Aptitude Software Group PLC, a leading provider of finance transformation software solutions, has released its full year trading update for the financial year ended 31 December 2023. The company reported profits in line with expectations and highlighted several new business successes across its product suite, including significant milestones with Fynapse, its next generation digital finance platform.
Key achievements for Fynapse included meeting market readiness for the Microsoft partnership, positive progress with a Telco charter client, and the signing of the Group's first new logo Fynapse client with a multi-year subscription agreement. The company also secured several new major clients in the second half of 2023, including agreements with a US-based investment management company, the number one Japanese bank, a UK-based financial software company, and a global existing Financial Services client.
While the company experienced elevated churn in its Subscription, Billing, and Revenue Management products, its Annual Recurring Revenue (ARR) grew by 2% on a constant currency basis to £51.1 million. Notably, ARR on its Finance Transformation products, AAH and Fynapse, grew at 12% year on year. The company took action to reduce costs in the first half of 2023 and protect investment in strategic focus areas, including Fynapse and its go-to-market capabilities.
Aptitude Software Group's balance sheet remains strong, with cash at £34.1 million and net funds of £22.7 million at 31 December 2023. The company's CEO, Alex Curran, has formed a new Senior Leadership Team and implemented an action plan to accelerate revenue growth, reduce churn, strengthen the partner strategy, and improve overall business performance.
Looking ahead, the Board is optimistic about the opportunities presented by Fynapse in 2024 and beyond. The company's growing pipeline of opportunities, strong partners, and a refreshed leadership are expected to drive improved performance, with £53.2 million of revenue under contract at the beginning of the year. The Board intends to carefully manage investment levels while protecting strategic investment in Fynapse, and expects ARR growth to materially improve in 2024.
The company expects to issue its results for the year ended 31 December 2023 on Thursday, 21 March 2024, with a presentation for analysts scheduled for the same day. Analysts interested in attending can register by contacting [email protected].
In summary, Aptitude Software Group PLC's trading update reflects a year of progress, with a focus on driving growth, reducing churn, and leveraging the potential of its Fynapse platform to accelerate future growth.