SimplyBiz Group plc (LON:SBIZ), a leading independent provider of Fintech and Support Services to financial advisers and financial institutions in the UK, has issued a pre-close trading update for the twelve months ended 31st December 2020.
Highlights
· Resilient revenues – £61m (2019: £63m)
· Strong adjusted EBITDA margin* – 28.3% (2019: 28.3%)
· Robust cash flow conversion** – expected to exceed 65% (2019: 46%)
· Net debt reduced – to £19.5m (31 December 2019: £27.0m)
· Net debt to adjusted EBITDA ratio – comfortable at 1.1x (2019: 1.5x)
· Adjusted EPS – marginally above 11.0 pence per share***
Dividend
The Board intends to recommend a final dividend of no less than 2p per share.
Outlook
The Board remains confident of the resilient ongoing profitability, growth prospects and strong cash generation of its core business.
Notice of Full Year Results
The Group intends to publish its Full Year Results statement on 16th March 2021.
Matt Timmins, Joint CEO of The SimplyBiz Group plc, said:
“We are delighted to have delivered a resilient trading performance in a challenging year, demonstrating the robust nature of our core revenues and an ongoing improvement in the quality of our underlying earnings, offsetting an expected reduction of valuation income in the period.
“Throughout 2020 we have continued to accelerate our digital strategy, grown our core customer base, and delivered exciting new services which will further improve our quality of earnings, margins and cash generation in the future.”
“We are confident that the Group is in a strong position and is moving forward with agility and pace.”
* Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and operating exceptional costs.
** Free cash flow conversion is calculated as adjusted EBITDA, less working capital movements, lease payments, CAPEX, development expenditure, corporation tax paid and interest, as a percentage of Adjusted EBITDA.
*** EPS guidance provided on 23rd July 2020.
