Aptitude Software FY operating profits slump

Software firm Aptitude said on Tuesday that statutory operating profits had slumped in 2021 as total revenues remained broadly flat year-on-year.

Aptitude stated annual recurring revenues were up 33% year-on-year at £41.8m, while total revenues were up just 3% at £59.3m, with software revenues 21% firmer £36.9m and services revenues 16% weaker at £22.4m.

On an adjusted basis, operating profits were up 9% at £9.9m but on a statutory basis, operating profits were 20% lower year-on-year at £6.5m.

Operating cash flow as a percentage slipped from 178% to 151%, cash and equivalents contracted 35% to £29.1m and net funds tumbled 62% to £16.1m.

Basic earnings per share were also 28% lower when compared to 2020 at 9.0p.

Despite the less than ideal showing, Aptitude Software stated that it was "well positioned" to benefit from its two "recognised strategic growth drivers" of finance digitisation and subscription management.

Chief executive Jeremy Suddards said: "The group made good progress in 2021 with new business success across all key regions and double-digit organic annual recurring revenue growth.

"We have accelerated our product investment during the year, resulting in the launch today of Fynapse, a next-generation digital finance product, delivering significantly higher performance at a lower overall total cost of ownership, underpinning our leadership in the finance automation market. Meanwhile, the acquisition of MPP Global has also accelerated the creation of a differentiated end-to-end subscription management solution to meet the fast-growing needs of the subscription economy. As a result of these initiatives, we now have two complementary platforms for sustained future growth."

As of 0900 GMT, Aptitude shares had slumped 19.95% to 320.01p.