SimplyBiz Group plc (LON: SBIZ), the leading independent provider of compliance and business services to financial advisers and financial institutions in the UK, has today issued a pre-close trading update for the year ended 31 December 2018.
The Group has performed strongly throughout the year, with trading in line with management expectations. The period marked the Group’s successful admission to AIM in April 2018, with continuing momentum and successful execution of the Group’s organic and inorganic growth strategy.
– Strong revenue growth converted to strong adjusted EBITDA growth, above management expectations, and expansion of EBITDA margin compared to 2017
– Strong balance sheet, with net cash of £6.4m (31 December 2017: net debt of £23.0m), increased from net cash of £1.2m at 30 June 2018, reflecting strong operating performance and the beneficial impact of capital raised at IPO
– Group membership numbers increased by 8.5% to 3,726 (31 December 2017: 3,433)
– Completion and integration of Landmark Surveyors Limited, which contributed c.8% to the revenue growth in the year
– The Directors are confident in the Group’s overall performance and intend to propose a final dividend to Shareholders, in line with the policy of paying one third of adjusted post-IPO profit after tax as a dividend, as set out in the Company’s Admission Document
Matt Timmins, Joint CEO of The SimplyBiz Group plc, said:
“The Board is pleased to report another excellent year for the Group, with great financial performance and a strong year-end balance sheet, supplementing the success of the IPO and acquisition of Landmark Surveyors. One of the many positive factors of our business model is our recurring income and forward revenue visibility. This provides us with a great deal of confidence, and we enter 2019 full of optimism and in great shape for the year ahead.
“Our capital position and a highly-fragmented marketplace offer us ongoing opportunities to build out our service offering, reinforce the strength of our organic growth platform and pursue selective acquisitions.
“Our investment in new technology, including Centra, coupled with an increase in services provided, has driven continued growth in our customer base and we would like to take this opportunity to thank our Member and Client Firms for their continued support. Our customers remain at the heart of our business and they are the driving force behind everything that we achieve.”