Last checked at 3 Jul 2020 07:00
3 July 2020
Aptitude Software Group plc ("Aptitude Software" or the "Group")
Trading Update and Notice of Results
Aptitude Software, a specialist provider of powerful financial management software to large global businesses, today provides an update on performance for the six months to 30 June 2020 ('the "period').
Trading Update
Aptitude Software has traded in line with the Board's current expectations for the first six months of 2020 as set out in its announcement of 21 April 2020. At 30 June 2020, Annual Recurring Revenue ('ARR') had grown by 11% year on year to £30.9 million, on a constant currency basis (31 December 2019: £29.5 million, 30 June 2019: £27.9 million, both restated for the prevailing exchange rates at 30 June 2020). The Group's balance sheet remains strong with no bank loans and benefitting from cash at 30 June 2020 of £30.9 million (30 June 2019: £23.5 million net of the return of £46.4 million cash to shareholders in September 2019), in line with management's expectations.
During the period, the Group enjoyed a good number of new customer wins and contract expansions in the Banking and Technology, Media and Telecom ('TMT') sectors, demonstrating the strength of the Group's product portfolio and sector diversity, helping mitigate the impact of COVID-19 on the insurance sector. Of significance has been the entry into a strategic contract to licence the Aptitude Accounting Hub to the retail arm of an existing large European banking client. Our technology will be a core component of a five-year finance transformation programme automating the banks finance processes, demonstrating once again Aptitude Software's capabilities in addition to those of smart compliance.
The Group's insurance sales cycles have extended in line with the Board's previously announced expectations, as prospects continue to focus on short term priorities and manage their capital prudently in the current environment, coupled with the confirmed delay to the introduction of IFRS 17.
As a result of the challenges of COVID-19, the Group's focus on cost control has tightened and all discretionary expenditure is closely reviewed with a number of savings already actioned. The Group is continuing with its investment in the areas identified in its earlier announcements but on a re-phased basis in light of the current situation.
The Group benefits from excellent liquidity and a strong business model with growing levels of recurring revenue and the Board remains confident in Aptitude Software's long-term strategy, a strategy focused on smart compliance and digital finance transformation.
Notice of Results
Aptitude Software anticipates issuing its Interim Results for the six months ended 30 June 2020 on Wednesday 29 July 2020.
Contacts
Philip Wood, Deputy Chief Executive Officer and Chief Financial Officer 020-3687-3200
Caroline Forde / Sam Modlin, Alma PR 020-3405-0205
aptitude@almapr.co.uk
1 Annual Recurring Revenue ("ARR") is the value of Aptitude Software's software and subscription 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 are known to be terminating in the future.
About Aptitude Software
Aptitude Software's innovative solutions address the growing trend for digital finance transformation complemented by regulatory-focused applications. Our various products take data from complex systems, typically with multiple siloed data sources across multiple business entities, to create a unified view of finance. This allows our clients to reap significant benefits including business insights, enhanced control and regulatory compliance.
Our clients include some of the world's largest companies, typically organisations with complex financial data and technology landscapes. Development, together with a growing number of other services, continues to be performed at the Aptitude Innovation Centre in Poland with sales, support and implementation services provided from Aptitude Software's London headquarters and the North American and Singaporean regional businesses.
Aptitude Software has six office locations around the world, with clients across four continents.
www.aptitudesoftware.com