REG - Aptitude Software - Full Year Trading Update and Notice of Results

Aptitude SoftwareAnnouncement

05/02/2025 07:00

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RNS Number : 9175V  Aptitude Software Group PLC  05 February 2025

5 February 2025

Aptitude Software Group plc

("Aptitude", "the Group")

Full Year Trading Update and Notice of Results

Aptitude (LSE:APTD), a market-leading provider of finance transformation
software solutions, specialising in fully autonomous finance, today provides
an update for the financial year ended 31 December 2024.

Aptitude made positive progress in 2024, delivering revenue and profits in
line with expectations and advancing its strategic goals. Despite
macroeconomic conditions, particularly in the US and UK, which slowed customer
decision-making earlier in the year, recent weeks have shown renewed momentum.

On a constant currency basis, ARR for our AI Autonomous Finance solutions,
including Fynapse, grew 12% year-on-year to £17.1 million (31 December 2023:
£15.3 million, 12%). Selected wins include new Fynapse clients, including a
US-based insurance brokerage, a leading interactive entertainment provider, a
global insurer operating across over 50 countries, and a major contract win
with one of Australia's largest financial services groups. Additionally, we
achieved continued expansion with the Aptitude Accounting Hub and Fynapse
through a Big-4 accountancy firm's managed service.

We surpassed our goal of achieving 30% Software ARR through partners, driven
by strong collaborations with HSO, Microsoft, and a Big 4 accountancy firm.
 Software churn was reduced to 8% (31 December 2023: 10%), reflecting
improved customer retention and efforts to address legacy challenges. We also
achieved strong expansion across our existing client base, with improved
upsell activity across 21 of our clients.

The Group is actively transitioning the business to position itself for
long-term success around its market leading autonomous finance solution,
Fynapse. As a result, the Group's overall ARR grew by 2% on a constant
currency basis in the year to £52.1 million (31 December 2023: £51.3
million, 30 June 2024: £50.9 million). Total Revenue is expected to be c£70
million, (31 December 2023: £74.7 million) as anticipated and in line with
the strategic shift to partner led sales and implementation. This has led to
an increase in the proportion of recurring revenue to 78% (2023: 74%).

The Group's balance sheet remains strong, with cash at 31 December 2024 of
£30.4 million (31 December 2023: £34.1 million) and net funds of £20.3
million (31 December 2023: £22.7 million). This reflects the Group's strong
underlying cash generation which has enabled us to fund our dividends and the
share buy-back program.

Outlook

We are pleased with the substantial progress made and the materially improved
position of the business compared to last year. The new year has started well,
notably, on 31 January 2025, a Top 10 US Health Insurer committed to migrating
to Fynapse from our Aptitude Accounting Hub, with a total contract value of
£5.7 million. This brings our total number of Fynapse clients to five. The
Group is confident of materially increasing the number of new Fynapse contract
wins both from the existing customer base and new logos in the current year.

Notice of Results

The Group expects to issue its results for the year ended 31 December 2024 on
Wednesday 26 March 2025.

A presentation for analysts will take place on the day.  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
 Caroline Forde / Hilary Buchanan                            020-3405-0205

 

 About Aptitude Software

 Aptitude Software provides software solutions that deliver fully autonomous
finance to enable its clients to drive growth, efficiency and sustainability.
Fynapse is Aptitude's intelligent finance data management and accounting
platform designed to increase productivity and lower costs for finance teams
globally. Fynapse provides a single view of finance and business data,
unparalleled performance and automation, faster and better insights,
user-friendly functionality and market-leading total cost of ownership.

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