Operational and Covid-19 Update

RNS Number : 8677K

SimplyBiz Group PLC (The)

27 April 2020

 

27 April 2020

The SimplyBiz Group plc

("SimplyBiz", the "Company" or the "Group")

Operational and Covid-19 Update

Recurring revenue and defensive qualities underpin business confidence

SimplyBiz (AIM: SBIZ), a leading independent provider of compliance, technology and business services to financial advisers and financial institutions in the UK, provides the following operational update.

Operational and Covid-19 Update

The Group has taken important steps to ensure that it is well positioned to fully support the requirements of its clients and staff. The business is delivering all services to its intermediary customers without disruption, and with training seminars being hosted through its digital platform. The majority of our colleagues have been successfully transitioned to remote working.

SimplyBiz has also launched a package of additional support which is available to every intermediary customer. This package delivers practical support and technology to enable successful remote working and it provides cash flow support with fees. The Group's intermediary customer base remains strong, and continues to grow with the recruitment of new firms.

The social distancing restrictions put in place by the UK Government have prevented the continuation of the majority of mortgage valuations, and the teams that provide these services have been placed on the UK Government's Job Protection scheme.

Management has also implemented effective short-term cost saving initiatives, including freezing pay increases and bonuses for staff and reducing Executive Directors' pay on a seamless basis.

Dividend

Following the strong financial performance in 2019, and having reviewed the Group's overall financial position, current prospects and balance sheet flexibility, the Board reconfirms its recommendation of a final dividend of 2.85 pence per share to be paid on 4th May 2020 to shareholders on the register on 20th March 2020.

The Board will not be recommending an interim dividend in respect of the current financial year and will keep the final dividend for FY20 under review, given the uncertain outlook.

Board Changes

As part of the Group's succession planning, Senior Independent Non-Executive Director, Gary Hughes, will be appointed as Deputy Chairman of the SimplyBiz Group from 27th April 2020. It is planned that Mr Hughes will be appointed as Chairman of the Group at the 2021 AGM, and current Chairman and  founder, Ken Davy, will take up the role of Deputy Chairman at that time.

As previously announced, Tim Trotter intends to retire and will step down from the Board at the AGM today and the Board is actively seeking to appoint a replacement.

Outlook

The Board is temporarily withdrawing financial guidance for the current financial year due to present external uncertainties and previous market forecasts should no longer be relied upon. The Board aims to be able to provide revised guidance as soon as practicable.

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. The Group remains well positioned to support its clients and staff for both the short and long-term.

For further information please contact:

SimplyBiz	via Instinctif Partners
Matt Timmins (Joint Chief Executive Officer)
Neil Stevens (Joint Chief Executive Officer) Gareth Hague (Group Finance Director)
Zeus Capital (Nominated Adviser and Joint Broker)	[phone]
Martin Green Andrew Jones Dan Bate
Peel Hunt (Joint Broker)	[phone]
Guy Wiehahn
Andrew Buchanan
Rishi Shah
Instinctif Partners	[phone] / [e-mail]
Catherine Wickman Lewis Hill

Notes to Editors

The SimplyBiz Group provides essential support services, software and data that enable professional financial advisers, financial intermediaries and product providers to deliver better outcomes for their customers.

The SimplyBiz Group supports 3,700 intermediary firms with regulatory and business support in addition to the 1,900 customer firms using its fintech platform while providing essential product distribution support to over 400 financial institutions.

The SimplyBiz Group's in-depth understanding of the changing regulatory landscape and deep insights into the needs of customers, advisers and product providers enable   it to add unique value to the retail financial services sector.

For more information, please visit: www.simplybizgroup.co.uk/

 

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