Trading Update and Notice of Results

RNS Number : 0110Z

Aptitude Software Group PLC

20 January 2022

 

20 January 2022

Aptitude Software Group plc

("Aptitude Software" or the "Group")

Trading Update and Notice of Results

Aptitude Software, the specialist provider of finance transformation and automation software, today provides an update for the year ended 31 December 2021 and the current financial year.

Trading Update

Aptitude Software made good progress in 2021 with new business success across all the Group's key regions together with the continued development of the Group's product strategy. Furthermore, the acquisition of MPP Global in October has enhanced the Group's level of recurring revenue bringing high growth subscription capability to Aptitude Software's existing revenue automation. Overall, Aptitude Software has performed in line with the Board's expectations for 2021.

Building on the new business successes announced earlier in the year within the insurance market, Aptitude Software secured a number of new agreements in this sector across all the Group's geographies in the second half of 2021. New business highlights include:

· A significant multi-year subscription with a global insurer for the use of both the Aptitude Accounting Hub and Aptitude Insurance Calculate Engine, delivered through SaaS, to drive regulatory compliance in addition to providing the foundation for wider group finance automation;

· A multi-year agreement with a publicly traded health care equipment company in California to subscribe for the Aptitude Revenue Management and Aptitude Lease Accounting Engine applications, providing further evidence of the expansion of the subscription economy into new industry sectors.

Benefitting from these new agreements and continued expansion of existing customer relationships, Annual Recurring Revenue ('ARR') for the core Aptitude Software business (excluding MPP Global's contribution) grew by 10% on a constant currency basis in the year to £34.4 million (31 December 2020: £31.4 million, 30 June 2021: £32.6 million - both restated for the prevailing exchange rates at 31 December 2021). Including the benefit of the MPP Global acquisition total ARR at 31 December 2021 was £41.8 million.

Following the October 2021 MPP Global acquisition, for which cash consideration and associated deal costs totalled £37.4 million, the Group's balance sheet remains strong with cash at 31 December 2021 of £29.1 million (31 December 2020: £44.8 million). Net funds at 31 December 2021 are £15.3 million (31 December 2020: £42.9 million).

Outlook

Excellent progress has also been achieved in 2021 on a series of strategic product initiatives to provide the Group with sustainable growth opportunities for the future. These initiatives include:

· The integration of Aptitude Software and MPP Global, which is anticipated to conclude in H2 2022, paving the way for a new best-of-breed solution for end-to-end subscription and revenue automation. This will increase our target addressable market as well as provide increased cross-selling opportunities. To fully realise the opportunity, the planned investment is being made in both functionality and the underlying technology. This activity is being performed across both our integrated centres of excellence, namely the Aptitude Innovation Centre in Poland and at MPP Global's offices in the North West of England, a second long-term innovation centre for the Group;

· Investing in the Group's finance automation portfolio, delivering increased performance and enhanced user experience whilst continuing to reduce the overall cost of ownership. This enables us to continue to capitalise on the growing opportunity to help finance functions manage the increasing complexities of strategic, operational, statutory and compliance reporting.

Aptitude Software enters the current financial year with increased revenue visibility due to the sales successes achieved in 2021 and the acquisition of MPP Global, a business with a high proportion of recurring revenue.

Notice of Results

The Group expects to issue its results for the year ended 31 December 2021 on Tuesday, 15 March 2022.

A presentation for analysts will take place at 09.00 a.m. on the day.  Analysts wishing to attend should contact [e-mail] to register.

Contacts

Jeremy Suddards, Chief Executive Officer  020-3687-3200

Philip Wood, Deputy Chief Executive Officer and Chief Financial Officer  

Caroline Forde / Sam Modlin, Alma PR    020-3405-0205

[e-mail]

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 finance and revenue automation, whether part of a broad digital finance transformation by a client or to address specific regulatory requirements. Our various products take data from complex systems, typically with multiple siloed data sources across multiple business entities, automate complex accounting calculations and create a unified view of finance. This allows our clients to reap numerous benefits including significant efficiencies, 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 the acquisition of MPP Global in 2021 providing a second long-term innovation centre for the Group at their headquarters in the North West of England. Sales, support and implementation services are provided from Aptitude Software's offices in London, North West England, North America and Singapore.

www.aptitudesoftware.com

 

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