Shares in Aptitude Software Group experienced a decline on Thursday following the announcement that annual recurring revenue growth had slowed down. Additionally, CEO Jeremy Suddards will be stepping down from his position with immediate effect.
At 0756 GMT, shares were down 62 pence, or 18%, at 278 pence.
Aptitude Software Group, a U.K. software company, has appointed Alex Curran, the current regional CEO of its North American business, as the acting CEO, effective immediately.
The company attributed the decline in annual recurring revenue growth during the first half of the year to elevated levels of customer cancellations and non-renewals. This trend was observed in 2022 as clients monitored their spending due to economic uncertainty and high inflation.
By June 30, annual recurring revenue had increased by 3% to 49.8 million pounds ($64.7 million) compared to GBP50.5 million at Dec. 31.
Despite the macroeconomic challenges faced by the sector and the economy in general, the company remains optimistic. It expects modest revenue and profit growth in the first half of 2023 and is confident in meeting profit expectations for fiscal 2023.