SimplyBiz revenues up 20% after fintech buyout

SimplyBiz revenues up 20% after fintech buyout

SimplyBiz has attributed its rising revenues to the company's acquisition of fintech business Defaqto earlier in the year. 

In a trading update for the six months ending June 30, 2019, published this morning (July 25) the compliance and business support company reported a 20 per cent increase in revenues and a 30 per cent growth in earnings before interest, tax, depreciation and amortisation. 

SimplyBiz said the growth followed the £74.3m acquisition of Defaqto in March, with the fintech firm's integration increasing the group's scale to serve more than 6,000 intermediaries and 350 financial institutions. 

SimplyBiz funded the Defaqto acquisition through a debt and equity raise, including a primary placing of new ordinary shares to raise £13.8m and a vendor placing to the value of £15.3m.   

Today the company reported its group net debt remained in line with expectations at £30.1m after a scheduled dividend payment of £1.6m in April. 

Matt Timmins, joint chief executive of the SimplyBiz Group, said: "We are delighted to have completed the acquisition of Defaqto in March 2019 and welcome their directors and staff into The SimplyBiz Group.

"The integration of the business is progressing well and in line with management expectations. As well as delivering the acquisition, we have continued to grow the organic revenues and adjusted EBITDA of the group."

In January the company reported growing membership numbers and revenue against the backdrop of its "successful" launch to the stock market last year, but in March warned its pre-tax profits had dipped slightly. 

SimplyBiz intends to publish its half-year results on September 10, 2019. 

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