REG - Aptitude Software - Interim Results for six months ended 30 June 2025
Wed 07:00
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RNS Number : 1260U Aptitude Software Group PLC 06 August 2025
6 August 2025
APTITUDE SOFTWARE GROUP plc
('Aptitude Software' or 'the Group')
Interim Results for the six months ended
30 June 2025
Strong momentum in AI Autonomous Finance, supported by business transformation
Aptitude (LSE: APTD), a market-leading provider of finance transformation
software solutions, specialising in fully autonomous finance, reports its
unaudited results for the six months ended 30 June 2025 ('H1 2025').
Financial Highlights
Six months ended 30 June H1 2025 H1 2024 % Change
Annual Recurring Revenue(1) ('ARR') at 30 June £49.8m £48.6m(2) 3%
- AI Autonomous Finance(1 / 7) £17.3m £15.3m(2) 13%
- Other Software(1) £27.5m £29.3m(2) (6%)
- Assure(1) £5.0m £4.0m(2) 25%
Revenue
Total Revenue £32.8m £35.3m (7%)
- Recurring Revenue(3) £26.8m £27.5m (3%)
- Non-Recurring Revenue £6.1m £7.8m (22%)
Recurring Revenue proportion 82% 78% 4ppts
Profit
Adjusted Operating Profit(4) £4.9m £4.2m 17%
Statutory Operating Profit £2.0m £2.5m (20%)
Adjusted Operating Margin(4) 14.9% 11.9% 3.0%
Cash and Balance Sheet
Cash and Cash Equivalents £23.7m £24.4m (3%)
Net Cash(5) £17.1m £16.6m 3%
Interim Ordinary Dividend per Share 1.8p 1.8p -
· Year-on-year ARR growth driven by new customer wins and expansions, offset by
expected churn from legacy products and clients
· 13% growth in AI Autonomous Finance ARR, the Group's strategic focus,
reflecting growing market demand and well-positioned product proposition
· Recurring revenue accounted for 82% of the Group's total revenue (H1 2024:
78%), increasing the Group's proportion of predictable revenues
· Double-digit growth in adjusted operating profit to £4.9m (H1 2024: £4.2m)
driven by an improving revenue mix and the benefits of cost reductions as part
of the on-going re-organisation to a SaaS business model.
· Continued balance sheet strength with cash of £23.7 million (30 June 2024:
£24.4 million) following the return of £6.3 million of funds to shareholders
via the share buyback programme to 30 June 2025 (including £2.3 million
returned to shareholders in H1 2025), and net cash of £17.1 million (30 June
2024: £16.6 million).
Strategic and Operational Highlights:
· Strong Fynapse momentum - Four new enterprise wins in H1 with a total contract
value of £7.4m
· Proven speed of implementation - one client went live in just six weeks,
demonstrating the platform's ability to deliver rapid, low-cost transformation
with minimal disruption
· Partner-first model being embedded - Business redesign across product, go to
market, and client experience supporting improved partner engagement with
partners central to market outreach, sales and delivery
· Pipeline aligned to partner strategy - 70% of 2025 and 2026 pipeline is
partner-influenced, supporting Aptitude's goal of 80% of new ARR sourced via
partners by 2027
· Improving customer satisfaction and stability - 101% net retention rate(6)
driven by key expansions and cross-sell wins across the portfolio, including
Aptitude Revstream ("AREV") and eSuite
· Transformation driving financial gains - Higher recurring revenue mix,
improved product delivery cycles, and leaner operations contributing to
stronger margins and operating efficiency
Commenting on the results, Alex Curran, CEO, said: -
"We've made good progress in H1 2025. Our shift to a SaaS-led, partner-first
organisation is clearly taking hold - improving revenue quality and expanding
margins. While we remain mindful of the broader macroeconomic backdrop, our
growing pipeline, active partner engagement and disciplined execution give us
confidence. We are accelerating delivery with a sharp focus on leveraging our
experience and advantage in AI-powered finance transformation."
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
Canaccord Genuity Limited 020-7523-8000
Simon Bridges / Andrew Potts
Alma Strategic Communications 020-3405-0205
Caroline Forde / Hilary Buchanan
Throughout this announcement:
(1) Annual Recurring Revenue ('ARR') is the value of Aptitude Software's
recurring revenue at a specific point in time, normalised to a one-year
period. ARR includes recurring revenues contracted but yet to commence and
excludes recurring revenues which are currently being received but for which
formal termination notice has been received. Included in ARR are recurring
revenues from the Group's solution management services.
(2) Constant currency is calculated by comparing the H1 2025 results with H1
2024 results retranslated at the rates of exchange prevailing during H1 2025.
Items within the Financial Highlights table indicated by this superscript
reference are calculated on a constant currency basis.
(3) Recurring Revenue includes revenues from the Group's solution management
services
(4) Adjusted Operating Profit, Adjusted Operating Margin and Adjusted Basic
Earnings per Share exclude non-underlying operating items, unless stated to
the contrary. Further detail in respect of the non-underlying operating items
can be found within Note 6.
(5) Net Cash represents cash and cash equivalents less a bank loan
(6) Net retention rate ("NRR") is measured by the total value of on-going ARR
at the period-end from clients in place twelve months earlier as a percentage
of the opening ARR from those clients on a constant currency basis. Software
net retention rate is calculated on the same basis but excluding Assure ARR.
(7) AI Autonomous Finance is a consolidated view of both Fynapse and Aptitude
Accounting Hub ("AAH")
Certain non-IFRS financial measures (e.g. Adjusted Operating Profit) are
included which assist management in comparing performance on a consistent
basis
About Aptitude Software
Aptitude Software provides software solutions that deliver fully autonomous
finance to enable its clients to drive 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.
Overview
Aptitude delivered a good H1 2025, continuing its shift from a compliance-led,
services-heavy business to a leaner, SaaS-first organisation centred on
Autonomous Finance and partner-led delivery. The transformation is progressing
rapidly and will be near completion at the end of the year, with structural
changes starting to translate into improved profitability, stronger recurring
revenue, and growing partner and pipeline momentum. Despite some macroeconomic
headwinds impacting deal timings, the Group enters H2 with a more scalable
model and a clear focus on execution.
Market Opportunity in Autonomous Finance
Fynapse positions Aptitude to capitalise on the significant and fast-emerging
AI Autonomous Finance opportunity - a market conservatively estimated at £3
billion.
Fynapse enables Aptitude to compete differently because it:
· Provides CFOs with a platform to shift from reactive close cycles to real-time
finance - becoming strategic advisors to their businesses
· Delivers transformation in months, not years, with less disruption and lower
cost than traditional ERP programmes
· Works alongside existing systems (ERP, data lakes, operational platforms) to
unify data, embed intelligence and automate key processes
· Fynapse delivers real-time, finance data, automation, continuous close, and
predictive insight, making it a natural AI enabler, not a threat
Aptitude has invested significantly in Fynapse and it is pleasing to see the
beginnings of real customer traction.
Fynapse wins
Momentum behind Fynapse continues to build following its 2024 relaunch. The
Group now has nine Fynapse clients, including four new enterprise wins in H1
across financial services, healthcare, and digital payments.
New enterprise wins in H1 included a U.S. health insurer, an Australian
payments provider, a KPMG-managed services client, and a global mobile parking
platform that went live in just six weeks. These clients selected Fynapse for
its composable, AI-native architecture, ability to modernise without ERP
replacement, and accelerated return on value.
Feedback from recent implementations reflects both customer satisfaction and
product differentiation. For example, the CTO at the Global Parking Payments
organization commented: " We operate at scale and in real time, globally. We
need to deliver a market-leading service to our customers while enabling our
business to drive growth and efficiency. Aptitude Fynapse supports us in
achieving these goals in a way no other vendor was able to."
Fynapse's scalability and ease of integration are driving pipeline growth and
faster conversion, especially through partners. Fynapse is the engine of
Aptitude's long-term growth in Autonomous Finance, and the Group is focused on
accelerating its adoption in H2.
The Existing Base of clients
Aptitude's established portfolio and base of over 100 high-value enterprise
clients continue to underpin our performance and provide a clear path to scale
Fynapse adoption.
In H1, we saw momentum across both existing clients and net new wins:
· A Fynapse win with a long-standing U.S. healthcare client
· Product expansions across media and technology accounts
· Key renewals secured across multiple major clients, supporting recurring
revenue resilience
We also closed net new portfolio wins, including a revenue management deal
with a global packaging company, a partner-led eSuite expansion with an
existing client, and a new KPMG managed services deal combined with Assure, to
support delivery enablement and implementation readiness.
This embedded client base remains a strong engine for cross-sell, Fynapse
migration, and broader platform growth. As part of this strategy, we are
actively executing our AAH client migration plan, with a target to transition
one-third of the 36 AAH clients to Fynapse by the end of 2027. To date, 3
clients have successfully migrated, with a further 12 targeted across 2025,
2026, and 2027.
Strategic Progress
Partner First Business Model
Aptitude completed its move to a partner-first model in March 2025, meaning
that partners now play an integral role in both selling and implementing our
software. The business continues to be redesigned to support this shift across
product, sales, and client delivery.
We're already seeing the impact:
· Partner-sourced ARR has grown from 10% in 2023 to 30% in FY 2024, and we are
on track to hit our target of 45% in 2025, with a longer-term goal of 80% ARR
sourced by partners by 2027
· 70% of the pipeline for 2025 and 2026 now involves partners
· Active relationships with KPMG, Microsoft, HSO, Deloitte, EY, Capgemini, and
Avanade
This model is important because it allows Aptitude to grow faster and more
profitably:
· More scale: We can now train and enable far more people through partners than
we ever could internally, increasing our reach without increasing our
headcount
· Broader access: Partners open doors to Tier 2 and Tier 3 opportunities,
segments that would be difficult and costly to serve through a direct model
· Better delivery: Partners bring deep sector knowledge and implementation
capacity, helping us serve more clients, in more markets, more effectively
· Higher margins: With partners delivering services, our internal focus shifts
to software development and innovation
· Faster adoption: Partners help accelerate Fynapse sales and implementation,
supporting quicker value for clients and faster revenue for Aptitude
This shift is becoming visible in activity levels. We are seeing:
· A growing number of joint customer events and co-branded campaigns
· Increased training sessions to build Fynapse-specific capability within
partner teams
· Expanded partner involvement in go-to-market efforts, including account
planning and joint marketing execution
The partner-first model is a key driver of how we scale Fynapse and grow the
business moving forward.
Organisational Change and Operational Efficiency
Over the past 18 months, Aptitude has reshaped its operating model, moving
from a legacy software vendor to a modern, cloud SaaS company with scalable
delivery, a leaner cost base and sharper commercial focus.
What's been delivered:
· Structural reorganisation across product, engineering, GTM and services
· Modern product operating models rolled out across the portfolio, resulting in
a significant increase in speed to market of new features, at a reduced
overall level of R&D spend - 27% year-on-year reduction in R&D.
· Exit from predominantly direct services in March 2025, replaced by a partner
implementation model
· Cost base reset is driving higher margins while also enabling investment in
areas to improve client satisfaction and a reduction in churn
What's next:
· Rollout of partner support and services infrastructure in Q3
· Continued optimisation of cloud services, marketing and partner enablement
capability
Impact so far:
· Adjusted operating margin up to 14.9% (H1 2024: 11.9%)
· Recurring revenue now 82% of total (H1 2024: 78%)
· Improved cross-functional execution and partner readiness
The Group enters H2 with a more agile structure, well-aligned to support SaaS
growth at scale.
Client Success and Portfolio Performance
As Aptitude scales Fynapse, the Group continues to drive strong performance
across its existing client base and wider product suite. This remains a core
source of recurring revenue and near-term opportunity.
In H1 2025, the Group delivered a net retention rate of 101%, supported by a
series of renewals, expansions, and new wins across the portfolio, spanning AI
Autonomous Finance (Fynapse and Aptitude Accounting Hub), Subscription
Management, Compliance, and Revenue Management products.
To support and improve this performance, the Group has:
· Strengthened account coverage through targeted hiring and structural
improvements
· Rolled out enhanced client health scoring, structured account planning, and
standardised Quarterly Business Reviews
· Improved integration between customer success, product, and partner teams to
deliver greater value post-sale
The business is also now better organised to support its specialised
offerings:
· Subscription Management (eSuite): Focused on media and publishing with
continued enhancements in retention, usability, and targeted growth
· Compliance Suite: Supporting long-standing clients with an emphasis on
satisfaction, cross-sell readiness and cost-efficient delivery
· Assure and Implementation Services: Expanding through partner-led delivery,
including offerings aimed at solution management and implementation readiness
These actions reflect Aptitude's focus on delivering impact across both new
and existing accounts ultimately ensuring a resilient revenue foundation, with
lower churn while supporting Fynapse adoption and portfolio expansion.
People and Leadership
The Group's transformation has included significant investment in
organisational design, talent, and governance, ensuring Aptitude is aligned to
deliver SaaS growth at scale.
· Headcount at 30 June 2025 was 345 (H1 2024: 452), reflecting the Group's shift
to a leaner, product-led model while investing in growth areas such as account
management, marketing and partner enablement
· Key new roles were created across client success, GTM and delivery to support
the partner-first operating model and deepen client engagement
· Talent development, succession planning, and performance management continue
to be embedded through the Group's Objectives & Key Results and leadership
frameworks
At Board level, Paula Dowdy was appointed as a new Non-Executive Director
during the period, bringing extensive experience in enterprise software,
innovation, and global go-to-market execution. Her appointment also included
assuming the roles of Senior Independent Director and Remuneration Committee
Chair. These changes support Aptitude's next phase of growth and reinforce its
commitment to effective oversight, operational discipline, and a high
performance culture.
Outlook
The Group enters the second half of 2025 with:
· A structurally transformed operating model
· Clear Fynapse momentum and pipeline visibility
· A partner ecosystem that is engaged and delivering
· Strong recurring revenue and improving margins
· An improved focus on churn which should reduce as we move into 2026
As noted in the Trading Update issued on 24 July 2025, the Board expects Group
revenue performance in FY25 to be dampened due to macroeconomic headwinds and
foreign exchange movements. However, the considerable progress that has been
made in transforming the business provides the Board with confidence in
delivering its profit expectations for FY 2025.
The focus for H2 will be on:
· Closing high-conviction partner-influenced deals
· Scaling Fynapse adoption across new and existing clients
· Completing the rollout of the partner services model
· Continuing to improve pipeline conversion and execution discipline
With a leaner structure, differentiated platform, and a growing base of
engaged partners, Aptitude is well positioned to deliver continued progress
against its strategic objectives.
Financial Performance
The Group delivered a solid performance in the first half of 2025, increasing
adjusted operating profit despite a reduction in revenues. This revenue
reduction is seen primarily within non-recurring revenue which has led to an
improved revenue mix, which in combination with the benefits of cost
reductions as part of the on-going re-organisation to a SaaS business model
has led to the increased profitability.
The Group's robust balance sheet, high levels of recurring revenue and strong
cash generation, continue to provide the Group with considerable financial
strength with which to execute on its growth strategy.
Revenue
Total revenue for the six months ended 30 June 2025 was £32.8 million (H1
2024: £35.3 million).
Recurring Revenues
Recurring revenues recognised in the six months ended 30 June 2025 decreased
by 3% to £26.8 million (H1 2024: £27.5 million) due to a combination of
negative foreign exchange movements and the fact that H1 2024 benefitted from
the acceleration of revenues recognised on some churned customers due to
settlements being reached.
Recurring revenues now represent 82% of overall revenue (H1 2024: 78%). It is
a key part of the Group's strategy to increase this percentage whilst
maximising the growth rate of Aptitude Software's ARR. This strategy is
delivering a growth in operating margin.
Aptitude's ARR at 30 June 2025 totalled £49.8 million (31 December 2024:
£49.8 million, 30 June 2024: £48.6 million both on a constant currency
basis(2)) representing overall year-on-year growth of 3%. Included within ARR
is the value of the Group's recurring solution management services contracts
('Assure') of £5.0 million (31 December 2024: £5.0 million, 30 June 2024:
£4.0 million both on a constant currency basis(2)).
The net retention rate(6) in the 12 months to 30 June 2025 was 101% (H1 2024:
98%). This increased net retention rate(6) has been driven by key expansions
and cross-sell wins across the product portfolio.
Non-Recurring Revenue
Non-recurring implementation services revenue totalled £6.1 million for the
six months ended 30 June 2025 (H1 2024: £7.8 million). The reduction in
implementation services revenues reflects the Group's shift to a partner-led
services model and is in line with expectations.
Research and Development Expenditure
Total research and development expenditure in the six months ended 30 June
2025 reduced to £6.7 million (H1 2024: £9.1 million). This cost reduction is
due to the impact of the continued reorganisation to a SaaS business model,
where cost efficiencies have been made while maintaining the effectiveness of
the function and continuing to ensure that strategic product development is
accelerated.
The Board has continued to determine that none of the internal research and
development costs incurred during the first half of the year meet the criteria
for capitalisation. Consequently, these have been expensed as incurred through
the income statement.
Operating Profit and Margins
Adjusted Operating Profit for the six months ended 30 June 2025 was £4.9
million (H1 2024: £4.2m). Operating profit on a statutory basis was £2.0
million (H1 2024: £2.5 million). Adjusted Operating Margin for the six months
ended 30 June 2025 was 14.9% (H1 2024: 11.9%). The increase in Adjusted
Operating Margin reflects both a transition to higher margin recurring
revenues, as well as the benefits of cost reductions as part of the on-going
re-organisation to a SaaS business model.
Foreign Exchange
With 53% (H1 2024: 48%) of the Group's revenues being generated from North
American clients, the majority of which are invoiced in US Dollars, the
financial results are impacted by changes in the US dollar exchange rate.
Aptitude Software's H1 2024 revenue and Adjusted Operating Profit would have
been reported at £34.8 million and £4.0 million respectively on a constant
currency basis (compared to actual result of £35.3 million and £4.2
million). Constant currency is calculated by comparing the 2024 results with
2025 results retranslated at the rates of exchange prevailing during 2025.
Non-Underlying Items
Non-underlying items of £2.9 million (H1 2024: £1.7 million) comprise of
intangible amortisation and reorganisation costs, with the increase from H1
2024 coming from the £1.2 million reorganisation costs in H1 2025 (H1 2024
reorganisation costs: Nil).
Taxation
The total tax charge of £0.4 million (H1 2024: £0.5 million) represents 21%
of the Group's profit before tax (H1 2024: 21%).
Statutory Results
The Group reported a profit for the period attributable to equity shareholders
of £1.4 million (H1 2024: £2.0 million).
Earnings per Share
Adjusted Basic Earnings per Share increased to 6.6 pence (H1 2024: 5.8 pence)
while Basic Earnings per Share decreased to 2.5 pence (H1 2024: 3.5 pence) as
a result of the H1 2025 reorganisation costs within non-underlying items.
Dividend
An interim dividend of 1.8 pence per share is declared (2024: 1.8 pence). The
interim dividend will be payable on 8 September 2025 to shareholders on the
register at the close of business on 15 August 2025.
Balance Sheet
The Group continues to have a strong balance sheet with net assets at 30 June
2025 of £54.9 million (H1 2024: £58.7 million), including cash of £23.7
million (H1 2024: £24.4 million) and net cash of £17.1 million (H1 2024:
£16.6 million). The reduction in net assets is a result of the continued
amortisation of intangible assets in the period. Trade receivables (net) have
decreased to £9.8 million (H1 2024: £14.6 million), a reduction of £4.8
million due to the timing of receipt of certain annual software invoices. Of
the balance of £9.8 million, collections following the period end have
totalled £4.4 million. Deferred income decreased to £26.5 million at 30 June
2025 (H1 2024: £27.1 million).
The Group's cash flow is seasonal due to the timing of the invoicing and
collection of the Group's recurring revenue which, together with a weighting
of a number of other payments in the first half of the year (e.g. bonus),
contribute to a weaker cash performance in the first half of any year. Cash
outflow from operating activities in the first half of the year was £1.0m (H1
2024: £5.5m), an improvement of £4.5m as a result of the timing of
collection of some larger software invoices. Given the seasonality of cashflow
the Group is confident that full year operating cash flow conversion for 2025
will return to historic levels. The Group continues to provide enhanced
returns to shareholders through a £20m buy back programme over a three-year
period, with £2.3 million returned to shareholders in H1 2025.
Statement on Principal Risks and Uncertainties
Pursuant to the requirements of the Disclosure and Transparency Rules the
Group provides the following information on its principal risks and
uncertainties. The Group considers strategic, operational and financial
risks and identifies actions to mitigate those risks. These risk profiles
are updated at least annually. The principal risks and uncertainties
detailed within the Group's 2024 Annual Report remain applicable for the first
six months of the financial year. The Group's 2024 Annual Report is
available from the Aptitude Software website:
www.aptitudesoftware.com/investor-relations/
(http://www.aptitudesoftware.com/investor-relations/)
Related party transactions during the period are disclosed in Note 20.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
For the six months ended 30 June 2025
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024 Audited year ended 31 Dec 2024
Note Before non-underlying items Non- underlying items Total Before non-underlying items Non- underlying items Total Before non-underlying items Non- underlying items Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
Revenue 5 32,825 - 32,825 35,260 - 35,260 70,044 - 70,044
Operating costs 6 (27,924) (2,897) (30,821) (31,060) (1,702) (32,762) (60,126) (4,243) (64,369)
Operating profit 4,901 (2,897) 2,004 4,200 (1,702) 2,498 9,918 (4,243) 5,675
Finance income 87 - 87 249 - 249 368 - 368
Finance costs (283) - (283) (172) - (172) (450) - (450)
Profit before income tax 4,705 (2,897) 1,808 4,277 (1,702) 2,575 9,836 (4,243) 5,593
Income tax expense 7 (993) 612 (381) (906) 361 (545) (1,484) 871 (613)
Profit for the period 3,712 (2,285) 1,427 3,371 (1,341) 2,030 8,352 (3,372) 4,980
Earnings per share
Basic 8 2.5p 3.5p 8.8p
Diluted 8 2.5p 3.5p 8.6p
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024 Audited year ended 31 Dec 2024
£000 £000 £000
1,427 2,030 4,980
Profit for the period
Other comprehensive (expense)/income
Items that will or may be reclassified to profit or loss:
Cash flow hedges reclassified to income statement (63) (507) (713)
Gain/(loss) on effective cash flow hedges 508 (60) (254)
Deferred tax on cash flow hedges (112) 142 242
Currency translation difference (676) (240) (247)
Other comprehensive (expense) for the period, net of tax (343) (665) (972)
Total comprehensive income for the period 1,084 1,365 4,008
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 30 June 2025
Unaudited as at 30 June 2025 Unaudited as at 30 June 2024 Audited as at 31 Dec 2024
Notes £000 £000 £000
ASSETS
Non-current assets
Property, plant and equipment including right-of-use assets 11 3,628 4,030 4,016
Goodwill 46,006 46,006 46,006
Intangible assets 12 13,581 16,049 15,412
Other long-term assets 737 932 730
Deferred tax assets 1,250 1,379 1,250
65,202 68,396 67,414
Current assets
Trade and other receivables 13 13,469 18,248 14,861
Financial assets - derivative financial instruments 4 489 574 387
Current income tax assets - 516 1,721
Cash and cash equivalents 23,686 24,360 30,400
37,644 43,698 47,369
Total assets 102,846 112,094 114,783
LIABILITIES
Current liabilities
Financial liabilities
- borrowings 15 (6,559) (1,250) (7,180)
- derivative financial instruments 4 (18) - (214)
Trade and other payables 14 (34,202) (37,573) (40,622)
Lease liabilities 16 (529) (434) (527)
Current income tax liabilities (317) - (1,802)
Provisions 17 - (98) (25)
(41,625) (39,355) (50,370)
Net current (liabilities)/assets (3,981) 4,343 (3,001)
Non-current liabilities
Financial liabilities - borrowings 15 - (6,538) -
Lease liabilities 16 (2,127) (2,374) (2,416)
Provisions 17 (369) (282) (358)
Deferred tax liabilities (3,834) (4,824) (3,722)
(6,330) (14,018) (6,496)
NET ASSETS 54,891 58,721 57,917
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 30 June 2025
Unaudited as at 30 June 2025 Unaudited as at 30 June 2024 Audited as at
31 Dec 2024
Notes £000 £000 £000
SHAREHOLDERS' EQUITY
Share capital 18 4,204 4,204 4,204
Share premium account 18 11,959 11,959 11,959
Capital redemption reserve 12,372 12,372 12,372
Other reserves 34,659 33,540 34,325
Treasury shares reserve 19 (6,057) - (3,812)
Accumulated losses (462) (2,253) (23)
Foreign currency translation reserve (1,784) (1,101) (1,108)
TOTAL EQUITY 54,891 58,721 57,917
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
Attributable to owners of the Parent
Share capital Share premium Accumulated losses Foreign currency translation reserve Capital redemption reserve Other reserves Total Equity
Treasury shares reserves
£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 period - - 1,427 - - - - 1,427
Cash flow hedges reclassified to income statement - - - - - (63) - (63)
Gain on effective cash flow hedges - - - - - 508 - 508
Deferred tax on cash flow hedges - - - - - (112) - (112)
Exchange rate adjustments - - - (676) - - - (676)
Total comprehensive income for the year - - 1,427 (676) - 333 - 1,084
Purchase of own shares - - - - - - (2,254) (2,254)
Transfer on exercise of options - - (4) - - 1 9 6
Share options - value of employee service - - 140 - - - - 140
Dividends to equity holders of the company - - (2,002) - - - - (2,002)
Total Contributions by and distributions to owners of the company recognised - - (1,866) - - 1 (2,245) (4,110)
directly in equity
Balance at 30 June 2025 (unaudited) 4,204 11,959 (462) (1,784) 12,372 34,659 (6,057) 54,891
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2024
Attributable to owners of the Parent
Share capital Share premium Accumulated losses Foreign currency translation reserve Capital redemption reserve Other reserves Total Equity
£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 period - - 2,030 - - - 2,030
Cash flow hedges reclassified to income statement - - - - - (507) (507)
Loss on effective cash flow hedges - - - - - (60) (60)
Deferred tax on cash flow hedges - - - - - 142 142
Exchange rate adjustments - - - (240) - - (240)
Total comprehensive income for the period - - 2,030 (240) - (425) 1,365
Purchase of own shares - - - - - (1,311) (1,311)
Transfer on exercise of options - - (287) - - 287 -
Share options - value of employee service - - 410 - - - 410
Dividends to equity holders of the company - - (2,057) - - - (2,057)
Total Contributions by and distributions to owners of the company recognised - - (1,934) - - (1,024) (2,958)
directly in equity
Balance at 30 June 2024 (unaudited) 4,204 11,959 (2,253) (1,101) 12,372 33,540 58,721
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 30 June 2025
Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024 Audited year ended 31 Dec 2024
Note £000 £000 £000
Cash flows from operating activities
Cash (used in)/generated from operations 9 (572) (3,714) 8,852
Interest paid (136) (172) (226)
Income tax (paid) (284) (1,608) (1,854)
Net cash flows (used in)/generated from operating activities (992) (5,494) 6,772
Cash flows from investing activities
Purchase of property, plant and equipment, excluding right-of-use assets 11 (196) (72) (481)
Interest received 87 249 368
Purchase of intangible assets - - (1,120)
Net cash (used in)/generated from investing activities (109) 177 (1,233)
Cash flows from financing activities
Purchase of own shares (2,266) (1,311) (4,058)
Dividends paid to company's shareholders 10 (2,002) (2,057) (3,081)
Repayments of loan (625) (625) (1,250)
Repayment of capital lease obligations (308) (178) (592)
Net cash generated (used in) financing activities (5,201) (4,171) (8,981)
Net (decrease) in cash and cash equivalents (6,302) (9,488) (3,442)
Cash, cash equivalents and bank overdrafts at beginning of period 30,400 34,085 34,085
Exchange rate (losses) on cash and cash equivalents (412) (237) (243)
Cash and cash equivalents at end of period 23,686 24,360 30,400
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General information
Aptitude Software Group plc (the 'Company') and its subsidiaries (together,
the 'Group') is a specialist provider of AI Autonomous Finance solutions.
The Company is a public limited company incorporated and domiciled in England
and Wales with a primary listing on the London Stock Exchange. The address of
its registered office is 8(th) Floor, 138 Cheapside, London EC2V 6BJ.
These condensed consolidated interim financial statements were approved for
issue on 5 August 2025.
These condensed consolidated interim financial statements do not comprise
statutory accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2024 were approved by
the Board of directors on 25 March 2025 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified, did
not contain an emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated interim financial statements for the six months
ended 30 June 2025 have not been audited or reviewed by the auditors. The
interims have been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Services Authority and with IAS 34, 'Interim financial
reporting'. These condensed consolidated interim financial statements should
be read in conjunction with the annual financial statements for the year ended
31 December 2024, which have been prepared in accordance with UK adopted
international accounting standards and company law.
3. Accounting policies
The accounting policies adopted are consistent with those of the previous
financial statements, except as described below.
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual profits.
New and amended standards and interpretations need to be adopted in the first
interim financial statements issued after their effective date. There are no
new IFRSs or IFRICs that are effective for the first time for this interim
period that would be expected to have a material impact on the financial
statements.
4. Estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expense. Actual results may differ from these estimates. In preparing
these condensed consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 31 December 2024,
with the exception of changes in estimates that are required in determining
the provision for income taxes.
Fair value estimation
Financial instruments not measured at fair value
Financial instruments not measured at fair value includes cash and cash
equivalents, trade and other receivables, trade and other payables, and loans
and borrowings. However, due to their short-term nature and ability to be
liquidated at short notice their carrying value approximates to their fair
value.
Financial instruments measured at fair value
The fair value hierarchy of the financial instruments measured at fair value
is provided below.
Level 2 inputs
Unaudited Unaudited
six months six months
ended ended
30 Jun 2025
30 Jun 2024
£'000
£'000
Financial assets
Derivative financial assets (designated hedge instruments) 489 574
489 574
Financial liabilities
Derivative financial liabilities (designated hedge instruments) 18 -
18 -
The derivative financial assets and liabilities have been valued using the
market approach and are considered to be Level 2 inputs. There were no changes
to the valuation techniques used in the year. There were no transfers between
levels during the year.
5. Segmental information
Business segments
The only business segment during both periods presented was Aptitude Software
and therefore certain segmental analysis is not required.
Geographical segments
The Group has two geographical segments for reporting purposes, the United
Kingdom and the Rest of the World.
The following table provides an analysis of the Group's sales by origin and by
destination.
Sales revenue by origin Sales revenue by destination
Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024 Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024
Continuing operations £000 £000 £000 £000
United Kingdom 16,836 20,589 5,488 6,315
Rest of World 15,989 14,671 27,337 28,945
32,825 35,260 32,825 35,260
The Group derives revenue from the transfer of goods and services in the
following major categories and geographical regions, these being the United
Kingdom ('UK') and Rest of the World ('RoW'):
Unaudited six months ended 30 June 2025
Recurring revenue Non-recurring revenue
UK RoW Total UK RoW Total Total
£000 £000 £000 £000 £000 £000 £000
Revenue from external clients 4,406 22,357 26,763 1,082 4,980 6,062 32,825
Unaudited six months ended 30 June 2024
Recurring revenue Non-recurring revenue
UK RoW Total UK RoW Total Total
£000 £000 £000 £000 £000 £000 £000
Revenue from external clients 5,065 22,416 27,481 1,250 6,529 7,779 35,260
All of the revenue displayed in the above table is recognised over time in
line with the Group's accounting policy detailed on pages 80 to 82 of the
Aptitude Software Group plc 2024 Annual Report and has been generated from
contracts with clients.
5. Segmental information (continued)
The following is an analysis of the carrying amount of non-current assets
(excluding deferred tax assets), and additions to property, plant and
equipment and intangible assets (excluding right-of-use asset additions
resulting from property lease agreements), analysed by the geographical area
in which the assets are located.
Carrying amount of non-current assets Capital expenditure
Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024 Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024
£000 £000 £000 £000
United Kingdom 50,391 52,961 68 52
Rest of World 13,561 14,056 128 20
63,952 67,017 196 72
The Company's business is to invest in its subsidiaries and, therefore, it
operates in a single segment.
6. Non-underlying items
Unaudited six months ended Unaudited six months ended 30 Jun 2024 Audited
30 Jun 2025
year ended
31 Dec 2024
£000 £000 £000
Continuing operations
Amortisation of acquired intangibles 1,690 1,690 3,381
Share repurchase costs 22 12 -
Acquisition and associated reorganisation costs 1,185 - 862
2,897 1,702 4,243
7. Income tax expense
Income tax expense is recognised based on management's estimate of the
weighted average income tax rate expected for the full financial year of 21%
(the estimated tax rate for the six months ended 30 June 2024 was 21%).
8. Earnings per share
Unaudited six Unaudited six months ended Audited
months ended
30 Jun 2024
year ended
30 Jun 2025
31 Dec 2024
pence pence pence
Earnings per share 2.5 3.5 8.8
Basic
Diluted 2.5 3.5 8.6
Unaudited six Unaudited six months ended Audited
months ended
30 Jun 2024
year ended
30 Jun 2025
31 Dec 2024
pence pence pence
Adjusted earnings per share 6.6 5.8 13.9
Basic
Diluted 6.5 5.8 13.6
To provide an indication of the underlying operating performance the adjusted
earnings per share calculation above excludes non-underlying items and has a
tax charge based on the effective rate.
Unaudited six Unaudited six Audited
months ended
months ended
30 Jun 2024 year ended
30 Jun 2025
31 Dec 2024
pence pence pence
Basic earnings per share 2.5 3.5 8.8
Non-underlying items 4.1 2.3 5.9
Prior years' tax charge - - (0.3)
Recognition of tax losses - - (0.5)
Adjusted earnings per share 6.6 5.8 13.9
9. Cash generated from operations
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024 Audited
year ended
31 Dec 2024
£000 £000 £000
Profit before tax for the period 1,808 2,575 5,593
Adjusted for:
Depreciation 583 518 1,304
Amortisation 1,746 1,690 3,447
Share-based payment expense 140 410 611
Finance income (87) (249) (368)
Finance costs 283 172 450
Changes in working capital:
Decrease/(increase) in receivables 1,386 (5,647) (2,049)
(Decrease)/increase in payables (6,417) (3,195) (136)
(Decrease)/increase in provisions (14) 12 -
Cash (used in)/generated from operations (572) (3,714) 8,852
10. Dividends
The interim dividend of 1.8 pence per share (2024: 1.8 pence per share) was
approved by the Board on 5 August 2025. It is payable on 8 September 2025 to
shareholders on the register at 15 August 2025. This interim dividend has not
been included as a liability in this interim financial information. It will be
recognised in shareholders' equity in the year to 31 December 2025. A final
dividend of £2,002,000 was paid in June 2025 and relates to the year ending
31 December 2024 (2024: final dividend £2,057,000).
11. Property, plant and equipment including right-of-use assets
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Opening net book amount 1 January 4,016 4,484
Additions 196 72
Exchange movements (1) (8)
Depreciation (583) (518)
Closing net book amount 30 June (unaudited) 3,628 4,030
The Group has not placed any contracts for future capital expenditure which
have not been provided for in the financial statements.
12. Intangible assets
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Opening net book amount 1 January 15,412 17,739
Exchange movements (85) -
Amortisation (1,746) (1,690)
Closing net book amount 30 June (unaudited) 13,581 16,049
13. Trade and other receivables
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Trade receivables - net 9,814 14,565
Other receivables 222 82
Prepayments 1,923 3,159
Accrued income 1,510 442
Closing net book amount 30 June (unaudited) 13,469 18,248
Contract assets and contract liabilities only comprise accrued and deferred
income respectively. Within the trade receivables balance of £9,814,000 (30
June 2024: £14,565,000), there are balances totalling £5,538,000 (30 June
2024: £6,195,000) which, at 30 June 2025 were overdue for payment and not
provided for. During July 2025, 44% was collected against the total
receivables balance at 30 June 2025.
14. Trade and other payables
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Trade payables 119 2,607
Other tax and social security payable 614 1,051
Other payables 186 67
Accruals 6,756 6,788
Deferred income 26,527 27,060
Closing net book amount 30 June (unaudited) 34,202 37,573
15. Financial liabilities - borrowings
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Bank Loan 6,559 7,788
The borrowings are repayable as follows:
Within one year 6,562 1,250
In the second year - 6,562
6,562 7,812
Unamortised prepaid facility arrangement fees (3) (24)
As at 30 June (unaudited) 6,559 7,788
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. 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. 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.
16. Lease obligations
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Amounts payable under lease liabilities:
Within one year 618 541
Within two to five years 1,964 1,911
After five years 363 726
Total 2,945 3,178
Less: future finance charges (289) (370)
Present value of lease obligations 2,656 2,808
Less: Amount due for settlement within 12 months (shown under current (529) (434)
liabilities)
As at 30 June (unaudited) 2,127 2,374
16. Lease obligations (continued)
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
The present value of financial lease liabilities is split as follows:
Within one year 529 434
Within two to five years 1,804 1,679
After five years 323 695
2,656 2,808
17. Provisions
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
At 1 January 383 368
Charged to income statement 15 15
Utilised in the period (25) -
Foreign exchange (4) (3)
As at 30 June (unaudited) 369 380
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Current - 98
Non-current 369 282
As at 30 June (unaudited) 369 380
£289,000 of the total provision at 30 June 2025 of £369,000 relates to the
cost of dilapidations in respect of its occupied leasehold premises (30 June
2024: £301,000).
18. Share capital
Unaudited six months ended Unaudited six months ended
30 June 2025
30 June 2024
Ordinary share capital at 7 1/3 pence each Number of shares Ordinary shares Number of shares Ordinary shares
Issued and fully paid: 000 £000 000 £000
Opening balance as at 1 January 57,337 4,204 57,337 4,204
Shares issued under share option schemes 7 - - -
As at 30 June (unaudited) 57,344 4,204 57,337 4,204
The Company operates an Employee Benefit Trust ("EBT") for the benefit of the
Group's employees. At 30 June 2025, the Company holds 558 shares (2024: 558)
in the Employee Benefit Trust ("EBT"), recognised as a deduction in equity.
Share
premium
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Opening balance as at 1 January 11,959 11,959
As at 30 June (unaudited) 11,959 11,959
19. Treasury shares reserve
Unaudited six months ended 30 Jun 2025 Unaudited six months ended 30 Jun 2024
£000 £000
Opening balance as at 1 January (3,812) -
Purchase of own shares (2,254) (1,287)
Transfer on exercise of options 9 202
As at 30 June (unaudited) (6,057) (1,085)
709,000 shares were purchased by the Company in six months to 30 June 2025 for
a total cost of £2.25m under the Company's share buyback programme.
20. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
There were no related party transactions during the six-month period ended 30
June 2025 (30 June 2024: £nil), as defined by International Accounting
Standard No 24 'Related Party Disclosures', except for key management
compensation. The related party transactions for the year ended 31 December
2024 as defined by International Accounting Standard No 24 'Related Party
Disclosures' are disclosed in note 32 of the Aptitude Software Group plc
Annual Report for the year ended 31 December 2024.
21. Statement of directors' responsibilities
The Directors confirm that these condensed interim financial statements have
been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and that the
interim management report includes a fair review of the information required
by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have
occurred during the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
- material related-party transactions in the first
six months and any material changes in the related-party transactions
described in the last annual report.
The Directors of Aptitude Software Group plc are listed in the Aptitude
Software Group plc Annual Report for 31 December 2024. A list of current
directors is maintained on the Aptitude Software Group plc website:
www.aptitudesoftware.com/investor-relations/
(http://www.aptitudesoftware.com/investor-relations/)
Copies of this statement are available on the investor relations page of our
website (www.aptitudesoftware.com/investor-relations/
(http://www.aptitudesoftware.com/investor-relations/) ).
By order of the Board
Alex Curran
5 August 2025
Chief Executive Officer
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