax of £1.7 million (2024: £1.4 million) and
deferred tax of £0.3 million (2024: £0.1 million), including prior year
adjustments
In addition to the amounts recognised in profit or loss, deferred tax of £NIL
million (2024: £0.2 million) has been recognised in other comprehensive
income and £0.2 million (2024: £0.1 million) directly in equity.
UK corporation tax is calculated at 25% (2024: 25%) of the estimated
assessable profit for the year. Taxation for other jurisdictions is calculated
at the rates prevailing in the respective jurisdictions.
The tax for the year is lower than (2024: lower than) the standard rate of
corporation tax in the UK of 25% (2024: 25%). The differences are explained
below:
Analysis of charge in the year Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Profit before tax 4,640 5,593
Tax at the United Kingdom corporation tax rate of 25% (2024: 25.0%): Effects (1,160) (1,398)
of:
Adjustment to tax in respect of prior periods 4 192
Adjustment in respect of foreign tax rates 364 67
Expenses not deductible for tax purposes (290) (69)
Other 5 190
Research and development tax relief (26) 124
Recognition of tax losses not previously recognised 487 300
Change in future tax rates - (19)
Total taxation (616) (613)
United Kingdom corporation tax is calculated at 25% (2024: 25%) 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 24.7% (2024: 20.01%).
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Profit before tax and non-underlying items 9,866 9,836
Tax charge at a rate of 24.7% (2024: 20.1%) (2,439) (1,976)
7,427 7,860
Tax adjustments in respect of prior years 4 192
Non-underlying items net of tax (3,894) (3,372)
Recognition of tax losses 487 300
Profit on ordinary activities after tax 4,024 4,980
2025 2024
Number Number
(thousands) (thousands)
Weighted average number of shares 55,360 56,837
Effect of dilutive share options 1,541 1,010
56,901 57,847
2025 2025 2024 2024
Basic EPS Diluted EPS Basic EPS Diluted EPS
pence pence pence pence
Earnings per share 7.3 7.1 8.8 8.6
Non-underlying items net of tax 7.0 6.8 5.9 5.8
Prior years' tax charge/(credit) (0.0) (0.0) (0.3) (0.3)
Recognition of tax losses (0.9) (0.9) (0.5) (0.5)
Adjusted earnings per share 13.4 13.0 13.9 13.6
Adjusted earnings per share are calculated using adjusted profit after tax.
5. Dividends
2025 2024 2025 2024
pence per share pence per share £'000 £'000
Dividend paid
Interim dividend 1.8 1.8 997 1,024
Final dividend (prior year) 3.6 3.6 2,002 2,057
5.4 5.4 2,999 3,081
Proposed but not recognised as a liability
Final dividend (current year) 3.6 3.6 1,996 2,006
The proposed final dividend was approved by the Board on 7 April 2026 but was
not included as a liability as at 31 December 2025, 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 12 June 2026 to
shareholders on the register at the close of business on 22 May 2026. 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
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Opening net book value 1 January 4,016 4,484
Additions 736 879
Net disposals (6) (14)
Net exchange movements 37 (29)
Depreciation (1,208) (1,304)
3,575 4,016
7. Goodwill
Year ended Year ended
31 Dec 2025 31 Dec 2024
Cost £'000 £'000
At 1 January 46,006 46,006
At 31 December 46,006 46,006
Net book amount 46,006 46,006
8. Intangible assets
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Opening net book value 1 January 15,412 17,739
Additions - 1,120
Amortisation (3,447) (3,447)
11,965 15,412
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
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Trade receivables 6,897 13,197
Less: provision for impairment of receivables (291) (1,107)
Trade receivables - net 6,606 12,090
Amounts owed by group undertakings - -
Other receivables 398 216
Other tax and social security receivable 407 -
Prepayments 1,943 1,754
Accrued income 1,786 801
11,140 14,861
Within the trade receivables balance of £6.9 million (2024: £13.2 million)
there are balances totalling £3.7 million (2024: £6.8 million) which, at 31
December 2025, were overdue for payment. Of this balance 86% (2024: 55%) has
been collected at 13th March 2026 (2024: 24 March 2025). DSO (debtor days)
decreased to 34 at 31 December 2025 (2024: 55) as a result of improved
collections at year-end combined with a detailed focus on a small number of
long-running disputes being settled prior to 31 December 2025. Deferred income
at 31 December 2025 decreased to £28.2 million (2024: £32.2 million),
reflecting the recognition of revenue from prior‑year invoicing outpacing
new billings during the year.
10. Financial liabilities
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Bank loan 5,940 7,180
The borrowings are repayable as follows:
Within one year 1,250 7,188
In the second year 1,250 -
In the third to fifth years inclusive 3,500 -
6,000 7,188
Unamortised prepaid facility arrangement fees (60) (8)
At 31 December 5,940 7,180
On 14 October 2025, the Group refinanced its existing borrowings with Bank of
Ireland. The previous loan, with an outstanding principal balance of £7.1
million, was fully repaid on that date.
Concurrently, the Group entered into a new loan agreement with HSBC UK for a
principal amount of £6.0 million. The refinancing completed during the year
provides the Group with committed funding for a minimum period of three years
from October 2025. Together with the Group's existing cash balances and
forecast operating cash flows, the Directors believe the Group has sufficient
liquidity and covenant headroom to meet its obligations as they fall due over
the forecast period. The facility agreement also provides extension options
which, if exercised, would extend the maturity beyond the initial three-year
term. The new facility has a contractual term of three years, with an option
to extend for a further one year, subject to lender approval. The loan bears
interest at SONIA plus a 1.40% margin.
In addition, the Group has a £5.0 million Revolving Credit Facility ("RCF")
with HSBC UK, which bears interest at SONIA plus a 1.50% margin on any amounts
drawn. An uncommitted accordion option of up to £5.0 million was also
available. A 35% charge is applied to the undrawn portion of the RCF,
resulting in an undrawn fee calculated of 0.525%.
The term loan is repayable in quarterly instalments of £0.3 million, with the
remaining balance repayable at maturity. The revolving credit facility is
repayable at maturity, unless repaid earlier.
11. Trade and other payables
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Trade payables 1,099 405
Other tax and social security payable 898 929
Other payables 410 154
Accruals 7,328 6,909
Deferred income 28,227 32,225
37,962 40,622
12. Lease obligations
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
Amounts payable under capital lease agreements:
Within one year 622 633
Within two to five years 1,832 2,111
After five years 182 544
Total 2,636 3,288
Less: future finance charges (239) (345)
Present value of lease obligations 2,397 2,943
Less: Amount due for settlement within 12 months (shown under current (543) (527)
liabilities)
1,854 2,416
Year ended Year ended
31 Dec 2025 31 Dec 2024
£'000 £'000
The present value of financial lease liabilities is split as follows:
Within one year 543 527
Within two to five years 1,681 1,890
After five years 173 526
2,397 2,943
13. Provisions
Provisions
31 Dec 2025 31 Dec 2024
£'000 £'000
At 1 January 383 368
Charged/(released) to income statement (6) 19
Foreign exchange movement - (4)
At 31 December 377 383
£0.3 million (2024: £0.3 million) of the total provision at 31 December 2025
of £0.4 million (2024: £0.4 million) relates to the cost of dilapidations in
respect of its occupied leasehold premises.
All of the non-current provision is expected to unwind within 2 to 5 years
(2024: 2 to 5 years).
14. Share capital
Number £'000
Ordinary shares of 7 1/3p each
Issued and fully paid:
At 1 January 2025 57,337,611 4,204
Shares issued 6,707 -
Shares cancelled (1,233,354) (89)
At 31 December 2025 56,110,964 4,115
15. Treasury shares reserve
31 Dec 2025 31 Dec 2024
£'000 £'000
At 1 January (3,812) -
Purchase of own shares (5,051) (4,014)
Transfer of exercise of options 9 202
Transfer to EBT 3,288 -
Cancellation of shares 3,953 -
At 31 December (1,613) (3,812)
1,648,025 shares were purchased by the Company in 2025 for a total cost of
£5.1m (2024: 1,185,400 shares at a cost of £4.0m under the Company's share
buyback programme). The EBT holds 1,000,558 (2024: 558) ordinary shares in the
Company.
16. Cash flows from operating activities
Reconciliation of profit before tax to net cash generated from operations:
31 Dec 2025 31 Dec 2024
£'000 £'000
Profit before tax for the year 4,640 5,593
Adjustments for:
Depreciation 1,208 1,304
Amortisation 3,447 3,447
Share-based payment expense 379 611
Finance income (146) (368)
Finance costs 312 450
Changes in working capital:
(Increase)/decrease in receivables 3,721 (2,049)
(Decrease)/increase in payables (2,660) (136)
(Decrease) in provision (6) -
Cash generated from operations 10,895 8,852
17. Statement by the directors
The preliminary results for the year ended 31 December 2025 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
2025 Annual Report. The accounting policies adopted in this preliminary
announcement are consistent with the Annual Report for the year ended 31
December 2025.
The comparative figures for the financial year 31 December 2024 have been
extracted from the Group's statutory accounts for that financial year. The
2024 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
2025 or 31 December 2024. The Annual Report for 2025 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 7 April 2026.
The Annual Report for the year ended 31 December 2025 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.
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