Coronavirus  

SimplyBiz freezes salaries as bosses take pay cut

SimplyBiz freezes salaries as bosses take pay cut

Bosses at SimplyBiz have taken a pay cut as the company froze salaries and bonuses in response to the Covid-19 pandemic. 

In an operational update published this morning the business also confirmed it had placed its mortgage valuation teams on the government's furlough scheme in light of the current lockdown's impact on the mortgage market. 

This was done as part of a "short-term" cost saving plan at the listed support services firm.

Whilst the company intends to pay a dividend of 2.85p per share for the 2019 financial year, it warned in today's update that it would not be recommending an interim dividend in respect of the current financial year.

SimplyBiz said it would keep the final dividend for the 2020 financial year under review in light of the "uncertain outlook".

The company said: "The board remains confident about the group's future as the business is cash generative, is trading comfortably within bank covenants and there is no foreseeable requirement for additional external capital.

"The increased focus on helping its core intermediary customers to serve their clients remotely is expected to underpin the strong ongoing demand for the group’s services.

"Demand in the housing market is likely to remain weak on an ongoing basis and the board therefore expects that it will recover more slowly."

SimplyBiz said it remained "well positioned" to support its clients and staff and confirmed it was continuing to grow its customer base by recruiting new intermediary firms. 

Earlier this month the support provider put in place a three-month payment holiday for members in response to the global pandemic and associated lockdown. 

The company also confirmed its founder, Ken Davy, would be stepping down from his role as chairman at the annual general meeting in 2021 and take up the position of deputy chairman. 

Gary Hughes, a non-executive director at the company, has today been appointed as deputy chairman and is expected to take up the role of chairman when Mr Davy steps down next year. 

rachel.mortimer@ft.com 

What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.