Aptitude Software Group Plc · LSE:APTD
Aptitude Software — FY2019 Earnings Presentation
22 slides from Aptitude Software's earnings presentation, Mar 11, 2020
Slide 1: Audited Preliminary Results
Audited Preliminary Results for the year ended 31 December 2019 11 March 2020
Slide 2: Aptitude Software at a glance
Aptitude Software at a glance Specialist provider of powerful financial management software Implemented Aptitude Software i n 1 6 c o u n t r i e s g l o b a l l y c.70global enterprise clients 6 Key Sectors office Insurance locations in Banking 3 continents TMT Revenue by Region Employees by Region
Slide 3: Overview of the year
Overview of the year Good progress strategically and operationally £28.6m ARR Totally focused on Aptitude A good new business 22% growth1 in Annual Software following disposal of performance Recurring Revenue2 Microgen Financial Systems Global businesses in multiple Complete commitment to Continued
Slide 4: Market Drivers
Market Drivers Digital Finance is driving a change in tools, process and expectations of what finance must deliver TRADITIONAL FINANCE DIGITAL FINANCE Accuracy Automation & robotics Compliance DISPARATE RESOURCES Insights & innovation DATA AND TIME Reporting Cloud migration Cost efficiency Artificia
Slide 5: Aptitude Product Portfolio
Aptitude Product Portfolio Accounting Hub is our foundation product, complemented by regulatory focused engines Revenue Telco IFRS 16 IFRS 17 Management IFRS 15 ASC 842 LDTI IFRS 15 ASC 606 ASC 606 Delivers finance transformation and a foundation for control and financial insights March 2020 | Audit
Slide 6: Product Portfolio Highlights
Product Portfolio Highlights The key contributors to growth in 2019 2019 Highlights 2019 Highlights 2019 Highlights • Largest contributor to • Material contributor to • Continuing new growth in ARR growth in ARR in 2019 business success across a number of • New business sales • Significant sales acr
Slide 7: Financial Highlights
Financial Highlights Continued growth in annual recurring revenue 30 25 Total Annual Recurring 20 revenue Revenue1 ARR (£m) 15 £59.7m £28.6m 10 5 14% (2018: £52.3m) 22% (2018: £23.5m) 0 2014 2015 2016 2017 2018 2019 70 60 Software and Services 50 Revenue (£m) subscription revenue revenue 40 52%
Slide 8: Financial Highlights
Financial Highlights Financially strong with excellent cash conversion Adjusted Dividend cover Disposal proceeds of Microgen Financial Systems Operating Profit1 maintained £10.5m 5.4p £51.4m 20% (2018: £8.8m) (2018: 6.6p) Subsequent return of value to shareholders (£46.4m) Adjusted Operating Net C
Slide 9: Go-to-Market and Client Engagement
Go-to-Market and Client Engagement Investing in the depth and breadth of our client engagement • Direct salesforce in Boston, London and Singapore who leverage our Global Partner Network to source and influence prospects • Investment in client engagement with the establishment of Client Advisory Boa
Slide 10: Global Partner Network
Global Partner Network Source of new business and implementation capability • Group now has alliances with all of the Big 4 accounting firms • Source or influence most new business opportunities • Leverage our partners’ relationships, credentials and geographic reach to target new markets and new co
Slide 11: AptConnect
AptConnect Inaugural user conference • First ever AptConnect event hosted during 2019 bringing together our clients, partners and prospects • Conference was held in Boston and attended by over 80 North American delegates demonstrating the Group’s strengthening focus on clients and partners • Event c
Slide 12: Aptitude Software Innovation Centre
Aptitude Software Innovation Centre Dedicated facility for development, cloud operations and support activities • A growing community of engaged and experienced finance technology experts – focused on developing and enhancing Aptitude Software products for our clients Development Encompasses the Gro
Slide 13: 2020 Objectives
2020 Objectives Strategic repositioning enables sole focus on the Aptitude suite of software • Continued new business progress with the Aptitude Insurance Calculation Engine, Aptitude Revenue Management (‘ARM’) and the Aptitude Accounting Hub (‘AAH’) • Positive start to 2020 achieved with a further
Slide 14: Successful start to a new era
Successful start to a new era Ambition to be a world leading vendor of powerful financial management software to large global enterprises Good new business Growing portfolio of Growing SaaS performance product & service offerings capability Increasing Well-established New focus worldwide presence pa
Slide 15: Appendix
Appendix Aptitude SOFTWARE
Slide 16: Income Statement
Income Statement 14% growth in revenue, increase in operating margin to 18% 2019 2018 £’000 £’000 Software and Subscription Revenue 28,494 24,814 Services Revenue 31,158 27,460 Total Revenue 59,652 52,274 Operating Costs (49,150) (43,499) Adjusted Operating Profit 10,502 8,775 Non-Underlying Items (
Slide 17: Cash Flow
Cash Flow 135% cash conversion 2019 2018 £’000 £’000 Cash generated from continuing operations 15,295 8,266 Cash generated from discontinued operations 3,125 6,776 Cash generated from operations 18,420 15,042 Interest and tax paid (2,403) (3,508) Cash flows generated from operating activities 16,017
Slide 18: Balance Sheet
Balance Sheet Strong balance sheet with cash of £33 million and no debt financing 20191 2018 £’000 £’000 Goodwill and intangible assets 30,273 62,979 Property, plant and equipment 3,207 5,417 Trade and other assets2 14,706 19,042 Cash and cash equivalents 32,965 29,186 Total Assets 81,151 116,624 Ba
Slide 19: Microgen Financial Systems Disposal
Microgen Financial Systems Disposal Completed 28 June 2019, £51.4 million aggregate cash consideration • £51.4 million aggregate cash consideration received on 28 June 2019 • Microgen Financial Systems’ 2018 continuing revenue and adjusted operating profit were £17.3 million and £6.5 million respect
Slide 20: Business model
Business model Strategic objective to increase proportion of higher margin software and subscription revenues Software and Subscription Revenue Professional Services Annual Recurring Revenue of £28.6 million provides Growing contribution from Solution Management Services future visibility On-Premise
Slide 21: Product Portfolio
Product Portfolio Focused on digital finance transformation and smart compliance • Allows finance functions to take a • AICE allows an insurer to perform all • Enables finance teams to automate and leading role in driving the commercial the calculations and complex simplify the whole revenue lifecyc
Slide 22: Board
Board Experienced management team and Board Jeremy Suddards, Chief Executive Officer Jeremy was appointed to the Aptitude Software Board as CEO Designate in September 2019 and assumed the role of CEO in January 2020. Jeremy joined Aptitude Software in January 2018 as the Chief Client Officer for Eur
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