Acquisition helps SimplyBiz deliver 20% revenue rise
SimplyBiz, the Huddersfield-based business support company, has reported a return to profits during the start of its second year on the London Stock Exchange.
The firm, which floated on AIM in April 2018, reported a pre-tax profit of £2.6m for the six month period ended June 30 2019, up from a pre-tax loss of £1.1m in its inaugural half-year results last year.
Meanwhile, revenue increased 20% to £29m from £24m, which the firm attributed to its acquisition of fintech firm Defaqto in a £76m deal.
It also announced an interim dividend of 1.41p per share.
During the period, the firm and saw its Centra financial planning software surpass 3,000 users, up from 2,300 at 31 December 2018.
Mortgage completions increased by 19% to £7.4bn in H1 2019 and the firm reported “important contract wins” in both divisions including Nucleus and Vanguard.
The business is owned by well-known businessman Ken Davy.
Matt Timmins, Joint CEO of The SimplyBiz Group, said: “The Group has delivered a positive first half performance, and we are delighted to have completed the acquisition of Defaqto in March 2019. The integration of the business is progressing well and in line with management expectations.
“As well as delivering the acquisition of Defaqto, which has made a strong contribution to revenue and profit, we have continued to grow the organic revenues and adjusted EBITDA of the Group, with increasing average revenues per member, an expanded membership base, and an enlarged service offering more than offsetting the impact of a slowdown in the housing market.
“I would like to thank everyone in the enlarged SimplyBiz team for their dedication in delivering a successful first half of 2019.”
SimplyBiz serves almost 6,000 intermediary firms and is an independent provider of compliance, distribution and technology services to financial intermediaries and financial institutions.
