Aptitude Software Group Plc · LSE:APTD
Aptitude Software — Microgen — FY2013 Earnings Presentation
15 slides from Aptitude Software's earnings presentation, Feb 26, 2014
Slide 1: Audited Preliminary Results for the year ended 31 December 2013
microgen plc Audited Preliminary Results for the year ended 31 December 2013 Martyn Ratcliffe Chairman Philip Wood Group Finance Director To be read in conjunction with the audited preliminary 26 February 2014 results announcement released on 26 February 2014
Slide 2: Preliminary Results 2013
Preliminary Results 2013 • Completion of Strategic Review in October 2013 • Adjusted operating profit in line with expectations and 2012 at £9.1 million • Adjusted EPS marginally lower at 8.3 pence (2012: 8.5 pence) following changes in capital structure and resulting reduced net interest income • S
Slide 3: Strategic Review - Group
Strategic Review - Group • The Group has returned cash to shareholders over last five year period equivalent to 130% of the October 2008 market capitalisation • Group Strategy of “Acquire, Enhance and Realise Value” • Strategies set for each of the Group’s current two business units 20 200 18 180 Ca
Slide 4: Aptitude Software Strategy Overview
Aptitude Software Strategy Overview • Increase in investment in Aptitude Software business to pursue the potential Big Data market opportunity. Investment level set such that the business should remain profitable and cash flow positive • Strategic Review reaffirmed preferred strategy of annual softw
Slide 5: Aptitude Software revenue and operating margin
Aptitude Software 25 25% 20 20% Operating Margin (%) Revenue (£ million) 15 15% 10 10% 5 5% 0 0% FY 2010 FY 2011 FY 2012 FY 2013 Service revenue Initial licence fees Recurring revenue Operating Margin 5
Slide 6: Aptitude Software
Aptitude Software • Growth in annual software licence and other recurring revenue growth of 9% to £7.9 million representing 54% of revenue • Services revenue reduced to £6.8 million (2012: £8.8 million), as anticipated • Revenue broadly consistent throughout 2013 (comparators reflect 2012 decline) •
Slide 7: Financial Systems Strategy Overview
Financial Systems Strategy Overview • The Financial Systems business strategy is to increase the proportion of revenue derived from the wealth management sector through both organic growth and add-on acquisitions • Identification and appraisal of add-on acquisition opportunities • Non-core business
Slide 8: Financial Systems revenue and operating margin
Financial Systems 24 60% 20 50% Operating Margin* (%) Revenue (£ million) 16 40% 12 30% 8 20% 4 10% 0 0% FY 2010 FY 2011 FY 2012 FY 2013 * Operating margin is stated Other Wealth Management Operating Margin * before goodwill impairment, intangible amortisation and other exceptional items 8
Slide 9: Financial Systems
Financial Systems • Wealth management revenues grew by 7% to £8.0 million (2012: £7.5 million) now representing 53% (2012: 47%) of revenue • ROCE improved to 30% (2012: 18%) benefitting from the change in capital structure • Overall recurring revenues account for 79% (2012: 78%) of revenue • 28% of
Slide 10: Group Performance
Group Performance • Microgen plc is the Corporate Parent of operating businesses • Resilient performance from existing divisions • Adjusted operating profit of £9.1 million in line with expectations and prior year • Identifying and appraising technology businesses and strategic investments which the
Slide 11: Appendix
Appendix
Slide 12: Group Income Statement
Group Income Statement FY 2013 FY 2012 £000 £000 Revenue Aptitude Software 14,676 16,316 Financial Systems 15,148 16,002 Total revenue 29,824 32,318 Operating costs (excl. Group overheads) (18,881) (20,976) Adjusted operating profit before Group overheads 10,943 11,342 Adjusted operating profit befo
Slide 13: Group Balance Sheet
Group Balance Sheet As at As at 31 Dec 2013 31 Dec 2012 ASSETS £’000 £’000 Non-current assets Goodwill 41,774 41,774 Property, plant and equipment 5,022 5,391 Deferred income tax asset 752 1,041 47,548 48,206 Current assets Trade and other receivables 5,049 3,163 Financial assets – derivative financ
Slide 14: Group Cash Flow
Group Cash Flow Year Year ended ended 31 Dec 2013 31 Dec 2012 £’000 £’000 Cash flows from operating activities Cash generated from operations 8,103 10,348 Interest paid (119) - Tax paid (1,728) (2,023) Net cash generated from operating activities 6,256 8,325 Cash flows from investing activities Purc
Slide 15: microgen
microgen www.microgen.com