Aptitude Software Group PLC Trading Update, Board Changes & Notice of Results (4181F)
15 July 2019 - 4:00PM
UK Regulatory
TIDMAPTD
RNS Number : 4181F
Aptitude Software Group PLC
15 July 2019
15 July 2019
Aptitude Software Group plc ("Aptitude Software" or the
"Group")
Trading Update, Board Changes and Notice of Results
Aptitude Software Group plc, a specialist provider of powerful
financial management software to large global businesses, has made
good progress in the first half of 2019 and on Wednesday 24 July
2019 expects to report interim results in line with the Board's
expectations.
Trading Update
Following the completion of the disposal of Microgen Financial
Systems on 28 June 2019 for aggregate cash consideration of GBP51.4
million, the Group is now totally focused on Aptitude Software's
financial management software.
Highlights in the first half include continued new business
success with the Aptitude Insurance Calculation Engine ("AICE") and
the Aptitude Accounting Hub ("AAH"). AICE is Aptitude Software's
latest regulatory-focused application which allows an insurer to
perform the calculations and detailed accounting movements required
to be compliant with the new insurance accounting standard (IFRS
17) which is effective for periods commencing on 1 January 2022. In
addition to the growth provided by the growing suite of
regulatory-focused applications, there is an increasing opportunity
for AAH to be sold on a standalone basis as finance teams in large
global businesses take a leading role in driving their commercial
performance and providing the foundation for digital finance
transformation.
The above new business progress has led to Aptitude Software's
recurring revenue base growing to GBP27.5 million at 30 June 2019
(31 December 2018: GBP24.0 million, 30 June 2018: GBP21.4 million),
representing growth since 30 June 2018 of 29%. The growth of
Aptitude Software's recurring revenue base is a strategic objective
of the Group and is expected to lead to a higher proportion of
higher value software revenues in the future as the business
continues to scale.
Board and Management Changes
The Board announces that Tom Crawford, Chief Executive Officer
of Aptitude Software, will not be seeking re-election at the 2020
Annual General Meeting ("AGM"). Tom has advised the Board that he
needs to spend more time with his family whilst his wife continues
to recover from a serious health issue. Tom will continue to lead
the business for a number of months and, following the 2020 AGM, is
expected to continue to contribute to Aptitude Software on a
part-time basis. The Board is very grateful to Tom for his pivotal
role in the development of the Group, highlighted by the growth in
the Aptitude Software business under his leadership from revenue of
GBP14.7 million in 2013 to GBP52.3 million in 2018.
As part of the Group's succession planning, Jeremy Suddards,
currently Aptitude Software's Chief Client Officer for Europe and
Asia, was brought into the business in January 2018 having
previously held senior roles within Hewlett Packard. Jeremy has
made a significant contribution in his time with the Group in all
areas of the business including the leadership of the teams
responsible for driving the growth with AICE and opening up the
Asian market for Aptitude Software. The Board is therefore pleased
to announce that Jeremy Suddards will be appointed to the Board on
1 September 2019. Jeremy will transition to the role of Chief
Executive Officer in the coming months once the new management
structures have been finalised. The experiences acquired in his
previous roles and from his time with Aptitude Software support the
Board's view that Jeremy has the required talent and skills to lead
the business through its next phase of growth. Jeremy will be
available to meet key shareholders at the time of Aptitude
Software's interim results as part of the Group's results
roadshow.
Following the disposal of Microgen Financial Systems, Philip
Wood (currently Chief Financial Officer) will be totally focused on
the continuing business. As a result of this change Philip is
appointed to the position of Deputy Chief Executive Officer and
Chief Financial Officer with immediate effect.
Alex Curran is appointed to lead the North American business as
Executive Vice President with responsibility for approximately 50%
of Aptitude Software's revenues, including software and
professional services. Alex held a number of roles within the Group
before she transferred to Aptitude Software's North American
operation in 2010. Alex has been instrumental in the growth of
Aptitude Software's North American client base with the region's
recurring revenue base increasing from GBP1.6 million in December
2013 to nearly GBP16 million at 30 June 2019.
As a result of the growth in the North American business, the
currently global professional services organisation will be
regionalised into International (Asia and Europe) and North
America, a structure which is expected to strengthen the focus on
the long-term development of clients. This is a natural evolution
for Aptitude Software, considered for some time, with the change in
Aptitude Software's leadership a natural juncture for the new
regional structure to be put into effect.
The above changes build on a series of earlier appointments,
including the strategic appointment of Chris Wade as the Chief
Product Officer in 2018, and establish a strong management team
equipped to continue the excellent growth achieved by the business
in recent years.
Notice of Results
Aptitude Software anticipates issuing its Interim Results for
the six months ended 30 June 2019 on Wednesday 24 July 2019 at
07.00 hrs. A copy of the Interim Results will be placed on the
Group's website: www.aptitudesoftwaregroup.com
Contacts
Ivan Martin, Chairman 020-3880-7100
Philip Wood, Deputy Chief Executive Officer and Chief Financial
Officer
Caroline Forde / Hilary Buchanan, Alma PR 020-3405-0205
aptitude@almapr.co.uk
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END
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