ULS.L Share News (ULS)

(Sharecast News) - Conveyancing and financial intermediary platform provider ULS Technology said on Tuesday that recent trading had been buoyed by the "quicker than expected" rebound in the housing market.
The AIM-traded firm, which was holding its annual general meeting, said that rebound, first noted in late June, had endured through July, as it saw growth in instructions for purchase cases, where the company achieves higher margins.

Overall instructions for purchase cases were at or above the same period in 2019, with record weeks being set in some channels, and only the lender channel is running at "significantly below" pre-Covid levels.

"There has been a healthy take up of new products, such as 'Rapid Remortgage', while the company has also extended its relationship with Lloyds Banking Group and Openwork Conveyancing," the board said in its statement.

It also said it was continuing to roll-out its 'DigitalMove' product.

"Two conveyancing firms are now using DigitalMove for non-ULS introduced work on a regular basis, a number of integrations are in progress and the new 'Conveyancer Portal' is due to be launched next month."

ULS said it had a "robust" balance sheet, remained "highly" cash generative, and has sufficient cash reserves to allow it to continue to invest in its sales channels and product development.

Having paused its previously-announced accelerated investment plan during the lockdown period, the firm said it was now "sufficiently confident" in the future to restart that plan.

"While headwinds created by Covid-19 meant a slow start to the current period, the recent rebound as the housing market reopened and growing demand for digital solutions provides solid foundations for further growth," the board explained.

"As lenders and brokers slowly return to full strength we expect our market to strengthen further."

The company said it also remained well placed to further grow the number of intermediary advisers using its platforms, as it advanced its growing pipeline of opportunities.

"The continued focus on the development of DigitalMove and other routes to market should enable ULS to take full advantage of any prolonged upturn."

At 1124 BST, shares in ULS Technology were up 3.49% at 68.2p.