19 January 2021
Aptitude Software Group plc
("Aptitude Software" or the "Group")
Aptitude Software, a specialist provider of powerful financial management software to large global businesses, today provides an update for the year ended 31 December 2020 and the current financial year.
Aptitude Software has traded in line with the Board's expectations in 2020. A strong final quarter's new business performance in several of the Group's key markets provides the business with greater revenue visibility for 2021.
Annual Recurring Revenue ('ARR') grew by 11% on a constant currency basis in the year to £31.2 million (31 December 2019: £28.1 million, 30 June 2020: £29.3 million - both restated for the prevailing exchange rates at 31 December 2020), driven by both new customer wins and the expansion of existing customer relationships. The Group's balance sheet remains strong with no bank loans and benefitting from cash as at 31 December 2020 of £44.8 million (31 December 2019: £33.0 million).
In the final quarter of the year the Group made good progress, particularly in the North American technology and insurance sectors:
· Following the launch of Aptitude Accounting Hub and Aptitude Insurance Calculation Engine as Software-as-a-Service ('SaaS') at this year's AptConnect user and partner conference, the Group entered into multi-year SaaS agreements with two North American insurers; and
· Building on the technology sector sales announced earlier in the year, the Group completed a new business SaaS agreement with a leading global medical technology company for the use of the Aptitude Revenue Management and Aptitude Lease Accounting Engine products. This success further demonstrates the value realisable by clients of using more than one of the Group's tightly integrated and complementary applications.
These and other new business successes have been complemented by the expansion of the use of our applications in several of our existing clients including one of the largest North American telecommunications companies and a European financial services organisation.
In a year in which some of our clients and prospects have re-prioritised their investment decisions in the short term as a result of the pandemic, the Board is pleased with the overall performance of the Group and is encouraged by the strong sales performance in the final quarter.
Aptitude Software enters the current financial year with improved revenue visibility due to the sales successes achieved in the final quarter of 2020. These successes have strengthened the demand for implementation services from Aptitude Software and its partner network. Whilst an increasing proportion of implementations will continue to be led by partners, contributing to a year-on-year reduction in services performed directly by Aptitude Software in 2021, services revenue for the coming year is now anticipated to be slightly ahead of earlier expectations.
Excellent progress has also been achieved in 2020 on a series of strategic initiatives to provide the Group with growth opportunities for 2021 and beyond. These initiatives include:
· Continued development of the partner network with a number of joint propositions established in the year; and
· The launch of Aptitude Accounting Hub and Aptitude Insurance Calculation Engine as SaaS-offerings, ensuring we can capitalise on the accelerated move to cloud experienced in 2020. With the addition of these two strategic products to the Group's growing SaaS suite, most new clients are expected to deploy the Group's software via the SaaS model.
Overall, the Group looks forward to the year ahead with confidence and now anticipates a 2021 financial performance above current market expectations and at least consistent with that expected in 2020.
Philip Wood, Deputy Chief Executive Officer and Chief Financial Officer 020-3687-3200
Caroline Forde / Sam Modlin, Alma PR 020-3405-0205
1 Annual Recurring Revenue ("ARR") is the value of Aptitude Software's software and subscription recurring revenue at a specific point in time, normalised to a one-year period. ARR includes recurring revenues contracted but yet to commence and excludes recurring revenues which are currently being received but are known to be terminating in the future.
About Aptitude Software
Aptitude Software's innovative solutions address the growing trend for digital finance transformation complemented by regulatory-focused applications. Our various products take data from complex systems, typically with multiple siloed data sources across multiple business entities, to create a unified view of finance. This allows our clients to reap significant benefits including business insights, enhanced control and regulatory compliance.
Our clients include some of the world's largest companies, typically organisations with complex financial data and technology landscapes. Development, together with a growing number of other services, continues to be performed at the Aptitude Innovation Centre in Poland with sales, support and implementation services provided from Aptitude Software's London headquarters and the North American and Singaporean regional businesses.
Aptitude Software has six office locations around the world, with clients across four continents.