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SimplyBiz to float with £130m valuation

SimplyBiz to float with £130m valuation

The SimplyBiz Group plans to float on the London Stock Exchange next month in a move that will raise £30m for the support services provider.

SimplyBiz's decision to float on the Alternative Investment Market (Aim) - typically for smaller and growing companies - at a price of £1.70 a share would give the company a market capitalisation of £130m.

After the initial public offering (IPO) 49.9 per cent of shares will be in public hands.

Matt Timmins, joint chief executive of SimplyBiz, said: "Our IPO will mark the next stage in our growth story, building on our long, profitable track record.

"Our business has evolved significantly since 2002 and we are now the UK’s leading provider of compliance and business services to directly authorised financial advisers.

"Through our entrepreneurial culture and clarity of strategic vision we have become a disruptive force in financial intermediation, building a membership base of over 3,400 adviser firms and associated proprietary network of 135 financial institutions.

"Our business is underpinned by strong structural growth drivers and benefits from a highly visible earnings stream. We are well placed to deliver ongoing margin expansion and profitability and look forward to continuing to deliver for our shareholders post-IPO."

SimplyBiz said it has conditionally raised £30m before expenses from an institutional placing of more than 17m shares and it will raise £34.6m for selling shareholders through a placing of another 20m shares.

Neil Stevens, Mr Timmins's colleague as joint chief executive, said the money raised will provide "additional momentum" for the company's growth strategy and will allow it to put in place additional incentive schemes for its staff.

SimplyBiz provides compliance and regulation services for more than 3,400 directly authorised member firms which pay a monthly subscription, including 2,200 IFA firms with responsibility for an aggregated £40bn of assets under administration.

Since 2010 the company's revenues have grown 366 per cent to £44m and it posted a profit after tax of £4.8m in 2017.

The IPO is expected to take place on Wednesday 4 April.

damian.fantato@ft.com