Ken Davy, Chairman of The SimplyBiz Group, commented:
“I’m delighted to report a strong performance for 2018, in a transformational year which saw the Group’s successful admission to AIM and continued momentum in its organic and inorganic growth strategy.
“With our impressive revenue growth, well-supported by a number of structural drivers, the strength of the Group’s regulation and capital light operating model is clearly demonstrated by a significant increase in EBITDA margin.
“The continued growth in membership numbers is testament to the value of our proposition as individuals and businesses continue to adapt to an increasingly complex and highly regulated intermediary market.
“Having successfully deleveraged the business, our balance sheet strength ensures we have a strong platform from which we can take advantage of the significant market opportunities we see.”
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 audited consolidated results for the twelve months ended 31 December 2018.
Financial highlights:
· Group Revenue up 15.0% to £50.7m (FY17: £44.1m)
· Adjusted EBITDA* up 19.7% to £11.4m (FY17: £9.5m)
· Adjusted EBITDA* margin increased to 22.5% (FY17: 21.7%)
· Operating profit of £6.8m (FY17: £8.8m) after charging IPO related costs of £3.6m
· Adjusted profit after tax* increased 61.6% to £8.6m
· Adjusted earnings per share (EPS)* increased by 28.2% to 11.92p
· Net debt reduced from £1.6m at date of listing to net cash of £6.4m at 31 December 2018 (31 December 2017: net debt of £23.0m)
· Final dividend proposed of 2.05p per share, in respect of the nine months trading to 31 December, post IPO, as per the stated intention in the admission document. Total dividend of 3.03p per share
Operational highlights:
· Completion of IPO on London’s Alternative Investment Market (AIM), raising £30m for the Group
· Acquisition and integration of Landmark Surveyors Limited (January 2018)
· Important contract wins in both divisions, including UNUM and Howard Kennedy in Intermediary Services and new providers Guardian Financial Services and Vitality Invest in Distribution Channels
· Member Firms increased by 8.5% to 3,726 (31 December 2017: 3,433)
· Launch of end-to-end financial planning system, Centra; 2,300 users signed since its launch in March 2018
· Winner of Best Support Services for Advisers at 2019 Professional Advisers Awards
