Overview of Two Accounting Software Companies: Aptitude Software Group Plc & Sage Group Plc

Overview of Two Accounting Software Companies: Aptitude Software Group Plc & Sage Group Plc

Aptitude Software Group Plc

Aptitude Software Group Plc (LON: APTD) provides accounting engines, financial unification and many other solutions that inspire future generation of finance architecture. The company helps to bring together innovative software products, laser-sharp financial domain expertise which concentrates on the CFO’s needs to solve problems that the competition can’t address. The company has many partners such as Deloitte, KPMG, Accenture and Cognizant etc. where it has deep relationships. The company’s parent company, Microgen Plc, was a well-known company and it was considered 4th top UK tech company that was listed.

APTD - News Updates

As on 03rd January 2020, the company announced that it issued share capital which contains 56.2 million ordinary shares of 7.33 pence each with equal voting rights. Zero shares were held in treasury.

As on 29th October 2019, the company announced that Jeremy Suddards, Philip Wood, Chris Wade, Clare Groom and Alex Curran were granted options over ordinary shares held in the company. The number of shares over which the award was granted were 85,179, 62,606, 23,918, 14,211 and 19,909 respectively, as on 28th October 2019.

As on 4th October 2019, the company conveyed the information regarding the appointment of Grant Thornton UK LLP as its new auditor after replacing PricewaterhouseCoopers LLP. Grant Thornton will conduct the audit for the financial year ended 31st December 2019.

Financial Highlights – H1 FY2019

The new business performed well in the first half of the year with revenue increasing to £28.8 million in H1 HY2019 as compared to £25.4 million in H1 FY2018. The operating cost also increased with £24.2 million in H1 FY2019 as compared to £22.14 million in H1 FY2018.

The profit before tax increased to £4.4 million in H1 FY2019 versus £3.1 million in H1 FY2018. The profit from continuing operations increased to £3.35 million in H1 FY2019 versus £2.46 million in H1 FY2018. In contrast, the profit from discontinuing operations increased dramatically to £22.4 million in H1 FY2019 versus £2.3 million in H1 FY2018.

The adjusted basic earnings per share from continuing operations increased to 6.0 pence in H1 FY2019 versus 4.7 pence in H1 FY2018. The basic EPS from continuing operations rose to 5.5 pence in H1 FY2019 versus 4.0 pence in H1 FY2018.

The company’s interim dividend of 1.8 pence per share in H1 FY2019 was lower compared to 2.2 pence per share in H1 FY2018.

The company reported a strong balance sheet with cash of £69.9 million in H1 FY2019 versus cash of £11.6 million in H1 FY2018, due to the disposal of Microgen Financial Systems.

APTD – Share Price Performance

On 03rd January 2020 as at 09:57 AM GMT, the APTD share price was trading at GBX 622.00 per share on the London Stock Exchange, a decrease of 5.18 per cent or GBX 34.00 per share, versus previous day’s closing price of GBX 656.00 per share.

The share price of GBX 670.0 was the 52-week peak price as on 19th December 2019, whereas the share price of GBX 335.16 was the 52-week low share price as on 04th January 2019. The current share price was lower by 7.16 per cent from the 52-week high price, whereas it was higher by 85.58 per cent from the 52-week low price.

The company’s market capitalisation was reported at GBP 349.44 million at the time of writing. The free float and share outstanding of the APTD were reported at 47.99 million and 56.18 million, respectively.

While writing, the beta of the APTD share was stated at 0.95, which shows lower volatility as compared to the benchmark market index’s movement.

APTD – Outlook

As per the company information, the company performed very well in all-regions. The company is gaining due to increasing product portfolio, international partnership contacts, as well as expanding geographical presence. The company further said that the Microgen Financial Systems disposal is a breakthrough event in the expansion of the company.

 

Sage Group Plc

The Sage Group Plc (LON: SGE) provides unified payroll, accounting and payments solutions (UK-based company). The company has answers for businesses of any size, difficulty and industry. The company offers much of the software such as Accounting and finance software, Payroll software, Payment processing, ERP, HR software and services, Stationery, Training, Sage Cover Support and Sage Marketplace. The popular company products include Sage Business Cloud Accounting, Sage 50cloud Accounts, Sage Business Cloud Payroll, Sage 50cloud Payroll, Sage 50 Pensions Module, Sage Payslips, Sage Invoices, Sage 50 Packages, Sage 50 Add-Ons and Developer Certification.

SGE - News Updates

On 31st December 2019, the company announced that It issued share capital which comprised of 29.49 million ordinary shares held in treasury as well as 190,962 shares held in the company’s employee benefit trust and 1,091.1 million ordinary shares with voting rights.

On 18th November, the company declared the information regarding its agreement for the sale of its Sage Pay business to Elavon, which is an international payments company and a wholly-owned subsidiary of U.S. Bancorp.

SGE – Financial Highlights

On 20th November 2019, the company announced its audited results for the year ended 30th September 2019.

The statutory revenue increased to £1,936 million in FY2019 as compared to £1,846 million in FY2018. The statutory cost of sale also increased to £138 million in FY2019 as compared to £130 million in FY2018.

The statutory selling, general and expenses increased to £1,416 million in FY2019 as compared to £1,289 million in FY2018 and due to that the statutory operating profit decreased to £382 million in FY2019 as compared to £427 million in FY 2018.

The statutory profit before income tax decreased to £361 million in FY2019 as compared to £398million in FY2018. The statutory profit for the year fell to £266 million in FY2019 as compared to £295 million in FY2018.

The statutory basic earnings per share attributable to the owners of the parent company decreased to 24.49 pence in FY2019 as compared to 27.21 pence in FY2018. The statutory diluted earnings per share attributable to the owners of the parent dropped to 24.29 pence in FY2019 as compared to 27.07 pence in FY2018.

(Source: LSE)

 

SGE – Share Price Performance

On 03rd January 2020 as at 09:57 AM GMT, the SGE share price was trading at GBX 737.60 per share on the London Stock Exchange, a decrease of 1.34 per cent or GBX 10.00 per share, versus previous day’s closing price of GBX 747.60 per share.

The share price of GBX 826.00 was the 52-week peak price as on 03rd July 2019, whereas the share price of GBX 572.20 was the 52-week low share price as on 03rd January 2019. The current share price was lower by 10.70 per cent from the 52-week high price, whereas it was higher by 28.9 per cent from the 52-week low price.

The company’s market capitalisation was reported at GBP 8,172.40 million at the time of writing. The free float and share outstanding of the SGE were reported at 1.09 billion and 1.09 billion, respectively.

While writing, the beta of the SGE share was stated at 0.86, which shows lower volatility as compared to the benchmark market index’s movement.

SGE – Outlook

As per the company information, the company focuses on customers who are interested to migrate to Sage Business Cloud. Another revenue (SSRS and processing) is anticipated to drop by high single digits in line with this orientation, and organic operating margin is anticipated to be about 23%, as Sage continues to invest in the transition to SaaS.

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