REG - Aptitude Software - Trading Update and Directorate Changes

Aptitude SoftwareAnnouncement

13/07/2023 07:00

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RNS Number : 8522F  Aptitude Software Group PLC  13 July 2023

13 July 2023

APTITUDE SOFTWARE GROUP PLC

('Aptitude' or the 'Group')

Trading Update, Directorate Changes and Notice of Results

 

Aptitude Software Group plc (LSE: APTD), the specialist provider of Finance
Digitalization and Subscription Management software, today provides an update
on trading for the six month period ended 30 June 2023 as well as notification
of changes to the Board.

 

Trading Update for the six months ended 30 June 2023

The Group will show modest revenue and profit progression to H1 2023 despite
the macro economic headwinds faced by the sector and the economy generally.
The Board are confident that the Group will meet profit expectations for
FY2023.

 

Annual Recurring Revenue ('ARR') grew at an annualised rate of 3% on a
constant currency basis to £49.8m at 30 June 2023 (31 December 2022 £50.5m,
30 June 2022: £48.1m - both restated for prevailing exchange rates at 30 June
2023). ARR growth has moderated as the higher levels of churn experienced in
2022 persisted through H1 2023 for Subscription, Billing, and Revenue
Management as certain clients monitor spend as a result of wider economic
uncertainty and high inflation.

 

Whilst this macro economic backdrop presents a near term challenge for
Aptitude's heritage products as sales cycles have lengthened, the Board are
confident that the requirement for greater efficiency and effectiveness
strengthens the value proposition for Fynapse, which drives a lower cost of
ownership for clients while increasing operational productivity. Recognising
the economic circumstances, the Board took action in H1 to drive cost
efficiencies across the Group whilst protecting investment in areas of
strategic focus, including Fynapse.

 

Whilst headline growth in annualised ARR is lower than in previous periods,
customer, prospect and partner feedback reinforce the opportunity presented by
the Group's two strategic growth drivers of Finance Digitalization and
Subscription Management. The Board particularly views the opportunity
presented by Fynapse, Aptitude's next-generation fully automated finance
management platform that is underpinned by the Group's strategic partnership
with Microsoft, as a material accelerator of future growth. The US Telco
charter client continues to make strong progress with its implementation. The
strengthening pipeline of opportunities for Fynapse, both through Aptitude's
strategic partnerships and through traditional avenues, supports growing
confidence of future revenue growth.

 

Aptitude remains financially robust, with strong revenue visibility and a
closing cash balance at 30 June 2023 of £24.5m (31 December 2022: £29.2m, 30
June 2022: £23.6m) and net funds of £12.2m (31 December 2022: £15.9m, 30
June 2022: £10.7m).

 

Board Changes

The Board announces that Jeremy Suddards, Chief Executive Officer, will be
stepping down as Chief Executive Officer. Jeremy joined the Board in September
2019 and became Chief Executive Officer in January 2020. The Board would like
to thank Jeremy for his work transitioning the Group from its compliance focus
to a leading provider of both Finance Digitalization and Subscription
Management software and for his leadership through the COVID pandemic.

Effective immediately, Alex Curran, currently Regional CEO for the Group's
North American business, will join the Board and assume the role of Acting
Chief Executive Officer whilst the Board conduct a formal search process. Alex
joined Aptitude Software in 2008 and she has held several senior roles within
the Group including leading the North American business since July 2019. In
that time, Alex has overseen strong growth in North America, which now
accounts for over half of the Group's recurring revenue.

Commenting on the Board changes, Ivan Martin said:

"The strategic partnership with Microsoft to integrate Fynapse and Dynamics
365 presents a significant global opportunity for the Group. With Alex's
strategic sales focus and experience within the North American market,
including with key clients and partners, she is well placed to drive the
execution of the growing global pipeline.

On behalf of the Board, I would like to thank Jeremy for his work in
transitioning the Group and wish him well for the future."

Notice of Results

Aptitude anticipates issuing its Interim Results for the six months ended 30
June 2023 on Wednesday 26 July 2023.

The person responsible for releasing this announcement is Mike Johns, Chief
Financial Officer.

Contacts

Aptitude Software Group plc

Ivan Martin,
Chairman
020-3687-3200

Mike Johns, Chief Financial Officer

Alex Curran, Acting CEO

Alma PR

Caroline Forde / Hilary Buchanan
020-3405-0205

 

Additional Information Regarding Alex Curran

Alex Curran is a non-executive director of Checkit plc, a company quoted on
AIM. No further details are required to be disclosed in respect of Alex's
appointment to the Board under LR 9.6.13 of the Listing Rules of the Financial
Conduct Authority.

 

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