REG - Aptitude Software - Trading Update and Notice of Results

Aptitude SoftwareAnnouncement

15/07/2024 07:00

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RNS Number : 3095W  Aptitude Software Group PLC  15 July 2024

15 July 2024

Aptitude Software Group plc

("Aptitude", "the Group")

 

Trading Update and Notice of Results

 

Aptitude (LSE: APTD), a market leading provider of finance transformation
software solutions, specialising in delivering fully autonomous finance,
provides an update on trading for the six month period ended 30 June 2024 ('H1
24').

 

Trading Update

 

Aptitude's results for the six month period ended 30 June 2024 will be in line
with the Board's expectations and the Board remains confident that the Group
will meet market expectations for FY 2024.

 

 Six months ended 30 June             H1 2024  H1 2023     % Change
 Annual Recurring Revenue ('ARR')(1)  £50.8m   £49.7m(2)   2%
 -     Software ARR                   £46.7m   £45.2m(2)   3%
 -     Assure ARR                     £4.1m    £4.5m(2)    (9%)
 Cash                                 £24.4m   £24.5m      -
 Net Funds(3)                         £13.8m   £12.2m      13%

 

A growing pipeline of Fynapse opportunities, as well as an increasing take up
from our strategic partners supports the Board's confidence in driving
continued growth in H2 and beyond. As signalled in May, ARR growth has been
moderated by expected client reductions within Assure, Aptitude's recurring
managed service offering. Software ARR growth improved to 3% (H1 2023: 2%)
following a strong end to H1 24, including the two new Fynapse wins previously
announced supplemented by continued new business success within Revenue
Management.

 

The Group expects adjusted operating profit for H1 2024 to be in line with the
result achieved in H1 2023 but on lower total revenues, driven by a reduction
in non-recurring implementation revenues, as the Group continues to transition
toward a partner-led implementation model. Increasing recurring revenues and
cost efficiencies continue to achieve higher margins for the Group. The Group
also continues to enact necessary organisational change to support the
transition toward AI Autonomous Finance and produce operational benefits.

 

Aptitude remains financially robust and continues to deliver enhanced returns
to shareholders through its share buy back programme.

 

Alex Curran, CEO of Aptitude commented: "We are pleased with the positive
early progress we are making, in line with our plan, as we continue our
organisational transformation to capitalise on the opportunity across AI
Autonomous Finance. Market traction for Fynapse is growing, with wins secured
during the period across new clients and our installed base, and the
acceleration of our partner strategy is driving positive pipeline progression.

 

The market opportunity is significant, and we have a clear strategy in place.
Our innovative and cutting-edge Fynapse solution, supported by key industry
partners, positions us well for future success. This together with a robust
financial position and a growing base of recurring revenues, means we are
confident in continued progress against our plan."

 

Notice of Results

Aptitude anticipates issuing its Interim Results for the six months ended 30
June 2024 on Thursday 25 July 2024.

 

A virtual presentation for analysts will take place at 11:00 a.m. (BST) on the
day. Analysts wishing to attend the webinar should contact
aptitude@almastrategic.com (mailto:aptitude@almastrategic.com) to register.

 

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

 

Aptitude Software Group plc

Ivan Martin,
Chairman
020-3687-3200

Alex Curran, Chief Executive Officer

Mike Johns, Chief Financial Officer

Alma Strategic Communications

Caroline Forde / Hilary Buchanan / Will Ellis
Hancock
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.

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 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 2024 results with H1
2023 results retranslated at the rates of exchange prevailing during H1 2024.
Items within the Financial Highlights table indicated by this superscript
reference are calculated on a constant currency basis.

(3) Net funds represents cash and cash equivalents less finance obligations,
which are currently limited to capital lease obligations and a bank loan

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