SimplyBiz, Ken Davy, Chairman, commented:
“We are delighted to announce our first results as a public company, following our successful AIM flotation in April. 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%.
“Our IPO in April 2018 has been very well received by our members and partners, and we have already witnessed 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.”
SimplyBiz Group Plc (LON: SBIZ), the leading independent provider of compliance and business services to financial advisers and financial institutions in the UK, today announced its unaudited results for the six months ended 30 June 2018.
Financial highlights:
· Group Revenue up 13.7% to £24.2m (H1 2017: £21.3m)
· Adjusted EBITDA* up 22.0% to £5.4m (H1 2017: £4.4m)
· Adjusted EBITDA* margin increased to 22.2% from 20.7%
· Operating profit of £1.2m (H1 2017: £3.9m) after inclusion of IPO related costs of £3.6m
· Adjusted profit before tax* increased 60.8% to £4.5m
· Adjusted profit after tax* increased 61.7% to £3.6m
· Adjusted earnings per share (EPS)* increased by 61.7% to 4.68p
· Net debt reduced from £1.6m at date of listing to net cash of £1.2m at 30 June 2018 (30 June 2017: net debt of £24.7m, 31 December 2017: net debt of £23.0m)
· Maiden interim dividend of 0.98p per share, in respect of the nine months trading to 31 December, post IPO, as per the stated intention in the admission document
Operational highlights:
· Completion of IPO on London’s Alternative Investment Market (AIM), raising £30m for the Group
· Acquisition and integration of Landmark Surveyors Limited (acquired in January 2018), and subsequent achievement of cost synergies in line with expectation
· Member Firms increased by 5.7% to 3,628 (31 December 2017: 3,433, 30 June 2017: 3,367)
· Assets under management (AUM) increased by 5.6% to £615m (31 December 2017: £582m)
· Significant Distribution Channels division contract wins with new providers Guardian Financial Services and Vitality Invest
· Launch of Centra, our end to end financial planning system, which has received high levels of interest; 1,635 users signed since its launch in March 2018
· Remains the UK’s largest support services compliance provider for intermediaries (by revenue)
· Winner of Best Support Services for Advisers at 2018 Professional Advisers Awards