has reported strong and resilient trading for the six months ended 30 June 2020 which the company said is demonstrative of “the robust nature” of the business.
In its half-year results, SimplyBiz said it had taken ‘strong and positive action in the first week of national lockdown to ensure it could fully support its customers and colleagues.
All services to intermediary customers were moved onto a proprietary digital platform and delivered without disruption, while decisive cost control and efficiency improvements were implemented which the group said will deliver sustained margin benefits in the future.
While the Distribution Channels division was significantly impacted by the COVID-19 restrictions, with revenues reducing by 31% to £9.2m, Fintech and Research remained the resilient segments for the Company with revenues growing 77% year on year.
The group therefore reported total revenue of £28.9m for the period, 1% lower than £29.1m recorded in the prior period.
Costs were strictly controlled during the period to deliver an operating profit increase of 56% to £5.0m (H1 2019: £3.2m, after exceptional charges of £3.0m).
Meanwhile, the group reported a robust adjusted EBITDA margin of 25.5% due to ‘continued revenue growth in higher margin sectors, rapid and decisive cost saving measures, and £0.8m received through the UK Government's assistance schemes.’
Shares in SimplyBiz have traded strongly over the past month and were trading 8.16% higher this morning at 161p following the announcement.
“The quality of our revenues, the resilience of our customers, and the benefits of a stronger digital delivery platform have enabled strong trading during challenging times,” said Matt Timmins, Joint CEO of The SimplyBiz Group.
He added, “We have responded quickly and decisively to deliver growth in key strategic areas, whilst improving the quality of our underlying earnings. We have accelerated our digital strategy. This data led, digital delivery, will further improve our quality of earnings, margins and cash generation going forward, whilst also improving customer service."
Post period end, trading has continued in line with the Board's expectations with organic growth expected to be driven by the Company's investments in digital services and technology offerings to its customers as well as increasing average revenue per customer.
The company highlighted to investors that an accelerated digital strategy ‘will deliver strong margin growth and greater cash and capital efficiency.’
The board said it remains confident of the group’s strong trading and cash generation and expects that 2020 full year adjusted earnings per share shall be no less than 11.0p.
Follow News & Updates from SimplyBiz here:
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
Pires Investments plc (AIM: PIRI), the investment company focused on next generation technology, has announced Admix has extended its Series A round to raise further $1.5 million from leading gaming investors from Zynga and Dentsu Aegis.
Britain will launch training options for adults to learn new skills in an effort to boost productivity and help the country recover from the coronavirus crisis, Boris Johnson will announce today. The unemployment rate, already at over 4%, is expected to rise further as a job subsidy scheme put in place early in the pandemic expires next month to be replaced by a scaled-back job support programme.
Concepta, the female personalised healthcare company, 1H20 Report highlighted a period of successful corporate reorganisation, recapitalisation and product and commercial development. The Company relaunched its home-use personalised fertility tracking and pregnancy self-testing system under the MYLO® brand during the period with plans on accelerating UK sales and entering new territories in 2H20 and beyond.
Salt Lake Potash FY20 results highlight the significant operational progress the Company has made during the year with a strong outlook including the fully funded commissioning of the Lake Way Project in December 2020 for first production in 2021. The Company has signed with six offtake partners during the year, accounting for 224kt per annum of Lake Way's 245kt per annum capacity.
Bahamas Petroleum, the Caribbean and Atlantic focused oil and gas company, 1H20 results highlight the significant operation progress made despite the COVID-19 pandemic. Post period end highlights include the merger with Columbus Resources and securing Stena IceMAX , a state of the art drill ship, for Perseverance #1.