Aptitude Software Group PLC Trading Update (0825M)
January 19 2021 - 1:00AM
UK Regulatory
TIDMAPTD
RNS Number : 0825M
Aptitude Software Group PLC
19 January 2021
19 January 2021
Aptitude Software Group plc
("Aptitude Software" or the "Group")
Trading Update
Aptitude Software, a specialist provider of powerful financial
management software to large global businesses, today provides an
update for the year ended 31 December 2020 and the current
financial year.
Trading Update
Aptitude Software has traded in line with the Board's
expectations in 2020. A strong final quarter's new business
performance in several of the Group's key markets provides the
business with greater revenue visibility for 2021.
Annual Recurring Revenue ('ARR') grew by 11% on a constant
currency basis in the year to GBP31.2 million (31 December 2019:
GBP28.1 million, 30 June 2020: GBP29.3 million - both restated for
the prevailing exchange rates at 31 December 2020), driven by both
new customer wins and the expansion of existing customer
relationships. The Group's balance sheet remains strong with no
bank loans and benefitting from cash as at 31 December 2020 of
GBP44.8 million (31 December 2019: GBP33.0 million).
In the final quarter of the year the Group made good progress,
particularly in the North American technology and insurance
sectors:
-- Following the launch of Aptitude Accounting Hub and Aptitude Insurance Calculation Engine as Software-as-a-Service ('SaaS') at this year's AptConnect user and partner conference, the Group entered into multi-year SaaS agreements with two North American insurers; and
-- Building on the technology sector sales announced earlier in
the year, the Group completed a new business SaaS agreement with a
leading global medical technology company for the use of the
Aptitude Revenue Management and Aptitude Lease Accounting Engine
products. This success further demonstrates the value realisable by
clients of using more than one of the Group's tightly integrated
and complementary applications.
These and other new business successes have been complemented by
the expansion of the use of our applications in several of our
existing clients including one of the largest North American
telecommunications companies and a European financial services
organisation.
In a year in which some of our clients and prospects have
re-prioritised their investment decisions in the short term as a
result of the pandemic, the Board is pleased with the overall
performance of the Group and is encouraged by the strong sales
performance in the final quarter.
Outlook
Aptitude Software enters the current financial year with
improved revenue visibility due to the sales successes achieved in
the final quarter of 2020. These successes have strengthened the
demand for implementation services from Aptitude Software and its
partner network. Whilst an increasing proportion of implementations
will continue to be led by partners, contributing to a year-on-year
reduction in services performed directly by Aptitude Software in
2021, services revenue for the coming year is now anticipated to be
slightly ahead of earlier expectations.
Excellent progress has also been achieved in 2020 on a series of
strategic initiatives to provide the Group with growth
opportunities for 2021 and beyond. These initiatives include:
-- Continued development of the partner network with a number of
joint propositions established in the year; and
-- The launch of Aptitude Accounting Hub and Aptitude Insurance
Calculation Engine as SaaS-offerings, ensuring we can capitalise on
the accelerated move to cloud experienced in 2020. With the
addition of these two strategic products to the Group's growing
SaaS suite, most new clients are expected to deploy the Group's
software via the SaaS model.
Overall, the Group looks forward to the year ahead with
confidence and now anticipates a 2021 financial performance above
current market expectations and at least consistent with that
expected in 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
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