REG - Aptitude Software - Trading Update and Notice of Results

Aptitude SoftwareAnnouncement

24/07/2025 07:00

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RNS Number : 3191S  Aptitude Software Group PLC  24 July 2025

24 July 2025

Aptitude Software Group plc

("Aptitude", "the Group")

Trading Update and Notice of Results

Robust performance, strategic initiatives delivering improving margins

Aptitude (LSE:APTD), a market-leading provider of finance transformation
software solutions, specialising in fully autonomous finance, today provides
an update on trading for the six month period ended 30 June 2025 ('H1 2025').

Annual Recurring Revenue(1) (ARR) grew by 3% year-on-year to £49.8 million
(H1 2024: £48.6 million(2)), driven by double digit AI Autonomous Finance
growth. Within this, Fynapse momentum has continued, highlighted by four key
wins in H1 2025 with a combined total contract value of £7.4 million: a
leading Australian payments provider, a global mobile parking platform
provider, a major U.S. health insurer, and a KPMG-managed services client. The
global mobile parking platform provider went live with Fynapse in just six
weeks, a strong proof point that the platform offers organisations a fast,
cost-effective path to finance transformation.

The year-on-year ARR growth came despite expected churn from legacy products
and clients. This churn has been more than offset by new customer wins and
expansions. Churn is being actively addressed through significant investment
in account management which is driving improved customer experience. The Group
remains confident that churn will reduce from 2026 onwards.

Macroeconomic uncertainty has led to the deferral of some notable new
opportunities.  The qualified pipeline of new business has grown positively
during the period and there are some significant new contracts due to be
concluded in the coming few months. Notably, 70% of the 2025 and 2026 pipeline
is now connected to partners, reflecting strong alignment with the Group's
partner-first strategy. Partners continue to see the value in scaling with the
Group's software solutions, and it is on track to deliver its target of 80%
partner-sourced ARR by 2027.

The Group expects H1 2025 operating profit to show double digit growth on H1
2024, 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. These
improvements span across all major functions, including services, product,
engineering, go-to-market and aligning resources to support scalable, higher
margin SaaS growth.

Accordingly, with the deferral of some new opportunities and the significant
change in GBP to USD exchange rate impacting reported revenues, Aptitude's
revenues for FY 2025 are now expected to be broadly in line with the Board's
expectations. As a result of the re-organisation of the business, including
the benefits of cost reductions, the Board remains confident that the Group
will meet its current profit expectations for FY 2025.

The Group remains financially robust, with cash as at 30 June 2025 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(3)
of £17.1 million (30 June 2024: £16.6 million).

Alex Curran, CEO of Aptitude, commented:

"We've made solid progress in the first half as our SaaS and partner-first
strategy continues to take hold, improving the quality of our revenues and
margins. While the timing of closing of some deals has moved due to external
factors, our growing pipeline, increasing partner engagement and clear
strategic focus positions us well going forward."

Notice of Results

Aptitude anticipates issuing its Interim Results for the six months ended 30
June 2025 on Wednesday 6(th) August 2025.

A virtual presentation for analysts will take place on the day. Analysts
wishing to attend the webinar should contact aptitude@almastrategic.com to
register.

The person responsible for releasing this announcement is Alex Curran, Chief
Executive Officer.

 Aptitude Software Group plc                            020-3687-3200
 Ivan Martin, Chairman
 Alex Curran, Chief Executive Officer
 Canaccord Genuity Limited                              020-7523-8000
 Simon Bridges / Andrew Potts
 Alma Strategic Communications                          020-3405-0205
 Caroline Forde / Hilary Buchanan / Will Ellis Hancock

 

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 2025 results with H1
2024 results retranslated at the rates of exchange prevailing during H1 2025.
Items indicated by this superscript reference are calculated on a constant
currency basis.

(3) Net cash represents cash and cash equivalents less a bank loan

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