Business
Trading Update and Directorate Changes
Trading Update and Directorate Changes.
About this update from Aptitude Software Group Plc
[{"type":"text","content":"\n\n13 July 2023\nAPTITUDE SOFTWARE GROUP PLC\n('Aptitude' or the 'Group')\nTrading Update, Directorate Changes and Notice of Results\n \nAptitude Software Group plc (LSE: APTD), the specialist provider of Finance Digitalization and Subscription Management software, today provides an update on trading for the six month period ended 30 June 2023 as well as notification of changes to the Board.\n \nTrading Update for the six months ended 30 June 2023\nThe Group will show modest revenue and profit progression to H1 2023 despite the macro economic headwinds faced by the sector and the economy generally. The Board are confident that the Group will meet profit expectations for FY2023.\n \nAnnual Recurring Revenue ('ARR') grew at an annualised rate of 3% on a constant currency basis to £49.8m at 30 June 2023 (31 December 2022 £50.5m, 30 June 2022: £48.1m - both restated for prevailing exchange rates at 30 June 2023). ARR growth has moderated as the higher levels of churn experienced in 2022 persisted through H1 2023 for Subscription, Billing, and Revenue Management as certain clients monitor spend as a result of wider economic uncertainty and high inflation.\n \nWhilst this macro economic backdrop presents a near term challenge for Aptitude's heritage products as sales cycles have lengthened, the Board are confident that the requirement for greater efficiency and effectiveness strengthens the value proposition for Fynapse, which drives a lower cost of ownership for clients while increasing operational productivity. Recognising the economic circumstances, the Board took action in H1 to drive cost efficiencies across the Group whilst protecting investment in areas of strategic focus, including Fynapse.\n \nWhilst headline growth in annualised ARR is lower than in previous periods, customer, prospect and partner feedback reinforce the opportunity presented by the Group's two strategic growth drivers of Finance Digitalization and Subscription Management. The Board particularly views the opportunity presented by Fynapse, Aptitude's next-generation fully automated finance management platform that is underpinned by the Group's strategic partnership with Microsoft, as a material accelerator of future growth. The US Telco charter client continues to make strong progress with its implementation. The strengthening pipelin...