Newly-listed SimplyBiz pleased with first half performance

11th Sep 2018 12:37

(Sharecast News) - Independent provider of compliance and business services SimplyBiz announced its unaudited results for the six months ended 30 June on Tuesday, reporting a 13.7% improvement in group revenue to £24.2m.The AIM-traded firm said adjusted EBITDA was ahead 22.0% at £5.4m, as its adjusted EBITDA margin increased to 22.2% from 20.7%.Operating profit fell to £1.2m from £3.9m year-on-year, which the board pointed out was after the inclusion of IPO-related costs of £3.6m.Adjusted profit before tax increased 60.8% to £4.5m, and adjusted profit after tax rose 61.7% to £3.6m.SimplyBiz said adjusted earnings per share increased 61.7% to 4.68p.The company's net debt swung from £1.6m at listing to net cash of £1.2m on 30 June.A maiden interim dividend of 0.98p per share for the nine months trading to 31 December - post-IPO, was declared as per the stated intention in the firm's admission document.On the operational front, the SimplyBiz board highlighted the completion of IPO on AIM, raising £30m, as well as the acquisition and integration of Landmark Surveyors in January, with subsequent achievement of cost synergies said to be in line with expectations.Member firms increased by 5.7% to 3,628, and assets under management rose 5.6% to £615m during the period.SimplyBiz said its 'Significant Distribution Channels' division made contract wins in the half, with new providers Guardian Financial Services and Vitality Invest.It also launched 'Centra', its end-to-end financial planning system, which the board said had received "high levels" of interest, with 1,635 users signed since its launch in March.The company said it remained the UK's largest support services compliance provider for intermediaries by revenue, and also noted that it won 'Best Support Services for Advisers' at the 2018 Professional Advisers Awards."We are delighted to announce our first results as a public company, following our successful AIM flotation in April," said SimplyBiz chairman Ken Davy."Our performance in the first half of 2018 has maintained our trading momentum, delivering strong top line organic and acquisition growth of over 13% and increasing our adjusted EBITDA margins to 22%."Davy said the company's IPO in April had been "very well received" by members and partners, with the firm reportedly witnessing positive commercial and reputational benefit."We continue to increase the number of members and channel partners that we serve, as well as look to pursue selective acquisitions."I would like to thank everyone in the SimplyBiz team for their dedication in delivering a successful first half of 2018."