Aptitude Software Group Plc · LSE:APTD
Aptitude Software — Microgen — H1 2016 Earnings Presentation
28 slides from Aptitude Software's earnings presentation, Jul 18, 2016
Slide 1: Interim Results
microgen INTERIM RESULTS Six months ended June 2016 18 July 2016
Slide 2: Group Overview
microgen GROUP OVERVIEW Across its two operating businesses Microgen develops, implements and supports business‐critical software and related services Aptitude Technology Platform Trust & Fund Administration, and Specialised Financial Payments and Application Applications Management 2 18 July 2016 |
Slide 3: Strategic Focus
STRATEGIC FOCUS • Aptitude Software: ‐ Acceleration of organic growth by focusing resources on the deployment of specialised financial applications developed in the Aptitude technology platform ‐ Applications are highly competitive in situations where rapid processing of transactions, calculations o
Slide 4: Group Highlights
GROUP HIGHLIGHTS • Continued good progress towards strategic objectives • Revenue growth of 23%, adjusted operating profit increased by 16% • Strong organic growth by Aptitude Software driven by demand for its specialised financial applications • Microgen Financial Systems’ transition to a T&FA focu
Slide 5: Financial Review – H1 2016 Results
FINANCIAL REVIEW – H1 2016 RESULTS Six months ended June 2016 July 2016
Slide 6: Interim Results 2016
INTERIM RESULTS 2016 Revenue Adjusted operating profit £19.5m £4.6m 23% 16% (H1 2015: £15.8m) (H1 2015: £3.9m) Adjusted Interim EPS dividend 5.9p 1.5p 37% 7% (H1 2015: 4.3p) (H1 2015: 1.4p) 6 18 July 2016 | Unaudited interim results
Slide 7: Strong Progress in Both Businesses
STRONG PROGRESS IN BOTH BUSINESSES Aptitude Software revenue 12 £11.4m 10 34% 8 Revenue (£m) (H1 2015: £8.5m) 6 Microgen Financial Systems 4 revenue 2 £8.1m 11% 0 Aptitude Software Revenue Microgen Financial Systems Revenue (H1 2015: 7.3m) H1 2015 H2 2015 H1 2016 7 18 July 2016 | Unaudited inter
Slide 8: Income Statement
INCOME STATEMENT H1 2016 H1 2015 FY 2015 £’000 £’000 £’000 Aptitude Software Revenue 11,435 8,546 16,730 Microgen Financial Systems Revenue 8,058 7,256 15,228 Total Revenue 19,493 15,802 31,958 Aptitude Software Adjusted Operating Profit 1,746 1,048 1,664 Microgen Financial Systems Adjusted Operatin
Slide 9: Balance Sheet
BALANCE SHEET H1 2016 H1 2015 FY 2015 £’000 £’000 £’000 Goodwill and intangible assets 49,528 43,245 47,708 Property, plant and equipment 1,272 4,637 928 Trade and other current assets 8,511 5,347 5,225 Cash and cash equivalents 12,722 15,618 18,600 Assets classified as held for sale ‐ ‐ 2,350 Total
Slide 10: Cash Flow Statement
CASH FLOW STATEMENT H1 2016 H1 2015 FY 2015 £’000 £’000 £’000 Cash generated from operations (2,403) (1,522) 7,495 Interest and tax paid (1,136) (622) (1,681) Cash flows (used in)/generated from operating activities (3,539) (2,144) 5,814 Purchase of property, plant and equipment (556) (103) (524) Pr
Slide 11: Aptitude Software
se JK SOFTWARE A IN Aptitude
Slide 12: Product Suite
PRODUCT SUITE • Enterprise level application platform to help global organisations deliver business‐critical finance solutions amid growing regulation and new accounting standards • Enables high speed processing, calculation and accounting of high volume, complex transactions and events • Capabiliti
Slide 13: Aptitude regional activity: North America, UK, Mainland Europe, Rest of World
NORTH AMERICA UNITED KINGDOM MAINLAND EUROPE REST OF THE WORLD 3 of the 4 largest telcos now Aptitude Accounting Hub Aptitude Allocation Engine and Technology platform sale licenced for the Aptitude implementation underway at Accounting Hub implementation completed in June with other Revenue Recogni
Slide 14: H1 2016 Financial Highlights
H1 2016 FINANCIAL HIGHLIGHTS Organic revenue Operating profit Recurring revenue growth growth base growth £11.4m £1.7m £10.6m 34% 67% (H1 2015: £8.5m) (H1 2015: £1.0m) (H1 2015: £7.9m) 14 18 July 2016 | Unaudited interim results
Slide 15: H1 2016 Financial Highlights
H1 2016 FINANCIAL HIGHLIGHTS Recurring software 12 revenue growth 10 £5.2m 27% 8 (H1 2015: £4.1m) Revenue (£m) 6 Implementation revenue 4 growth 2 £5.8m 49% 0 H1 2015 H2 2015 H1 2016 (H1 2015: £3.9m) Recurring software revenue Initial licence fees Implementation revenue 15 18 July 2016 | Unaudited
Slide 16: Case Study: US Telecommunications Company
CASE STUDY US TELECOMMUNICATIONS COMPANY Enables a 60 million subscriber operator to 60M achieve compliance with APTITUDE REVENUE complex new revenue Subscriber operator RECOGNITION ENGINE & recognition accounting ACCOUNTING HUB requirements. Provides an integrated revenue Integrated revenue managem
Slide 17: Strategy and Outlook
STRATEGY AND OUTLOOK • Aptitude is benefiting from focus on the deployment of its specialised finance applications • Sales opportunities are being progressed including strategic opportunities to open up new sectors and/or geographies with existing applications • Assessment continues of new markets a
Slide 18: Slide 18
Slide 19: Product Suite
PRODUCT SUITE • Building an increasingly strong presence in the Trust & Fund Administration (‘T&FA’) sector with in excess of 350 customers in over 30 countries • Over 50% of revenues now from T&FA sector. Payments and Application Management businesses continue in line with expectations • The Microg
Slide 20: Over 350 T&FA customers in over 30 countries
Over 350 T&FA customers in over 30 countries UK & CHANNEL ISLANDS EUROPE REST OF WORLD New business sales together with a number Acquisition of Infoscreen and its New business contract secured with multi- of upgrades to Microgen 5Series from predominantly Cypriot client base, a market office T&FA or
Slide 21: H1 2016 Financial Highlights
H1 2016 FINANCIAL HIGHLIGHTS Revenue Adjusted operating profit £8.1m £3.6m 11% (H1 2015: £7.3m) (H1 2015: £3.6m) T&FA proportion of Recurring revenue revenue increasing proportion 51% 81% (H1 2015: 37%) (H1 2015: 84%) 21 18 July 2016 | Unaudited interim results
Slide 22: H1 2016 Financial Highlights
H1 2016 FINANCIAL HIGHLIGHTS T&FA revenue 9 growth 8 £4.1m 7 52% 6 Revenue (£m) (H1 2015: £2.7m) 5 4 Non‐core revenue 3 managed decline 2 £4.0m 1 0 H1 2015 H2 2015 H1 2016 (H1 2015: £4.6m) T&FA Payments Application Management 22 18 July 2016 | Unaudited interim results
Slide 23: Acquisition Overview
ACQUISITION OVERVIEW • Four acquisitions completed since December 2014, further discussions continuing • Key element of acquisition strategy is the ability to secure both services and licence uplift fees if customers choose to migrate to Microgen 5Series from the acquired T&FA products in order to b
Slide 24: T&FA Growth
T&FA GROWTH • Revenue increased 52% to £4.1 million (H1, 2015: £2.7 million) • Microgen 5Series revenues within T&FA have increased to £3.1 million (H1, 2015: £2.4 million) benefitting from both new name customer wins and conversions to Microgen 5Series from the T&FA acquisitions completed since Dec
Slide 25: Case Study: Provider of Entity Administration Services
CASE STUDY PROVIDER OF ENTITY ADMINISTRATION SERVICES Microgen 5Series will be deployed across the 40+ customer’s 40+ global offices MICROGEN 5SERIES as the key business system for global offices its trust and corporate services administration activities – increasing its One of the ten largest opera
Slide 26: Strategy and Outlook
STRATEGY AND OUTLOOK • Transition to a business which is focused on the Trust & Fund Administration (‘T&FA’) market through both organic and inorganic growth • Combination of organic and inorganic growth is further enhancing our already strong market positioning in T&FA sector • Benefits from add‐on
Slide 27: Group Outlook
GROUP OUTLOOK Six months ended June 2016
Slide 28: Group Outlook
GROUP OUTLOOK • Strong progress in H1 2016 for both businesses, successfully executing on strategic plans • Good forward visibility and robust balance sheet • Microgen well positioned as the Group enters the second half of 2016 28 18 July 2016 | Unaudited interim results