LONDON (ShareCast) - (Sharecast News) - Aptitude Software Group flagged results in line with board expectations in a first-half update on Monday, reaffirming its confidence in meeting full-year market forecasts.
The London-listed firm said its annual recurring revenue (ARR) rose to £50.8m, a 2% increase from £49.7m in the first six months of 2023.

Within that, software ARR grew 3% to £46.7m, driven by a strong performance at the end of the period and continued success in revenue management.

However, Assure - Aptitude's managed service offering - saw a 9% decline in ARR to £4.1m, attributed to expected client reductions.

The company maintained a stable cash position of £24.4m, slightly down from £24.5m in the first half of 2023.

Net funds increased 13% to £13.8m from £12.2m in the prior year.

Despite a reduction in non-recurring implementation revenues due to the transition toward a partner-led implementation model, Aptitude said it expected adjusted operating profit for the half-year to match the prior year's performance.

It said the strategic shift was aimed at boosting recurring revenues and achieving higher margins through cost efficiencies.

The company's focus on organisational changes to support its move towards AI Autonomous Finance was expected to yield operational benefits.

Aptitude said its pipeline of opportunities for its Fynapse product and increased engagement from strategic partners bolstered its confidence in driving growth in the second half of the year and beyond.

"We are pleased with the positive early progress we are making, in line with our plan, as we continue our organisational transformation to capitalise on the opportunity across AI Autonomous Finance," said chief executive officer Alex Curran.

"Market traction for Fynapse is growing, with wins secured during the period across new clients and our installed base, and the acceleration of our partner strategy is driving positive pipeline progression."

Curran described the market opportunity as "significant", adding that the firm had a "clear strategy" in place.

"Our innovative and cutting-edge Fynapse solution, supported by key industry partners, positions us well for future success.

"This, together with a robust financial position and a growing base of recurring revenues, means we are confident in continued progress against our plan."

Aptitude said it expected to issue its interim results for the six months ended 30 June on 25 July.

At 1000 BST, shares in Aptitude Software Group were up 1.37% at 378.1p.

Reporting by Josh White for Sharecast.com.

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