SimplyBiz reports ‘impressive’ growth in first full-year results since flotation

SimplyBiz, the Huddersfield-based business support company, has reported its first set of full-year financial results as a public company, following its AIM flotation in April.

For the twelve months ending 31 December 2018, the group reported a 15% rise in revenue from £44.1m to £50.7m.

SimplyBiz said this growth reflected a £3.7m contribution from the acquisition of Landmark Surveyors and £2.9m of organic growth. Group membership numbers increased by 8.5% to 3,726.

The boost in revenue also resulted in a 19.7% increase in adjusted EBITDA to £11.4m.

SimplyBiz completed an IPO on London’s Alternative Investment Market (AIM), raising £30m.

During this period pre-tax profits fell from £5.5m to £4.2m, and operating profits also decreased from £8.8m to £6.8m.

The group said that these losses were impacted by operating costs of £3.6m of professional fees incurred on admission to AIM, as well as £100,000 of professional fees on the acquisition of Landmark Surveyors, and £100,000 of restructuring costs.

Ken Davy, chairman of The SimplyBiz Group, said: “I’m delighted to report a strong performance for 2018, in a transformational year which saw the Group’s successful admission to AIM and continued momentum in its organic and inorganic growth strategy.

“With our impressive revenue growth, well-supported by a number of structural drivers, the strength of the Group’s regulation and capital light operating model is clearly demonstrated by a significant increase in EBITDA margin.

“The continued growth in membership numbers is testament to the value of our proposition as individuals and businesses continue to adapt to an increasingly complex and highly regulated intermediary market.

“Having successfully deleveraged the business, our balance sheet strength ensures we have a strong platform from which we can take advantage of the significant market opportunities we see.”