LONDON (ShareCast) - (Sharecast News) - Aptitude Software reported a resilient trading performance for the six months ended 30 June on Thursday, with improved profitability and steady growth in recurring revenue, supported by momentum in its AI-led finance transformation platform, Fynapse.
Annual recurring revenue rose 3% year-on-year to £49.8m, despite expected churn in legacy products.

The London-listed firm said the growth was underpinned by strong demand for autonomous finance solutions, including four new Fynapse contracts during the period with a combined total value of £7.4m.

Notably, one client - an unnamed global mobile parking platform - went live within six weeks of implementation, underscoring the speed and efficiency of the offering.

"We've made solid progress in the first half as our software-as-a-service (SaaS) and partner-first strategy continues to take hold, improving the quality of our revenues and margins," said CEO Alex Curran.

"While the timing of closing of some deals has moved due to external factors, our growing pipeline, increasing partner engagement and clear strategic focus positions us well going forward."

The group said it expected operating profit for the first half to show double-digit growth compared to the prior year, driven by a higher-quality revenue mix and cost efficiencies from its ongoing reorganisation around a SaaS model.

Those structural changes had improved scalability and margins across key business functions, the board said, including product development, services, and go-to-market.

Although macroeconomic uncertainty had delayed some large new business opportunities, Aptitude said its qualified pipeline was continuing to expand.

Around 70% of opportunities for 2025 and 2026 were now partner-connected, supporting the group's goal of generating 80% of ARR from partners by 2027.

Full-year revenue was now expected to be broadly in line with previous guidance, reflecting deferred deal closures and foreign exchange headwinds from the weakening of sterling against the dollar.

However, Aptitude reaffirmed its full-year profit expectations, supported by margin expansion and ongoing cost discipline.

The company ended the period with £23.7m in cash and net cash of £17.1m, after returning £6.3m to shareholders through its share buyback programme.

Of that, £2.3m was returned during the first half.

At 1129 BST, shares in Aptitude Software Group were down 2.69% at 289p.

Reporting by Josh White for Sharecast.com.

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