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.

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 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