SimplyBiz shares fall 8% after trading update

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.”

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.