Aptitude Software Group Plc · LSE:APTD
Aptitude Software — H1 2022 Earnings Presentation
19 slides from Aptitude Software's earnings presentation, Jul 28, 2022
Slide 1: Interim Results for the six months ended 30 June 2022
28 July 2022 Interim Results for the six months ended 30 June 2022 Where others see complexity we see possibility
Slide 2: Aptitude at a glance
Aptitude at a glance Where others see complexity we see possibility We are leaders in Finance Digitalization and Subscription Management solutions solving complex problems for large £3bn 120 unique clients in enterprises over 25 countries Highly configurable products to meet the needs of the most co
Slide 3: Solid Operational and Strategic Progress
Solid Operational and Strategic Progress Good progress being delivered whilst the business is in strategic transition Launch of Fynapse Existing product penetration Continued integration of MPP Further development of the progressing well and strategic wins Global & new sales of eSuite partner networ
Slide 4: Financial Highlights
Financial Highlights Continued growth in recurring revenue, a strategic focus for the Group 50 40 ARR3 (£m) 30 20 38% 10 68% 0 H1 2020 H2 2020 H1 2021 H2 2021 H1 2022 Total ARR growth Proportion of (£49.1m) 1 recurring revenue MPP Global (H1 2021: 66%) 40 30 32% 31% Revenue (£m) 45% 38% 34% 20 68% 1
Slide 5: Financial Highlights
Financial Highlights Financially strong with acquisition of MPP Global supplementing revenue growth £10.7m Net funds £36.1m £4.0m Total revenue Adjusted Operating (H1 2021: £27.6m) Profit (H1 2021: £5.1m) 11.1% 1.8p Adjusted Operating Total dividend Margin (H1 2021: 18.5%) 1 (H1 2021: 1.8p) Continue
Slide 6: Business Model
Business Model High quality business model with a strong opportunity within the base NEW BUSINESS OPPORTUNITY RETAIN CONVERT FINANCE DIGITALIZATION SUBSCRIPTION MANAGEMENT REPORT CONSUME REVENUE BASE OPPORTUNITY ADDITIONAL ADDITIONAL SERVICE ADDITIONAL INFLATION MODULE FEES FEES USAGE FEES MECHANISM
Slide 7: Aptitude Key Offerings
Aptitude Key Offerings Solving large complex problems for large complex organisations Large, complex organisations Video & Advanced Financial Services Telecoms Technology Print Media Industries FINANCE DIGITALIZATION SUBSCRIPTION MANAGEMENT COMPLIANCE AUTOMATION RETAIN CONVERT REPORT CONSUME REVENUE
Slide 8: Finance Digitalization
Finance Digitalization Enabling the CFO office to be cheaper, better and faster The Opportunity Key Differentiators Delivering great customer outcomes 1. Unique best of breed, modular solution $1.5m saved from the ability to retire legacy FINANCE DIGITALIZATION systems 2. Rapid speed to value Qualit
Slide 9: Subscription Management
Subscription Management Enabling enterprise clients to launch, experiment and grow recurring & transactional revenue streams The Opportunity Key Differentiators Delivering great customer outcomes 1. Extensive global payment reach “Cut operating expenditure (OPEX) by more SUBSCRIPTION MANAGEMENT than
Slide 10: Go to Market Strategy enables us to execute on a £3bn opportunity
Go to Market Strategy enables us to execute on a £3bn opportunity Expanding our geographical and industry reach Resell Tier 1 Accounts Enable Integrate Advise Direct 10
Slide 11: Sharpening our Competitive Edge through People Excellence
Total Headcount Increase Technologists increase Sharpening our Competitive Edge through People Excellence 36% 51% Creating a differentiated Aptitude culture increasing our client intimacy in a Increase in 12 months Increase in 12 months digital world to 30 June 2022 to 30 June 2022 (23% (11% organic
Slide 12: Aptitude Growth Story
Ap tude Growth Story A structured growth journey with key foundations in place 12
Slide 13: Aptitude Software Business Investment Case
Aptitude Software Business Investment Case Subscription Management 10% ARR Organic Growth Strategic Partnerships + Software % of 68% Overall Revenue Recurring Services growth = Adjusted Finance 11% Operating Margins Digitalization 13
Slide 14: Appendix
Appendix 14
Slide 15: Income Statement
Income Statement Continued growth in recurring revenue HY 2022 HY 2021 FY 2021 (£’000) (£’000) (£’000) Recurring Revenue 24,423 18,332 40,089 Implementation Revenue 11,700 9,303 19,241 Total Revenue 36,123 27,635 59,330 Operating Costs (32,121) (22,520) (49,430) Adjusted Operating Profit 4,002 5,115
Slide 16: Cash Flow
Cash Flow Strong cash flow fundamentals with first half seasonality HY 2022 HY 2021 FY 2021 (£’000) (£’000) (£’000) Cash (used in)/generated from operations (2,995) 4,212 11,890 Interest and tax (paid)/received (530) 302 24 Cash flows (used in)/generated from operating activities (3,525) 4,514 11,91
Slide 17: Balance Sheet
Balance Sheet Strong balance sheet with cash of £23.6 million and net funds of £10.7 million 30 June 2022 30 June 2021 31 Dec 2021 (£’000) (£’000) (£’000) Goodwill and intangible assets 68,818 29,004 70,508 Property, plant and equipment including right-of-use assets 4,250 1,902 4,261 Trade and other
Slide 18: Board
Board Experienced management team & Board Jeremy Suddards, Chief Executive Officer Jeremy was appointed to the Aptitude Software Board as CEO in January 2020. Jeremy joined Aptitude Software in January 2018 as the Chief Client Officer for Europe & APAC. Prior to joining Aptitude Software, Jeremy und
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