**Summary**
Aptitude Software Group PLC, a finance transformation software provider, reported its audited results for the year ended 31 December 2025. Despite geopolitical and macroeconomic challenges, the company maintained strong profitability, improved pipeline progression, and positioned itself for future growth. Key financial highlights include
**Annual Recurring Revenue (ARR)** Slightly decreased by 1% to £49.8m due to expected churn in legacy products, with AI Autonomous Finance ARR growing by 7% to £17.9m.
**Total Revenue** Declined by 7% to £65.0m, primarily due to lower non-recurring revenue.
**Adjusted Operating Profit** Remained stable at £10.0m, with an improved adjusted operating margin of 15%.
**Cash Position** Strong with £29.6m in cash and £21.2m in net funds, enabling a £5.1m share buyback.
**Dividend** Maintained at 5.4p per share.
Operationally, the company made significant strides with its Fynapse product, achieving approximately 70% ARR growth, a 65% increase in pipeline value, and strengthened partner-led execution. The company also initiated a strategic review to assess options for accelerating its strategy and maximizing long-term value, including potential corporate transactions. The review led to the suspension of the share buyback program to maintain capital allocation flexibility.
**Key Points**
1. **Financial Performance**
ARR slightly down due to legacy product churn, but AI Autonomous Finance ARR grew by 7%.
Total revenue declined by 7%, primarily due to lower non-recurring revenue.
Adjusted operating profit remained stable at £10.0m, with an improved margin of 15%.
2. **Operational Highlights**
Fynapse ARR grew by 70%, with a 65% increase in pipeline value.
Partner-led execution strengthened, with 83% of the pipeline partner-influenced.
Implementation timelines significantly reduced, with deployments now completed in weeks.
3. **Strategic Review**
Initiated to assess options for accelerating growth and maximizing long-term value.
Options include capital raising, strategic partnerships, and potential corporate transactions.
Share buyback program suspended to maintain capital allocation flexibility.
4. **Future Focus**
Scaling Fynapse within the emerging Finance ERP market.
Deepening partner-led execution.
Maintaining strong profitability and cash generation.
Selective investment to accelerate growth.
Aptitude Software Group remains focused on leveraging its strong financial position and strategic initiatives to capitalize on the evolving finance software market, particularly in the AI-driven Finance ERP space.
| Financial Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Annual Recurring Revenue (ARR) | £49.8m | £50.3m | (1%) |
| AI Autonomous Finance ARR | £17.9m | £16.8m | 7% |
| Other Software ARR | £27.5m | £28.5m | (4%) |
| Assure ARR | £4.4m | £5.0m | (12%) |
| Total Revenue | £65.0m | £70.0m | (7%) |
| Recurring Revenue | £54.0m | £54.4m | (1%) |
| Non-Recurring Revenue | £11.0m | £15.6m | (29%) |
| Recurring Revenue Proportion | 83% | 78% | 5% |
| Adjusted Operating Profit | £10.0m | £9.9m | 1% |
| Statutory Operating Profit | £4.8m | £5.7m | (15%) |
| Adjusted Operating Margin | 15% | 14% | 1% |
| Basic Earnings per Share | 7.3p | 8.8p | (17%) |
| Cash and Cash Equivalents | £29.6m | £30.4m | (3%) |
| Net Funds | £21.2m | £20.3m | 4% |
| Share Buyback Completed | £5.1m | £4.0m | 28% |
| Final Ordinary Dividend per Share | 3.6p | 3.6p | 0% |
| Full Year Ordinary Dividend per Share | 5.4p | 5.4p | 0% |