eConveyancer’s “revenue and profit momentum continuing”
eConveyancer developer ULS Technology plc have recently issued a trading update for the 12 months running up to 31 March 2017.
The Group has traded well, with results for the 12-month-period predicted to be greater than market expectations. Growing by approximately 8%, revenue rose to £22.3 million, compared to 2016’s total of £20.6 million. Also increasing was adjusted profit before tax, rising by an estimated 15% to £4.4 million.
By continuing to recruit new partners as well as helping existing partners expand their own businesses, the impressive results have been made possible, despite the uncertainty in the domestic property market.
Thanks to operating activities, the Group continue to generate a strong flow of cash, with the Directors planning to carry on with the progressive payment policy over the course of the financial year. This is, however, subject to the approval of shareholders.
By forming relationships with both existing and new mortgage lenders, the Group was able to enhance its customer base, with a particular focus on improving the remortgaging and general moving process for consumers.
The Group’s portfolio was further strengthened after acquiring Conveyancing Alliance Holding Limited (CAL) during December 2016. As well as expanding market reach, the acquisition enables ULS to grow and access conveyancing in an area with promising prospects – the Estate Agency sector. Given the level of trading at CAL has marginally surpassed management expectations, the Board has been pleased with the results and that collaboration has been successful over the last three months.
Given that the Group’s order book is currently ahead of the corresponding point in 2016, the momentum reached during the last financial year is anticipated to continue into the current one. As well as this, the Group predicts that new agreements with both mortgage lenders and those within the Estate Agency sector will enable its market reach to grow even further.
The full year results of the Group are expected to be released on 27 June 2017.
Commenting on the trading update figures was Ben Thompson. The Chief Executive of ULS Technology stated: “It has been a good year for the Group, with revenue and profit momentum continuing.
“This has been especially pleasing given the various industry challenges that the 12-month period presented, most notably through the trough in market activity that followed the Buy to Let tax changes and a quieter period over the summer of 2016 following the EU Referendum result. Excluding remortgages, the volume of housing transactions in the UK market fell by 13% year-on-year while ours increased by 4% organically, testament to the compelling proposition that we provide to our partners and their customers.
“Our targeting of new conveyancing growth from mortgage lenders is bearing fruit with a number of successes in recent tender processes. I am also delighted that CAL agreed to become part of the Group, giving us the means to expand into the Estate Agency market, helping more customers to move home as seamlessly as possible.
“We look forward to the coming financial year and expect both continued organic growth and to seek further attractive complementary acquisitions.”