Aptitude Software Group

Website: Aptitude Software Group
Index: FTSE Small Cap
EPIC: APTD
Supersector: Technology
Sector: Software and Computer Services
Subsector: Computer Services
Market Cap: £125.4M
Payout Frequency: Semi-Annual

Aptitude Software Group Dividend Analysis and Summary

Dividend Details

Final dividend per share: 3.60p (unchanged year-on-year)
Full-year dividend per share (FY25): 5.40p (unchanged)
Ex-dividend date: 21/05/2026 (derived as one business day before the record date)
Record date: 22/05/2026
Payment date: 12/06/2026
Approval: Subject to AGM on 27/05/2026
Cash cost: c.£2.0m for the proposed final; total FY25 dividends paid were £3.0m

Coverage and Cash Support

Earnings cover (adjusted): 13.4p adjusted EPS vs 5.4p DPS ˜ 2.5x
Earnings cover (statutory): 7.3p basic EPS vs 5.4p DPS ˜ 1.35x
Cash cover: Operating cash flow £10.1m vs dividends paid £3.0m ˜ 3.4x
Balance sheet: Year-end cash £29.6m, net funds £21.2m (net cash position)

Context from Results

ARR at year-end: £49.8m (down 1% YoY), but AI Autonomous Finance ARR +7%
Recurring revenue mix increased to 83% of total revenue
Adjusted operating profit £10.0m (+1% YoY); adjusted margin 15% (+1ppt)
Statutory profit attributable: £4.0m (down from £5.0m)
Future contracted revenues rose to £83.4m (from £78.0m)

Assessment: Sustainability and Growth Trajectory

Sustainability: The dividend appears well-covered by cash and adequately covered on an adjusted earnings basis. The strong net cash position and higher recurring mix support stability. However, statutory EPS cover is thinner (~1.35x), warranting a measured stance.
Growth: The dividend is held flat at 5.4p. With ARR modestly lower and statutory earnings down, scope for near-term dividend growth looks limited until ARR re-accelerates and statutory profitability improves. Margin progression and Fynapse momentum are positive medium-term supports.
Financial and capital allocation support: FY25 operating cash flow comfortably funds the dividend. The buyback suspension during the strategic review preserves flexibility for investment in Fynapse and potential transactions, indirectly supporting dividend maintenance but reducing immediate capital returns growth.

Structural/Policy Factors to Note

Strategic review launched (including the possibility of a formal sale process, capital raising, partnerships, portfolio optimisation). This could change dividend policy depending on outcomes.
Share buyback suspended (after £5.1m repurchased in 2025; 1.23m shares cancelled). While supportive of per-share metrics, the pause signals a shift to capital preservation during the review.
Refinancing completed: new £6.0m term loan and £5.0m RCF with HSBC; the Group remains in net cash, so leverage is not a near-term dividend constraint.
Operational focus shifting to Fynapse; legacy and non-core products moved to maintenance. This should reduce churn over time but may weigh on near-term ARR until new wins scale.

Risks and Flags for Dividend Stability

Outcome uncertainty from the strategic review (including potential M&A or capital raises) could lead to policy changes or temporary pauses.
Statutory earnings down 17% YoY; payout on statutory earnings is relatively high (~75%), leaving less buffer if profitability weakens.
ARR down 1% overall (legacy churn) and total revenue down 7%; improvement hinges on sustained Fynapse wins.
Execution and investment needs to scale Fynapse may compete with distributions if growth investments are prioritised.
FX exposure (majority USD revenues) and elongated sales cycles add variability to reported results.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
22/05/2025	13/06/2025	Final	3.60p	GBX
14/08/2025	08/09/2025	Interim	1.80p	GBX

Total (Annual Dividends Per Share): 5.40p

Dividend Yield = Annual Dividends Per Share (5.40p) ÷ Share Price (224p) = 2.41%

Ex Dividend Date	Payment Date	Type	Amount	Currency
21/05/2026	12/06/2026	Final	3.6000p	GBX
14/08/2025	08/09/2025	Interim	1.80p	GBX
22/05/2025	13/06/2025	Final	3.60p	GBX
01/08/2024	23/08/2024	Interim	1.80p	GBX
23/05/2024	14/06/2024	Final	3.60p	GBX
03/08/2023	25/08/2023	Interim	1.80p	GBX
25/05/2023	16/06/2023	Final	3.60p	GBX
04/08/2022	26/08/2022	Interim	1.80p	GBX
12/05/2022	03/06/2022	Final	3.60p	GBX
05/08/2021	27/08/2021	Interim	1.80p	GBX
06/05/2021	28/05/2021	Final	3.60p	GBX
06/08/2020	28/08/2020	Interim	1.80p	GBX
07/05/2020	29/05/2020	Final	3.60p	GBX
05/09/2019	04/10/2019	Interim	1.80p	GBX
16/05/2019	30/05/2019	Final	4.40p	GBX
02/08/2018	24/08/2018	Interim	2.20p	GBX
03/05/2018	25/05/2018	Final	4.25p	GBX
03/08/2017	25/08/2017	Interim	2.00p	GBX
04/05/2017	26/05/2017	Final	3.50p	GBX
04/08/2016	26/08/2016	Interim	1.50p	GBX

Year	Interim	Final	Currency	Total	Change
2024	1.800	3.600	GBX	5.400	0.000
2023	1.800	3.600	GBX	5.400	0.000
2022	1.800	3.600	GBX	5.400	0.000
2021	1.800	3.600	GBX	5.400	0.000
2020	1.800	3.600	GBX	5.400	-12.900
2019	1.800	4.400	GBX	6.200	-3.870
2018	2.200	4.250	GBX	6.450	17.270
2017	2.000	3.500	GBX	5.500	266.660
2016	1.500		GBX	1.500

Number of Shares:

Payment	Paid	Amount
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