SimplyBiz reports growth following IPO

SimplyBiz reports growth following IPO

SimplyBiz has reported an increase in revenue and growing membership numbers against the backdrop of a "successful" launch to the stock exchange last year.

In a trading update for year ending December 31, 2018, the compliance and business support company stated membership numbers grew by 8.5 per cent to 3,726 last year, up from 3,433 in December 2017, and 26 firms more than forecast.

Its net cash balance grew from £1.2m in June 2018 to £6.4m at the end of last year. 

This compared to a net debt of £23m in December 2017, with SimplyBiz attributing the growth to the "beneficial impact" of the initial public offering last April, which raised £30m for the company.

The integration of chartered surveyors Landmark Surveyors Limited also contributed 8 per cent to its revenue growth for the year.

Simplybiz had seen its profits hit by the £3.6m cost of floating on the London Stock Exchange, however. Figures out last September showed an operating profit of £1.2m for the six months to the end of June 2018, down from £3.9m for the same period last year.

Matt Timmins, joint chief executive of The SimplyBiz Group plc, said: "One of the many positive factors of our business model is our recurring income and forward revenue visibility.

"This provides us with a great deal of confidence, and we enter 2019 full of optimism and in great shape for the year ahead."

Mr Timmins added: "Our capital position and a highly-fragmented marketplace offer us ongoing opportunities to build out our service offering, reinforce the strength of our organic growth platform and pursue selective acquisitions."