TIDMSBIZ
RNS Number : 8161T
SimplyBiz Group PLC (The)
23 July 2020
23 July 2020
The information contained within this announcement is deemed by
the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
The SimplyBiz Group plc ( "SimplyBiz" or the "Group")
Pre-close trading statement for six months ended 30 June
2020
and notice of interim results
SimplyBiz (AIM: SBIZ), a leading independent provider of
compliance, technology and business services to financial advisers
and financial institutions in the UK, today issues a pre-close
trading update for the six months ended 30 June 2020.
Highlights
-- SimplyBiz delivered strong H1 2020 revenues of GBP28.9m (H1 2019: 29.1m).
-- A full revenue contribution from Defaqto in this period has
helped to offset a significant reduction in valuation revenue due
to the lockdown restrictions.
-- A strong adjusted EBITDA margin*(1) of 25.5% (H1 2019: 27.2%)
is expected through sustainable cost management.
-- Cash flow conversion*(2) is expected to exceed 65% (H1 2019: 40%).
-- The Group had a net debt balance at 30 June 2020 of GBP 25.8m
, which is a further reduction from 31 December 2019. The Group is
trading comfortably within its banking covenants.
-- The Board remains confident of the Group's strong trading and
cash generation and expects that 2020 full year adjusted earnings
per share*(3) shall be no less than 11.0p (2019 FY: 13.0p).
Operational and Covid-19 Update
Actions taken to ensure that the business is well positioned to
fully support the requirements of its customers and colleagues have
been successful. The business is delivering all services to its
intermediary customers without disruption, and the majority of our
colleagues have been successfully and productively working remotely
during the period. The Group's intermediary customer base remains
strong and continues to grow with the recruitment of new member
firms.
The Group's mortgage valuation business has been significantly
impacted by the lockdown restrictions in the second quarter, with
volumes moderately increasing in June. Management believes that
there will be a suppressed housing market for rest of the year.
Management has quickly and successfully implemented an effective
programme of initiatives which will deliver sustained efficiency
and ongoing benefit for the business.
Dividend
As stated in the Operational & COVID-19 Update announcement
on 27 April 2020, the Board does not intend to recommend an interim
dividend in respect of the current financial year. A further update
will be provided in September 2020.
Notice of Interim Results
The Group intends to publish its interim results statement on 15
September 2020.
Matt Timmins, Joint CEO of The SimplyBiz Group plc, said:
"We are pleased to report strong trading for H1 2020,
demonstrating the robust nature of our revenues and an improvement
in the quality of our underlying earnings, offsetting a significant
reduction of valuation income in the period. We reacted quickly to
the Covid-19 lockdown and positioned the Group to fully support the
ongoing requirements of our customers and colleagues."
Furthermore, this lockdown period has allowed us to accelerate
our clear digital strategy which will further improve our quality
of earnings, margin and cash generation going forward."
"On behalf of the Board, I would like to thank all of our
colleagues, customers, and wider stakeholders for their support
during these unprecedented times. We are confident that the Group
is in a strong position and is ready to continue its development
with pace."
* (1) Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, share option charges and operating
exceptional costs.
* (2) Cash flow conversion is calculated as adjusted EBITDA,
less working capital movements, lease payments, CAPEX, development
expenditure, corporation tax payable and interest, as a percentage
of Adjusted EBITDA.
* (3) Adjusted Earnings Per Share is calculated as adjusted
profit after tax, which excludes operating exceptional costs and
amortisation of intangible assets arising on acquisition, divided
by the average number of ordinary shares in issue for the
period.
Enquiries:
SimplyBiz via Instinctif Partners
Matt Timmins (Joint Chief Executive Officer)
Neil Stevens (Joint Chief Executive Officer)
Gareth Hague (Group Finance Director)
Zeus Capital (Nominated Adviser and Joint Broker) +44 (0) 20 3829 5000
Martin Green
Andrew Jones
Dan Bate
Liberum (Joint Broker) +44 (0) 20 3100 2222
Cameron Duncan
James Greenwood
Ed Phillips
Instinctif Partners simplybiz@instinctif.com
+44 (0) 77 3934 2009
Catherine Wickman
Lewis Hill
Notes to Editors
The SimplyBiz Group provides essential support services,
software and data that enable professional financial advisers,
financial intermediaries and product providers to deliver better
outcomes for their customers.
The SimplyBiz Group supports 3,700 intermediary firms with
regulatory and business support in addition to 1,900 customer firms
of its fintech platform, while providing essential distribution
support to over 400 financial institutions.
The Group's understanding of the changing regulatory landscape
and deep insights into the needs of customers, advisers and product
providers enables it to add unique value to the retail financial
services sector.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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