Shares of Huddersfield-based SimplyBiz, a provider of compliance and business services to financial advisers and institutions, fell about 8% on Wednesday afternoon after the firm hosted a virtual capital markets briefing for investors that included a trading update for 2020.

Earlier, SimplyBiz said in a stock exchange statement: “The briefing will indicate that SimplyBiz is looking to deliver organic growth from its core business over the next two to three years in the following ranges:

•     Revenue growth – between 5% – 7% per annum

•     EBITDA margin – between 35% – 40%

•     Cash flow conversion – between 70% – 80%

•     SaaS and subscription revenues – between 70% – 80% of revenues

“The group will also provide the following trading update for 2020:

•      The board reaffirms, and is confident, that its adjusted EPS will be no less than 11.0p

•      The board is confident that Defaqto will deliver double-digit EBITDA growth in 2020

•      The board announces its intention to propose a final dividend for FY20 of 2.0p per share.”

Matt Timmins, Joint CEO of The SimplyBiz Group plc, said: “As we complete a year of digital acceleration we are pleased to be providing the capital markets with an update on the significant strategic progress we are making at SimplyBiz, as well as a trading update as we approach our financial year-end.

“We have an exciting strategy for growth built on firm strategic foundations, and our strong finish to 2020 sets us up well for the year ahead.”