Your Industry  

SimplyBiz posts £3.2m loss after restructure

SimplyBiz posts £3.2m loss after restructure

SimplyBiz has posted a pre-tax loss of £3.2m following a restructure that saw it consolidate its loans to access financing to grow the business.

During the seven months to 31 December 2015 the company experienced “solid growth”, according to chairman Ken Davy.

The company reported a turnover of £22.7m for last seven months of 2015 compared with £26.7m for the whole of 2014.

Article continues after advert

During the whole of 2014 the Huddersfield-based company reported losses of £5.4m.

Mr Davy said SimplyBiz restructured its financing following recent acquisitions and created a new parent company: The SimplyBiz Group Ltd.

He said: “This restructure has enabled us to reward many of our long-standing staff and management team, whilst at the same time consolidating our overall financing under a single uni-tranche facility.

“This has proved to be a very successful step forward for the group and additionally the uni-tranche facility has given us access to significant further capital to expand the business as and when appropriate opportunities arise.”

Mr Davy pointed out that if the company’s earnings before interest, tax and depreciation were extrapolated over the whole of 2015 it would have been £7.6m, compared with £6.5m for 2014 and £2m for 2010.

He said: “This represents an increase in Ebitda of some 280 per cent over the past six years and 17 per cent in respect of 2014.

“I believe these are excellent results, which add to our confidence in the future for SimplyBiz.”

Extrapolated over the full 12 months of 2015, SimplyBiz would have made a loss of £10.2m, compared with £5.4m in 2014.

The company’s refinancing consisted of a £35m loan from Alcentra, which SimplyBiz said reduced the cost of its finance.

SimplyBiz's results came after rival Sesame Bankhall Group has reported a loss for the financial year ended 31 December 2015 of £11.6m.

The loss came despite Sesame's owner Aviva providing £25m of “support” in 2015 to the intermediary group (SBG) so that it could pay “any liability”.