TIDMAPTD
RNS Number : 1714H
Aptitude Software Group PLC
26 July 2023
26 July 2023
APTITUDE SOFTWARE GROUP plc
('Aptitude Software' or 'the Group')
Interim Results for the six months ended
30 June 2023
Aptitude Software Group plc (LSE: APTD), the specialist provider
of finance digitization and subscription management software,
reports its unaudited results for the six months ended 30 June
2023.
Financial Highlights
Six months ended 30 June H1 2023 H1 2022 % Change
Annual Recurring Revenue (1) ('ARR') at
30 June GBP49.8m GBP48.2m +3%
---------- ---------- ----------
* Year-on-Year ARR Growth (Constant Currency (2) ) 3% 28%
---------- ---------- ----------
* Year-on-Year ARR Growth (Organic (3) and Constant
Currency (2) ) 3% 10%
---------- ---------- ----------
Recurring Revenue (4) GBP27.0m GBP24.4m +11%
---------- ---------- ----------
Implementation Revenue GBP10.5m GBP11.7m -10%
---------- ---------- ----------
Total Revenue GBP37.5m GBP36.1m +4%
---------- ---------- ----------
Adjusted Operating Profit(5) GBP4.2m GBP4.0m +5%
---------- ---------- ----------
Adjusted Operating Margin(5) 11.2% 11.1% +0.1%
---------- ---------- ----------
Statutory Operating Profit GBP1.7m GBP2.1m -19%
---------- ---------- ----------
Cash and Cash Equivalents GBP24.5m GBP23.6m +4%
---------- ---------- ----------
Net Funds (6) GBP12.2m GBP10.7m +14%
---------- ---------- ----------
Interim Ordinary Dividend per Share 1.8p 1.8p -
---------- ---------- ----------
-- Year-on-year constant currency growth in ARR of 3%, with the unusually
higher churn levels seen in 2022 persisting in this period for Subscription,
Billing and Revenue Management
-- Recurring revenue, a key strategic focus of the Group, grew 11% to GBP27.0
million (H1 2022: GBP24.4 million) and now represents 72% of total revenue
(H1 2022: 68%)
-- Adjusted Operating Profit increased to GBP4.2 million (H1 2022: GBP4.0
million), with focused cost reductions undertaken in the period to underpin
the Board's profit expectations for FY 2023 and improve operating leverage
going forward
-- Balance sheet strength with cash of GBP24.5 million (30 June 2022: GBP23.6
million) and net funds(5) of GBP12.2 million (30 June 2022: GBP10.7 million)
as the Group's heritage products continue to generate strong cash returns
Strategic and Operational Highlights:
-- First Fynapse go-live successfully achieved with the Telco charter client,
demonstrating the viability of our newest product and marking the first
step in our aspirations for its deployment across prospects and clients
-- Ongoing new business success across the Group's strategic products and
across geographical regions
-- Go-lives achieved across the base of clients with the Aptitude Insurance
Calculation Engine, with 70% of clients live by the end of H1, underpinning
future revenue opportunity particularly in the Group's solution management
service 'Assure'
-- Strengthening pipeline across Aptitude's strategic partnerships and through
traditional avenues with growing confidence in the Fynapse opportunity
particularly, underpinned by the Microsoft partnership, supporting future
revenue growth expectations
-- Alex Curran, formerly the Regional Chief Executive Officer for North
America, appointed Acting Chief Executive Officer, with former Chief
Executive Officer Jeremy Suddards leaving the Group
-- The Board is confident in delivering profit expectations for FY23, and
believes that the combination of Fynapse's capabilities and the partnership
with Microsoft will be a material accelerator for growth in 2024 and
beyond
Commenting on the results, Ivan Martin, Chairman, said: -
'Aptitude is well positioned to realise the opportunities across
Finance Digitalization and Subscription Management. The strategic
partnership with Microsoft to integrate Fynapse and Dynamics 365,
in particular, presents a significant global opportunity for the
Group.
Recent changes within the organisation, particularly the
appointment of Alex Curran as Acting Chief Executive Officer, will
drive the business to execute on the growing opportunity presented
by its Fynapse platform. Alex brings a strategic sales focus and
long term experience with the Group's clients and partners that
provides a strong platform to higher performance.
Recognising the impact of economic uncertainty, the Board took
action to reduce cost in the first half of 2023 to underpin its
profit expectations for the remainder of the year and increase
operational efficiency in future years. Throughout the period,
investment was protected in areas of strategic focus, including
Fynapse and its go to market capabilities.
The Group has demonstrated resilience against the challenging
economic backdrop, continuing to generate new business across each
strategic growth driver and in geographically diverse locations.
Aptitude remains financially robust and has strong revenue
visibility, providing a solid foundation for future growth.'
Contacts
Aptitude Software Group plc
Ivan Martin, Chairman 020-3687-3200
Alex Curran, Acting Chief Executive Officer
Mike Johns, Chief Financial Officer
Alma PR
Caroline Forde / Hilary Buchanan 020-3405-0205
Throughout this announcement:
(1) Annual Recurring Revenue ('ARR') is the value of Aptitude
Software's 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. Included in ARR are recurring revenues from the
Group's solution management services.
(2) Constant currency is calculated by comparing the H1 2023
results with H1 2022 results retranslated at the rates of exchange
prevailing during H1 2023. Items within the Financial Highlights
table indicated by this superscript reference are calculated on a
constant currency basis.
(3) Organic growth excludes the contribution from the
acquisition of MPP Global in October 2021
(4) Recurring Revenue includes, for the first time, revenues
from the Group's solution management services, comparatives have
been adjusted accordingly
(5) Adjusted Operating Profit, Adjusted Operating Margin and
Adjusted Basic Earnings per Share exclude non-underlying operating
items, unless stated to the contrary. Further detail in respect of
the non-underlying operating items can be found within Note 6.
(6) Net funds represents cash and cash equivalents less finance
obligations, which are currently limited to capital lease
obligations
Certain non-IFRS financial measures (e.g. Adjusted Operating
Profit) are included which assist management in comparing
performance on a consistent basis
About Aptitude Software
Aptitude Software helps complex organisations automate and
transform their financial business models. Our core areas of focus
are the accelerating digitization of the finance function, and the
global drive to deploy and manage subscription offerings. Aptitude
Software also continues to support clients through complex
regulations which often form the catalyst for broader finance
transformation.
Aptitude's finance digitization products enable enterprise
finance professionals to improve the speed of their function,
enhance the quality of its outcomes, and do so at a lower cost.
Aptitude draws data from complex, often siloed systems, automate
its processing through complex accounting calculations, and create
a unified view of finance. Businesses are left with a transparent
view of their data, delivered at extreme performance and at a lower
cost of ownership improving their finance functions' ability to
support their business objectives.
Aptitude's subscription management products are a rapidly
increasingly critical driver for new and traditional businesses
alike, who need to launch new offerings frequently, in ways which
appeal to their customers and allow them to outperform their peers.
Aptitude Software's products power the acquisition, monetization,
and retention of subscribers straight through to revenue
reporting.
Our global client base includes some of the world's largest
companies, typically organisations with complex business models,
large volumes of data, and numerous internal systems. Aptitude
Software is headquartered in London, has a strong and growing North
American presence, and is powered by Global Innovation Centres in
Poland and the North West of England. Sales, support and
implementation services are provided from offices in the United
States, the United Kingdom, Canada, and Singapore.
www.aptitudesoftware.com
Overview
Aptitude Software showed modest revenue and adjusted operating
profit growth in the first half of 2023. The Group maintained
investment levels in areas of strategic focus, most notably in its
Fynapse platform and go to market capabilities, while driving cost
efficiencies to underpin profitability for FY 2023.
Overall, ARR increased year-on-year by 3% on a constant currency
basis to GBP49.8 million on 30 June 2023 (31 December 2022: GBP50.5
million, 30 June 2022: GBP48.2 million). As previously announced,
ARR growth was moderated by a combination of higher than usual
churn continuing into H1 2023, and elongated sales cycles as a
result of the uncertainty caused by the wider economic environment
and is reflected in the net retention rate of 98% (H1 2022: 103%
organic). Despite a difficult economic backdrop and the impact of
certain customer consolidation, growth from continuing clients has
been strong, particularly through the sale of new Assure contracts.
The Group also generated new business success in each of its
strategic products.
The recent first go-live of Fynapse at the US Telco charter
client represents a key milestone in the development and rollout of
the platform, with performance in line with expectations. The Group
is confident that Fynapse will accelerate the Group's growth in the
medium and long term whilst also generating higher gross margins
due to the cloud native technologies on which the platform is
built. Fynapse provides differentiated finance digitization
capability to a market in which the Group already has outstanding
credentials with the successful Aptitude Accounting Hub. The Group
continues to expand the capabilities of the platform and is seeing
a strengthening pipeline.
The integration of eSuite and the MPP Global team was completed
in the early months of 2023, with operational efficiencies
generated through the combination of both businesses.
The partnership program continues to develop. The Group has been
working with Microsoft in line with its strategic partnership
agreement to deeply integrate Fynapse and Dynamics 365 so that both
organisations can present an end-to-end solution to prospective
customers. In addition, work has been progressing to support and
optimise the sale of the combined solution by both parties. Fynapse
is now available on both of Microsoft's online marketplaces,
AppSource and the Azure Marketplace, enabling Microsoft's other
partners to work with the Group to expand customer acquisition
opportunities for the product. With firm foundations in place, the
Group is confident that the combination of Fynapse's capabilities
and the partnership with Microsoft will be a material accelerator
for growth in 2024 and beyond.
Investment in product management, research & development in
the six months ended 30 June 2023 increased to GBP8.6 million (H1
2022: GBP7.9 million), an increase of 9%, which is principally
related to Fynapse and the effect of higher inflation on the
Group's cost base.
Although headline ARR growth rates have been disappointing in H1
2023, the Board takes confidence in the work performed to underpin
the foundations of future growth in the first half of the year and
is confident that the performance in 2023 will be in line with its
expectations.
Corporate Strategy
Aptitude's strategy is focused on providing innovative finance
digitalization and subscription management software to a growing
number of C-suite stakeholders in a growing number of clients.
Finance digitization allows finance leaders to improve the
operational efficiency of their organisation by streamlining
processes and automating manual tasks, enhance the quality of its
outcomes, and do so at a dramatically lower total cost of ownership
for a modern finance function in organisations that are becoming
increasingly complex. Aptitude's products take data from complex,
often siloed systems, automate its processing through complex
accounting calculations, and create a unified view of business
performance. Businesses are left with a transparent view of their
finance data, delivered on a near real time basis and at a lower
cost of ownership.
Subscription based revenues are an increasingly critical driver
for new economy and traditional businesses alike. Aptitude's
Subscription Management solutions now power the acquisition,
billing, and retention of subscribers straight through to revenue
reporting. With Aptitude Software, businesses can take new product
subscriptions to market quickly, retain their high-value recurring
revenue, and stay ahead of the competition.
Finance Digitization
Market Drivers
Quality of data, speed of reporting and cost continue to be the
top drivers on the CFO's agenda as they are increasingly challenged
by the demands of operating in a digital world with growing
complexity, regulatory and cost pressures. These demands result in
an increase in the volume and number of sources of finance data,
and the increasing requirement for decision making to move at the
pace that the business requires. Aptitude's product set is
specifically designed to address these priorities and
requirements.
Finance Digitization Products
Fynapse, the Group's next generation digital finance platform,
was originally launched in March 2022 with significant milestones
achieved since that launch. New business success also continues to
be achieved with the established Aptitude Accounting Hub
application.
Fynapse is a modular, cloud native, high performance finance
platform addressing an enterprise's need to drive finance
digitization to underpin the transformation of their wider
businesses . The platform builds on the successful Aptitude
Accounting Hub, centralising and automating finance, accounting and
reporting processes, creating a deep level of operational
intelligence for our clients. It delivers a brand-new user centric
interface with a consolidated, yet highly granular, view of
financial data which enhances business insights to assist decision
making. The capabilities of the product drive even greater
automation of manual accounting processes, reducing on-going
operational costs and driving an improved total cost of ownership
for the finance function.
The modular design and ease of integration also allows the
market opportunity to extend beyond our current industries into
adjacent verticals, shortening implementation cycles and allowing
our partner network to implement efficiently, with minimal risk,
and delivering a faster time to value for enterprise customers.
Fynapse was successfully delivered to the charter client in the
US telco market in 2022 and a multi-year subscription agreement is
now in place. The charter client has made good progress with their
implementation, with a successful go-live achieved in July 2023.
Fynapse is delivering significantly increased processing speeds,
efficiency of processing and an enhanced user experience for the
charter client. The go-live of Fynapse at the charter client
demonstrates the effectiveness of Fynapse and reinforces the
Group's confidence in Fynapse's ability to drive future revenue
growth.
A strategic global partnership with Microsoft, signed in
December 2022, is expected to be a material contributor to the
success of Fynapse globally in the medium and longer term across
all industry sectors. Under this agreement Fynapse will be the only
product available on the market with capabilities deeply integrated
with Microsoft Dynamics 365 Finance and operating on the Microsoft
Azure cloud platform. This combined solution will provide Aptitude
and Microsoft clients with the ability to unify data from various
financial systems to increase scalability, gain the ability to
rapidly adopt new regulations, automate manual processes whilst
delivering better business insights and reduce the cost of the
finance function.
In addition to the Microsoft partnership there is a strong
interest from large consultancy firms who are attracted to the open
design of Fynapse. This open design provides partners with the
opportunity to co-create and license their own IP built on the
Fynapse platform, further accelerating and differentiating their
services. It is pleasing to report that this capability is proving
an attractive proposition for the Big-4 accountancy firms and is
highly differentiated from the more generalist providers in the
market.
The strategic investment continues to enhance the capabilities
of Fynapse with development performed at the Aptitude Global
Technology Centre in Wroclaw, Poland. Investment levels as a
proportion of revenue are expected to peak in 2023 before
moderating in future years.
The Group has every confidence in the success of Fynapse which
is expected to be a key growth driver for the business in future
years.
The Group achieved new business success with the Aptitude
Accounting Hub in the first half of 2023, with the signature of a
large European bank. Whilst further sales of AAH will be achieved,
particularly when used in conjunction with our other regulatory
focused applications, we do expect that an increasing number of
clients seeking to automate and transform their finance function
will opt for Fynapse in the future.
Additionally, successful go-lives have been achieved across 70%
of Aptitude's base of clients with the Aptitude Insurance
Calculation Engine in the first half of the year following the
arrival of the IFRS compliance deadline, with the remaining
projects continuing to make good progress. A key focus for the
remainder of the year will be upgrading AICE users to Assure,
Aptitude's increasing popular solution management service.
Subscription Management
Market Drivers
The subscription economy is continuing to expand into new
sectors as the benefits of subscription based recurring revenue are
increasingly valued more than traditional non-recurring revenues.
The Group has seen this phenomenon in a broader range of sectors
such as high-tech advanced industries, medical devices and
automotive. As organisations move to these business models they
require new systems to manage these subscriptions and require new
capabilities to address the complexities of revenue recognition
inherent with complex subscriptions.
Aptitude's solutions are focused on the needs of the world's
largest companies, organisations with highly complex business
models and data processing requirements which generalist providers
are unable to address.
Subscription Management Products
Whilst good levels of new business success and growth of
existing accounts were achieved, overall Annual Recurring Revenue
growth was subdued due to an unusually high level of churn.
Impacting all products within Subscription Management there are
several underlying reasons for the elevated level of terminations,
including business failure of some customers and corporate events
which are more prevalent in the markets particularly targeted by
the Subscription Management product set. Whilst there has been a
negative impact from the dynamic nature of the markets that are the
focus of the Subscription Management product set, this dynamism has
historically delivered strong organic opportunities within the
existing base and is expected to do so again in the future.
In the period, new business success was achieved with the sale
of eSuite to a large German publisher. The Group now serves six
German publishers with the eSuite platform, with the DACH region a
growing focus for new business activity. Further new business
success has been achieved with AREV in the period with the
signature of a leading consumer products subscription business.
The eSuite team is now fully integrated with the remainder of
the business and benefitting from the expertise and processes of
the wider group. This together with the pipeline of new eSuite
opportunities and the Annual Recurring Revenue once the recently
acquired clients go-live, is expected to lead to an improved
performance from this product.
Solution Management Services ('Aptitude Assure')
Aptitude Insurance Calculation Engine clients continued to
contract for Aptitude Assure as they reach their go-live dates.
These contracts contributed to the year-on-year growth of 18% in
the Annual Recurring Revenue derived from Assure to GBP4.5 million
(30 June 2022: GBP3.8 million).
Implementation Services
Aptitude Software provides implementation services to its
clients, with the scale of such services depending on the nature of
the application, the size of the opportunity and the balance of
responsibilities between Aptitude Software and its partners. The
Group's services are provided by a significant pool of highly
skilled individuals, providing deep domain and technical expertise
which is highly valued by our clients and provide a differentiator
compared with our competitors. Demand for implementation services
from the Group's on-going projects has been strong in the first
half of the year, with clients frequently requesting additional
services.
Partner Network
The growth and development of Aptitude Software's high-quality
partner network is a strategic priority. Whilst many prospects are
sourced directly by the Group's own sales and marketing teams, the
global reach of our partners and the depth of their relationships
with large businesses provide Aptitude Software with an increasing
number of advanced opportunities, enhanced market coverage and
intelligence. In addition to the new business benefits provided by
the partner network, the implementation expertise and capabilities
of our partners supports the Group's strategic drive to increase
software fees faster than its services, leading to a richer revenue
mix.
An agreement to provide finance automation to a Big-4
accountancy firm's mergers and acquisitions practice continues to
generate strong pipeline. The agreement enables the organisation to
accelerate the post-acquisition integration of their clients'
finance functions.
Whilst the Big-4 accounting firms have global reach, for
specific applications in specific jurisdictions it can be
beneficial to work closely with more specialised partner
organisations. The benefits of this approach are demonstrated by
the success the Group is having with eSuite in the German
publishing and Japanese motor manufacturing markets, two markets
which would be challenging to unlock without the assistance of our
partners. We are engaged with these partners on both on-going
projects as well as several additional new business
opportunities.
Aptitude Innovation Centres
The Group has maintained the level of investment in its two
innovation centres in Poland and the North West of England. Overall
there were 226 employees at the Innovation Centre in Poland at 30
June 2023 (30 June 2022: 212) with a further 50 employees (30 June
2022: 47) focused on design, development, implementation and
support based in the North West of England. Investment remains
focused on both Fynapse and eSuite in these two centres.
The Group's talent acquisition team allows the Group to attract
new talent to the business despite increased competition for
technologists in both locations. In the current competitive talent
market the Group continues to invest in its people, including the
initiatives described below.
Our People
The Board wishes to thank its employees for the excellent
support and commitment they are providing to the business and to
our clients and partners.
Aptitude Software continues to progress its approach to
diversity and inclusion with its established advocacy group with
representation from across our global team. The business is
committed to creating a working environment that recognises
diversity, supporting everyone to thrive.
Overall Group headcount has decreased to 524 (31 December 2022:
527, 30 June 2022: 531) with increased investment in Fynapse offset
by reductions through cost efficiency action undertaken in the
period.
Focus areas
The Group is focused on delivery of the opportunity within
finance digitization and subscription management.
The focus of the Group is the ongoing development of the
additional capabilities of its Fynapse platform to address the
wider market opportunity, both directly and through our Tier 1
partners, whilst continuing to develop and progress demand for our
new application. In parallel, the Group will realise the continuing
opportunity for Aptitude Accounting Hub for those organisations
which have an immediate requirement for the capabilities of this
application.
Financial Performance
The Group delivered a solid financial performance in the period
with growth of its recurring revenues despite economic
headwinds.
The strength of the Group's balance sheet, high levels of
recurring revenue and strong cash generation provide the Group with
considerable financial strength with which to execute on its growth
strategy.
Revenue
Recurring Revenues
Aptitude Software's Annual Recurring Revenue ('ARR') at 30 June
2023 totalled GBP49.8 million (31 December 2022: GBP51.6 million,
30 June 2022: GBP49.1 million) representing overall year-on-year
growth of 1%. On a constant currency basis, overall year-on-year
ARR growth was 3% (31 December 2022: GBP50.5 million, 30 June 2022:
GBP48.2 million). Included within ARR is the value of the Group's
recurring solution management services contracts ('Assure') (30
June 2023: GBP4.5 million, 31 December 2022: GBP4.3 million, 30
June 2022: GBP3.8 million).
The value of recurring contracts for the Group's solution
management service included within ARR is GBP4.5 million (31
December 2022: GBP4.3 million, 30 June 2022: GBP3.8 million on a
constant currency basis).
Net retention in the 12 months to 30 June 2023 was 98% (H1 2022:
103% organic) (measured by the total value of on-going ARR at the
period-end from clients in place twelve months earlier as a
percentage of the opening ARR from those clients on a constant
currency basis ) . The net retention rate in the period was
moderated by higher than usual churn in Subscription, Billing and
Revenue Management.
A significant majority of the Group's recurring revenue
contracts include the ability to increase ARR for clients by
relevant consumer price index rises ('CPI'). There are a small
number of contracts with variations to this mechanism which may
delay the ability to pass on the full impact of CPI to clients in
the short term. While inflation remains high, many of the Group's
renewals are weighted toward the second half of the year. The
increase attributable to CPI for the period 1 January 2023 to 31
December 2023 is expected to be higher given continued high
inflation, but may moderate should inflation fall to target levels
before the end of the year.
Recurring revenues recognised in the six months ended 30 June
2023 increased by 11% to GBP27.0 million (H1 2022: GBP24.4
million). These now represent 72% of overall revenue (H1 2022:
68%). It is a key part of the Group's strategy to increase this
percentage whilst maximising the growth rate of Aptitude Software's
ARR, a strategy which in due course will lead to growth in
operating margin given the margin differential between software,
the largest element of recurring revenue, and implementation
services.
Implementation Services
Services revenue totalled GBP10.5 million for the six months
ended 30 June 2023 (H1 2022: GBP11.7 million) Implementation
services revenues continued to benefit from the strong demand from
the Group's existing client base.
Research and Development Expenditure
Total expenditure on product management, research and
development in the six months ended 30 June 2023 increased to
GBP8.6 million (H1 2022: GBP7.9 million), an increase of 9%. The
increase in research and development relates to the ongoing
investment in Fynapse and the effect of higher inflation on the
Group's cost base .
The Board has determined that none of the internal research and
development costs incurred during the first half of the year meet
the criteria for capitalisation. Consequently, these have been
expensed as incurred through the income statement.
Operating Profit and Margins
Adjusted Operating Profit for the six months ended 30 June 2023
was GBP4.2 million (H1 2022: GBP4.0m). Operating profit on a
statutory basis was GBP1.7 million (H1 2022: GBP2.1 million).
Adjusted Operating Margin for the six months ended 30 June 2023 was
11.2% (H1 2022: 11.1%).
Foreign Exchange
With 53% (H1 2022: 51%) of the Group's revenues being generated
from North American clients, the majority of which are invoiced in
US Dollars, the financial results are impacted by changes in the US
dollar exchange rate. The Group's Annual Recurring Revenue at 30
June 2023 decreased by GBP1.0 million in the first half by
unfavourable exchange rate movements. Aptitude Software's H1 2022
revenue and Adjusted Operating Profit would have been reported at
GBP36.5 million and GBP4.1 million respectively on a constant
currency basis (compared to actual result of GBP36.1 million and
GBP4.0 million). Constant currency is calculated by comparing the
2022 results with 2023 results retranslated at the rates of
exchange prevailing during 2023.
Non-Underlying Items
Non-underlying items of GBP2.5 million (H1 2022: GBP1.9 million)
comprises intangible amortisation and reorganisation costs.
Taxation
The total tax charge of GBP0.4 million (H1 2022: GBP0.4 million)
represents 22% of the Group's profit before tax (H1 2022: 19%).
Statutory Results
The Group reported a profit for the period attributable to
equity shareholders of GBP1.3 million (H1 2022: GBP1.5
million).
Earnings per Share
Increased investment in the business led to Adjusted Basic
Earnings per Share and Basic Earnings per Share reducing to 5.7
pence and 2.3 pence (H1 2022: 5.2 pence and 2.6 pence).
Dividend
An interim dividend of 1.8 pence per share is proposed (2022:
1.8 pence). The interim dividend will be payable on 25 August 2023
to shareholders on the register at the close of business on 4
August 2023.
Balance Sheet
The Group has a strong balance sheet with net assets at 30 June
2023 of GBP59.6 million (H1 2022: GBP58.7 million), including cash
of GBP24.5 million (H1 2022: GBP23.6 million) and net funds of
GBP12.2 million (H1 2022: GBP10.7 million). Trade receivables (net)
have decreased to GBP11.0 million (H1 2022: GBP14.9 million). Of
the balance of GBP11.0 million, collections following the period
end have totalled GBP4.2 million. Deferred income decreased to
GBP26.7 million at 30 June 2023 (H1 2022: GBP30.1 million), which
was primarily a result of a small number of high value multi-year
payments made by clients in 2021 and 2022.
The Group's cash flow is seasonal due to the timing of the
invoicing and collection of the Group's recurring revenue which,
together with a weighting of a number of other payments in the
first half of the year (e.g. bonus), contribute to a weaker cash
performance in the first half of any year. Cash outflow from
operating activities in the first half of the year was GBP0.8m (H1
2022: GBP3.5m), an improvement partly driven through collection of
outstanding amounts from the end of 2022. Given the seasonality of
cashflow the Group is confident that full year cash flow conversion
for 2023 will return to historic levels.
Statement on Principal Risks and Uncertainties
Pursuant to the requirements of the Disclosure and Transparency
Rules the Group provides the following information on its principal
risks and uncertainties. The Group considers strategic, operational
and financial risks and identifies actions to mitigate those risks.
These risk profiles are updated at least annually. The principal
risks and uncertainties detailed within the Group's 2022 Annual
Report remain applicable for the first six months of the financial
year. The Group's 2022 Annual Report is available from the Aptitude
Software website: www.aptitudesoftware.com/investor-relations/
Related party transactions during the period are disclosed in
Note 18.
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
For the six months ended 30 June 2023
Unaudited six months ended 30 Jun 2023 Unaudited six months ended 30 Jun 2022 Audited year ended 31 Dec 2022
Before Non- Before Non- Before Non-
non-underlying underlying non-underlying underlying non-underlying underlying
Note items items Total items items Total items items Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 5 37,536 - 37,536 36,123 - 36,123 74,394 - 74,394
Operating
costs 5/6 (33,300) (2,488) (35,788) (32,121) (1,883) (34,004) (66,887) (3,822) (70,709)
---------------
Operating
profit 5/6 4,236 (2,488) 1,748 4,002 (1,883) 2,119 7,507 (3,822) 3,685
Finance
income 81 - 81 3 - 3 18 - 18
Finance
costs (163) - (163) (247) - (247) (498) - (498)
Profit
before
income
tax 4,154 (2,488) 1,666 3,758 (1,883) 1,875 7,027 (3,822) 3,205
--------------- ----------- --------- --------------- ----------- --------- --------------- ----------- ---------
Income tax
expense 7 (911) 542 (369) (754) 400 (354) (1,481) 871 (610)
Profit for
the
period 3,243 (1,946) 1,297 3,004 (1,483) 1,521 5,546 (2,951) 2,595
=============== =========== ========= =============== =========== ========= =============== =========== =========
Earnings
per share
Basic 8 2.3p 2.6p 4.5p
--------- --------- ---------
Diluted 8 2.2p 2.6p 4.5p
--------- --------- ---------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
For the six months ended 30 June 2023
Unaudited six months Unaudited six months Audited year ended 31 Dec
ended 30 Jun 2023 ended 30 Jun 2022 2022
GBP000 GBP000 GBP000
Profit for the period 1,297 1,521 2,595
-------------------------- -------------------------- --------------------------
Other comprehensive
income/(expense)
Items that will or may be
reclassified to profit or
loss:
Cash flow hedges
reclassified to income
statement (520) - 187
Gain on effective cash flow
hedges 739 267 1,445
Deferred tax on cash flow
hedges (185) - (335)
Currency translation
difference (466) 1,334 1,972
-------------------------- -------------------------- --------------------------
Other comprehensive
income/(expense) for the
period, net of tax (432) 1,601 3,269
-------------------------- -------------------------- --------------------------
Total comprehensive income
for the period 865 3,122 5,864
========================== ========================== ==========================
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 30 June 2023
Unaudited as at 30 June Unaudited as at 30 June Audited as at 31 Dec
2023 2022 2022
Notes GBP000 GBP000 GBP000
ASSETS
Non-current assets
Property, plant and
equipment including
right-of-use assets 11 4,911 4,250 5,103
Goodwill 46,006 46,006 46,006
Intangible assets 19,430 22,812 21,120
Other long-term assets 1,474 1,451 1,307
Deferred tax assets 423 115 423
72,244 74,634 73,959
------------------------- ------------------------- -------------------------
Current assets
Trade and other
receivables 12 13,312 16,740 12,297
Financial assets -
derivative financial
instruments 1,558 150 1,339
Current income tax
assets 1,488 1,189 1,352
Cash and cash
equivalents 24,506 23,611 29,245
40,864 41,690 44,233
Total assets 113,108 116,324 118,192
------------------------- ------------------------- -------------------------
LIABILITIES
Current liabilities
Financial liabilities
- borrowings 14 (1,250) (938) (1,250)
- derivative financial
instruments - (177) -
Trade and other payables 13 (35,001) (38,096) (38,146)
Capital lease
obligations 15 (424) (329) (553)
Current income tax
liabilities (74) (353) (119)
Provisions 16 - - (114)
------------------------- ------------------------- -------------------------
(36,749) (39,893) (40,182)
------------------------- ------------------------- -------------------------
Net current
assets/(liabilities) 4,115 1,797 4,051
------------------------- ------------------------- -------------------------
Non-current liabilities
Financial liabilities -
borrowings 14 (7,733) (8,959) (8,347)
Capital lease
obligations 15 (2,921) (2,679) (3,196)
Provisions 16 (211) (300) (202)
Deferred tax liabilities (5,909) (5,811) (5,724)
(16,774) (17,749) (17,469)
------------------------- ------------------------- -------------------------
NET ASSETS 59,585 58,682 60,541
========================= ========================= =========================
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 30 June 2023
Unaudited as at 30 Unaudited as at 30 Audited as at 31 Dec
June 2023 June 2022 2022
Notes GBP000 GBP000 GBP000
SHAREHOLDERS' EQUITY
Share capital 17 4,204 4,204 4,204
Share premium account 17 11,959 11,959 11,959
Capital redemption reserve 12,372 12,372 12,372
Other reserves 35,171 34,169 35,199
(Accumulated losses)/retained
earnings (3,748) (3,477) (3,286)
Foreign currency translation
reserve (373) (545) 93
TOTAL EQUITY 59,585 58,682 60,541
======================= ======================= =======================
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
For the six months ended 30 June 2023
Attributable to owners of the Parent
Share Share Accumulated Foreign Capital Other Total Equity
capital premium losses currency redemption reserves
translation reserve
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Group
Balance at 1
January 2023 4,204 11,959 (3,286) 93 12,372 35,199 60,541
------------- ------------- ------------- ------------ ------------ ------------- -------------
Profit for the
year - - 1,297 - - - 1,297
Cash flow
hedges
reclassified
to income
statement - - - - - (520) (520)
Gain on
effective
cash flow
hedges 739 739
Deferred tax
on cash flow
hedges (185) (185)
Exchange rate
adjustments - - - (466) - - (466)
Total
comprehensive
income for
the year - - 1,297 (466) - 34 865
------------- ------------- ------------- ------------ ------------ ------------- -------------
Shares issued
under
employee
benefit trust - - (163) - - (62) (225)
Share options
- value of
employee
service - - 468 - - - 468
Dividends to
equity
holders of
the company - - (2,064) - - - (2,064)
Total
Contributions
by and
distributions
to owners of
the company
recognised
directly in
equity - - (1,759) - - (62) (1,821)
------------- ------------- ------------- ------------ ------------ ------------- -------------
Balance at 30
June 2023
(unaudited) 4,204 11,959 (3,748) (373) 12,372 35,171 59,585
============= ============= ============= ============ ============ ============= =============
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
For the six months ended 30 June 2022
Attributable to owners of the Parent
Share Share Accumulated Foreign Capital Other Total Equity
capital premium losses currency redemption reserves
translation reserve
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Group
Balance at 1
January 2022 4,194 11,946 (3,346) (1,879) 12,372 33,902 57,189
------------- ------------- ------------- ------------ ------------ ------------- -------------
Profit for the
period - - 1,521 - - - 1,521
Cash flow - - - - - - -
hedges
Gain on
effective
cash flow
hedges - - - - - 267 267
Exchange rate
adjustments - - - 1,334 - - 1,334
Total
comprehensive
income for
the period - - 1,521 1,334 - 267 3,122
------------- ------------- ------------- ------------ ------------ ------------- -------------
Shares issued
under share
option
schemes 10 13 - - - - 23
Share options
- value of
employee
service - - 409 - - - 409
Dividends to
equity
holders of
the company - - (2,061) - - - (2,061)
Total
Contributions
by and
distributions
to owners of
the company
recognised
directly in
equity 10 13 (1,652) - - - (1,629)
------------- ------------- ------------- ------------ ------------ ------------- -------------
Balance at 30
June 2022
(unaudited) 4,204 11,959 (3,477) (545) 12,372 34,169 58,682
============= ============= ============= ============ ============ ============= =============
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 30 June 2023
Unaudited six months Unaudited six months Audited year ended 31 Dec
ended 30 June 2023 ended 30 June 2022 2022
Note GBP000 GBP000 GBP000
Cash flows from
operating activities
Cash generated
from/(used in)
operations 9 (25) (2,995) 5,272
Interest paid (163) (247) (498)
Income tax (paid) (562) (283) (1,597)
Net cash flows generated
from/(used in)
operating activities (750) (3,525) 3,177
------------------------ ------------------------ ----------------------------
Cash flows from
investing activities
Purchase of property,
plant and equipment,
excluding right-of-use
assets 11 (495) (379) (831)
Interest received 81 3 18
Net cash (used in) from
investing activities (414) (376) (813)
------------------------ ------------------------ ----------------------------
Cash flows from
financing activities
Net proceeds from
issuance of ordinary
shares 17 - 23 23
Purchase of shares under (186) -
employee benefit trust -
Dividends paid to
company's shareholders 10 (2,064) (2,061) (3,093)
Repayments of loan (625) - (313)
Repayment of capital
lease obligations (199) (181) (405)
Net cash generated (used
in) financing
activities (3,074) (2,219) (3,788)
------------------------ ------------------------ ----------------------------
Net (decrease) in cash
and cash equivalents (4,238) (6,120) (1,424)
Cash, cash equivalents
and bank overdrafts at
beginning of period 29,245 29,064 29,064
Exchange rate
gains/(losses) on cash
and cash equivalents (501) 667 1,605
Cash and cash
equivalents at end of
period 24,506 23,611 29,245
======================== ======================== ============================
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. General information
Aptitude Software Group plc (the 'Company') and its subsidiaries
(together, the 'Group') is a specialist provider of finance
digitization and subscription management software.
The Company is a public limited company incorporated and
domiciled in England and Wales with a primary listing on the London
Stock Exchange. The address of its registered office is 8(th)
Floor, 138 Cheapside, London EC2V 6BJ.
These condensed consolidated interim financial statements were
approved for issue on 25 July 2023.
These condensed consolidated interim financial statements do not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 31
December 2022 were approved by the Board of directors on 20 March
2023 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated interim financial statements for
the six months ended 30 June 2023 have not been audited or reviewed
by the auditors. The interims have been prepared in accordance with
the Disclosure and Transparency Rules of the Financial Services
Authority and with IAS 34, 'Interim financial reporting'. These
condensed consolidated interim financial statements should be read
in conjunction with the annual financial statements for the year
ended 31 December 2022, which have been prepared in accordance with
UK adopted international accounting standards and company law.
3. Accounting policies
The accounting policies adopted are consistent with those of the
previous financial statements, except as described below.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual profits.
New and amended standards and interpretations need to be adopted
in the first interim financial statements issued after their
effective date. There are no new IFRSs or IFRICs that are effective
for the first time for this interim period that would be expected
to have a material impact on the financial statements.
4. Estimates
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expense. Actual results
may differ from these estimates. In preparing these condensed
consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
for the year ended 31 December 2022, with the exception of changes
in estimates that are required in determining the provision for
income taxes.
Fair value estimation
Financial instruments not measured at fair value
Financial instruments not measured at fair value includes cash
and cash equivalents, trade and other receivables, trade and other
payables, and loans and borrowings. However, due to their
short-term nature and ability to be liquidated at short notice
their carrying value approximates to their fair value.
Financial instruments measured at fair value
The fair value hierarchy of the financial instruments measured
at fair value is provided below.
Level 2 inputs
Unaudited Unaudited
six months six months
ended ended
30 Jun 2023 30 Jun 2022
GBP'000 GBP'000
Financial assets
Derivative financial assets (designated hedge instruments) 1,558 150
1,558 150
============= =============
Financial liabilities
Derivative financial liabilities (designated hedge instruments) - (177)
- (177)
===================================================================== ======
The derivative financial assets and liabilities have been valued
using the market approach and are considered to be Level 2 inputs.
There were no changes to the valuation techniques used in the year.
There were no transfers between levels during the year.
5. Segmental information
Business segments
The only business segment during both periods presented was
Aptitude Software and therefore certain segmental analysis is not
required.
Geographical segments
The Group has two geographical segments for reporting purposes,
the United Kingdom and the Rest of the World.
The following table provides an analysis of the Group's sales by
origin and by destination.
Sales revenue by origin Sales revenue by destination
Unaudited six Unaudited six
months ended 30 months ended 30 Unaudited six months Unaudited six months
June 2023 June 2022 ended 30 June 2023 ended 30 June 2022
Continuing operations GBP000 GBP000 GBP000 GBP000
United Kingdom 16,224 19,504 5,990 7,753
Rest of World 21,312 16,619 31,546 28,370
37,536 36,123 37,536 36,123
==================== ==================== ===================== =====================
The Group derives revenue from the transfer of goods and
services in the following major categories and geographical
regions, these being the United Kingdom ('UK') and Rest of the
World ('RoW'):
Unaudited six months ended 30 June 2023
Recurring revenue Non-recurring revenue
UK RoW Total UK RoW Total Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
from
external
clients 4,844 22,154 26,998 1,147 9,391 10,538 37,536
======================== ========== ========= =========== =========== ========== ==========
Unaudited six months ended 30 June 2022
Recurring revenue Non-recurring revenue
UK RoW Total UK RoW Total Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
from
external
clients 5,728 18,695 24,423 2,025 9,675 11,700 36,123
======================== ========== ========= =========== =========== ========== ==========
All of the revenue displayed in the above table is recognised
over time in line with the Group's accounting policy detailed on
pages 98 to 101 of the Aptitude Software Group plc 2022 Annual
Report and has been generated from contracts with clients.
The following is an analysis of the carrying amount of
non-current assets (excluding deferred tax assets), and additions
to property, plant and equipment and intangible assets (excluding
right-of-use asset additions resulting from property lease
agreements) and intangible assets, analysed by the geographical
area in which the assets are located.
Carrying amount of non-current assets Capital expenditure
Unaudited six months Unaudited six months Unaudited six months Unaudited six months
ended 30 June 2023 ended 30 June 2022 ended 30 June 2023 ended 30 June 2022
GBP000 GBP000 GBP000 GBP000
United Kingdom 56,194 55,703 91 132
Rest of World 15,627 18,816 404 247
71,821 74,519 495 379
====================== ====================== ====================== ======================
The Company's business is to invest in its subsidiaries and,
therefore, it operates in a single segment.
6. Non-underlying items
Unaudited six months ended 30 Jun Unaudited six months ended Audited year ended 31 Dec
2023 30 Jun 2022 2022
GBP000 GBP000 GBP000
Continuing
operations
Amortisation of
acquired
intangibles 1,690 1,883 3,382
Acquisition and
associated
reorganisation
costs 798 - 440
2,488 1,883 3,822
================================== =========================== ==========================
7. Income tax expense
Income tax expense is recognised based on management's estimate
of the weighted average income tax rate expected for the full
financial year of 22% (the estimated tax rate for the six months
ended 30 June 2022 was 19%). The increase against H1 2022 levels is
due to the increase of the UK income tax rate to 25% from 1 April
2023 from 19% as part of the March 2021 Bill.
8. Earnings per share
Audited
Unaudited six months ended Unaudited six months ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
pence pence pence
Earnings per share
Basic 2.3 2.6 4.5
------------------------------- ----------------------------- ----------------------------
Diluted 2.2 2.6 4.5
------------------------------- ----------------------------- ----------------------------
Audited
Unaudited six months ended Unaudited six months ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
pence pence pence
Adjusted earnings per
share
Basic 5.7 5.2 4.5
------------------------------- --------------------------- ----------------------------
Diluted 5.5 5.2 9.9
------------------------------- --------------------------- ----------------------------
To provide an indication of the underlying operating performance
the adjusted earnings per share calculation above excludes
intangible amortisation and other non-underlying items and has a
tax charge based on the effective rate.
Audited
Unaudited six months ended Unaudited six months ended year ended
30 Jun 2023 30 Jun 2022 31 Dec 2022
pence pence pence
Basic earnings
per share 2.3 2.6 4.5
Non-underlying
items 3.4 2.6 5.2
Prior years'
tax credit - - 0.6
Recognition of
tax losses - - (0.4)
Adjusted
earnings per
share 5.7 5.2 9.9
====================================== ============================ ============================
9. Cash generated from operations
Unaudited six months Unaudited six months Audited year ended 31 Dec
ended 30 Jun 2023 ended 30 Jun 2022 2022
GBP000 GBP000 GBP000
Profit before tax for the
period 1,666 1,875 3,205
Adjusted for:
Depreciation 514 551 1,132
Amortisation 1,690 1,690 3,382
Share-based payment
expense 468 409 695
Finance income (81) (3) (18)
Finance costs 163 247 498
Changes in working
capital:
(Increase) in receivables (1,194) (5,497) (1,485)
(Decrease) in payables (3,146) (2,188) (2,137)
(Decrease) in provisions (105) (79) -
Cash (used in)/generated
from operations (25) (2,995) 5,272
========================== ========================== ===========================
10. Dividends
The interim dividend of 1.8 pence per share (2022: 1.8 pence per
share) was approved by the Board on 25 July 2023. It is payable on
25 August 2023 to shareholders on the register at 4 August 2023.
This interim dividend has not been included as a liability in this
interim financial information. It will be recognised in
shareholders' equity in the year to 31 December 2023. A final
dividend of GBP2,064,000 was paid in June 2023 and relates to the
year ending 31 December 2022 (2022: final dividend
GBP2,061,000).
11. Property, plant and equipment including right-of-use assets
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
Opening net book amount 1 January 5,103 4,261
Additions 495 379
Disposals (117) -
Exchange movements (56) 161
Depreciation (514) (551)
Closing net book amount 30 June
(unaudited) 4,911 4,250
================================= =================================
The Group has not placed any contracts for future capital
expenditure which have not been provided for in the financial
statements.
12. Trade and other receivables
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
Trade receivables - net 10,994 14,901
Other receivables 62 130
Prepayments 1,540 1186
Accrued income 716 523
Closing net book amount 30 June
(unaudited) 13,312 16,740
================================= =================================
Contract assets and contract liabilities only comprise accrued
and deferred income respectively. Within the trade receivables
balance of GBP10,994,000 (30 June 2022: GBP14,901,000), there are
balances totalling GBP2,977,000 (30 June 2022: GBP3,191,000) which,
at 30 June 2023 were overdue for payment. The decrease of
GBP3,907,000 in trade receivables from prior period levels is due
to the timing of receipt of annual licence fee and subscription
invoices issued. During July 2023, significant receipts totalling
GBP4.2 million were collected against the total receivables balance
at 30 June 2023.
13. Trade and other payables
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
Trade payables 871 541
Other tax and social security
payable 1,379 1,903
Other payables 9 -
Accruals 6,009 5,511
Deferred income 26,733 30,141
Closing net book amount 30 June
(unaudited) 35,001 38,096
================================= =================================
14. Financial liabilities - borrowings
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
Bank Loan 8,983 9,897
================================= =================================
The borrowings are repayable as
follows:
Within one year 1,250 938
In the second year 7,812 1,250
In the third to fifth years
inclusive - 7,812
--------------------------------- ---------------------------------
9,062 10,000
Unamortised prepaid facility
arrangement fees (79) (103)
As at 30 June (unaudited) 8,983 9,897
================================= =================================
On 15 October 2021, the Group and Company entered into a loan
agreement with Bank of Ireland consisting of a GBP10 million term
loan in addition to a revolving credit facility of GBP10 million.
The loan is secured on all the assets of the Group. Operating
covenants are limited to the Group's net debt leverage and interest
cover. The term loan is repayable over three years with an initial
12-month repayment holiday followed by annual capital repayments of
GBP1,250,000. The Group can request a further one year extension to
the loan. At the end of the term, a bullet payment for the
remaining balance of the loan is due. The loan is denominated in
Pound Sterling and carries interest at SONIA plus 1.75%. The Group
entered into an interest swap on 2 November 2021, effectively
fixing the interest rate at 2.95% over the term of the loan.
15. Capital lease obligations
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
Amounts payable under capital lease
arrangements:
Within one year 538 440
Within two to five years 2,091 1,574
After five years 1,206 1,529
--------------------------------- ---------------------------------
Total 3,835 3,543
Less: future finance charges (490) (535)
--------------------------------- ---------------------------------
Present value of lease obligations 3,345 3,008
Less: Amount due for settlement
within 12 months (shown under
current liabilities (424) (329)
As at 30 June (unaudited) 2,921 2,679
================================= =================================
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
The present value of financial lease
liabilities is split as follows:
Within one year 424 329
Within two to five years 1,781 1263
After five years 1,140 1,416
3,345 3,008
================================= =================================
16. Provisions
Unaudited six months ended 30 Jun 2023 Unaudited six months
ended 30 Jun 2022
GBP000 GBP000
At 1 January 316 379
Debited/(credited) to income statement (104) (80)
Exchange movements (1) 1
As at 30 June (unaudited) 211 300
======================================= =====================
Unaudited six months ended 30 Jun Unaudited six months ended 30 Jun
2023 2022
GBP000 GBP000
Current - -
Non-current 211 300
As at 30 June (unaudited) 211 300
==================================== =====================================
GBP 167,000 of the total provision at 30 June 2023 of GBP211
,000 relates to the cost of dilapidations in respect of its
occupied leasehold premises (30 June 2022: GBP252,000).
17. Share capital
Unaudited six months ended 30 June 2023 Unaudited six months ended 30 June 2022
Ordinary share capital
at 7 1/3 pence each Number of shares Ordinary shares Number of shares Ordinary shares
Issued and fully paid: 000 GBP000 000 GBP000
Opening balance as at 1
January 57,337 4,204 57,199 4,194
Shares issued under
share option schemes - - 138 10
As at 30 June
(unaudited) 57,337 4,204 57,337 4,204
===================== =================== ===================== ===================
During the year, the Company established an Employee Benefit
Trust ("EBT") for the benefit of the Group's employees. At 30 June
2023, the Company holds 17,710 shares in the Employee Benefit Trust
("EBT"), recognised as a deduction in equity.
Share premium
Unaudited six months ended 30 Unaudited six months ended 30
Jun 2023 Jun 2022
GBP000 GBP000
Opening balance as at 1 January 11,959 11,946
Movement in relation to share options
exercised - 13
As at 30 June (unaudited) 11,959 11,959
================================= =================================
18. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation.
There were no related party transactions during the six-month
period ended 30 June 2023 (30 June 2022: GBP22,000), as defined by
International Accounting Standard No 24 'Related Party
Disclosures', except for key management compensation. The related
party transactions for the year ended 31 December 2022 as defined
by International Accounting Standard No 24 'Related Party
Disclosures' are disclosed in note 32 of the Aptitude Software
Group plc Annual Report for the year ended 31 December 2022.
19. Statement of directors' responsibilities
The Directors confirm that these condensed interim financial
statements have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and that the interim management report
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
- material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
The Directors of Aptitude Software Group plc are listed in the
Aptitude Software Group plc Annual Report for 31 December 2022. A
list of current directors is maintained on the Aptitude Software
Group plc website: www.aptitudesoftware.com/investor-relations/
Copies of this statement are available on the investor relations
page of our website ( www.aptitudesoftware.com/investor-relations/
).
By order of the Board
Michael Johns
25 July 2023
Chief Financial Officer
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