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SimplyBiz revenues stumble in 'challenging year'

SimplyBiz revenues stumble in 'challenging year'

Revenues at SimplyBiz slipped last year amid 'challenging' conditions, but bosses at the support services provider remained optimistic about the company's future. 

In a pre-close trading statement published for 2020, SimplyBiz reported revenues of £61m — a 3 per cent drop from the £63m figure reported in the previous year. 

While marginal, the drop is a stark contrast to the 24 per cent boost in revenues the company enjoyed during 2019, when income jumped from £50.7m to £62.8m. 

This significant increase was largely driven by SimplyBiz's £74.3m acquisition of fintech business Defaqto in March 2019, which gave the business an £11.8m revenue boost. 

Despite a "challenging" 2020, Matt Timmins, joint chief executive of the SimplyBiz Group, remained optimistic for the company's future, stating it was in a strong position to move forward with "agility and pace". 

He said: "We are delighted to have delivered a resilient trading performance in a challenging year, demonstrating the robust nature of our core revenues and an ongoing improvement in the quality of our underlying earnings, offsetting an expected reduction of valuation income in the period.

"Throughout 2020 we have continued to accelerate our digital strategy, grown our core customer base, and delivered exciting new services which will further improve our quality of earnings, margins and cash generation in the future." 

SimplyBiz said it intended to recommend a final dividend of no less than 2p per share, with its full year results expected on March 16. 

rachel.mortimer@ft.com