SimplyBiz has reported strong growth for 2019, helped by its acquisition of fintech business Defaqto which increased its adviser client base to 5,800.
In a pre-close trading statement for the year ended December 31, 2019, published today (January 28), the compliance and business support company reported a 24 per cent increase in revenues and a 50 per cent growth in earnings before interest, tax, depreciation and amortisation.
It reported the integration of Defaqto had been successfully completed and the enlarged group now served more than 5,800 intermediary firms and about 350 financial institutions.
According to the trading update, this significantly increased the scale of the group.
SimplyBiz bought Defaqto, a financial services tech business and fintech platform, for £74.3m in March last year and has since reported rising revenues and growth in earnings.
It 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 £27m, adding that its cash generative model had enabled the group to repay £7m of debt in the post-acquisition period.
Matt Timmins, joint chief executive of The SimplyBiz Group, said: "We are delighted to have successfully completed the acquisition and integration of Defaqto and welcome these new colleagues into the SimplyBiz Group.
“The acquisition significantly expands our customer base and breadth of proposition, whilst enhancing the group's strong and sustainable profit margins.”
Mr Timmins said trading in the group had continued in line with management’s expectations and that the board intended to propose a final dividend to shareholders in line with the stated dividend policy.
He added: "The group's consistent and recurring income model, and strong forward revenue visibility, continues to provide the board with confidence and optimism as we enter 2020."
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