Aptitude Software (AIM:APTD ) said trading is in line with the Board's current expectations for the first six months of 2020 as set out in its announcement of 21 April 2020.
The financial management software specialist highlighted to investors that it has ‘excellent liquidity and a strong business model’ alongside growing levels of recurring revenue.
In the company’s trading update, annual recurring revenue was shown to have grown by 1% year on year to £30.9 million on a constant currency basis (30 June 2019: £27.9 million).
The group said its balance sheet remains strong with no bank loans and cash at 30 June 2020 of £30.9 million (30 June 2019: £23.5 million net of the return of £46.4 million cash to shareholders in September 2019), remaining in line with management's expectations.
Shares in Aptitude Software opened up 8.8% to 367.5p following the update.
Aptitude has attributed good trading to both new customer wins and contract expansions, specifically within the Banking and Technology, Media and Telecom ('TMT') sectors.
It also noted the entry into a strategic contract to licence the Aptitude Accounting Hub to the retail arm of an existing large European banking client as holding particular significance.
It said these successes are demonstrative of the strength of its product portfolio and sector diversity, ‘which has helped to mitigate the impact of COVID-19 on the insurance sector.’
The group added that it was confident in its long-term strategy after describing its technology as ‘a core component of a five-year finance transformation programme automating the banks finance processes.’
Meanwhile, due to COVID-19, the company said its stance on cost control has tightened with discretionary expenditure closely reviewed and a number of savings already actioned.
The group’s interim results for the six months ended 30 June 2020 are anticipated for Wednesday 29 July 2020.
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